SEC Say Hello to the U.S. Justice Department

by Ken Kappel on April 10, 2012

Hey folks − yeah you — over to the SEC − we’d like to introduce you to one another.

“SEC this is Justice. Justice this is SEC.”

See − the SEC is giving a nice white wash to clear and intentional fraud by scumbag Banksters. You know − the SEC just don’t do criminal − after all − the top folks on  the SEC team are made up largely of former Wall Street Banksters (looking to go back to the Street — after they’ve served for a couple of year); and, also, a lot of lower level SEC folks who want to become Wall Street Banksters, after a couple years of making their bones hired out over to the SEC. See, what the American People need is for the SEC to make criminal referrals over to the U.S. Justice Department. Whoops. We forgot. The Young President’s Justice Department doesn’t do criminal either. Well, not against Banksters — not against Financial Predators. Jeeessh. How we going to receive any justice around here. Well, underwater homeowners will have to take action themselves – for themselves − moreover, for family and home.

In order to educate underwater homeowners and folks with foreclosure issues regarding breaking news related to foreclosure, which also give information to assist underwater homeowners in Confronting Fraudulent Housing Debt; we often carry short data driven articles from DSNews. Esther Cho, wrote the article below. You can read her entire article below, or at her web: “SEC Charges Former CEO and CFO of Franklin for Loan Mod Schemes.” The link is live. To the article.

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“The Securities and Exchange Commission (SEC) filed a complaint against former executives of Franklin Bank for using loan modification programs to cover up its non-performing loans.”

“Franklin CEO Anthony J. Nocella and CFO J. Russell McCann applied loan modification programs during the third and fourth quarters of 2007, masking how many of Franklin’s loans were actually non-performing and artificially boosting its net income and earnings, the SEC announced Friday in a statement.”

“According to the SEC’s complaint filed in U.S. District Court for the Southern District of Texas late Thursday, as Franklin’s holdings of delinquent and non-performing loans rose significantly in the summer of 2007, Nocella and McCann used three loan modification schemes to classify non-performing loans as performing. ”

“By the end of September 2007, the two executives hid more than $11 million in non-performing single family residential loans and $13.5 million in non-performing residential construction loans. ”

“As a result of the loan modifications, Franklin overstated its third-quarter 2007 net income and earnings by 317 percent and 77 percent respectively, and reported that it earned $0.30 per share, of which $0.23 per share was directly attributable to the loan modifications. ”

“On May 2, 2008, in a Form 8-K report filed with the SEC, Franklin acknowledged that the accounting for the loan modifications should under go revisions and Franklin’s Form 10-Q for the quarter ended September 30, 2007 was not reliable for investors, according to the SEC statement. ”

“The Houston-based bank declared bankruptcy in 2008 and was taken over by Prosperity Bank. ”

“Nocella and McCann used the loan modification scheme like a magic wand to change non-performing loans into performing assets,” said Robert Khuzami, director of the SEC’s Division of Enforcement. “Their disclosure and accounting tricks misled investors into believing that Franklin was outperforming other banks during the height of the financial crisis.”

“The SEC’s complaint seeks financial penalties and the repayment of bonuses since the bank had to restate its earnings. The SEC also seeks officer-and-director bars and permanent injunctive relief against the two executives.”

Ken here. Is that criminal charges? Could the U.S. Justice Department bring criminal charges? You bet. Will they? Not so long as the Young President is controlled by Wall Street Banksters. Whadda game. Up to us to change the rules, one family — one home loan — at a time. There will be no help from a complicit Congress.

 

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