Stimulus? Job growth? Recovery? The fact is we are bloating government even more with do nothing positions,  at the expense of private sector aide and stimulus: “The number of federal employees making over $100,000 per year has exploded in the first 18 months of the recession, USA Today reports, sending the total percentage from 14 percent to 19 percent. The highest-paid federal workers are seeing the largest increases: In the same period, the number of civil servants making over $150,000 jumped from 1,868 to 10,100. When the recession began, only one person at the Department of Transportation was making over $170,000. Eighteen months later, 1,690 employees do.”

Congress fails to continue to grasp a simple fact:
Democratic Republics in a free market capitalism economic system CANNOT create wealth or jobs. They can only redistribute it, which is occurring now. OR Congress is smart and taking advantage (as Rahm Emmanuel so succinctly reminded us ) of a crisis to redistribute that wealth, with an underlying disdain for capitalism. Either way, the people of this country will not stand for a Congress or an Administration that does not represent the values of the majority. (NOT the minority of citizens)

So, they either change the current policies before November or get ready for a huge ruling party turnover. And, I’m sure that 2012 is very much up in the air for the Presidency, unless Obama learns (as Clinton and other have) to govern from the center, which is where the voters are…
If not, well…Hillary and Bill will be picking out new china for the White House in 2012.

Democratic fundraiser with links to Obama is charged in pyramid scheme
The Associated Press
updated 10:03 a.m. ET, Tues., Sept . 22, 2009

NEW YORK – Federal prosecutors have charged a wealthy fundraiser for Hillary Rodham Clinton and other top Democrats in an alleged $292 million pyramid scheme that spanned more than a decade, saying he used some of the proceeds to support election campaigns.  In an indictment returned Monday in U.S. District Court in Manhattan, Iranian-born Hassan Nemazee is charged with bank fraud and aggravated identity theft.  “For more than 10 years, Hassan Nemazee projected the illusion of wealth, stealing more than $290 million so that he could lead a lavish lifestyle and play the part of heavyweight political fundraiser,” U.S. Attorney Preet Bharara said in a statement. “Today’s indictment exposes the sheer brazenness of Nemazee’s schemes and marks the end of his decade of deception.”  He used some of the proceeds of the fraud to make donations to the election campaigns of federal, state and local candidates as well as to political action committees and charities, prosecutors said. They didn’t name the candidates or groups. Nemazee’s lawyer did not immediately return a call for comment Monday.

The indictment boosts the allegations against the 59-year-old Manhattan resident, who was arrested in August on charges that he used forged documents to obtain a $74 million loan. Prosecutors now allege that he fraudulently obtained loans worth hundreds of millions of dollars from three banks between 1998 and this year. They said he used fake documents and signatures to show the banks that he had hundreds of millions of dollars worth of collateral. Maserati sports car Prosecutors said Nemazee also used some of the money to buy property in Italy and to make monthly maintenance payments on properties in Manhattan and Katonah, New York.

The government is seeking $292 million in forfeitures against Nemazee, including his interest in five properties, 16 corporate entities and a hedge fund, 14 securities accounts, 32 bank accounts, a 2008 Maserati Quattroporte automobile and a 2007 Cessna aircraft.  Nemazee served as national finance chairman for Clinton’s 2008 presidential campaign and later raised money for President Barack Obama after her primary defeat. He also was Sen. John Kerry’s finance chairman in New York for his 2004 bid for president.

Nemazee is under house arrest as part of a $25 million bail agreement. If convicted, he could face 30 years in prison on each of three counts of bank fraud and a mandatory two-year prison term on the aggravated identity theft charge.

By Bret Jacobson On September 14, 2009

Until last Thursday, many Americans assumed ACORN’s massive tax windfall was just a way to funnel taxpayer money to a radical organization. That was before the shocking video revelation that ACORN Housing staff — funded by millions of dollars of the public’s money — is willing to offer their “counseling services” to would-be operators of child prostitute rings. Clearly, it’s time to take a closer look at how taxpayer money drives the ACORN empire.

The Public Trough

Until recently, few knew much about ACORN or the reach of its 300-plus organizations with a hundred-million-dollar budget. The main financial sustenance for the behemoth comes from unions (which outsource dirty work, strategy, and anti-corporate attacks to the group), powerful and politically minded non-profit foundations, political campaigns (including $800,000 from then-Senator Barack Obama’s presidential campaign in 2008 and taxpayer money.

That public trough has been open to those who seem to feel they are more equal than others. The Washington Examiner investigated and found out that “at least $53 million in federal funds have gone to ACORN activists since 1994.”

A large chunk of that money flows from the federal government to the ACORN Housing Corporation (AHC). On the group’s IRS filings for the fiscal year ending in June 2007, AHC reported taking in more than $2.8 million in that year alone — accounting for approximately 30 percent of that year’s budget. A 2008 report from the Consumers Rights League found that from 2004 through 2006, government funds accounted for 40 percent of the group’s $18.3 million in revenue.

(more…)

Law Firm Co-Founder Melvyn Weiss Must Pay $10M, Could Face 33 Months In Prison

Melvyn Weiss, the co-founder of a prominent New York law firm, pleaded guilty Wednesday to a racketeering conspiracy charge in a kickback scheme involving some of the largest corporations in the nation.  The 72-year-old Weiss entered his plea under a previously announced agreement with prosecutors. He has been ordered to pay nearly $10 million in fines and forfeiture penalties, and could be sentenced to up to 33 months in prison at a later hearing.  Asked by U.S. District Judge John F. Walter if he was pleading guilty, Weiss said, “Yes I am.”
“I take responsibility for everything,” said Weiss, who wore a navy pinstriped suit. “My direct participation differed as to each” incident.
Federal prosecutors have said they will ask Walter to impose the full 33-month term.

Attorney Benjamin Brafman, who represents Weiss, said he was hopeful the court would consider during sentencing that Weiss had acknowledged the criminal conduct and remained “one of the true legal giants of his generation.” Prosecutors have said the Milberg Weiss firm made an estimated $250 million over two decades by filing legal actions on behalf of professional plaintiffs who received $11.3 million in kickbacks.  The firm dominated the industry in securities class-action lawsuits, which involve shareholders who claim they suffered losses because executives misled them about a company’s financial condition. The kickback scheme allowed the firm’s attorneys to be among the first to file litigation and secure the lucrative position as lead plaintiffs’ counsel, according to court documents. The firm’s lawsuits targeted companies such as AT&T Inc., Lucent, WorldCom, Microsoft Corp. and Prudential Insurance. Prosecutors said Seymour Lazar, 80, was paid about $2.6 million to be a professional plaintiff and help the law firm, previously known as Milberg Weiss Bershad & Schulman, in its pursuit of the lawsuits.
The retired attorney was ordered to spend six months in home detention and two years probation. He also was fined $600,000 after pleading guilty to obstruction of justice, subscribing to a false tax return and making a false declaration to the court.
The seven-year investigation also resulted in guilty pleas by three of Weiss’ former partners.
William Lerach, whose high-profile legal victories included a $7 billion judgment against now-defunct energy company Enron Corp., pleaded guilty to one count of conspiracy to obstruct justice and make false statements. He was sentenced to two years in federal prison.
Steven Schulman pleaded guilty to a racketeering conspiracy charge. He agreed to forfeit $1.85 million to the government and to pay a $250,000 fine. Former partner David Bershad pleaded guilty to conspiracy and agreed to cooperate with the government. Schulman and Bershad are scheduled to be sentenced later this year. With Weiss’ guilty plea, there are two defendants remaining in the case — the firm itself and attorney Paul T. Selzer. Trials for those defendants are scheduled in August.

Ex-Pa. senator convicted of 137 corruption counts

PHILADELPHIA  – Vincent Fumo, once one of the most powerful figures in Pennsylvania politics, was convicted Monday of more than 130 counts of corruption for schemes that defrauded the state Senate and others of more than $3.5 million and allowed him to live a lavish lifestyle.
The 65-year-old former state senator was found guilty of all 137 counts against him, which also included obstruction of justice for destroying e-mail evidence. The jury deliberated about the Philadelphia Democrat’s fate for about six days after a five-month trial.

NEWARK, N.J. – The mayors of two New Jersey cities and a state legislator were arrested Thursday in connection with a major corruption and international money-laundering conspiracy probe. Some of the suspects were also allegedly involved in an illegal human organ-selling ring. Among the approximately 30 people arrested were Hoboken Mayor Peter Cammarano, who took office 23 days ago, Secaucus Mayor Dennis Elwell, state Assemblyman Daniel Van Pelt and Jersey City Deputy Mayor Leona Beldini, according to the U.S. Attorney’s Office in Newark.

An FBI spokesman told NBC affiliate WNBC that the investigation involved a “high-volume international money-laundering conspiracy.” WNBC reported that some of the suspects also were accused of accepting cash payments that were taken to help find organs for sick patients in need of transplants. It was unclear where the body parts might have come from or how many surgeries may have been done. Several rabbis in New York and New Jersey were also taken into custody, federal prosecutors said. Cars were backed up four deep with suspects outside the FBI’s Newark office.

FBI and IRS agents were making the roundups in what is being described as one of the biggest investigations of its kind in state history, according to WNBC. The probe is said to have been launched when money transfers drew the interests of federal investigators. The Newark-based Star-Ledger newspaper reported that federal investigators removed at least three boxes of evidence from a Jewish school. A synagogue in Deal, N.J., was also searched. Newark Mayor Cory Booker, who has fought corruption in New Jersey’ largest city, says it’s “an unbelievable morning so far.” A news conference is scheduled for noon at the U.S. attorney’s office in Newark.

In recent years, New Jersey has seen more than 130 corruption-related convictions of public officials. Earlier this month, prosecutors alleged that Assemblyman Joseph Vas, a former Perth Amboy mayor, engaged in a scheme with a political adviser to funnel money through people who were given funds to make contributions. Vas had previously been accused of using his political influence to further a real estate deal that netted him nearly $300,000.

WASHINGTON — Steven Rattner, head of the Obama administration’s auto task force, is leaving that post and will be replaced by former steelworkers official Ron Bloom. The administration said Monday that Rattner decided to return to private life and his family in New York City. Rattner won praise for the job he did managing the massive restructuring of General Motors and Chrysler. But his government service came under a cloud with an investigation of an influence peddling scandal back in New York.  Authorities have said that Rattner, an investment banker, was unlikely to face charges in the investigation which involved a giant state pension fund that provides retirement benefits for more than 1 million government employees.

In a statement, Treasury Secretary Timothy Geithner praised Rattner’s work on the auto industry overhaul. “We are extremely grateful to Steve for his efforts in helping strengthen GM and Chrysler, recapitalize GMAC and support the American auto industry,” Geithner said. “I hope that he takes another opportunity to bring his unique skills to government service in the future.”

Rattner will be replaced by Bloom. He assumes leadership of the task force’s activities as the government transitions from day-to-day restructuring to “protecting the substantial investment the American taxpayers have made in GM, Chrysler and GMAC,” Geithner said.