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DOJ LIES
Unsealed Court Docs Reveal How Hamilton Was Bushwhacked
by Uri Dowbenko
Recently unsealed court documents in the Hamilton Securities case show
that attorneys from the Department of Justice and HUD(Housing and Urban
Development) lied repeatedly in court before US District Judge Stanley
Sporkin.
In an outrageous example of judiciary malfeasance, Judge Sporkin (now
in private practice with Weil Gotshall) himself coached the government
attorneys on how they should proceed with their investigation and litigation
strategy.
Prior to the lawsuit, Hamilton Securities, an innovative software
company and its president Catherine Austin Fitts successfully completed an
auction sale of defaulted HUD properties, which saved the government $2.2
billion in lost revenue.
Then Hamilton became a target. (See "Bushwhacked: HUD Fraud, Spooks and
the Slumlords of Harvard." (www.conspiracydigest.com/bushwhacked.html)
In June 1996, John Ervin of Ervin Associates, a disgruntled HUD
contractor, filed a secret qui tam lawsuit against Hamilton Securities,
Goldman Sachs, and Blackrock PNC. He also filed a lawsuit against HUD and HUD
officials.
Transcripts of the sealed hearings show that DoJ and HUD attorneys were
clearly the strategic force behind Ervin's phony suit against Hamilton,
running interference for Ervin in closed sessions with Judge Sporkin.
DoJ attorneys Barbara Van Gelder and Anthony Alexis, as well as HUD
attorney Judith Hetherton, then managed to keep stalling the qui tam lawsuit
against Hamilton for an astonishing four years. This was apparently a
clear-cut effort to bleed Hamilton's financial resources. The time proscribed
by law, by the way, for "investigations" of this type, is 60 days.
The coordination against Hamilton seems to have originated in the US
Attorney's office in the District of Columbia, as well as the Lee Radek
fiefdom of the Department of Justice, misnamed the "Office of Public
Integrity."
Former CIA operative Lee Radek is a master of conspiracy cover-up and
his office has a well-documented reputation for derailing criminal
investigation of government insiders and coordinating reprisals against
whistleblowers.
Hetherton was a former member of the District of Columbia's US
Attorney's office, while Van Gelder worked for Eric Holder, the DC US
Attorney who became the Assistant Attorney General under Janet Reno. Van
Gelder also reported to Frank Hunger, Al Gore's brother in law, head of the
Civil Division of the Department of Justice.
In essence, the qui tam lawsuit, filed by a bounty hunter (Ervin) on
behalf of the government, alleged that the government had been harmed by bid
rigging between Goldman Sachs, Black Rock, HUD and Hamilton Securities.
Court documents present a convincing case that the qui tam and the
civil lawsuitS were themselves concocted by the DC US Attorney's team -- even
though they knew it was completely without merit.
During the same time frame (four years), Judge Sporkin illegally kept
the court documents sealed to further obfuscate DoJ's criminality.
In fact, the unsealed court transcripts reveal an astonishing disregard
for evidence and normal court protocol by government attorneys as well as the
judge.
It's clear that Judge Sporkin was guiding DoJ and Ervin attorneys in
their "search" for non-existent evidence against Hamilton.
Sporkin, former CIA and SEC counsel under Bill Casey, repeatedly helped
government attorneys by verbally nudging them toward some semblance of
professional behavior.
Sporkin, by the way, took over the case from Judge Charles R. Richey
who mysteriously -- and unexpectedly -- died after the first several hearings.
In the March 29, 1999 transcript, for example, Judge Sporkin asked US
Attorney Anthony Alexis. "Where are we on this thing here? Where's the
government going? Do they know yet?"
Alexis replies. "No." Sporkin, evidently frustrated by the US
Attorney's inability to present a credible case against Hamilton, asks him,
"You don't know where you want to go?"
Alexis answers, "I kind of know which direction I want to go in terms
of who I want to speak to, but there's well, obviously the documents which
Ms. Hetherton can speak to which is before the special master."
The case, by the way, was first heard on June 20, 1996, so the
preceding conversation took place three years after the supposed
"investigation," which yielded no evidence of wrongdoing by Hamilton.
Each time attorneys for DoJ and HUD appeared in closed session with the
judge, they would, time and again, present no evidence, no affidavits, and no
documents -- just a plea to postpone the case.
Judge Sporkin, time and again, acceded to their baseless request and
postponed the case.
The chronology of illegal and bizarre behavior by Sporkin and
government attorneys follows:
* July 1, 1996 -- Judge Richey extends the case for 60 days based on Barbara
Van Gelder's unsubstantiated allegations that fraud was involved. Judge
Richey tells Van Gelder he won't give them another extension. Then Judge
Richey suddenly gets sick and dies.
* Aug 19, 1996 -- The new judge, Stanley Sporkin, extends the case another 90
days.
* December 19, 1996 -- Sporkin gives government attorneys another 90 day
extension. He comments on the fact that John Ervin, the disgruntled
government contractor-bounty hunter would get 15% to 30% of the settlement.
"Gee, I had one of these qui tams where the government recovered close
to 30 million. And the relator I guess got -- what do they get, a third?" the
judge asks. "Thirty percent," answers Wayne Travell, a Venable, Baetjer,
Howard & Civilleti attorney, representing failed bounty hunter John Ervin.
* May 20, 1997 - US Attorney Barbara van Gelder lies once again regarding her
lack of evidence in the case. She implies that if she's given more time,
she'll definitely come up with something concrete.
When Sporkin asks her about consolidating the two cases, Van Gelder
flirts with the judge and tells him, "Oh, it's always a pleasure to appear
before you." The judge says, "You know how to butter me up, don't you? You
and I go back many years..."
But Sporkin doesn't recuse himself.
Van Gelder then tells the judge, "The reason why we can't -- I believe
that we can't have one case consolidated is that one judge would have total
knowledge of the case and the problem is in the other case we are the
defendant, and so with the United States being the plaintiff and the United
States being the defendant..."
In other words the government is in the bizarre situation of being the
Plaintiff AND the Defendant, since Ervin has also sued the government,
specifically HUD and HUD officials. Sporkin is puzzled too. He asks her how
the government can be both plaintiff and defendant in the case.
After Ervin and his counsel are referred to in court as "bounty
hunters," Sporkin gives government attorneys another 90 days -- illegally.
Again Van Gelder lies and tells the judge she needs an additional six months.
Sporkin replies, "...these are interesting cases. I've had one of these
where the relator I think, he recaptured abut 30 million and I think 25
percent is tops."
Van Gelder says, "Twenty five is the top, right." Sporkin says, "And
you figure 25 percent of 30 million is 7.5 million bucks."
The message between the lines is that Sporkin is wondering out loud
what the patsy John Ervin is actually doing to "earn" his share of the loot
-- 25% of the disputed $4.7 billion won by Goldman Sachs and their partners
in the HUD loan sales.
* Sept 10, 1997 -- Sporkin recommends that Van Gelder use SEC investigators
to figure out if the HUD loan sales can be construed as "securities." Van
Gelder says that she wants to use SEC only in an advisory capacity. In
essence, Sporkin the judge is advising Van Gelder the DoJ Attorney on
litigation and investigation strategy. Improper? Sure. Has Sporkin and van
Gelder been censured, fined or prosecuted? Not yet.
* October 1997 -- HUD Secretary Andrew Cuomo abruptly cancels the Hamilton
Securities contract, despite the fact that Hamilton successfully auctioned
off $10 billion worth of defaulted HUD mortgages thereby saving the
government $2.2 billion.
HUD still owes Hamilton $2.5 million for contracted services.
* March 9, 1998 -- HUD and the FBI loot the Hamilton Securities office in
Washington, DC. A sworn affidavit by a building custodian shows DoJ's intent
to plant false evidence in the basement hoard of Hamilton documents in order
to frame Hamilton -- and in turn, Goldman Sachs.
DoJ Attorney Tony Alexis appears and asks for another 120 day extension
in the case.
* July 10, 1998 -- Tony Alexis lies again and claims Hamilton isn't giving
them documents they have asked for. The Judge stalls the case again.
* Nov 19, 1998 -- Dan Hawke, Ervin's attorney, asks for another 90 days.
* Jan 29, 1999 - Tony Alexis, assistant US Attorney Civil Division, asks for
the case to be sealed for 90 days.
* June 2, 1999 -- DoJ attorneys continue to mislead the court.
Judge Sporkin begins to show his frustration at the ineptness of
government attorneys. You can imagine how he feels after more than three
years of no results. He says, "Let me tell you what you've got to do here.
What you've really got to do, because this thing is dragging on, get a team
together of some very knowledgeable people. You might have to bring them in
from the outside. There's a big pool of people over there at Securities and
Exchange Commission you could use. And I don't know whether you're permitted
to go outside of the SEC to bring in some people that are knowledgeable in
Wall Street and how these things work and get into that end of it. And I
don't know whether HUD has that -- the Inspector General has those skills. I
don't know. I really, I think it's dragging on. And the longer you wait, the
harder it's going to be to reconstruct things because what you're going to
have to do is reconstruct your market."
Translation: I'm really really frustrated with the incompetence of all
you government attorneys. Why can't you just do the job?
Sporkin then continues leading them, trying to motivate them to bring
him something -- anything with some kind of perceived value. Sporkin says, "I
think you've really got to get a team together that's knowledgeable in this
area of the law and can, you know, can go into it and see if these
allegations are true or not. I don't know how you're going to do it, but
you've got to get -- I don't know -- is the Inspector General carrying this
on or do you have anybody from Justice working on this?"
The transcripts show that the Hamilton bushwhack was a setup, a story
of dirty politics within the DoJ and HUD.
The transcripts also implicate DoJ Attorneys, the HUD Inspector General
Susan Gaffney and HUD Secretary Andrew Cuomo in criminal collusion, if not
conspiracy, against Hamilton Securities.
Andrew Cuomo, the mob-connected son of former Governor Mario Cuomo, is
currently running for Governor of New York. While he was the director of HUD,
HUD Inspector General Susan Gaffney revealed in March 2000 that $59 billion
of HUD monies had been "lost" and the accounting could not be reconciled.
Computer "error" was initially blamed for the shortfall, but this ludicrous
and laughable cover story did not stand.
Furthermore it becomes clear that --
1. DoJ designed the construct and rationale for Ervin to file the lawsuit
against Hamilton on behalf of the government.
2. DoJ taught Ervin how to get the ultimate kickback as a "bounty hunter."
Incidentally Ervin was actually paid several million dollars when he agreed
to withdraw his lawsuit against HUD and HUD officials, an obvious backdoor
payoff.
3. Judge Stanley Sporkin's egregious behavior and improper conduct is
evidence of criminal conspiracy. Well-trained in dirty tricks and spooky
"tradecraft," Sporkin,like Lowell Jensen and Lawrence Silberman,was
"appointed to the federal bench to defuse any litigation arising from the
October Surprise or its many tentacles," according to whistleblower Rodney
Stich in his magnum opus "Defrauding America."
So was Hamilton Securities just another domino used by insiders to try
to knock down Goldman Sachs?
Or was Hamiton and its innovative software a serious threat to insiders
who wanted to cancel the sales of defaulted loans to hide the rampant fraud
at HUD?
Were they so afraid that Hamilton's open auction and bid optimization
software would cut them out and destroy their covert revenue streams and
money laundering capability through HUD?
And, given the well-documented fraud at HUD, why was the Department of
Justice so afraid of getting the Securities and Exchange Commission involved
in the investigation?
Other more serious questions also remain.
Why did HUD Secretary Andrew Cuomo and Al Gore's brother-in-law, Frank
Hunger, head of the Civil Division of DoJ, try to frame Goldman Sachs during
the Clinton impeachment, despite the fact that Goldman Sachs was a major
contributor to the Democrat Party?
Was this the aftermath of a failed palace coup by Al Gore, Frank Hunger
and Hillary Clinton against Bill Clinton himself?
Timing, after all, is everything.
Hamilton Securities and Catherine Austin Fitts continue to struggle
under the burden of a meritless lawsuit by Ervin with continuous support from
the Department of Justice.
Hamilton has still not been paid on its invoices for $2.5 million --
unquestionably and undeniably owed by HUD.
Gored and bushwhacked, software pioneer Catherine Austin Fitts has paid
dearly for her company's innovations. Nevertheless she's ready to begin her
new project -- "The Solari Spirit: How to Create Local Prosperity in a Global
Economy" (www.solari.com) -- as soon as this outrageous case is settled...
