FBI investigates another alleged ‘Ponzi-style’ scheme: Thousands in US, Canada ‘financially destroyed’

Federal prosecutors and FBI agents in South Florida are investigating allegations of yet another massive investment fraud in which thousands of investors across the United States and Canada are said to have lost $170 million.

The investigation began last month after a 50-page preliminary report about the “Ponzi-style” scheme was sent to a Miami federal judge by a court-appointed special master. The report called for sweeping criminal investigations by U.S. and Canadian law enforcement.

“The unassailable fact [is] that thousands of investors/owners, and by extension their families in the U.S. and Canada, as well as other countries, have been financially destroyed,” says the report by Miami lawyer Thomas Scott, a former federal judge and U.S. attorney.

Investors allegedly sank those now-missing millions into time share units and other property owned by the EMI Sun Village Resort and Spa in the Dominican Republic. But the money actually went to fund the lavish lifestyle and gambling debts of the resort’s developers, court papers say.

“That money has now been almost completely lost”, the report says. “The investors’ plight is tragic. The cause of that plight is criminal.”

Read moreFBI investigates another alleged ‘Ponzi-style’ scheme: Thousands in US, Canada ‘financially destroyed’

Former Treasury Secretary Henry Paulson Says Russia Urged China to Dump Fannie, Freddie Bonds

Sure! That is called ‘his-story’ (Henry Paulson’s fairy tale).

See also:

Paulson Says He Was Prepared to Guarantee Lehman (BusinessWeek):

Jan. 29 (Bloomberg) — Former U.S. Treasury Secretary Henry Paulson says in his memoir that he was prepared to support a government backstop to prevent the bankruptcy of Lehman Brothers Holdings Inc. until he learned the firm’s assets were so mis- marked it would have guaranteed a loss to taxpayers.

As of  ‘now’ the US taxpayer has already lost everything, because of bailouts, stimulus packages, quantitative easing etc., which only benefited the banksters and the elite. It is just that the people don’t know it yet.

The US government and the Fed are bankrupting America!

As a side note:

If you are an investor and your investment starts to look really bad and is about to lose a lot of money, then you better sell it straightaway.

China is also about to lose a lot of money from holding US Treasuries, and it has now become very difficult to sell them without tremendous consequences, but the bailout/stimulus bubble will finally blow up. This will be the end of the dollar and the US as we know it.

Just think about the big dilemma the Chinese are in now, because of the irresponsible economic policies of the US.

I am not saying that China ‘always’ acted responsible. This is a created crisis. This is the Greatest Depression and it has only just begun.


henry-paulson
Henry Paulson, former U.S. treasury secretary, testifies at a House Oversight and Government Reform Committee hearing in Washington, D.C., on Jan. 27, 2010. (Bloomberg)

Jan. 29 (Bloomberg) — Russia urged China to dump its Fannie Mae and Freddie Mac bonds in 2008 in a bid to force a bailout of the largest U.S. mortgage-finance companies, former Treasury Secretary Henry Paulson said.

Paulson learned of the “disruptive scheme” while attending the Beijing Summer Olympics, according to his memoir, “On The Brink.”

The Russians made a “top-level approach” to the Chinese “that together they might sell big chunks of their GSE holdings to force the U.S. to use its emergency authorities to prop up these companies,” Paulson said, referring to the acronym for government sponsored entities. The Chinese declined, he said.

Russia’s five-day war with U.S. ally Georgia started on Aug. 8, the same day as the opening ceremonies of the Beijing Games. Prime Minister Vladimir Putin told U.S. President George W. Bush during those ceremonies that “war has started,” according to Dmitry Peskov, Putin’s spokesman.

“The report was deeply troubling — heavy selling could create a sudden loss of confidence in the GSEs and shake the capital markets,” Paulson wrote. “I waited till I was back home and in a secure environment to inform the president.”

Russia never approached China about dumping U.S. bonds, Peskov said today. “This is not the case,” he said by phone.

Russia sold all of its Fannie and Freddie debt in 2008, after holding $65.6 billion of the notes at the start of that year, according to central bank data. Fannie and Freddie were seized by regulators on Sept. 6, 2008, amid the worst U.S. housing slump since the Great Depression.

Read moreFormer Treasury Secretary Henry Paulson Says Russia Urged China to Dump Fannie, Freddie Bonds

Secret Banking Cabal Emerges From AIG Shadows

Jan. 29 (Bloomberg) — The idea of secret banking cabals that control the country and global economy are a given among conspiracy theorists who stockpile ammo, bottled water and peanut butter. After this week’s congressional hearing into the bailout of American International Group Inc., you have to wonder if those folks are crazy after all.

Wednesday’s hearing described a secretive group deploying billions of dollars to favored banks, operating with little oversight by the public or elected officials.

We’re talking about the Federal Reserve Bank of New York, whose role as the most influential part of the federal-reserve system — apart from the matter of AIG’s bailout — deserves further congressional scrutiny.

The New York Fed is in the hot seat for its decision in November 2008 to buy out, for about $30 billion, insurance contracts AIG sold on toxic debt securities to banks, including Goldman Sachs Group Inc., Merrill Lynch & Co., Societe Generale and Deutsche Bank AG, among others. That decision, critics say, amounted to a back-door bailout for the banks, which received 100 cents on the dollar for contracts that would have been worth far less had AIG been allowed to fail.

That move came a few weeks after the Federal Reserve and Treasury Department propped up AIG in the wake of Lehman Brothers Holdings Inc.’s own mid-September bankruptcy filing.

Saving the System

Read moreSecret Banking Cabal Emerges From AIG Shadows

Germany Warns of ‘Fatal’ Eurozone Crisis, Funds Flee Greece

Germany has triggered a near-panic flight from southern European debt markets by warning that there will be no EU bail-outs, even though it fears the region’s economic crisis has turned dangerous and could prove “fatal” for the entire eurozone.

Wonders of the World: Parthenon, Greece
Funds flee Greece as Germany warns of “fatal” eurozone crisis

The yield on 10-year Greek bonds blasted upwards by over 40 basis points to 7.15pc in a day of wild trading. Spreads over German Bunds reached almost four percentage points, by far the highest since Greece joined the euro, and close to levels that risk a self-feeding spiral. Contagion hit Portuguese, Spanish, Irish, and Italian bonds.

George Papandreou, the Greek premier, said in Davos that his country had been singled out as the weak link in a “attack on the eurozone” by speculators and political foes. “We are being targeted, particularly by those with an ulterior motive.”

Marc Ostwald, from Monument Securities, said the botched bond issue of €8bn (£6.9bn) of Greek debt earlier this week has made matters worse. Many of the investors were “hot money” funds that bought on rumours that China was emerging as a buyer, offering them a chance for quick profit. When the China story was denied by Beijing and Athens, these funds rushed for the exit.

However, a key trigger yesterday was testimony in Germany’s parliament by economy minister Rainer Brüderle, who said there would be “no bail-outs” for struggling debtors and no move to a “European economic government”.

“A few European nations are exhibiting dangerous weaknesses. That could have fatal consequences for all countries in the eurozone,” he said. Despite the warning, he said each country must solve its own problems.

Read moreGermany Warns of ‘Fatal’ Eurozone Crisis, Funds Flee Greece

How Bush’s grandfather, Prescott Bush, helped Hitler’s rise to power

Not only has Prescott Bush helped to finance Hitler, but he was involved in a plot to overthrow FDR and to implement a fascist dictatorship in the US:

G. W. Bush and Adolf Hitler signed a Directive 51:

But what really struck me was the BBC story aired on July 23rd, 2007, documenting President George W. Bush’s grandfather’s involvement in a 1933 plot to overthrow the U.S. government and install a fascist dictatorship.

FDR’s Response to the Plot to Overthrow Him

The son and the grandson of Prescott Bush, who has committed HIGH TREASON, became Presidents of the United States of America!


Rumours of a link between the US first family and the Nazi war machine have circulated for decades. Now the Guardian can reveal how repercussions of events that culminated in action under the Trading with the Enemy Act are still being felt by today’s president

prescott-bush-and-son

George Bush’s grandfather, the late US senator Prescott Bush, was a director and shareholder of companies that profited from their involvement with the financial backers of Nazi Germany.

The Guardian has obtained confirmation from newly discovered files in the US National Archives that a firm of which Prescott Bush was a director was involved with the financial architects of Nazism.

His business dealings, which continued until his company’s assets were seized in 1942 under the Trading with the Enemy Act, has led more than 60 years later to a civil action for damages being brought in Germany against the Bush family by two former slave labourers at Auschwitz and to a hum of pre-election controversy.

The evidence has also prompted one former US Nazi war crimes prosecutor to argue that the late senator’s action should have been grounds for prosecution for giving aid and comfort to the enemy.

Read moreHow Bush’s grandfather, Prescott Bush, helped Hitler’s rise to power

Controller: Pennsylvania Capital Should Weigh Bankruptcy

state 1 0602 dcg 24000.jpg
The Pennsylvania State Capitol building seen from State Street in Harrisburg.

Jan. 26 (Bloomberg) — Harrisburg, Pennsylvania, the capital of the sixth-largest U.S. state by population, should skip a $2.2 million debt service payment due Feb. 1 and consider bankruptcy, City Controller Dan Miller said.

Harrisburg faces $68 million in payments this year in connection with a waste-to-energy incinerator and should weigh Chapter 9 protection from creditors or state oversight through a program known as Act 47, Miller said today. Chapter 9 bankruptcy allows municipalities to reorganize rather than liquidate.

The alternatives are to sell assets such as an historic downtown market; an island in the Susquehanna River that includes the city’s minor-league baseball stadium; and the city’s parking, sewer and water systems, according to a preliminary 2010 budget and an emergency financial plan submitted yesterday.

“What I’m suggesting is we stop paying the debt service until we have a plan or we decide which way to go, in bankruptcy or Act 47,” Miller, a former city council member who became controller this month, said in a telephone interview. “I think it could save our assets instead of selling them.”

Read moreController: Pennsylvania Capital Should Weigh Bankruptcy

Tony Blair Was Warned By All 27 Senior Government Lawyers That Iraq War Was Illegal

See also:

Dutch Inquiry: Iraq War Was Illegal, Had ‘No Basis In International Law’

US and UK knew that Iraq Didn’t Have WMDs

Tony Blair ‘knew Iraq did not have WMD before war started’


sir-michael-wood-001
Sir Michael Wood, the Foreign Office’s chief legal adviser at the time of the 2003 invasion

TONY Blair was warned two months before the invasion of Iraq that it would be illegal to go to war without UN backing, it was revealed yesterday.

Senior Government lawyers told the Iraq inquiry that they advised the action had “no legal basis in international law”.

Last night it was reported every one of the 27 lawyers in the department advised the war was illegal.

Yesterday Sir Michael Wood, who was the Foreign Office’s chief legal adviser, told the hearing he warned the then Foreign Secretary Jack Straw an invasion would “amount to the crime of aggression”.

Sir Michael said he considered resigning in protest at the decision to join the US-led attack. He described how he was sidelined after he made clear his objections to military action.

His deputy, Elizabeth Wilmshurst, quit in protest on the eve of the invasion in March 2003.

In her first public account of the circumstances leading to her resignation she described the Government’s treatment of the legal advice as “lamentable”.

The explosive revelations intensified pressure on the former Prime Minister, who will face the Chilcot inquiry on Friday.

Read moreTony Blair Was Warned By All 27 Senior Government Lawyers That Iraq War Was Illegal

Ron Paul: US Foreign Policy is Bankrupting America

See also:

Rep. Ron Paul: State of the Republic Address – ‘Dangerous Times Indeed.’

Rep. Ron Paul: ‘The CIA Runs Everything. We Need To Take Out The CIA.’

America’s Impending Master Class Dictatorship! (MUST-READ!)



Date: 23rd Jan 10

Read moreRon Paul: US Foreign Policy is Bankrupting America

UNICEF: Children disappearing from Haiti hospitals

Adopted orphans arrive in France as UNICEF raises trafficking fears

haiti_children
Haitian children line up to receive food at a food distribution site run by the U.S. Army 82nd Airborne Division a week after the massive earthquake in Port-au-Prince, Haiti, 21 Jan 2010

UNICEF warned of children disappearing from hospitals and raised fears of child trafficking in the wake of Haiti’s devastating Jan. 12 earthquake. Thirty-three Haitian orphans arrived in Paris on Friday after France fast-tracked adoption procedures.

The UN Children’s Fund (UNICEF) announced Friday that several children have gone missing from hospitals in Haiti in the aftermath of the killer earthquake, raising fears of trafficking for adoption abroad.

“We have documented let’s say around 15 cases of children disappearing from hospitals, and not with their own family at the time,” UNICEF adviser Jean Luc Legrand said.

The UN agency said it expected trafficking networks to spring into action, taking advantage of weakened local authorities to kidnap children and eventually getting them out of the country.

Read moreUNICEF: Children disappearing from Haiti hospitals