-------- Original
Message --------
| Subject: |
ACORN
Links Predatory Lending & OTC Derivatives Fraud |
| Date: |
Wed,
12 Aug 2009 08:11:09 -0700 |
| From: |
"Stephen
M. Apatow" <s.m.apatow@humanitarian.net> |
| To: |
Pascal.Lamy@wto.org,
hri@int-bar.org |
Dear Colleagues,
I would like to thank all participants in recent discussions for the excellent
feedback, investigative media reports and legal work being set forth to (1)
stabilize the global financial system and (2) facilitate recovery for the
victims of financial crimes. This nightmare that began close to two
years ago, with the collapse of the U.S. housing market, was forced into
the hands of the new U.S. administration and world leaders, providing the
world with a view of Economic Crimes Against Humanity (Businessweek).
Yesterday, with the testimony of Dipascali (NYT), we began to get a glimpse of the scope
of the Madoff operations that spanned decades, most importantly fraud associated
with the OTC derivatives market and shadow banking system. This
opens the door now for a full scale legal investigation of all unregulated
OTC derivatives transactions at all non-bank financial institutions during
this time period:
In September 2008, JPMorgan Chase quietly liquidated its entire
$250 million position in the Sentry Fund, even though it remained liable
on the derivatives it had sold to the wealthy clients. At the time, the
Fairfield Sentry investment notes were showing a 5% gain for the year. The
bank had concluded Madoff was a phony, and the only way to protect itself
was to liquidate anything connected with Madoff. --
OTC Derivatives
Fraud: ACORN Funder JPMorgan Chase Doesn't Look Good in New Madoff Book: National
Legal & Policy Center.
The NLPC article also opened the door for discussion regarding ACORN's
360 organizations, structured to escape accountability, a network far more
complicated than anything Madoff ever constructed. This includes Fannie
Mae and Freddie Mac's role in predatory lending, mortgage, appraisal fraud
and substance the underlying asset of the OTC derivatives instrument.
Again, I emphasize the need for full legal investigation of every derivatives
transaction (interrelationship), at every financial institution involved
in these unregulated activities for the period of time outlined by the Dipascali
disclosures. This will provide us with a substantive starting point
for identification and then clearing of all criminal fraud based OTC derivatives
instruments from global financial system, in conjunction with actions to
address the hyperinaflationary damage to good and services, that has devastated
UN member countries.
Looking forward to feedback....
Stephen M. Apatow
----------------------------------------
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