By Richard Lawless.
August 29, 2022
Democrats Raised Hundreds of Millions of Dollars for the 2016 and 2020 Elections with the help of the Department of Justice and the Securities and Exchange Commission.
Article by Richard R. Lawless, author of Capitol Hills Criminal Underground
In 2012 Forbes magazine wrote an article about how the Puerto Rico municipal agencies were issuing municipal bonds as part of a Ponzi Scheme. That article was of such interest to the Securities and Exchange Commission that the rank and file of the SEC created over 530,000 internal documents detailing what they knew about the Ponzi Scheme.
When our Democratic Senators got wind of this, they smelled an opportunity. The Senators could use this multi-billion-dollar criminal scheme to extort money from the participating Wall Street banks for protection from prosecution and regulatory action. And that is exactly what they did.
It started off with a few billion dollars in fraudulent bonds in 2012 but by 2016 the number of fraudulent Puerto Rico municipal bonds had ballooned to seventy-four-billion-dollars. With whispers circulating of an imminent collapse of Puerto Rico and a possible island wide bankruptcy, the Senators struck.
The major Wall Street banks were in a panic. They could be sued for tens of billions of dollars and be looking at significant criminal charges. With the help of the DOJ and SEC the Senators could promise that the banks would not be investigated or prosecuted. For a few hundred million dollars more, they would pass legislation preventing any of the fifty million victims from suing. It was game on.
With the knowledge that the Senators could guarantee the banks would be protected, the banks waited for the bond holders to sell their bonds at an 80% loss and then invested huge sums of money in affiliated vulture funds to rebuy their fraudulent bonds at twenty cents on the dollars. With the help of the Senators, the bonds would recover much of their value and the banks would again make billions of dollars.
The Senators loved it! Now the Senators could extort more money for their continuing protection from the profits on the fraudulent bonds the banks would resell again. It was a sweet deal. Well, it was a sweet deal until the FBI, NSA, CIA, SEC and others came forward. Sick of all the corruption they were seeing. These whistleblowers made it possible to piece together how this all worked and who was involved.
Now there are over twenty-five Federal District lawsuits dealing with disparate elements of this criminal scheme.
As for me, I was also a victim of this Mafia Style “protection racket” and I am party to three active federal lawsuits and one State Appeals Court lawsuit. All of these lawsuits will offer testimony from the whistleblowers at the FBI, CIA, SEC and elsewhere. The best witnesses will be the Senate Staff members who do not want to get caught up in future criminal charges.
Hypothetically, witnesses like Michael Lynch, Senator Chuck Schumer’s, Chief of Staff would be the most damning. Senators Schumer received more of this extorted money then any other Senator. Chief of Staff Lynch sat in the meetings where Senator Schumer fully acknowledged the criminal acts regarding this Ponzi Scheme and the two billion dollars his constituents lost in the process. These staff members can testify the Senators didn’t care. In Senator Schumer’s case, this would provide huge sums of money for the 2016 and 2020 election periods and he would control this money, cementing his leadership position.
As these Federal Court Cases move through the system there will be increasing public testimony detailing how the Washington D.C. Swamp embraced all this and how the Department of Justice and the Securities and Exchange Commission made it all possible. There are over one million pages of internal government documents secured through FOIA requests that will add certainty to any court outcome.
On September 26,2016 a special meeting was held at the Waldorf Astoria Hotel in New York. In attendance was the Department of Justice and the Securities and Exchange Commission. Participating through the live feed, the Treasury Department and the New York Federal Reserve viewed the presentation.
This was a presentation about a seventy-four billion-dollar Ponzi Scheme being run by Wall Street’s biggest banks. The banks were knowingly selling these fraudulent bonds to the American public. The credit ratings agencies, Moodys, Fitch and S&P knowingly issued fraudulent bond ratings and the SEC and DOJ provided protection for this decade-long scheme which resulted in fifty billion dollars in losses to the American people and 2,500 deaths in Puerto Rico from the failure of the power grid. The money for the power grid up-keep and repair was stolen as part of this scheme.
My name is Richard Lawless and I am the one in the video making the presentation as an acknowledged SEC whistleblower. Here is the video: https://www.youtube.com/watch?v=Tysqoqf9B7I
On September 27th, the video was up-loaded to YouTube. Within days the Federal Election Commission started tracking what was over 120,000,000 in political contributions to U.S. Senators, most of it going to New York Senator Chuck Schumer. Within two weeks the DOJ started to bury the criminal complaints and the SEC stopped communicating with myself or any others that wanted to know why the SEC didn’t act on these securities crimes. The SEC had over one million pages of evidence and a whistleblower with the most minute details on how this protection racket funded the U.S. Senators Campaigns for almost ten years. The SEC and DOJ had this information as early as 2012 when the losses could have been a few billion if the crimes were acted on. For ten years the DOJ and SEC protected this criminal scheme and the losses grew to over seventy-four billion dollars.
Schumer installed his own attorney at the Southern District of New York as part of his strategy to extort campaign money for the waiver of federal crimes. The banks law firms even created shell companies because the banks could not directly contribute all the money the Senators were extorting for protection under the current political contribution rules. The FEC maintains great records and all of this is easily tracked when you add in all of Schumer’s Political Action Committees.
Every Senator received the financial audits showing the securities fraud, they received a link to this video, federal express packages of evidence and even a copy of the book, Capitol Hills Criminal Underground, detailing all the crimes and the participants. They knowingly accepted the money and pressured the Administration and the SEC and DOJ to protect this campaign funding source. As long as the Senators got their money, The Scheme could continue.
Schumer figured out early on if he could control the federal justice system by having control of the DOJ’s Southern District Office where criminal complaints for his campaign contributors could go to die. His first hand-picked “fixer” was Mary Jo White” who, not surprisingly with Schumer’s help, went on to accept the role of the Chairman of the SEC just in time to kick off this multi-billion dollar securities fraud. Mrs. White left the SEC when there was over 500,000 pages of evidence in SEC files and left without allowing anyone to act. Mrs. White went over to a major law firm that represents almost every bank involved with the fraud, saving their clients billions of dollars in lawsuit damages. She now sits in a corner office at that firm making over 20X what she made at the SEC. The next handpicked Chairman of the SEC, again selected by New York Senator Chuck Schumer, Jay Clayton had over one million pages of evidence by the time he left the SEC and failed to act. Based on FOIA documents you can even say he prevented any of the SEC rank and file from acting. Upon his departure Mr. Clayton was offered a board seat with the Apollo Group who invested directly and indirectly in the Puerto Rico bonds. IF Mr. Clayton had acted as he should have, that investment group would have lost billions. Jay Clayton now sits on their Board of Directors. Once again, Senator Schumer intervened in the selection of the DOJ’s choice for the Southern District Offices leadership and had Jay Clayton installed in that position. Mr. Clayton continues to bury all criminal complaints related to this criminal scheme. Mary Jo White buried the evidence , Schumer’s former personal attorney, Preetinder Singh Bharara did and now that Jay Clayton is in charge, the same is happening.
In 2016 Senator Schumer sent a letter to the SEC after he saw a commercial on TV talking about this protection racket. He asked the SEC to look into this (lol). At the same time he got together with Elizabeth Warren and Richard Blumenthal to present legislation that would prevent the victims from suing, at least until they could permanently prevent those lawsuits through PROMESA legislation. Schumer also provided Warren with millions in this stolen Wall Street money for her presidential campaign.
Blumenthal, Warren, Reid, Schumer Introduce Puerto Rico Emergency Financial Stability Act
“Under the Puerto Rico Emergency Financial Stability Act, the short-term stay on creditor lawsuits would last until March 31. Identical legislation was introduced earlier today in the House of Representatives by Democratic Leader Nancy Pelosi.”
Today Gary Gensler is the head of the SEC. Gensler comes from 18 years as an executive manager and partner at Goldman Sachs, one of the largest participants in this decade-long fraud. He will not prosecute his former employer.
Goldman Sachs’ Strongman in Puerto Rico
Trump’s Puerto Rico policy is a backdoor bailout for the financial giant.
Donald Trump took to Twitter this week to deride an alleged bailout of Puerto Rico. However, his tweets belie the uncomfortable truth that his administration’s position on Puerto Rico actually amounts to a backdoor bailout of Wall Street firms like Goldman Sachs, whose alumni control much of his White House.
“Trump should use all the tools at his disposal to help American citizens living in Puerto Rico shed the predatory debt that Goldman Sachs and other Wall Street firms sold them. Instead, he is giving the banks a free pass and using the bully pulpit to shift blame onto the people of Puerto Rico.”
Goldman Sachs played an important role in causing Puerto Rico’s debt crisis by targeting the commonwealth with predatory financial deals. The bank helped underwrite $2.5 billion in capital appreciation bonds, the municipal bond market’s version of a payday loan, for which Puerto Rico will pay $18.8 billion in interest — an effective interest rate of 746 percent.
Today we know that the CIA accidently recorded phone calls about these criminal acts and payoffs to the DOJ’s and that is part of three federal lawsuits regarding this government protection racket. Federal District Cases 5:21-cv-148, 5:21-cv-02174 and 5:21-cv-01637. Include the one million pages of FOIA documents and it draws a very clear picture of what our representatives were doing.