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Showing posts with label financial accountability. Show all posts
Showing posts with label financial accountability. Show all posts

22 September 2011

Stand With the Progressive Change Campaign Committee Against Wall Street Immunity 22SEP11

IF the banks hadn't done anything wrong they wouldn't be seeking immunity.....join this petition campaign calling on the states not to give them immunity for the economic crimes they have committed against the nation....






Progressive Change Campaign Committee


Join Jack Conway and hold Wall Street accountable.
https://s3.amazonaws.com/s3.boldprogressives.org/images/ConwayFight.jpg
Click here to sign the statement.
 
Hi, this is Kentucky Attorney General Jack Conway. I wanted to make sure you heard about an important issue.
The same Wall Street banks whose irresponsible actions led to our nation's economic collapse are now pressuring all 50 states to give them legal immunity. The banks want to block any criminal or civil accountability for actions that have yet to be investigated.
Attorneys General from Delaware, Minnesota, Nevada and New York have been fighting back. Today, I want to make a clear statement in support of Wall Street accountability and against immunity for banks -- and I ask you to join me on this statement:
"Today's economic crisis was caused by Wall Street acting improperly. Every American has paid the price -- with families losing their homes, investors losing their money, and many Americans losing their jobs. There should be absolutely no criminal or civil immunity given to banks for activity that has not yet been investigated." 
Frankly, all elected leaders owe it to their constituents to take this position. If we speak up together, more and more of them will. Sign here.
Today, by adding my voice to this issue, along with the Progressive Change Campaign Committee, we are adding momentum to the fight for Wall Street accountability.
These next couple weeks are critical. Key meetings and discussions will determine if Wall Street banks get immunity -- regardless of what they may or may not have done.
Together, we can hold Wall Street accountable to Main Street. Thanks for being a bold progressive.
-- Kentucky Attorney General Jack Conway


Named The Nation's "Most Valuable Online Activism of 2010"—thanks to you. Help us continue our effective, independent progressive activism. Chip in here.




Paid for by the Progressive Change Campaign Committee PAC (www.BoldProgressives.org) and not authorized by any candidate or candidate's committee. Contributions to the PCCC are not deductible as charitable contributions for federal income tax purposes.

08 March 2011

How to Put Wall Street CEOs in Prison from MOJO 8MAR11

BOHICA AMERICA! democrats, republicans and tea-baggers along with wall street and the banks are tag-teaming all of us.......
“Forgive me,’’ director Charles Ferguson said in receiving an Academy Award for his documentary Inside Job, "I must start by pointing out that three years after a horrific financial crisis caused by fraud, not a single financial executive has gone to jail — and that’s wrong.''
In New York, Tuesday marked the beginning of the long awaited trial of hedge fund manager Raj Rajaratnam, who ran the $7 billion Galleon Group and whose personal wealth is estimated at $1.3 billion. He is being prosecuted by the SEC for insider trade deals. Rajaratnam is said to have made $45 million in illegal profits. He has denied the charges and is free on $100 million bond. If he is convicted he could go to prison for as long as 20 years. The SEC historically has been such a handmaiden of the finance business that it's hard to imagine anything serious coming out of its prosecutions, but one never knows.
Whatever happens to Rajaratnam, it  would be simple enough to prosecute many of the high rollers on first civil, then criminal charges, fining them millions of dollars and taking them out of circulation for up to 20 years.
"Contrary to prevailing propaganda, there is a fairly straightforward case that could be launched against the CEOs and CFOs of pretty much every US bank with major trading operation," writes Yves Smith in her popular Naked Capitalism blog. "I'll call them 'dealer banks' or 'Wall Street firms' to distinguish them from very big but largely traditional commercial banks.’’ She proceeds to lay out the case, the key points of which I have excerpted below:
Since Sarbanes Oxley became law in 2002, Sections 302, 404, and 906 of that act have required these executives to establish and maintain adequate systems of internal control within their companies. In addition, they must regularly test such controls to see that they are adequate and report their findings to shareholders (through SEC reports on Form 10-Q and 10-K) and their independent accountants. “Knowingly” making false section 906 certifications is subject to fines of up to $1 million and imprisonment of up to ten years; “willful” violators face fines of up to $5 million and jail time of up to 20 years.
The officers in question must certify that, among other things, they "are responsible for establishing and maintaining internal controls" and making sure everyone concerned knows about them--and beyond that, for taking steps to have these controls evaluated and reported. Smith continues:
It’s almost certain that you can’t have an adequate system of internal controls if you all of a sudden drop multi-billion dollar loss bombs on investors out of nowhere. Banks are not supposed to gamble with depositors’ and investors’ money like an out-of-luck punter at a racetrack.
Readers may have better suggestions of where to start, but I’d target Lehman. First, it already has a smoking gun: a May 2008 letter written by former senior vice president Michael Lee to senior management, including the CFO Erin Callan. It describes numerous accounting shortcomings, none of which look to be new and many of which look to be Sarbanes Oxley violations. Second, its derivatives books were by all accounts an utter disaster at the time of its collapse: multiple non-intergrated systems, to the point where the bank did not even have a good tally of how many positions it had…
  Naked Capitalism concludes:
Will any of this happen? Of course not. The decision was made at the time of the TARP, and reaffirmed early in the Obama administration when there was serious talk of resolving Citigroup and Bank of America, that no one at the helm of the senior banks would be subject to serious scrutiny, much the less actually expected to be held accountable for actions that wrecked the economy and have imposed serious costs on ordinary Americans. The case we described above is relatively simple to explain to a jury and has the advantage of being the sort where the plaintiffs could build on their experience in one action in subsequent cases.
But that sort of truth, that most, probably all, of the major Wall Street banks were engaged in the same sort of misconduct and the violations extended to the very top of the firms, would expose numerous other parties as complicit. So we’ll permit the cancer in our society to metastasize rather than threaten the power structure. But at least we citizens can make it clear, even if we cannot change the outcome, that we are not buying the canard that nothing can be done to fight this disease.
In other words, the power structure forges ahead, while the poor and middle classes will pay for their own screwing with reduced social security, medical care, and social welfare services of all sorts. All this is being arranged by both Democrats and Republicans, in response to a recession that will only serve to deepen the already enormous divide between rich and poor in American society.
James Ridgeway is a senior correspondent at Mother Jones. For more of his stories, click here. Get James Ridgeway's RSS feed.

03 March 2011

Tea Party Patriots Investigated: The Tax-Dodging Treasurer 16FEB11

WEEEEEEEEEEELLLLLLLLLLLLLL, ISN'T THIS SPECIAL!?!??!? THE tea-baggers who rant and rave about financial accountability and transparency in government and business have lee martin (husband of tea party patriot co-founder jenny beth martin) handling their finances while he still owes the government hundreds of thousands in back taxes AND while he refuses to file any returns for the organization or open their books to see who gives and who gets all their money......From Mother Jones.....
Why'd the group put a failed businessman who owes big money to the IRS in charge of its finances?
The finances of the nation's largest tea party group have increasingly become a subject of concern—and outrage—to conservative activists. Some question whether donations to the organization, Tea Party Patriots, have gone to advance the movement, or just the careers and jet-setting lifestyles of its leaders. What they don't know is that the group has had a man with an unusual background managing its money: He was sanctioned by the IRS several years ago for failing to pay hundreds of thousands of dollars in payroll taxes related to a failed business that pushed him into bankruptcy. He also happens to be married to one of the group's leaders.
For a group that has demanded financial accountability and transparency from the Obama administration, Tea Party Patriots (TPP) has not embraced those principles in its own business affairs. It has been highly secretive about its finances, and the organization's leaders have dealt harshly with activists and employees who've pressed for answers on how donor money has been spent.
Meanwhile, the group has failed to file a timely tax return indicating how much money it has raised and what, generally, it spent it on—including how much it's paying its top staffers. And despite identifying itself for nearly two years as a tax-exempt nonprofit organization, the group has neglected to actually apply to the IRS for such status.
"I couldn't get paid without contacting Lee Martin."
Former TPP insiders say the organization's finances have largely been managed by Lee Martin, who's identified in some corporate filings as the group's assistant treasurer. He's better known to tea partiers as the husband of Jenny Beth Martin, a cofounder of TPP and one of the faces of the tea party movement.
Unknown to all but a few tea partiers who have knowledge of TPP's internal dynamics, Martin has taken a wide-ranging role in the organization, managing a range of payroll and personnel issues. Former employees describe him as a financial gatekeeper of sorts. "I couldn't get paid without contacting Lee Martin," says Scott Boston, who worked for several months as the group's national education coordinator before he was let go last fall.
Ex-TPP insiders familiar with Martin's role at TPP say having him handle the group's bills poses a conflict of interest. They also question the wisdom of placing a person with a dubious financial track record in charge of managing the group's donated money—which, since the group's founding in 2009, has totaled in the millions. Much of it arrives via small online contributions that can create a bookkeeping nightmare.
While Lee Martin does have experience running a business, things did not end well for his company. For about eight years, Martin owned a Georgia temp company called Indwell, which supplied non-English speaking temporary workers to local businesses. The company went belly up in 2007, and Martin has blamed a former business partner for contributing to its demise. But while running the company on his own, Martin failed to pay hundreds of thousands of dollars in payroll taxes.
By 2008, the company's collapse had forced the Martins to file for bankruptcy. At the time, they were more than $1.4 million in debt. Of that, they owed $510,000 to the IRS and more than $172,000 to Georgia's tax authorities. The Martins eventually lost their home and twin Lincoln Navigators. Before the tea party movement came along in early 2009, Jenny Beth was working as a maid and Lee was fixing computers to make ends meet.
"I think it's a huge conflict of interest to be handling all that money when you're in such dire straits." 
While Jenny Beth took a high-profile role in promoting the tea party movement—Time named her one of the 100 most influential people in the world last year—Lee Martin worked behind the scenes for the organization his wife helped found. Martin admits that he has done a lot of "back office" and administrative work for TPP, but downplays his role within the organization. "I'm taking care of our 7-year-old twins while my wife runs around the country doing tea party stuff," he says. He portrays himself as more paper push than treasurer, noting that he doesn't sign any checks or make payments. He does confirm, however, that "if people want to get paid, the bill goes through me for administrative purposes."
Lee Martin—who says he is not paid for his TPP work—doesn't just handle money matters. He's also taken on the role of a de facto human resources manager, as well. When TPP fired its chief technology officer, Rob Gaudet, in October, it was Martin who wrote to him offering a sizable payout to sign a nondisclosure agreement. "I can authorize $13,000 right away in exchange for an agreement that basically says we will part on good terms, support a smooth transition, and refrain from making negative comments about each other," Martin wrote in an instant message. Eventually, TPP offered him $20,000, Gaudet says, but he declined to sign the agreement.
Why did Martin get involved in this matter? "I used to work in the human resources industry," he explains. "My history in that gave me knowledge the group found useful."
Some tea party insiders, however, see Martin's work for the group as an indication that it's relying on nepotism rather than good management to run its affairs. In part, that's because Lee Martin isn't the only relative of Jenny Beth who's involved in running TPP. Her cousin, Kevin Mooneyhan, is a paid TPP employee.
Lee Martin says Mooneyhan, once the operations coordinator for his defunct temp firm, is his wife's right-hand man, and insists there is nothing improper about his hiring. "It didn't have anything to do with the fact that he was a cousin," he says. "I think [Jenny Beth] has about 30 cousins, he's the only one [working there], and it's strictly because of his qualifications and not because he's a relative."
Martin blames criticisms of him and TPP's leadership on disgruntled employees and activists. "We've got a few people who along the way just did not work out as team members," he says. "They're not happy about having to be separated from the group." This sentiment is shared by some TPP loyalists. "Those speaking out against them, they are just sour grapes," says Anthony Shreeve, a Tennessee state coordinator for TPP.
But Laura Boatright, a onetime TPP regional coordinator in southern California, says activists have good reason for concern about Lee Martin's role in the group. She points in particular to the Martins' fragile financial condition. "I think they should be worried, not only because of his prior record dealing with finances and having a very successful business that went under, but I think it's a huge conflict of interest to be handling all that money when you're in such dire straits."
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Stephanie Mencimer is a staff reporter in Mother Jones' Washington bureau. For more of her stories, click here. You can also follow her on twitter. Get Stephanie Mencimer's RSS feed.