"The game is rigged, the network is bugged, the government talks double-speak, the courts are complicit, and there's nothing you can do about it." - David Kravets, reporting for Wired

Nothing you write, say, text, tweet or share via phone or computer is private anymore. This is the reality of the Internet-dependent, plugged-in life of most Americans today.

A process that started shortly after 9/11 with programs such as National Security Agency (NSA) wiretapping and Total Information Awareness has grown into a full-fledged network of warrant-less surveillance, electronic tracking, and data-mining, thanks to federal agents having been granted carte blanche access to the vast majority of electronic communications in America. Their methods generally run counter to the Constitution, but no federal agency, court, or legislature has stepped up to oppose this rapid erosion of our privacy, and there is no way of opting out of this system.

Consequently, over the course of the past 12 years, Congress, the courts, and the presidents (both George W. Bush and Barack Obama) have managed to completely erode privacy in America. Complicating matters further is the fact that technology is moving so rapidly that we often find ourselves making decisions (or subjected to decisions) whose consequences we can scarcely comprehend.

250,000 Unlicensed Illinois Drivers Pose Preventable Danger; Increased Insurance Costs for All Drivers

CHICAGO- November 20, 2012. Governor Pat Quinn and Senate President John Cullerton (D-Chicago) today were joined by state and local leaders and the Illinois Highway Safety Coalition (HSC) to announce their support of efforts to ensure that every Illinois motorist is properly licensed to drive. Because they do not have a driver's license, an estimated 250,000 immigrant motorists are on Illinois roads today that have not passed a driving test. By removing this barrier through responsible legislation, to be introduced by President Cullerton in the coming weeks, Illinois roads will be safer and more immigrants will be able to become stronger contributors to the economy.

"This is a safety issue that impacts every driver in Illinois and we should join together to take swift action to save lives," Governor Quinn said. "Making sure all motorists, regardless of their background, are licensed and insured will drive economic growth and ease the financial burden on all Illinois motorists."

"I'm honored to work with the Illinois Highway Safety Coalition to introduce legislation to improve the safety of our roads and highways by ensuring all Illinois drivers are trained, tested, licensed and insured," said President Cullerton.

According to the Illinois Highway Safety Coalition, unlicensed, uninsured drivers are involved in almost 80,000 accidents in Illinois each year, resulting in $660 million in damage. Unlicensed immigrant drivers cost $64 million in damage claims alone. Unlicensed drivers pose an enormous, yet preventable, safety risk for all Illinois drivers and leads to higher insurance costs for everyone. If half of the estimated 250,000 unlicensed immigrants became properly licensed and insured, Illinois insurance policy holders would save an estimated $46 million a year in premium payments.  Nationwide, unlicensed motorists are five times likelier to be involved in a fatal crash than licensed drivers.

Immigrants without a social security number are currently prohibited under state law from getting a driver's license. Studies have shown that immigrants who can drive legally are more likely to work, spend and contribute to the economy. Having a driver's license provides greater access to job opportunities and drives business activity and growth.

"I strongly support state legislation that will allow every Chicagoan, regardless of legal status, to enjoy the rights and responsibilities that come with a driver's license," said Mayor Rahm Emanuel. "I commend Senate President John Cullerton for his leadership to introduce legislation during the 2012 veto session to require all Illinois drivers, including undocumented drivers, to get trained, licensed and insured. I will be a strong advocate for this bill as we work to make Chicago the most immigrant-friendly city in the country."

In addition to posing a safety risk and a barrier to economic growth, unlicensed immigrant drivers significantly drain local law enforcement resources. In Cook County, nearly 48,000 tickets were issued in 2011 for driving without a license. Unlicensed drivers are also difficult to identify by law enforcement during traffic stops and by first responders and health care providers, which increases the potential for errors.

Washington and New Mexico have already passed similar laws, which resulted in declines in traffic accidents involving unlicensed drivers. By licensing more drivers, Illinois can increase safety across the state and ensure more motorists follow the rules of the road.

For more information about the Highway Safety Coalition and to see the list of lawmakers, business, faith, labor and community groups who support this common sense measure, visit HighwaySafetyCoalition.org.

###
WASHINGTON - Legislation to provide a much needed update to the Whistleblower Protection Act has passed the Senate and is now expected to be signed into law by the President.

Grassley said that whistleblowers are being denied the protections they should have under the law because of decisions of the Merit Systems Protection Board, the Federal Circuit Court of Appeals, and a general anti-whistleblower sentiment found in executive branch agencies.

Grassley co-authored the 1989 Whistleblower Protection Act with Senator Carl Levin of Michigan.  The law provides protection for federal employees who expose waste, fraud and abuse in federal agencies.  Grassley introduced the update, the Whistleblower Protection Enhancement Act, with Senators Daniel Akaka of Hawaii, Susan Collins of Maine and Joe Lieberman of Connecticut.

"This much needed update helps whistleblowers who risk their careers by sticking their necks out to simply tell the truth.  The Whistleblower Protection Enhancement Act is an important step forward, but improvements are still needed to ensure that intelligence community whistleblowers receive the protection they deserve for uncovering fraud deep within the bureaucracy," Grassley said.

A long-time advocate for whistleblowers, Grassley has stood up against the heavy hand of the bureaucracy - regardless of whether Republicans or Democrats were in charge -- for individual whistleblowers from the Pentagon, the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the IRS, the Interior Department, the Department of Health and Human Services, the Food and Drug Administration, and the Securities and Exchange Commission.

In addition to co-authoring the 1989 whistleblower law, Grassley also authored the 1986 update of the False Claims Act to include qui tam provisions that empower private citizens, who had information about fraudulent activity by government contractors, to bring wrongdoing forward and sue in the name of the government.  To date, these whistleblower provisions have recovered more than $30 billion for taxpayers that otherwise would be lost to fraud.

In 2009, Grassley and Senator Patrick Leahy won passage of the Fraud Enforcement and Recovery Act which made the most significant improvements to the False Claims Act since 1986.  The law restores the scope and applicability of the False Claims Act where it had been limited by court decisions.  This effort also revised criminal laws to help prosecute mortgage fraud, securities fraud, and complex financial crimes that led to the 2008 financial crisis.

In addition, Grassley authored the 2006 overhaul of the IRS whistleblower program to fight major tax fraud.  The IRS recently paid out its largest award ever, but has acknowledged, after scrutiny from Grassley, that the agency must be more timely and responsive in processing whistleblower claims.

Once signed into law, the Whistleblower Protection Enhancement Act of 2012 will:

·         clarify that any disclosure of gross waste or mismanagement, fraud, abuse, or illegal activity may be protected, but not disagreements over legitimate policy decisions;

·         suspend the sole jurisdiction of the Federal Circuit Court of Appeals over federal employee whistleblower cases for two years;

·         extend Whistleblower Protection Act coverage and other non-discrimination and anti-retaliatory laws to all employees of the Transportation Security Administration;

·         clarify that whistleblowers may disclose evidence of censorship of scientific or technical information under the same standards that apply to disclosures of other kinds of waste, fraud, and abuse;

·         codify the anti-gag provision, which Grassley originally got passed, that has been part of every Transportation-Treasury Appropriations bill since 1988;

·         establish Whistleblower Protection Ombudsmen to educate agency personnel about whistleblower rights; and

·         provide the Office of Special Counsel with the independent right to file "friend of the court" briefs, or amicus briefs, with federal courts.

 

 

-30-

Paul Kramer Placed Innocent Homeowners, Including an Iraqi Refugee, at Risk of Foreclosure by Failing to Pay Off Prior Mortgages When the Homeowners Bought or Refinanced Their Properties Through His Brokerage and Closing Companies.

DES MOINES, IA - Paul Kramer, age 42, of Granger, Iowa, was found guilty today by a federal jury of 18 counts of wire fraud and bank fraud in connection with multi-million dollar mortgage fraud schemes that resulted in innocent homeowners, including a refugee from Iraq and his family, nearly losing their homes to foreclosure. Kramer is the former President of the Iowa Association of Mortgage Brokers and owned a mortgage brokerage, Kramer Mortgage Company, and closing company, Iowa Closing & Escrow, at the time of the fraud. The jury did not acquit Kramer on any counts.

The same jury convicted Lane Anderson, age 38, of Altoona, Iowa, of two counts of conspiring with Kramer to commit bank and wire fraud. The wire fraud conspiracy involved Kramer and Anderson working together to obtain nearly $1.5 million in mortgage loans using the name and credit score of a contractor who did not actually qualify for the loans and who, in fact, had earned only about $2,000 per month the year prior to the loans. Anderson was not acquitted on any counts.

Trial evidence established that Anderson opened a development company in 2006 that planned to purchase, renovate, and re-sell homes. Kramer provided short-term loans to Anderson's company to purchase the homes and pay for the renovation work. However, by late 2006, Anderson's company was unable to find buyers for the homes and thus unable to repay the loans from Kramer. Anderson and Kramer therefore had one of Anderson's business partners, a contractor, take out 13 long-term mortgage loans in his name from 8 different lenders totaling nearly $1.5 million. The loan applications for the 13 homes contained false statements regarding the contractor's income, assets, liabilities, source of down payment, source of income, and other matters. Anderson and Kramer obtained the loans in rapid succession and used many different lenders so that no single lender would be aware of all the other loans being taken out at the same time. Kramer then had his closing company close the loans despite false notarizations and false closing documents.

Trial evidence further established that in April 2007 Anderson and Kramer began a check-kiting conspiracy in which they would trade checks of up to $75,000 from accounts that had less than $10,000 in real funds. One of the accounts had only $20.17 in it at the time a $75,000 check was written. However, by circling checks among numerous different accounts, Anderson and Kramer were able to falsely inflate the balances of the accounts, thus allowing checks from Kramer to third-parties to clear. In May 2007, a West Bank security officer noticed the check activity and closed Anderson's account.

Following the closing of Anderson's bank account, Kramer began to take funds from the Trust Account of the closing company he owned, Iowa Closing & Escrow, to use for business expenses of his mortgage brokerage, Kramer Mortgage Company. The funds in the Trust Account belonged to lenders and homeowners and should have been used to pay off mortgages in connection with real estate transactions. However, on numerous occasions from 2007 to 2009, Kramer transferred money to his brokerage from the Trust Account, sometimes in amounts of more than $250,000 in a single month.

At first, Kramer repaid the amounts he took out of the Trust Account relatively quickly.

Over time, however, the repayments became less frequent and thus a large deficit developed in the Trust Account. This put unwitting homeowners who used Kramer's closing company at risk of having old mortgages on their properties not paid off.

Kramer tried to fill the deficit in the Trust Account with mortgage payoff money he was supposed to give to US Bank in connection with a line of credit. Those actions created a new set of problems, however, as the mortgage payoffs related to homes on which US Bank held liens.

By putting money into the Trust Account instead of paying off US Bank, Kramer put the families who owned those homes at risk of foreclosure from US Bank.

Kramer's scheme culminated in September 2009 when Mohamed Rheem used Kramer's closing company for the closing of his purchase of a home in West Des Moines. Rheem and his family lived in Baghdad, Iraq, until 2008 but left the country because of violence and threats from insurgents who were angry that Rheem had assisted the United States Army. The family arrived in Iowa in March 2008 as refugees, and Rheem quickly found employment with a dry cleaning company. Over the next year-and-a-half, he saved enough money to make a down payment on the purchase of the home - the first and only house he has ever purchased in the United States.

Kramer's closing company was used to close Rheem's purchase of the house. Due to the shortfall in the Trust Account, however, Kramer used the proceeds of Rheem's new mortgage loan to pay off other mortgages that should have been paid off earlier in connection with other closings. The old mortgage on Rheem's home was ultimately never paid off, resulting in Rheem spending approximately two years in foreclosure proceedings.

Kramer paid himself large sums of money from his brokerage throughout the year 2009,  including a $50,000 payment to himself the day before the Rheem closing. In total, Kramer misapplied millions of dollars in mortgage payoffs over the course of the scheme and his actions resulted in at least five families not having clean title to their homes.

Kramer and Anderson will be sentenced in March 2013. Each count of wire fraud, conspiracy to commit wire fraud, bank fraud, and conspiracy to commit bank fraud is punishable by a term of imprisonment of up to 30 years and a fine of up to $1 million. In addition, Kramer and Anderson will have to make restitution to the victims of their crimes.

This case was investigated by the Federal Bureau of Investigation, and prosecuted by the United States Attorney's Office for the Southern District of Iowa.

###

On Monday, November 5th, the President and First Lady will end their last campaign in the state where it all began four years ago, and will be joined by Bruce Springsteen.

 

Date: Monday, November 5

Gates open: 7:30 PM

Venue: Des Moines' East Village

Location: Enter on East Grand Avenue and East 5th Street

 

This event is free and open to the public. No ticket required, just sign up to let us know you'll be there: https://my.barackobama.com/page/s/finish-where-we-started

On Monday, November 5th, the President and First Lady will end their last campaign in the state where it all began four years ago, and will be joined by Bruce Springsteen.

Date: Monday, November 5

Gates open: 4:30pm

Venue: Des Moines' East Village

Location: Enter on East Grand Avenue and East 5th Street

This event is free and open to the public. No ticket required, just sign up to let us know you'll be there: https://my.barackobama.com/page/s/finish-where-we-started

Additional details and media RSVP information to come.

CHICAGO - President Obama released the following statement today in reaction to Mayor Michael Bloomberg's endorsement:

"I'm honored to have Mayor Bloomberg's endorsement.  I deeply respect him for his leadership in business, philanthropy and government, and appreciate the extraordinary job he's doing right now, leading New York City through these difficult days.

"While we may not agree on every issue, Mayor Bloomberg and I agree on the most important issues of our time - that the key to a strong economy is investing in the skills and education of our people, that immigration reform is essential to an open and dynamic democracy, and that climate change is a threat to our children's future, and we owe it to them to do something about it.  Just as importantly, we agree that whether we are Democrats, Republicans, or independents, there is only one way to solve these challenges and move forward as a nation - together.  I look forward to thanking him in person - but for now, he has my continued commitment that this country will stand by New York in its time of need.  And New Yorkers have my word that we will recover, we will rebuild, and we will come back stronger."

###


On Saturday, November 3, President Obama will deliver remarks at grassroots events in Dubuque, Iowa.

EVENT LOCATION: Washington Park (700 Locust Street, Dubuque, Iowa)

DOORS OPEN: 2:00 PM CDT, Saturday, November 3, 2012

Ticket Distribution Information for Members of the Public: Tickets are available for the President's event in Dubuque, IA. The event is free and open to the public, but tickets are required for entrance. One ticket per person will be distributed on a first-come, first-served basis. To pick up your ticket, visit one of the following locations beginning on Thursday, November 1 at 3:00 PM CDT and continuing on Friday, November 2 at 9:00 AM CDT.

Roshek Building Lobby

700 Locust Street

Dubuque, IA


Dubuque County Democratic Headquarters

3250 Kennedy Circle, Suite 6

Dubuque, IA


 

Loras College (ticket distribution starts on Thursday at 3pm and continues on Friday at 11am)

Alumni Campus Center

1450 Alta Vista Street

Dubuque, IA

 

###

Pages