Whistleblower Alayne Fleischmann on How JPMorgan Chase Helped Wreck the Economy

As a follow-up to the Rolling Stone article, here’s a recent interview with the “$9 Billion Witness”

http://democracynow.org – A year ago this month the U.S. Department of Justice announced that the banking giant JPMorgan Chase would avoid criminal charges by agreeing to pay $13 billion to settle claims that it had routinely overstated the quality of mortgages it was selling to investors. But how did the bank avoid prosecution for committing fraud that helped cause the 2008 financial crisis? Today we speak to JPMorgan Chase whistleblower Alayne Fleischmann in her first televised interview discussing how she witnessed “massive criminal securities fraud” in the bank’s mortgage operations. She is profiled in Matt Taibbi’s new Rolling Stone investigation, “The $9 Billion Witness: Meet the woman JPMorgan Chase paid one of the largest fines in American history to keep from talking.”

The $9 Billion Witness: Meet JPMorgan Chase’s Worst Nightmare

Recently, Carmen Segarra made headlines as a Goldman Sachs whistleblower. Now,  Chase whistle-blower Alayne Fleischmann is coming forward, saying, “If we don’t start speaking up, then this really is all we’re going to get: the biggest financial cover-up in history.” Before she went to Wall Street, she did human rights work, but she had to pay-off her student loans… Ladies and Gentlemen, the show has begun! -LW


Chase whistle-blower Alayne Fleischmann risked it all. Photo credit: Andrew Querner

Chase whistle-blower Alayne Fleischmann risked it all. Photo credit: Andrew Querner

Meet the woman JPMorgan Chase paid one of the largest fines in American history to keep from talking

By  | November 6, 2014

She tried to stay quiet, she really did. But after eight years of keeping a heavy secret, the day came when Alayne Fleischmann couldn’t take it anymore.

“It was like watching an old lady get mugged on the street,” she says. “I thought, ‘I can’t sit by any longer.'”

Fleischmann is a tall, thin, quick-witted securities lawyer in her late thirties, with long blond hair, pale-blue eyes and an infectious sense of humor that has survived some very tough times. She’s had to struggle to find work despite some striking skills and qualifications, a common symptom of a not-so-common condition called being a whistle-blower.

 Fleischmann is the central witness in one of the biggest cases of white-collar crime in American history, possessing secrets that JPMorgan Chase CEO Jamie Dimon late last year paid $9 billion (not $13 billion as regularly reported – more on that later) to keep the public from hearing.

Back in 2006, as a deal manager at the gigantic bank, Fleischmann first witnessed, then tried to stop, what she describes as “massive criminal securities fraud” in the bank’s mortgage operations.

Thanks to a confidentiality agreement, she’s kept her mouth shut since then. “My closest family and friends don’t know what I’ve been living with,” she says. “Even my brother will only find out for the first time when he sees this interview.”

Six years after the crisis that cratered the global economy, it’s not exactly news that the country’s biggest banks stole on a grand scale. That’s why the more important part of Fleischmann’s story is in the pains Chase and the Justice Department took to silence her.

She was blocked at every turn: by asleep-on-the-job regulators like the Securities and Exchange Commission, by a court system that allowed Chase to use its billions to bury her evidence, and, finally, by officials like outgoing Attorney General Eric Holder, the chief architect of the crazily elaborate government policy of surrender, secrecy and cover-up. “Every time I had a chance to talk, something always got in the way,” Fleischmann says.

This past year she watched as Holder’s Justice Department struck a series of historic settlement deals with Chase, Citigroup and Bank of America. The root bargain in these deals was cash for secrecy. The banks paid big fines, without trials or even judges – only secret negotiations that typically ended with the public shown nothing but vague, quasi-official papers called “statements of facts,” which were conveniently devoid of anything like actual facts.

Jamie Dimon (Photo: Bloomberg/Getty)

Jamie Dimon (Photo: Bloomberg/Getty)

And now, with Holder about to leave office and his Justice Department reportedly wrapping up its final settlements, the state is effectively putting the finishing touches on what will amount to a sweeping, industrywide effort to bury the facts of a whole generation of Wall Street corruption. “I could be sued into bankruptcy,” she says. “I could lose my license to practice law. I could lose everything. But if we don’t start speaking up, then this really is all we’re going to get: the biggest financial cover-up in history.”

Alayne Fleischmann grew up in Terrace, British Columbia, a snowbound valley town just a brisk 18-hour drive north of Vancouver. She excelled at school from a young age, making her way to Cornell Law School and then to Wall Street. Her decision to go into finance surprised those closest to her, as she had always had more idealistic ambitions. “I helped lead a group that wrote briefs to the Human Rights Chamber for those affected by ethnic cleansing in Bosnia-Herzegovina,” she says. “My whole life prior to moving into securities law was human rights work.”

But she had student loans to pay off, and so when Wall Street came knocking, that was that. But it wasn’t like she was dragged into high finance kicking and screaming. She found she had a genuine passion for securities law and felt strongly she was doing a good thing. “There was nothing shady about the field back then,” she says. “It was very respectable.”

In 2006, after a few years at a white-shoe law firm, Fleischmann ended up at Chase. The mortgage market was white-hot. Banks like Chase, Bank of America and Citigroup were furiously buying up huge pools of home loans and repackaging them as mortgage securities. Like soybeans in processed food, these synthesized financial products wound up in everything, whether you knew it or not: your state’s pension fund, another state’s workers’ compensation fund, maybe even the portfolio of the insurance company you were counting on to support your family if you got hit by a bus.

As a transaction manager, Fleischmann functioned as a kind of quality-control officer. Her main job was to help make sure the bank didn’t buy spoiled merchandise before it got tossed into the meat grinder and sold out the other end.

A few months into her tenure, Fleischmann would later testify in a DOJ deposition, the bank hired a new manager for diligence, the group in charge of reviewing and clearing loans. Fleischmann quickly ran into a problem with this manager, technically one of her superiors. She says he told her and other employees to stop sending him e-mails. The department, it seemed, was wary of putting anything in writing when it came to its mortgage deals.

“If you sent him an e-mail, he would actually come out and yell at you,” she recalls. “The whole point of having a compliance and diligence group is to have policies that are set out clearly in writing. So to have exactly the opposite of that – that was very worrisome.” One former high-ranking federal prosecutor said that if he were taking a criminal case to trial, the information about this e-mail policy would be crucial. “I would begin and end my opening statement with that,” he says. “It shows these people knew what they were doing and were trying not to get caught.”

In late 2006, not long after the “no e-mail” policy was implemented, Fleischmann and her group were asked to evaluate a packet of home loans from a mortgage originator called GreenPoint that was collectively worth about $900 million. Almost immediately, Fleischmann and some of the diligence managers who worked alongside her began to notice serious problems with this particular package of loans.

For one thing, the dates on many of them were suspiciously old. Normally, banks tried to turn loans into securities at warp speed. The idea was to go from a homeowner signing on the dotted line to an investor buying that loan in a pool of securities within two to three months. Thus it was a huge red flag to see Chase buying loans that were already seven or eight months old.

“I COULD LOSE EVERYTHING. BUT IF WE DON’T START SPEAKING UP, WE’RE GOING TO GET THE BIGGEST FINANCIAL COVER-UP IN HISTORY.”

What this meant was that many of the loans in the GreenPoint deal had either been previously rejected by Chase or another bank, or were what are known as “early payment defaults.” EPDs are loans that have already been sold to another bank and have been returned after the borrowers missed multiple payments. That’s why the dates on them were so old.

In other words, this was the very bottom of the mortgage barrel. They were like used cars that had been towed back to the lot after throwing a rod. The industry had its own term for this sort of loan product: scratch and dent. As Chase later admitted, it not only ended up reselling hundreds of millions of dollars worth of those crappy loans to investors, it also sold them in a mortgage pool marketed as being above subprime, a type of loan called “Alt-A.” Putting scratch-and-dent loans in an Alt-A security is a little like putting a fresh coat of paint on a bunch of junkyard wrecks and selling them as new cars. “Everything that I thought was bad at the time,” Fleischmann says, “turned out to be a million times worse.” (Chase declined to comment for this article.)

When Fleischmann and her team reviewed random samples of the loans, they found that around 40 percent of them were based on overstated incomes – an astronomically high defect rate for any pool of mortgages; Chase’s normal tolerance for error was five percent. One mortgage in particular that sticks out in Fleischmann’s mind involved a manicurist who claimed to have an annual income of $117,000. Fleischmann figured that even working seven days a week, this woman would have needed to work 488 days a year to make that much. “And that’s with no overhead,” Fleischmann says. “It wasn’t possible.”

But when she and others raised objections to the toxic loans, something odd started happening. The number-crunchers who had been complaining about the loans suddenly began changing their reports. The process she describes is strikingly similar to the way police obtain false confessions: The interrogator verbally abuses the target until he starts producing the desired answers. “What happened,” Fleischmann says, “is the head diligence manager started yelling at his team, berating them, making them do reports over and over, keeping them late at night.” Then the loans started clearing.

As late as December 11th, 2006, diligence managers had marked a full 33 percent of one loan sample as “stated income unreasonable for profession,” meaning that it was nearly inevitable that there would be a high number of defaults. Several high-ranking executives were copied on this report.

Then, on December 15th, a Chase sales executive held a lengthy meeting with reps from GreenPoint and the diligence team to examine the remaining loans in the pool. When they got to the manicurist, Fleischmann remembers, one of the diligence guys finally caved under the pressure from the sales executive. “He had his hands up and just said, ‘OK,’ and he cleared it,” says Fleischmann, adding that he was shaking his head “no” even as he was saying yes. Soon afterward, the error rate in the pool had magically dropped below 10 percent – a threshold that itself had just been doubled to clear the way for this deal.

After that meeting, Fleischmann testified, she approached a managing director named Greg Boester and pleaded with him to reconsider. She says she told Boester that the bank could not sell the high-risk loans as low-risk securities without committing fraud. “You can’t securitize these loans without special disclosure about what’s wrong with them,” Fleischmann told him, “and if you make that disclosure, no one will buy them.”

A former Olympic ski jumper, Boester was such an important executive at Chase that when he later defected to the Chicago-based hedge fund Citadel, Dimon cut off trading with Citadel in retaliation. Boester eventually returned to Chase and is still there today despite his role in this affair.

This moment illustrates the most basic element of the case against Chase: The bank knowingly peddled products stuffed with scratch-and-dent loans to investors without disclosing the obvious defects with the underlying loans.

Years later, in its settlement with the Justice Department, Chase would admit that this conversation between Fleischmann and Boester took place (though neither was named; it was simply described as “an employee . . . told . . . a managing director”) and that her warning was ignored when the bank sold those loans off to investors.

Chase Witness

Photo: Illustration by Victor Juhasz

A few weeks later, in early 2007, she sent a long letter to another managing director, William Buell. In the letter, she warned Buell of the consequences of reselling these bad loans as securities and gave detailed descriptions of breakdowns in Chase’s diligence process.

Fleischmann assumed this letter, which Chase lawyers would later jokingly nickname “The Howler” after the screaming missive from the Harry Potter books, would be enough to force the bank to stop selling the bad loans. “It used to be if you wrote a memo, they had to stop, because now there’s proof that they knew what they were doing,” she says. “But when the Justice Department doesn’t do anything, that stops being a deterrent. I just didn’t know that at the time.”

In February 2008, less than two years after joining the bank, Fleischmann was quietly dismissed in a round of layoffs. A few months later, proof would appear that her bosses knew all along that the boom-era mortgage market was rotten. That September, as the market was crashing, Dimon boasted in a ball-washing Fortune article titled “Jamie Dimon’s SWAT Team” that he knew well before the meltdown that the subprime market was toast. “We concluded that underwriting standards were deteriorating across the industry.” The story tells of Dimon ordering Boester’s boss, William King, to dump the bank’s subprime holdings in October 2006. “Billy,” Dimon says, “we need to sell a lot of our positions. . . . This stuff could go up in smoke!”

In other words, two full months before the bank rammed through the dirty GreenPoint deal over Fleischmann’s objections, Chase’s CEO was aware that loans like this were too dangerous for Chase itself to own. (Though Dimon was talking about subprime loans and GreenPoint was technically an Alt-A pool, the Fortune story shows that upper management had serious concerns about industry-wide underwriting problems.)

In January 2010, when Dimon testified before the Financial Crisis Inquiry Commission, he told investigators the exact opposite story, portraying the poor Chase leadership as having been duped, just like the rest of us. “In mortgage underwriting,” he said, “somehow we just missed, you know, that home prices don’t go up forever.”

When Fleischmann found out about all of this years later, she was shocked. Her confidentiality agreement at Chase didn’t bar her from reporting a crime, but the problem was that she couldn’t prove that Chase had committed a crime without knowing whether those bad loans had been sold.

As it turned out, of course, Chase was selling those rotten dog-meat loans all over the place. How bad were they? A single lawsuit by a single angry litigant gives some insight. In 2011, Chase was sued over massive losses suffered by a group of credit unions. One of them had invested $135 million in one of the bank’s mortgage–backed securities. About 40 percent of the loans in that deal came from the GreenPoint pool.

The lawsuit alleged that in just the first year, the security suffered $51 million in losses, nearly 50 times what had been projected. It’s hard to say how much of that was due to the GreenPoint loans. But this was just one security, one year, and the losses were in the tens of millions. And Chase did deal after deal with the same methodology. So did most of the other banks. It’s theft on a scale that blows the mind.

In the spring of 2012, Fleischmann, who’d moved back to Canada after leaving Chase, was working at a law firm in Calgary when the phone rang. It was an investigator from the States. “Hi, I’m from the SEC,” he said. “You weren’t expecting to hear from me, were you?”

A few months earlier, President Obama, giving in to pressure from the Occupy movement and other reformers, had formed the Residential Mortgage-Backed Securities Working Group. At least superficially, this was a serious show of force against banks like Chase. The group would operate like a kind of regulatory Justice League, combining the superpowers of investigators from the SEC, the FBI, the IRS, HUD and a host of other federal agencies. It included noted anti-corruption- investigator and New York Attorney General Eric Schneiderman, which gave many observers reason to hope that finally something would be done about the crimes that led to the crash. That makes the fact that the bank would skate with negligible cash fines an even more extra-ordinary accomplishment.

New York Attorney General Eric Schneiderman (L) speaks whille Attorney General Eric Holder listens during a news conference at the Justice Department on January 27th, 2012.

New York Attorney General Eric Schneiderman (L) speaks whille Attorney General Eric Holder listens during a news conference at the Justice Department on January 27th, 2012. (Photo: Mark Wilson/Getty)

By the time the working group was set up, most of the applicable statutes of limitations had either expired or were about to expire. “A conspiratorial way of looking at it would be to say the state waited far too long to look at these cases and is now taking its sweet time investigating, while the last statutes of limitations run out,” says famed prosecutor and former New York Attorney General Eliot Spitzer.

It soon became clear that the SEC wasn’t so much investigating Chase’s behavior as just checking boxes. Fleischmann received no follow-up phone calls, even though she told the investigator that she was willing to tell the SEC everything she knew about the systemic fraud at Chase. Instead, the SEC focused on a single transaction involving a mortgage company called WMC. “I kept trying to talk to them about GreenPoint,” Fleischmann says, “but they just wanted to talk about that other deal.”

The following year, the SEC would fine Chase $297 million for misrepresentations in the WMC deal. On the surface, it looked like a hefty punishment. In reality, it was a classic example of the piecemeal, cherry-picking style of justice that characterized the post-crisis era. “The kid-gloves approach that the DOJ and the SEC take with Wall Street is as inexplicable as it is indefensible,” says Dennis Kelleher of the financial reform group Better Markets, which would later file suit challenging the Chase settlement. “They typically charge only one offense when there are dozens. It would be like charging a serial murderer with a single assault and giving them probation.”

Soon Fleischmann’s hopes were raised again. In late 2012 and early 2013, she had a pair of interviews with civil litigators from the U.S. attorney’s office in the Eastern District of California, based in Sacramento.

One of the ongoing myths about the financial crisis is that the government is outmatched by the legal talent representing the banks. But Fleischmann was impressed by the lead attorney in her case, a litigator named Richard Elias. “He sounded like he had been a securities lawyer for 10 years,” she says. “This actually looked like his idea of fun – like he couldn’t wait to run with this case.”

She gave Elias and his team detailed information about everything she’d seen: the edict against e-mails, the sabotaging of the diligence process, the bullying, the written warnings that were ignored, all of it. She assumed that it wouldn’t be long before the bank was hauled into court.

bank of america
 Instead, the government decided to help Chase bury the evidence. It began when Holder’s office scheduled a press conference for the morning of September 24th, 2013, to announce sweeping civil-fraud charges against the bank, all laid out in a detailed complaint drafted by the U.S. attorney’s Sacramento office. But that morning the presser was suddenly canceled, and no complaint was filed. According to later news reports, Dimon had personally called Associate Attorney General Tony West, the third-ranking official in the Justice Department, and asked to reopen negotiations to settle the case out of court.

It goes without saying that the ordinary citizen who is the target of a government investigation cannot simply pick up the phone, call up the prosecutor in charge of his case and have a legal proceeding canceled. But Dimon did just that. “And he didn’t just call the prosecutor, he called the prosecutor’s boss,” Fleischmann says. According to The New York Times, after Dimon had already offered $3 billion to settle the case and was turned down, he went to Holder’s office and upped the offer, but apparently not by enough.

A few days later, Fleischmann, who had by then moved back to Vancouver and was looking for work, was at a mall when she saw a Wall Street Journal headline on her iPhone: JPMorgan Insider Helps U.S. in Probe. The story said that the government had a key witness, a female employee willing to provide damaging testimony about Chase’s mortgage operations. Fleischmann was stunned. Until that moment, she had no idea that she was a major part of the government’s case against Chase. And worse, nobody had bothered to warn her that she was about to be effectively outed in the newspapers. “The stress started to build after I saw that news,” she says. “Especially as I waited to see if my name would come out and I watched my job possibilities evaporate.”

Fleischmann later realized that the government wasn’t interested in having her testify against Chase in court or any other public forum. Instead, the Justice Department’s political wing, led by Holder, appeared to be using her, and her evidence, as a bargaining chip to extract more hush money from Dimon. It worked. Within weeks, Dimon had upped his offer to roughly $9 billion.

In late November, the two sides agreed on a settlement deal that covered a variety of misbehaviors, including the fraud that Fleischmann witnessed as well as similar episodes at Washington Mutual and Bear Stearns, two companies that Chase had acquired during the crisis (with federal bailout aid). The newspapers and the Justice Department described the deal as a “$13 billion settlement,” hailing it as the biggest white-collar regulatory settlement in American history. The deal released Chase from civil liability. And, in what was described by The New York Times as a “major victory for the government,” it left open the possibility that the Justice Department could pursue a further criminal investigation against the bank.

But the idea that Holder had cracked down on Chase was a carefully contrived fiction, one that has survived to this day. For starters, $4 billion of the settlement was largely an accounting falsehood, a chunk of bogus “consumer relief” added to make the payoff look bigger. What the public never grasped about these consumer–relief deals is that the “relief” is often not paid by the bank, which mostly just services the loans, but by the bank’s other victims, i.e., the investors in their bad mortgage securities.

Moreover, in this case, a fine-print addendum indicated that this consumer relief would be allowed only if said investors agreed to it – or if it would have been granted anyway under existing arrangements. This often comes down to either forgiving a small portion of a loan or giving homeowners a little extra time to pay up in full. “It’s not real,” says Fleischmann. “They structured it so that the homeowners only get relief if they would have gotten it anyway.” She pauses. “If a loan shark gives you a few extra weeks to pay up, is that ‘consumer relief’?”

The average person had no way of knowing what a terrible deal the Chase settlement was for the country. The terms were even lighter than the slap-on-the-wrist formula that allowed Wall Street banks to “neither admit nor deny” wrongdoing – the deals that had helped spark the Occupy protests. Yet those notorious deals were like the Nuremberg hangings compared to the regulatory innovation that Holder’s Justice Department cooked up for Dimon and Co.

Instead of a detailed complaint naming names, Chase was allowed to sign a flimsy, 10-and-a-half-page “statement of facts” that was: (a) so short, a first-year law student could read it in the time it takes to eat a tuna sandwich, and (b) so vague, a halfway intelligent person could read it and not know anyone had done anything wrong.

Businessman working on computer in office
 The ink was barely dry on the deal before Chase would have the balls to insinuate its innocence. “The firm has not admitted to violations of the law,” said CFO Marianne Lake. But the deal’s most brazen innovation was the way it bypassed the judicial branch. Previously, federal regulators had had bad luck with judges when trying to dole out slap-on-the-wrist settlements to banks. In a pair of celebrated cases, an unpleasantly honest federal judge named Jed Rakoff had rejected sweetheart deals worked out between banks and slavish regulators and had commanded the state to go back to the drawing board and come up with real punishments.

Seemingly not wanting to deal with even the possibility of such a thing happening, Holder blew off the idea of showing the settlement to a judge. The settlement, says Kelleher, “was unprecedented in many ways, including being very carefully crafted to bypass the court system. . . . There can be little doubt that the DOJ and JP-Morgan were trying to avoid disclosure of their dirty deeds and prevent public scrutiny of their sweetheart deal.” Kelleher asks a rhetorical question: “Can you imagine the outcry if [Bush-era Attorney General] Alberto Gonzales had gone into the backroom and given Halliburton immunity in exchange for a billion dollars?”

The deal was widely considered a good one for both sides, but Chase emerged with barely a scratch. First, the ludicrously nonspecific language surrounding the settlement put you, me and every other American taxpayer on the hook for roughly a quarter of Chase’s check. Because most of the settlement monies were specifically not called fines or penalties, Chase was allowed to treat some $7 billion of the settlement as a tax write-off.

Couple this with the fact that the bank’s share price soared six percent on news of the settlement, adding more than $12 billion in value to shareholders, and one could argue Chase actually made money from the deal. What’s more, to defray the cost of this and other fines, Chase last year laid off 7,500 lower-level employees. Meanwhile, per-employee compensation for everyone else rose four percent, to $122,653. But no one made out better than Dimon. The board awarded a 74 percent raise to the man who oversaw the biggest regulatory penalty ever, upping his compensation package to about $20 million.

While Holder was being lavishly praised for releasing Chase only from civil liability, Fleischmann knew something the rest of the world did not: The criminal investigation was going nowhere.

In the days leading up to Holder’s November 19th announcement of the settlement, the Justice Department had asked Fleischmann to meet with criminal investigators. They would interview her very soon, they said, between December 15th and Christmas.

But December came and went with no follow-up from the DOJ. She began to wonder: If she was the government’s key witness, how was it possible that they were still pursuing a criminal case without talking to her? “My concern,” she says, “was that they were not investigating.”

The government’s failure to speak to Fleischmann lends credence to a theory about the Holder-Dimon settlement: It included a tacit agreement from the DOJ not to pursue criminal charges in earnest. It sounds outrageous, but it wouldn’t be the first time that the government used a wink and a nod to dispose a bank of major liability without saying so publicly. Back in 2010, American Lawyer revealed Goldman Sachs wanted a full release from liability in a dozen crooked mortgage deals, while the SEC didn’t want to give the bank such a big public victory. So the two sides quietly agreed to a grimy compromise: Goldman agreed to pay $550 million to settle a single case, and the SEC privately assured the bank that it wouldn’t recommend charges in any of the other deals.

As Fleischmann was waiting for the Justice Department to call, Chase and its lawyers had been going to tremendous lengths to keep her muzzled. A number of major institutional investors had sued the bank in an effort to recover money lost in investing in Chase’s fraud-ridden home loans. In October 2013, one of those investors – the Fort Worth Employees’ Retirement Fund – asked a federal judge to force Chase to grant access to a series of current and former employees, including Fleischmann, whose status as a key cooperator in the federal investigation had made headlines in The Wall Street Journal and other major media outlets.

Photo: Spencer Platt/Getty

Photo: Spencer Platt/Getty

In response, Dorothy Spenner, an attorney representing Chase, told the court that Fleischmann was not a “relevant custodian.” In other words, she couldn’t testify to anything of importance. Federal Magistrate Judge James C. Francis IV took Chase’s lawyers at their word and rejected the Fort Worth retirees’ request for access to Fleischmann and her evidence.

Other investors bilked by Chase also tried to speak to Fleischmann. The Federal Home Loan Bank of Pittsburgh, which had sued Chase, asked the court to force Chase to turn over a copy of the draft civil complaint that was withheld after Holder’s scuttled press conference. The Pittsburgh litigants also specified that they wanted access to the name of the state’s cooperating witness: namely, Fleischmann.

In that case, the judge actually ordered Chase to turn over both the complaint and Fleischmann’s name. Chase stalled. Later in the fall, the judge ordered the bank to produce the information again; it stalled some more.

Then, in January 2014, Chase suddenly settled with the Pittsburgh bank out of court for an undisclosed amount. Months after being ordered to allow Fleischmann to talk, they once again paid a stiff price to keep her testimony out of the public eye.

Chase’s determination to hide its own dirt while forcing Fleischmann to keep her secret was becoming more and more absurd. “It was a hard time to look for work,” she says. All that prospective employers knew was that she had worked in a department that had just been dinged with what was then the biggest regulatory fine in the history of capitalism. According to the terms of her confidentiality agreement, she couldn’t even tell them that she’d tried to keep the bank from committing fraud.

Despite it all, Fleischmann still had faith that the Justice Department or some other federal agency would make things right. “I guess I was just a trusting person,” she says. “I wasn’t cynical. I kept hoping.”

One day last spring, Fleischmann happened across a video of Holder giving a speech titled “No Company Is Too Big to Jail.” It was classic Holder: full of weird prevarication, distracting eye twitches and other facial contortions. It began with the bold rejection of the idea that overly large financial institutions would receive preferential treatment from his Justice Department.

Bernie Madoff

Bernie Madoff

Then, within a few sentences, he seemed to contradict himself, arguing that one must apply a special sort of care when investigating supersize banks, tweaking the rules so as not to upset the world economy. “Federal prosecutors conducting these investigations,” Holder said, “must go the extra mile to coordinate closely with the regulators who oversee these institutions’ day-to-day operations.” That is, he was saying, regulators have to agree not to allow automatic penalties to kick in, so that bad banks can stay in business.

Fleischmann winced. Fully fluent in Holder’s three-faced rhetoric after years of waiting for him to act, she felt that he was patting himself on the back for having helped companies survive crimes that otherwise might have triggered crippling regulatory penalties. As she watched in mounting outrage, Holder wrapped up his address with a less-than-reassuring pronouncement: “I am resolved to seeing [the investigations] through.” Doing so, he added, would “reaffirm” his principles.

Or, as Fleischmann translates it: “I will personally stay on to make sure that no one can undo the cover-up that I’ve accomplished.”

That’s when she decided to break her silence. “I tried to go on with the things I was doing, but I just stopped sleeping and couldn’t eat,” she says. “It felt like I was trying to keep this secret and my body was literally rejecting it.”

Ironically, over the summer, the government contacted her again. A new set of investigators interviewed her, appearing to have restarted the criminal case. Fleischmann won’t comment on that investigation. Frustrated as she has been by the decisions of the higher-ups in Holder’s Justice Department, she doesn’t want to do anything to get in the way of investigators who might be working the case. But she emphasizes she still has reason to be deeply worried that nothing will be done. Even if the investigators build strong cases against executives who oversaw Chase’s fraud, Holder or whoever succeeds him can still make the whole thing disappear by negotiating a soft landing for the company. “That’s the thing I’m worried about,” she says. “That they make the whole thing disappear. If they do that, the truth will never come out.”

In September, at a speech at NYU, Holder defended the lack of prosecutions of top executives on the grounds that, in the corporate context, sometimes bad things just happen without actual people being responsible. “Responsibility remains so diffuse, and top executives so insulated,” Holder said, “that any misconduct could again be considered more a symptom of the institution’s culture than a result of the willful actions of any single individual.”

In other words, people don’t commit crimes, corporate culture commits crimes! It’s probably fortunate that Holder is quitting before he has time to apply the same logic to Mafia or terrorism cases.

Fleischmann, for her part, had begun to find the whole situation almost funny.

“I thought, ‘I swear, Eric Holder is gas-lighting me,’ ” she says.

Ask her where the crime was, and Fleischmann will point out exactly how her bosses at JPMorgan Chase committed criminal fraud: It’s right there in the documents; just hand her a highlighter and some Post-it notes – “We lawyers love flags” – and you will not find a more enthusiastic tour guide through a gazillion-page prospectus than Alayne Fleischmann.

She believes the proof is easily there for all the elements of the crime as defined by federal law – the bank made material misrepresentations, it made material omissions, and it did so willfully and with specific intent, consciously ignoring warnings from inside the firm and out.

She’d like to see something done about it, emphasizing that there still is time. The statute of limitations for wire fraud, for instance, has not run out, and she strongly believes there’s a case there, against the bank’s executives. She has no financial interest in any of this, no motive other than wanting the truth out. But more than anything, she wants it to be over.

In today’s America, someone like Fleischmann – an honest person caught for a little while in the wrong place at the wrong time – has to be willing to live through an epic ordeal just to get to the point of being able to open her mouth and tell a truth or two. And when she finally gets there, she still has to risk everything to take that last step. “The assumption they make is that I won’t blow up my life to do it,” Fleischmann says. “But they’re wrong about that.”

Good for her, and great for her that it’s finally out. But the big-picture ending still stings. She hopes otherwise, but the likely final verdict is a Pyrrhic victory.

Because after all this activity, all these court actions, all these penalties (both real and abortive), even after a fair amount of noise in the press, the target companies remain more ascendant than ever. The people who stole all those billions are still in place. And the bank is more untouchable than ever – former Debevoise & Plimpton hotshots Mary Jo White and Andrew Ceresny, who represented Chase for some of this case, have since been named to the two top jobs at the SEC. As for the bank itself, its stock price has gone up since the settlement and flirts weekly with five-year highs. They may lose the odd battle, but the markets clearly believe the banks won the war. Truth is one thing, and if the right people fight hard enough, you might get to hear it from time to time. But justice is different, and still far enough away.

 

 

Source.

List of Dead Microbiologists

Don’t Let These Biologist’s Deaths Go Ignored |Natural Cures Not Medicine.

The world’s top anti-virus microbiologists are being killed off. By 2005, 40 were dead. Today, over 100. Many murdered, the rest died under very suspicious circumstances. It is known they were all working on highly sensitive or government-funded research projects tied to bio-weapons and viral pandemics.

Are these silenced ‘whistleblowers’ who knew too much?

Why isn’t the mainstream media reporting any of this?

killed scientists

Died 2006

#80: Lee Jong-woo, age 61. Died: May 22, 2006 after suffering a blood clot on the brain. Lee was spearheading the organization’s fight against global threats from bird flu, AIDS and other infectious diseases. WHO director-general since 2003, Lee was his country’s top international official. The affable South Korean, who liked to lighten his press conferences with jokes, was a keen sportsman with no history of ill-health, according to officials.

Died 2005

#79: Leonid Strachunsky. Died: June 8, 2005 after being hit on the head with a champagne bottle. Strachunsky specialized in creating microbes resistant to biological weapons. Strachunsky was found dead in his hotel room in Moscow, where hed come from Smolensk en route to the United States. Investigators are looking for a connection between the murder of this leading bio weapons researcher and the hepatitis outbreak in Tver, Russia.

#78: Robert J. Lull, age 66. Died: May 19, 2005 of multiple stab wounds. Despite his missing car and apparent credit card theft, homicide Inspector Holly Pera said investigators aren’t convinced that robbery was the sole motive for Lull’s killing. She said a robber would typically have taken more valuables from Lull’s home than what the killer left with. Lull had been chief of nuclear medicine at San Francisco General Hospital since 1990 and served as a radiology professor at UCSF. He was past president of the American College of Nuclear Physicians and the San Francisco Medical Society and served as editor of the medical society’s journal, San Francisco Medicine, from 1997 to 1999. Lee Lull said her former husband was a proponent of nuclear power and loved to debate his political positions with others.

#77: Todd Kauppila, age 41. Died: May 8, 2005 of hemorrhagic pancreatitis at the Los Alamos hospital, according to the state medical examiner’s office. Picture of him was not available to due secret nature of his work. This is his funeral picture. His death came two days after Kauppila publicly rejoiced over news that the lab’s director was leaving. Kauppila was fired by director Pete Nanos on Sept. 23, 2004 following a security scandal. Kauppila said he was fired because he did not immediately return from a family vacation during a lab investigation into two classified computer disks that were thought to be missing. The apparent security breach forced Nanos to shut down the lab for several weeks. Kauppila claimed he was made a scapegoat over the disks, which investigators concluded never existed. The mistake was blamed on a clerical error. After he was fired, Kauppila accepted a job as a contractor at Bechtel Nevada Corp., a research company that works with Los Alamos and other national laboratories. He was also working on a new Scatter Reduction Grids in Megavolt Radiography focused on metal plates or crossed grids to act to stop the scattered radiation while allowing the unscattered or direct rays to pass through with other scientists: Scott Watson (LANL, DX-3), Chuck Lebeda (LANL, XTA), Alan Tubb (LANL, DX-8), and Mike Appleby (Tecomet Thermo Electron Corp.)

#76: David Banks, age 55. Died: May 8, 2005. Banks, based in North Queensland, died in an airplane crash, along with 14 others. He was known as an Agro Genius inventing the mosquito trap used for cattle. Banks was the principal scientist with quarantine authority, Biosecurity Australia, and heavily involved in protecting Australians from unwanted diseases and pests. Most of Dr Banks’ work involved preventing potentially devastating diseases making their way into Australia. He had been through Indonesia looking at the potential for foot and mouth disease to spread through the archipelago and into Australia. Other diseases he had fought to keep out of Australian livestock herds and fruit orchards include classical swine fever, Nipah virus and Japanese encephalitis.

#75: Dr. Douglas James Passaro, age 43. Died April 18, 2005 from unknown cause in Oak Park, Illinois. Dr. Passaro was a brilliant epidemiologist who wanted to unlock the secrets of a spiral-shaped bacteria that causes stomach disease. He was a professor who challenged his students with real-life exercises in bioterrorism. He was married to Dr. Sherry Nordstrom..

#74: Geetha Angara, age 43. Died: February 8, 2005. This formerly missing chemist was found in a Totowa, New Jersey water treatment plant’s tank. Angara, 43, of Holmdel, was last seen on the night of Feb. 8 doing water quality tests at the Passaic Valley Water Commission plant in Totowa, where she worked for 12 years. Divers found her body in a 35-foot-deep sump opening at the bottom of one of the emptied tanks. Investigators are treating Angara’s death as a possible homicide. Angara, a senior chemist with a doctorate from New York University, was married and mother of three.

#73: Jeong H. Im, age 72. Died: January 7, 2005. Korean Jeong H. Im, died of multiple stab wounds to the chest before firefighters found in his body in the trunk of a burning car on the third level of the Maryland Avenue Garage. A retired research assistant professor at the University of Missouri – Columbia and primarily a protein chemist, MUPD with the assistance of the Columbia Police Department and Columbia Fire Department are conducting a death investigation of the incident. A “person of interest” described as a male 6′–6’2″ wearing some type of mask possible a painters mask or drywall type mask was seen in the area of the Maryland Avenue Garage. Dr. Im was primarily a protein chemist and he was a researcher in the field.

Died in 2004

#72: Darwin Kenneth Vest, born April 22, 1951, was an internationally renowned entomologist, expert on hobo spiders and other poisonous spiders and snakes. Darwin disappeared in the early morning hours of June 3, 1999 while walking in downtown Idaho Falls, Idaho (USA). The family believes foul play was involved in his disappearance. A celebration of Darwin’s life was held in Idaho Falls and Moscow on the one-year anniversary of his disappearance. The services included displays of Darwin’s work and thank you letters from school children and teachers. Memories of Darwin were shared by at least a dozen speakers from around the world and concluded with the placing of roses and a memorial wreath in the Snake River. A candlelight vigil was also held that evening on the banks of the Snake River.

Darwin was declared legally dead the first week of March 2004 and now the family is in the process of obtaining restraining orders against several companies who saw fit to use his name and photos without permission. His brother David is legal conservator of the estate and his sister Rebecca is handling issues related to Eagle Rock Research and ongoing research projects.

Media help in locating Darwin is welcome. Continuing efforts to solve this mystery include recent DNA sampling. Stories about his disappearance continue to appear throughout the world. Issues surrounding missing adult investigations have received new attention following the tragedies of 911.

#’s 70-71: Tom Thorne, age 64; Beth Williams, age 53; Died: December 29, 2004. Two wild life scientists, Husband-and-wife wildlife veterinarians who were nationally prominent experts on chronic wasting disease and brucellosis were killed in a snowy-weather crash on U.S. 287 in northern Colorado.

#69: Taleb Ibrahim al-Daher. Died: December 21, 2004. Iraqi nuclear scientist was shot dead north of Baghdad by unknown gunmen. He was on his way to work at Diyala University when armed men opened fire on his car as it was crossing a bridge in Baqouba, 57 km northeast of Baghdad. The vehicle swerved off the bridge and fell into the Khrisan river. Al-Daher, who was a professor at the local university, was removed from the submerged car and rushed to Baqouba hospital where he was pronounced dead.

#68: John R. La Montagne, age 61. Died: November 2, 2004. Died while in Mexico, no cause stated, later disclosed as pulmonary embolism. PhD, Head of US Infectious Diseases unit under Tommie Thompson. Was NIAID Deputy Director. Expert in AIDS Program work and Microbiology and Infectious Diseases.

#67: Matthew Allison, age 32. Died: October 13, 2004. Fatal explosion of a car parked at an Osceola County, Fla., Wal-Mart store. It was no accident, Local 6 News has learned. Found inside a burned car. Witnesses said the man left the store at about 11 p.m. and entered his Ford Taurus car when it exploded. Investigators said they found a Duraflame log and propane canisters on the front passenger’s seat. Allison had a college degree in molecular biology and biotechnology.

#66: Mohammed Toki Hussein al-Talakani, age 40. Died: September 5, 2004: Iraqi nuclear scientist was shot dead in Mahmudiya, south of Baghdad. He was a practicing nuclear physicist since 1984.

#65: Professor John Clark, Age 52, Died: August 12, 2004. Found hanged in his holiday home. An expert in animal science and biotechnology where he developed techniques for the genetic modification of livestock; this work paved the way for the birth, in 1996, of Dolly the sheep, the first animal to have been cloned from an adult. Head of the science lab which created Dolly the sheep. Prof Clark led the Roslin Institute in Midlothian, one of the world s leading animal biotechnology research centers. He played a crucial role in creating the transgenic sheep that earned the institute worldwide fame. He was put in charge of a project to produce human proteins (which could be used in the treatment of human diseases) in sheep’s milk. Clark and his team focused their study on the production of the alpha-I-antitryps in protein, which is used for treatment of cystic fibrosis. Prof Clark also founded three spin-out firms from Roslin – PPL Therapeutics, Rosgen and Roslin BioMed.

#64: Dr. John Badwey, age 54. Died: July 21, 2004. Scientist and accidental politician when he opposed disposal of sewage waste program of exposing humans to sludge. Suddenly developed pneumonia like symptoms then died in two weeks. Biochemist at Harvard Medical School specializing in infectious diseases.

#63: Dr. Bassem al-Mudares. Died: July 21, 2004. Mutilated body was found in the city of Samarra, Iraq*. He was a Phd. chemist and had been tortured before being killed. He was a drug company worker who had a chemistry doctorate.

#62: Professor Stephen Tabet, age 42. Died on July 6, 2004 from an unknown illness. He was an associate professor and epidemiologist at the University of Washington. A world-renowned HIV doctor and researcher who worked with HIV patients in a vaccine clinical trial for the HIV Vaccine Trials Network

#61: Dr. Larry Bustard, age 53. Died July 2, 2004 from unknown causes. He was a Sandia scientist in the Department of Energy who helped develop a foam spray to clean up congressional buildings and media sites during the anthrax scare in 2001. He worked at Sandia National Laboratories in Albuquerque. As an expert in bioterrorism, his team came up with a new technology used against biological and chemical agents.

#60: Edward Hoffman, age 62. Died July 1, 2004 from unknown causes. Hoffman was a professor and a scientist who also held leadership positions within the UCLA medical community. He worked to develop the first human PET scanner in 1973 at Washington University in St. Louis.

Full list:

Don’t Let These Biologist’s Deaths Go Ignored |Natural Cures Not Medicine.

Source.

SHELL GAME: This Is Why Michael Hastings Was Murdered And Eric Holder Stepped Down [Video]

“19,000 Swiss Bank Accounts fund Terrorism.

Part of the reason behind Eric Holder’s immediate retirement.”

Discussion of the book SHELL GAME: A Military Whistleblowing Report to the U.S. Congress Exposing the Betrayal and Cover-Up by the U.S. Government of the Union Bank of Switzerland-Terrorist Threat Finance Connection to Booz Allen Hamilton and U.S. Central Command ~ 2LT Scott Bennett 11th Psychological Operations Battalion (retired)

Background: Scott Bennett is a U.S. Army Special Operations Officer (11th Psychological Operations Battalion, Civil Affairs-Psychological Operations Command), and a global psychological warfare-counterterrorism analyst, formerly with defense contractor Booz Allen Hamilton.

He received a Direct Commission as an Officer, held a Top Secret/Sensitive Compartmentalized Information (TS/SCI) security clearance, and worked in the highest levels of international counterterrorism in Washington DC and MacDill Air Force Base in Tampa, Florida. He has worked at U.S. Special Operations Command, U.S. Central Command, the State Department Coordinator for Counterterrorism, and other government agencies. He served in the G.W. Bush Administration from 2003 to 2008, and was a Social Science Research Fellow at the Heritage Foundation. His writings and lectures seek to enhance global awareness and understanding of modern psychological warfare, the international intelligence.

Source.

US Intel: Over 200 Going to Jail Over Sandy Hook False Flag!

This wonderful interview hit the Internet shortly after this article

If you have not heard Veterans Today Radio or listened to some of the archived shows then you are going to now learn why Veterans Today is the number one news website and radio show in the world!  They have thousands of Intelligence agents all over the world that give them information and Gordon Duff has more power than you can imagine.   Veterans Today IS US Intelligence and they have the full support of our military!  Nobody has access to the information they have on everything because just like you see on the TV show “The Blacklist”, Gordon Duff says that the Intelligence club is a very social club.  They all talk to each other.  Only Veterans Today put out the truth on 9/11 and you can hear their first release on that subject in this video.  They put out the truth on Sandy Hoax first too and introduced Wolfgang Halbig to the world  on Veterans Today Radio.

Veterans Today Radio really blew out the truth about Sandy Hook in this interview!  Stew Webb, Jim Fetzer and Preston James go over all the new information they have on Sandy Hook!   There have already been murders of 3 witnesses  that were going to expose Sandy Hook as a false flag!  Preston James says they have already identified over 200 people that have been involved with the planning, execution, financial frauds and coverup of Sandy Hook.  Preston James says people ARE going to jail over this!

Enjoy the show as Stew Webb, James Fetzer and Preston James give you the most up to date information about Sandy hook in the first hour of this interview.  These men have decades of experience in whistleblowing and reporting on the crime syndicate running America!  If America can be saved, the men and women behind the scenes of VeteransToday will be the ones doing it.  Gordon Duff for President!

You’ll want to listen to the second hour too as lots of information you don’t know there too with Jim Dean and Dr. Croft.  Spread the information from VeteransToday everywhere!  And never trust anybody in alternative media that censors them or won’t respond to you when you ask why they are censoring them!  Those that censor VT are working for the ones wanting to put us in FEMA camps and make America into a Gaza II!  Read this article and you’ll know who the ones in alternative media censoring VeteransToday work for!

“Preventing the Transformation of America into GAZA II”

You’ll know more than 99.999% of Americans by reading the above article alone!  I want to thank all of you out there that are now spreading the information for VeteransToday.  As you know VT stories are literally kryptonite to the evil ones running this planet!  Spread it everywhere!   Share this story and others through Facebook, Twitter, email lists and all legitimate alternative media that won’t censor VT’s huge stories!  VT for Victory!  Down with all Hydra alternative media that pretends VT doesn’t exist while they pretend to have your best interest!  It’s my opinion that the ones in alternative media censoring the huge stories from VT work for the ones plotting to put you in the FEMA camps!  I believe these gatekeepers are there to run out the clock for the New World Order and make sure you don’t learn about the NAMES of those committing the crimes that VT is listing such as when Senator Songstand and Governor Sundquist were caught on tape plotting murder!   Hydra alternative media blame everything on the nameless “globlalists” and the mid level Bilderbergers while VT is giving you NAMES!

Think about it!  What patriot or legitimate alternative media person would censor the first time in history that a Senator and Governor have been caught on tape plotting to murder somebody and talking about $10 billion bribes?   That story should have been on every alternative media website in the world but sadly most of the “bigger” names censored it!   If that doesn’t show you WHO are the good guys in alternative media and WHO are working for Hydra then you have certainly have taken in too much fluoride!  Wake up please and help the good guys get our country back!  I invite all of you to simply do me one favor.  If you have some “hero” in alternative media that has thus far failed to report on the Songstad Sundquist murder plot then simply contact them and ask them to report it!   If they won’t report it or won’t respond to you (most will run from you) then you’ll know they work for Hydra!  Very simple and you can verify what I’m telling you for yourself!  If they won’t respond to you about the biggest news story in 2014 that would help get our country back then what does that tell you?  You guys and gals are smart enough to figure it out! You know censorship is evil and that’s why you don’t believe in the fake news anymore!   Don’t get fooled by the slick talkers in alternative media that run away from our patriot heroes at VT!  If some of you will ask those in alternative media to report on the Songstad Sundquist muder plot, then please let me know the results of your efforts using the contact information at the top of this article!   Who are the cockroaches that run under the refrigerator when you turn on the lights?  We shall soon see!

Source.

Dr. Andrew Wakefield breaks silence on #CDCWhistleblower

I wonder how many more doctors will be coming out of the woodwork, in support of Dr. William Thompson, the CDC Whistleblower who exposed the fraud of vaccines. -LW

While other media outlets remain silent on this breaking story, we continue our investigation into the CDC Whistleblower Dr William Thompson… and as a result of Thompson’s statements a collective voice is accusing the CDC of fraud.

Initially Dr. Thompson contacted Doctor Brian Hooker stating the CDC has been hiding self-incriminating evidence for over 10 years now and that he WITNESSED the CDC remove large numbers of young black boys from their case study, because they showed a 340 percent SPIKE in autism after vaccinations.

We’re now turn to an international leader on vaccinations for some answers. In fact, it was HIS research that started a lot of this talk years ago. Our guest today is Dr. Andrew Wakefield one of the first researchers to link vaccines to autism.

Shortly after he first spoke out against vaccinations, the Lancet journal, ABC’s Good Morning America and even the British Medical Journal basically cut him off. The medical community did everything they could to distance themselves from him, while ABC did everything they could to vilify him. It’s been several tough years, yet Doctor Wakefield’s research still reverberates throughout doctors offices and households around the nation and he’s here joining us today to discuss the CDC Whistleblower and his own research.

America, This is Your Government and Their Best Laid Plans for You

In an article today by Jon Rappoport, he enlightens us as to the plans of the CIA back in 1955 to seek the development of drugs for every use imaginable to control the people and cause the ultimate decline of the human population.

Jon is a prolific writer, tireless researcher and as a true investigative journalist has done more than his share to awaken us to the reality of life in our world today. I highly recommend you visit his website and read more.

This is an excerpt from his article.

  • “The CIA wanted to find chemicals that “would produce the signs and symptoms of recognized diseases in a reversible way.” This suggests many possibilities—among them the use of drugs to fabricate diseases and thereby give the false impression of germ-caused epidemics.
  • The CIA wanted to find drugs that would “produce amnesia.” Ideal for discrediting whistleblowers, dissidents, certain political candidates, and other investigators. (Scopolamine, for example.)
  • The CIA wanted to discover drugs which would produce “paralysis of the legs, acute anemia, etc.” A way to make people decline in health as if from diseases.
  • The CIA wanted to develop drugs that would “alter personality structure” and thus induce a person’s dependence on another person. How about dependence in general? For instance, dependence on institutions, governments?
  • The CIA wanted to discover chemicals that would “lower the ambition and general working efficiency of men.” Sounds like a general description of the devolution of society.”

That last bit also sounds like the result of fluoridated water, which is people who behave more like bovines with no ambition and simply go where they’re guided, whether prodded with a stick or led by a golden ring through the nose.

They used fluoride in the Nazi concentration camps to keep prisoners docile. It’s no small wonder America is the most comatose nation on the planet.

Check out this video from Australia wherein fluoride has been exposed for what it is.  Is this a breakthrough or what?!  If you are unaware of the dangers of fluoride, please be sure to watch this video—only 6 minutes long. It may speak of Australia, but the same thing is going on across North America.

Your government acts in its own interests; not yours. The goal is to control the population; to deceive them so they don’t rise up and exercise their rights; to discourage them from thinking for themselves and to have them believing and spewing the lies they tell.