The U.S. Justice System Must Focus On Elite Criminality

Tyler Durden's picture

Authored by Mike Krieger via Liberty Blitzkrieg blog,

Two very important articles published in recent days serve to once again highlight America’s metastasizing elite criminality problem. A problem which our justice system simply refuses to address.

This corrupt two-tier justice system is something I’ve been focused on from the very beginning of my writings, and I continue to see it as a civilization-level threat for this country if not aggressively addressed and confronted in the very near future.

The two articles in question focus on different aspects of untouchable elite culture in America.

The first relates to the continued fraud pervasive in America’s largest financial institution, while the second covers a thirty year history of predatory sexual behavior by one of Hollywood’s biggest moguls, Harvey Weinstein. In both cases, countless people have known and reported on repeated abuses perpetrated by both the institution and the man, yet the U.S. justice system and the vast majority of “elite” culture happily help shield them from justice. Predators are predators, and elite predators are far more dangerous to society that your average street crook, so why does our justice situation deal with it in the exact opposite way?

Let’s start with the blockbuster article published in The Nation by the always informative David Dayen. The article is titled, How America’s Biggest Bank Paid Its Fine for the 2008 Mortgage Crisis—With Phony Mortgages!

Here’s just brief excerpt:

JPMorgan’s share of the settlement was $5.3 billion, but only $1.1 billion had to be paid in cash; the other $4.2 billion was to come in the form of financial relief for homeowners in danger of losing their homes to foreclosure. The settlement called for JPMorgan to reduce the amounts owed, modify the loan terms, and take other steps to help distressed Americans keep their homes. A separate 2013 settlement against the bank for deceiving mortgage investors included another $4 billion in consumer relief.

 

A Nation investigation can now reveal how JPMorgan met part of its $8.2 billion settlement burden: by using other people’s money.

 

Here’s how the alleged scam worked. JPMorgan moved to forgive the mortgages of tens of thousands of homeowners; the feds, in turn, credited these canceled loans against the penalties due under the 2012 and 2013 settlements. But here’s the rub: In many instances, JPMorgan was forgiving loans on properties it no longer owned.

 

The alleged fraud is described in internal JPMorgan documents, public records, testimony from homeowners and investors burned in the scam, and other evidence presented in a blockbuster lawsuit against JPMorgan, now being heard in US District Court in New York City.

Sounds hard to believe, but it’s true. Not only that, but as we’ve come to expect from the “rule of law” in America, it somehow never applies to that group of people with the greatest ability to financially destroy people and their lives. Bankers. For example, here’s some more from the same piece:

Federal appointees have been complicit in this as well. E-mails show that the Office of Mortgage Settlement Oversight, charged by the government with ensuring the banks’ compliance with the two federal settlements, gave JPMorgan the green light to mass-forgive its loans. This served two purposes for the bank: It could take settlement credit for forgiving the loans, and it could also hide these loans—which JPMorgan had allegedly been handling improperly—from the settlements’ testing regimes.

 

“No one in Washington seems to understand why Americans think that different rules apply to Wall Street, and why they’re so mad about that,” said former congressman Miller. “This is why.”

 

Most of the loans that JPMorgan released—and received settlement credit for—were all but worthless. Homeowners had abandoned the homes years earlier, expecting JPMorgan to foreclose, only to have the bank forgive the loan after the fact. That forgiveness transferred responsibility for paying back taxes and making repairs back to the homeowner. It was like a recurring horror story in which “zombie foreclosures” were resurrected from the dead to wreak havoc on people’s financial lives.

 

Federal officials knew about the problems and did nothing. In July 2014, the City of Milwaukee wrote to Joseph Smith, the federal oversight monitor, alerting him that “thousands of homeowners” were engulfed in legal nightmares because of the confusion that banks had sown about who really owned their mortgages. In a deposition for the lawsuit against JPMorgan Chase, Smith admitted that he did not recall responding to the City of Milwaukee’s letter.

 

Few would expect Jeff Sessions’s Justice Department to pursue such a case, but what this sorry episode most highlights is the pathetic disciplining of Wall Street during the Obama administration.

 

JPMorgan’s litany of acknowledged criminal abuses over the past decade reads like a rap sheet, extending well beyond mortgage fraud to encompass practically every part of the bank’s business. But instead of holding JPMorgan’s executives responsible for what looks like a criminal racket, Obama’s Justice Department negotiated weak settlement after weak settlement. Adding insult to injury, JPMorgan then wriggled out of paying its full penalties by using other people’s money.

 

The larger lessons here command special attention in the Trump era. Negotiating weak settlements that don’t force mega-banks to even pay their fines, much less put executives in prison, turns the concept of accountability into a mirthless farce. Telegraphing to executives that they will emerge unscathed after committing crimes not only invites further crimes; it makes another financial crisis more likely. The widespread belief that the United States has a two-tiered system of justice—that the game is rigged for the rich and the powerful—also enabled the rise of Trump. We cannot expect Americans to trust a system that lets Wall Street fraudsters roam free while millions of hard-working taxpayers get the shaft.

Of course, this is just the latest when it comes to JP Morgan. I highlighted the firm’s rap sheet in last month’s post, Which is Fraudulent – Bitcoin or JP Morgan?

How many JP Morgan executives have gone to jail?

Now onto Harvey Weinstein, a guy whose cretinous behavior has been the biggest non-secret in Hollywood for decades. Just like with banker crooks, he mere settles cases and continues to walk around, freely hunting the next defenseless victim.

The New York Times article published yesterday exposing some of this grotesque man’s history was extraordinary and I suggest everyone read it. Here’s just a little from the piece, Harvey Weinstein Paid Off Sexual Harassment Cases for Years:

Two decades ago, the Hollywood producer Harvey Weinstein invited Ashley Judd to the Peninsula Beverly Hills hotel for what the young actress expected to be a business breakfast meeting. Instead, he had her sent up to his room, where he appeared in a bathrobe and asked if he could give her a massage or she could watch him shower, she recalled in an interview.

 

“How do I get out of the room as fast as possible without alienating Harvey Weinstein?” Ms. Judd said she remembers thinking.

 

In 2014, Mr. Weinstein invited Emily Nestor, who had worked just one day as a temporary employee, to the same hotel and made another offer: If she accepted his sexual advances, he would boost her career, according to accounts she provided to colleagues who sent them to Weinstein Company executives. The following year, once again at the Peninsula, a female assistant said Mr. Weinstein badgered her into giving him a massage while he was naked, leaving her “crying and very distraught,” wrote a colleague, Lauren O’Connor, in a searing memo asserting sexual harassment and other misconduct by their boss.

 

There is a toxic environment for women at this company,” Ms. O’Connor said in the letter, addressed to several executives at the company run by Mr. Weinstein.

 

Dozens of Mr. Weinstein’s former and current employees, from assistants to top executives, said they knew of inappropriate conduct while they worked for him. Only a handful said they ever confronted him.

 

Mr. Weinstein enforced a code of silence; employees of the Weinstein Company have contracts saying they will not criticize it or its leaders in a way that could harm its “business reputation” or “any employee’s personal reputation,” a recent document shows. And most of the women accepting payouts agreed to confidentiality clauses prohibiting them from speaking about the deals or the events that led to them.

 

In interviews, some of the former employees who said they had troubling experiences with Mr. Weinstein asked a common question: How could allegations repeating the same pattern — young women, a powerful male producer, even some of the same hotels — have accumulated for almost three decades?

 

“It wasn’t a secret to the inner circle,” said Kathy DeClesis, Bob Weinstein’s assistant in the early 1990s. She supervised a young woman who left the company abruptly after an encounter with Harvey Weinstein and who later received a settlement, according to several former employees.

 

In March 2015, Mr. Weinstein had invited Ambra Battilana, an Italian model and aspiring actress, to his TriBeCa office on a Friday evening to discuss her career. Within hours, she called the police. Ms. Battilana told them that Mr. Weinstein had grabbed her breasts after asking if they were real and put his hands up her skirt, the police report says.

 

The claims were taken up by the New York Police Department’s Special Victims Squad and splashed across the pages of tabloids, along with reports that the woman had worked with investigators to secretly record a confession from Mr. Weinstein. The Manhattan district attorney’s office later declined to bring charges.

As disturbing as all that is, it might be the tip of the iceberg. Here’s some additional info from an article published today by The Daily Beast, Hollywood’s Loud Silence on Harvey Weinstein:

The Times piece later identified the 1997 actress as Rose McGowan, who starred in the 1996 film Scream, which was distributed by Weinstein-owned Dimension Films. In October 2016, McGowan tweeted, “Because my ex sold our movie to my rapist for distribution #WhyWomenDontReport.” It’s not known whom McGowan was referring to, though she dated filmmaker Robert Rodriguez from 2006 to 2009, and their film Planet Terror was distributed by Weinstein in 2007.

 

In the wake of the blockbuster Times exposé, The Daily Beast reached out to dozens of prominent actors, actresses, and filmmakers—who both have andhave not worked with Weinstein—only to receive many replies of “no comment” and plenty of radio silence.

Elite criminals are the most dangerous criminals on earth, but our justice system treats them like well-meaning philosopher kings who deserve endless breaks in the face of rampant unethical and often evil behavior. It should be completely obvious to everyone that the only reason elite crooks get treated with kid gloves is because they’re rich and powerful. The end result of this dereliction of justice is those entrusted with protecting the public have willingly created an entrenched, untouchable, distributed, criminal class which spans across and leads all major industries in America.

As I tweeted earlier today:

If we don’t get a grip on this now and begin to marshal our resources against the most dangerous criminals in America — those from the highest echelons of U.S. society — the country will continue to unravel and in an increasingly dangerous and chaotic fashion.

 

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JailBanksters's picture

Which came foist, the US Justus System or Elite Criminality ?

Schmuck Raker's picture

Elite Criminality.

Do I get a cookie?

I Write Code's picture

BofA (nee Countrywide) did this too, totally inverted the rule that they should have "skin in the game".  I think it's an old Washington trick, lord knows how often it's done.

GoldenDonuts's picture

Good luck with that headline.   Hillary and bill could rob banks Bonnie and  Clyde style leaving bleating corpses in their wake and Mr war on pot would ignore them.

FoggyWorld's picture

He has to go and if Trump doesn't see that soon, he is toast.

DjangoCat's picture

Trump is already burnt toast, as far as I can see.

Minburi's picture

Don't hold your breath.

ClickNLook's picture

They are focused on supporting it.

Bemused Observer's picture

Rule of law my ass. Fuck them all. I will not lift a finger to support this shitshow.

 

Somehow, it seems as though they MUST feel the hatred aimed at them...how could they not? Forces that intense must exert some pull.

Pernicious Gold Phallusy's picture

They laugh at your ineffective hatred.

DjangoCat's picture

They scorn you as a weakling, to goody goody to murder a child, let alone one of them.

Lord Raglan's picture

Let's not forget about how former NJ Senator, former NJ Governor and former Goldman Sachs President and CEO, Jon Corzine, stole and pissed away $1.2 BILLION of investors' money in MF Global and not a fucking thing happened to him.  He lied to Congress about it, claiming he had no idea how it happened when it later turned out that he played with the money at night, gambling in Greek Sovereign Bonds and other stupid investments.  After all that, he would to go to lunch with the Magic Negro when he was in Washington DC.  Are Al Sharpton and Jesse Jackson any different?

I see people prosecuted for shoplifting and other petty crimes in this country, the fines for which they can never pay off, and am dumbfounded at how there is no rule of law when it comes to the Elites. 

Jon Corzine should be in a shitty dirty prison eating ham baloney sandwiches on white bread and getting morbidly obese, like everyone else there.  

Beans's picture

Let me guess, (((Yooish))).... ?

haruspicio's picture

In the whole of human history elites have never been held accountable for their crimes (apart perhaps from the Terror after the French revolution).

It is a lovely sentiment to have US Justice focus on elite criminality but it will never ever happen absent a revolution.

Farqued Up's picture

Vigilantism is the only answer which is why they are devoting so much energy to the repeal of the 2nd Amendment. I sorta like the final blows on the bad ones be by Caribbean sugarcane machetes.

For max deterrent value, it should be filmed in HD and be on all the social devices.

donhuangenaro's picture

lol, the justice system is the elite

Aristofani's picture

Actually elite criminality.

LOL, that tRump/killary would do anything about it.

Basilian's picture

This is a great fairy tale. All the appointend judges are bought and paid for with no fear. Whine and vent and then put your head down and move on.

Beans's picture

Hahaha would never ever happen! The number of Zions who would be jailed as a consequence is simply too great a risk to take for the ultimate shabbos nation.

Dill-Temko's picture

You're beginning to get the hang of it, son.

east of eden's picture

It's waaay past the point of no return. The psychopaths have come out in public because they firmly believe that nothing can touch them.

Boy, are they ever wrong, again.

litemine's picture

We will see if anyth can or is done.......

They are a Class of Elite.......Powerful control thru connections.

I think those that try are now dead so It would take many to demand Justice.

J J Pettigrew's picture

No jail.....but big Fines paid by someone else to go into a slush fund to bankroll political movements in harmony with the current administration (Obama)

No one goes to jail......how about Corzine? 

HANGEMHIGHER's picture

The only thing the US knows is bombing and you can't bomb the bankers so nothing can be done.

Hikikomori's picture

Hillary's best friend grabs 'em by the pussy...

litemine's picture

The Elite, those with so much money and nothing more they want to buy turn to perversions.

This, hidden by cult rituals joins  groups  with common goals.

This started hundred of years ago.....those caught in the Trap are held quiet by their own crimes, others

are killed to keep the secrets.

The Powerful could bring down "The System". Maybe after the System Fails they could be brought to JUSTICE.

 

DjangoCat's picture

Seems to me this is our best hope.  As you say, the cult rituals of heinous crimes bind them all together in omerta.

I see no way through within the system, and I see almost no way for armed revolution either.

The best hope is that they will crash their own system beyond repair and we must stand ready to piece together a better world.

 

SidSays's picture

Crash?

When it does crash it will be by design....

And what comes after will be much, much worse...

Tick...

Tock...

Musum's picture

"It should be completely obvious to everyone that the only reason elite crooks get treated with kid gloves is because they’re rich and powerful."

I think it's more than just that. It's because they're Jewish. There's a double standard for the rich. And a triple standard for rich, liberal Jews.

LawsofPhysics's picture

Yes indeed, moral hazard can be a real motherfucker.

"Full Faith and Credit"

JoseyWalesTheOutlaw's picture

Lets ask Leonardo Dicaprio who's dik he pulled on to get his 1st job....

spanish inquisition's picture

They are all good Democrats. They are just a little rambunctious. And when you chip away at the burning sulfuric plasma, there is a tiny fragment of a heart that still beats true.

RubyPetunia's picture

Wells Fargo and BoA are no better. Or Goldman Sachs. Hey, anybody ever hear of a guy called Jon Corzine??

Bernardo Gui's picture

The first mistake of his presidency was when Trump announced that he would not allow Clinton to be prosecuted.

Blanco Diablo's picture

I had high hopes when Sessions was appointed, to my dismay Sessions turned out to be Loretta Lynch in drag.

NoBillsOfCredit's picture

Too early to tell. Look back in a year. Criminal investigations of these types of crimes and the swamp is implicit. Have to clean house first.

SidSays's picture

"Lock her up." -Presidential Candidate Donald J. Trump

"They are good people. They are good people." -President Elect Donald J. Trump

“ Honestly, there’s nothing more I can say because I have a lot of respect for those two people" - President Donald J. Trump

"It is easier to fool people than to convince them that they have been fooled." - Mark Twain

http://i.magaimg.net/img/jgw.jpg

css1971's picture

Their power comes through your acceptance of the medium of exchange.

The more you reject it, the lower it's value, the lower the power they have.

Course then the gloves come off and you get the iron fist of full authoritarianism, but the mask of legality, fairness is lost.

DjangoCat's picture

This is why Bitcoin and its ilk are attractive ideas.  These coins and the spin off ICO's are beyond their power to control.

Reject the USD and move on.

This is why Jamie Dimon hates it so.

 

conraddobler's picture

The only consistent belief system that can be used to build a functional society which represents each individual is the following:

The individual is the ultimate sovereign and its rights are inviolate ceasing only upon impingement upon another individuals rights.

There....

Is.....

No.....

Other....

Path....

to .....

Human....

Liberty....

 

GoyimUprising's picture

Don't worry. We're going to use our guns to kill the criminal elite and take their shit.

Solio's picture

Gun confiscation is desired so The People don't use them to march the pedos off to the guillotines; two of which should be installed in every town square.

numapepi's picture

Confucius was talking with the Duke of Lu. The Duke asked Confucius how he could stop the people, stealing, having affairs and being lazy. Confucius told the Duke of Lu He could stop doing those things himself... and lead by example.

Confucius and his disciples had to flee Lu state shortly after...

This story shows the problem is thousands of years old and has led to the lowering of the lot of Man since time immemorial.

Perhaps now is the time to address it?

https://www.amazon.com/dp/B00BHNX6GE

GoyimUprising's picture

Every man is a king until he allows another man to rule over him.

PhiBetaZappa's picture

You have a pretty good case Mr. .........., how much justice can you afford ?

“In America you get as much justice as you can afford.” — O. J. Simpson

FreeEarCandy's picture

One half of this coin is political and the other half is about too much wealth in the hands of the few. As long as people dream of being wealthy beyond necessity, this curse of injustice and corruption will remain on the backs of everyone. No system will stop it. This ultimately comes down to the human heart, and it is the heart each individual must govern themselves. What we see on the outside is a reflection of what is inside the heart of humanity. Only a just human can condemn and restrict/limit/incarcerate their own desires & behavior. When we can do this on our own accord and behalf the system of hypocrisy and injustice on the outside will become obsolete.

"Miles of pipe line across the earth, while people in the desert die of thirst.

Lonely mansions and crowded slums. Restaurants and shopping centers. Landfills and table crumbs.

There is no respect for any claim not backed by the threat of violence. There's men with guns saying they own the land and the cry for war can't be silenced."

 

From the song titled "The weight of the coin". Written by FreeEarCandy. 2015 Collection.

https://drive.google.com/open?id=0B0F4CknU9Zd9Z25KWE0tX2lrcEU

truthalwayswinsout's picture

The article makes one major mistake. Eventually, if the average person does not see justice being dispensed against the elite, one day they will simply revolt and put them against the wall the kill them.  It will be very similar to the French Revolution.

DEMIZEN's picture

one scapegoat processed with a lot of media buzz.  they already got martin shkreli lol.