They’re Back..! Subprime Loans, Cars, this time instead of houses. Defaults Are Soaring

❝ It’s classic subprime: hasty loans, rapid defaults, and, at times, outright fraud…Only this isn’t the U.S. housing market circa 2007. It’s the U.S. auto industry circa 2017.

A decade after the mortgage debacle, the financial industry has embraced another type of subprime debt: auto loans. And, like last time, the risks are spreading as they’re bundled into securities for investors worldwide.

❝ Subprime car loans have been around for ages, and no one is suggesting they’ll unleash the next crisis. But since the Great Recession, business has exploded. In 2009, $2.5 billion of new subprime auto bonds were sold. In 2016, $26 billion were, topping average pre-crisis levels, according to Wells Fargo…

❝ Few things capture this phenomenon like the partnership between Fiat Chrysler Automobiles NV and Banco Santander SA. Since 2013, as U.S. car sales soared, the two have built one of the industry’s most powerful subprime machines.

Details of that relationship, pieced together from court documents, regulatory filings and interviews with industry insiders, lay bare some of the excesses of today’s subprime auto boom. Wall Street has rewarded lax lending standards that let people get loans without anyone verifying incomes or job histories. For instance, Santander recently vetted incomes on fewer than one out of every 10 loans packaged into $1 billion of bonds, according to Moody’s Investors Service. The largest portion were for Chrysler vehicles.

Some of their dealers, meantime, gamed the loan application process so low-income borrowers could drive off in new cars…

❝ Through it all, Wall Street’s appetite for high-yield investments has kept the loans — and the bonds — coming…Reid Bigland, Chrysler’s U.S. sales chief, said Santander has been a “good partner.”

Typically, you look to see which regulators have had staff cut by the sleaziest members of Congress. That’s where the money-grubbers most inclined to fraud are focused. Nowadays, with today’s version of the Republican Party in slim control of both houses of Congress – with the pimp-in-chief in the White House – you can be assured the beat goes on!

Throw Away The Key — Found Guilty for 96 Million Robocalls

A Miami man accused of flooding consumers with 96 million phone calls touting fake travel deals faces a record proposed $120 million fine from federal regulators, who said he operated the worst robocall spoofing effort they had seen.

Adrian Abramovich tried to trick consumers into answering and listening to his advertising messages, the Federal Communications Commission said in a news release Thursday. The pace of calls works out to an average of more than 1 million per day…

Calls appeared to come from local numbers, but those who answered were prompted to “Press 1” to hear about vacation deals, according to the FCC. If they did, consumers were connected to call centers not affiliated with companies mentioned in messages, such as Expedia Inc., TripAdvisor Inc., Marriott International Inc. and Hilton Worldwide Holdings…

Consumers who did “press 1″…ultimately connected Americans to call centers in Mexico that usually attempted to fleece innocent consumers out of their hard-earned money by promising too-good-to-be-true vacation deals,” Adam Medros, a senior vice president at TripAdvisor, said in an emailed statement. The company said it worked closely with the FCC to investigate after its customers called to complain.

Like the headline says, THROW AWAY THE KEY – after you take back all the money he stole plus penalties.

Florida city employee rang up $93K on city credit cards to get butt lift – among other frauds

❝ An investigative report…shows a former city of Gainesville employee, accused of stealing more than $93,000 from the city, spent some of it on a Brazilian butt lift.

The report found that former city staff specialist Natwaina Clark, 33, charged her city-issued credit card 136 times for roughly $61,000 in unauthorized charges, used her bosses’ cards at least 36 more times for an additional $31,000, and spent nearly $900 on a coworker’s card five times between November 2015 and March 2017.

The report also finds department heads acted negligently, allowing city funds to be misspent.

❝ Documents attached to the report show Clark, who was hired in August 2015, funneled roughly $41,000 to her personal PayPal account, linked to her bank account, and that $8,500 of it went toward a Brazilian butt lift. The cosmetic surgery procedure uses fat from one part of the body to augment one’s buttocks…

Clark, whose salary was $33,500, was fired from the city March 21, while on a cruise-ship vacation, the report said. She was arrested March 28 and charged with larceny and scheme to defraud, both felonies…

❝ The city report found the city’s human resources department failed to properly execute the city’s employee background screening and didn’t advise the hiring department about concerns in Clark’s history, allowing her to be hired.

Har. Turns out the HR Department didn’t really do their homework about Clark being busted for similar crimes in another county. Didn’t tell folks in the department where she was hired of any concerns.

Feds join suit against UnitedHealth Group for overcharging Medicare million$

❝ The U.S. Justice Department has joined a whistleblower lawsuit against UnitedHealth Group Inc that claims the country’s largest health insurer and its units and affiliates overcharged Medicare hundreds of millions of dollars, a law firm representing the whistleblower said on Thursday…

❝ The lawsuit, filed in 2011 and unsealed on Thursday, alleges UnitedHealth Group overcharged Medicare by claiming the federal health insurance program’s members nationwide were sicker than they were, according to the law firm Constantine Cannon LLP.

The Justice Department has also joined in allegations against WellMed Medical Management Inc, a Texas-based healthcare company UnitedHealth bought in 2011…plus several more affiliates who say they can’t imagine why they’re accused of being co-conspirators.

❝ The lawsuit by whistleblower Benjamin Poehling, a former UnitedHealth executive, has been kept under seal in federal court in Los Angeles while the Justice Department investigated the claims for the past five years.

The wheels of justice in America grind exceedingly slow in those rare circumstances when they’re set upon corporate theft and fraud.

Voter impersonation fraud – 31 credible incidents out of one billion ballots cast

❝ Voter ID laws are back in the news once again, with two new opinions from the Wisconsin Supreme Court late last week dealing with the state’s ID requirement, which would allow people to vote only if they provide certain forms of government-issued ID. The Court made some minor changes to the law but otherwise upheld it. However, the ID requirement is still on hold pending a federal lawsuit.

Part of this litigation — and any rational debate about the issue generally — hinges on two things: costs and benefits. The costs of these sorts of laws vary, because the laws themselves differ from state to state (some are far more burdensome than others). The ostensible benefits, though, are all the same. And in addressing these purported benefits, the Wisconsin Supreme Court blew it. Twice.

❝ First, the court cited the idea that ID laws could enhance public confidence–that is, in theory, the laws might make us feel better about elections in that they might provide some security theater. It turns out, though, that this effect is hard to spot…

Second, the court said that ID laws can help stop fraud. It then cited an example of recent fraud … that ID laws aren’t designed to stop…

❝ Instead, requirements to show ID at the polls are designed for pretty much one thing: people showing up at the polls pretending to be somebody else in order to each cast one incremental fake ballot. This is a slow, clunky way to steal an election. Which is why it rarely happens.

❝ I’ve been tracking allegations of fraud for years now, including the fraud ID laws are designed to stop. In 2008, when the Supreme Court weighed in on voter ID, I looked at every single allegation put before the Court. And since then, I’ve been following reports wherever they crop up.

To be clear, I’m not just talking about prosecutions. I track any specific, credible allegation that someone may have pretended to be someone else at the polls, in any way that an ID law could fix.

So far, I’ve found about 31 different incidents (some of which involve multiple ballots) since 2000, anywhere in the country. If you want to check my work, you can read a comprehensive list of the incidents below.

To put this in perspective, the 31 incidents below come in the context of general, primary, special, and municipal elections from 2000 through 2014. In general and primary elections alone, more than 1 billion ballots were cast in that period.

So much for the happy horseshit shoveled atop public understanding of electoral fraud. The Republican Party in general – and lately, Donald Trump, el Supremo – have been parroting this crap at the expense of state budgets and constitutional rights.

Time to lose this latest Big Lie before it becomes any more acceptable by gullibilus voter americanus.