Foreclosuregate – An Open Letter to President Obama

Dear President Obama,

I’m a centrist Democrat; many I work with are Democrats, but plenty are Republicans.  Most of us are in our 30’s and 40’s, but plenty of us are older and plenty younger.  Many of us are college graduates, but some have no degrees.  Some are wealthy; many are poor.  Some are decorated veterans and some never served in the military.

We work together for a common cause.  On its face we are working to stop foreclosures but our genuine mission is deeper: we see the very fabric of our country being ripped apart and are working to protect it.

We have watched rocket dockets where lying lawyers use forged documents to argue to crooked and corrupt judges, who openly admit to having pre-judged cases.  We regularly watch reckless, irresponsible, dishonest bankers who have benefited from $13 trillion in direct and indirect subsidies label their victims — people they lent money to knowing the borrowers did not understand the terms and could never repay — demean their victims while ignoring or even denying their own massive bailout.

The bailed-out bankers are relentless in their self-righteous sense of entitlement and disregard for the law.  They even attacked and tried to censor the key deposition that exposed the rot from this very website; this site that has done more than your entire federal government to expose fraud, corruption, and criminal behavior hurting countless American men, women and children.

I have watched the children in foreclosure court cry as their parents lose their homes in 30-second rigged hearings.  I’ve watched the elderly, talked into taking loans by sub-prime thieves, loans they neither needed, wanted, nor understood, hobble out on canes and walkers after their 30-seconds into homelessness.  I have millions of computer records, and I’m aiming to add tens of millions more, that definitively show the fraud runs to the very core of our national fabric and is so pervasive it was systematically perpetrated and is systemic to the bailed-out too-big-to-fail bankers.

I just watched your 2004 Democratic address.  You reaffirmed the declaration of independence; the right of all people to life, liberty, and happiness.  You articulated your disgust when our civil rights are trampled, citing specifically the right to due process.  You articulated that “people don’t expect government to solve all their problems, but they sense deep in their bones that with just a slight change in priorities we can make sure that every child in America has a decent shot at life.”  You elicited your disgust when government sits idly by, ignoring deep problems.

More than that you affirmed that we’re on America, not Republicans, not Democrats, but Americans.  You ran on a platform of hope, a promise of change.  President Obama, you’ve failed us.  You’ve failed the American public, the history of our country, and even the future of your own children.  You’ve allowed crooked, dishonest, bankers, and their crooked, dishonest attorneys, and their crooked, dishonest lobbyists to take over the government and put into place the worst reverse Robin Hood policy seen since the great depression.  Bush started it, but you allowed it continue.

Hope.  Change.  The time is now.

We call on you to take the immediate steps:

* Devote no less than 5,000 federal agents to investigate the banking and foreclosure mess.  Agree to arrest any banker that lied to their borrowers or investors, arrest any lawyer who conspired to violate the laws of our country, arrest any public official — including state judges and federal regulators — who trampled our civil rights or ignored their responsibilities.

* Make it clear to the bankers that they have blown it and do not give them one more cent.  Tell Congress that any bill authorizing any more bailout money will be vetoed.  Leave no ambiguity that there will not be a bailout for fraud in any way, shape, or form.

* Dissolve Fannie Mae and Freddie Mac; replace the Board of Directors at AIG and GMAC, and mandate the new Board fire every manager at the director level or above.

* Fire Tim Geither.  Do not let him resign; publicly terminate him for incompetence.

* Declare that any bank that does not agree to immediately and unconditionally cease all foreclosures must pay the the Federal Reserve the highest interest rate they have charged any borrower of any subsidiary.

* Invite us to the table to discuss these issues like you’ve repeatedly invited the bankers that caused this mess.

A reckless Republican Congress sent de-regulatory banking legislation to a reckless Democratic President who signed it.  A corrupt and incompetent Republican Treasury Secretary and President created legislation passed by a strong-armed corrupt and incompetent Democratic Congress.  Using your own words this is not a blue state problem, this is not a red state problem, this is an American problem.It is long passed time that you step up to the plate and bring some of that hope and change that you promised, and that we Americans, of all political persuasions, of all ages, of all races, of all backgrounds, desperately need.

President Obama, we need back the guy that we voted for to lead us out of this mess.

Michael Olenick
olenick – at –


21 Responses to “Foreclosuregate – An Open Letter to President Obama”
  1. Maria says:

    Oh, God! I was crying from joy when Obama won! So many hopes…. I pray he (maybe???) can stop to travel anywhere and as supporter for one party, return back and starts to work at last as PRESIDENT! It is only beginning – ECONOMICAL CRISIS will be deeper and uglier if NOTHING IS GOING TO BE DONE. Unfortunately, we, probably, will never have a President like Hoover, who worked 20 hours a day in those horrible 30’s…. Next President just got result, which was earned by Hoover. However, OBAMA wants to repair bridges…. If so, please, consider shelters under them for homeloosers… Thanks, OBAMA, for nothing….

  2. PJDJ01 says:

    I am absolutely depressed about all of this. First, my trust in capitalism went out the window when, in 2008, banks were declared “too big to fail.” Now, in 2010, my trust in state laws was lost when I see that banks seem to be able to declare themselves above the law. In the apparent 2 year increments, I suspect I will loose faith in physics as banks learn that the laws of science don’t apply to them. This also means that in 2014, banks will be declaring themselves above the Almighty.Its just good to know this stuff a few years in advance so I can explain it to my kids.

    • Canadian MIke says:

      Well I’m sorry to say but the communist agenda has worked on you. The free market hasn’t been allowed to work, to make people like you turn on it. Do you suggest we try the bread line route? Or should you get out there and help the tea party throw out the agents of communism and socialism?

      • PJDJ01 says:

        No. I suggest we go back and let capitalism prevail by getting rid of “too big to fail” and we enable state laws to work by getting the judicial process to do what it should do in protecting an individual’s rights. Tough medicine, but we need it.

  3. CatWoman in Charlotte, NC says:

    Well, as some one that did not vote for Mr. Obama or for a Democrat ever in my life (and was a mortgage industry insider for 18 years), I can’t believe that I completely agree with you, Mr. Olenick! But I do. Doesn’t mean I’ll change my party affiliation, but we can align at the very least on this.
    This mortgage situation is a complete and total disaster. We have an economy that has been destroyed by the actions of this government (PAST administrations included). I am glad that I am no longer in the industry! I couldn’t face myself in the mirror if I told a client that “It’s ALWAYS a good time to buy real estate!”.
    I really annoys me that people think that “the banks” own this paper. They DON”T! Freddie and Fannie (Ginnie, too) do, and who owns Freddie and Fannie? We the taxpayers do! What needs to happen besides your suggestions to Mr. Obama, is that balances need to be written down to mortgagee’s current gross income. If that means zero, then so be it. Think about it! The folks that are still current on their mortgages are the ones that are on the tax hook, so ZERO ’em out. Our taxes will do the rest! May take generations to pay off, but at least we’ll have a place to live.

  4. no global governance says:

    The government and the banker puppet in chief wont help. All these politicians are corrupt swindlers for the banks. The government of the United States is one big corrupt fraud and criminal enterprise mafia against the citizenry of the American people and the world abroad. They always side with big business and Banks via bailouts and screw the American taxpayer. America is the most corrupt nation in the world invading other countries and getting paid twice for it in the process billing you the taxpayer for it so they can then move in and occupy them with a garrison of 50,000 storm troopers and over 800 military bases around the world like one giant game of stratego to loot these 3rd world nations of wealth and natural resources and minerals then extend their ponzi scheme to these countries by setting up one of their rip off banks and pay themselves again while setting up a criminal puppet government regimes who will obey and agree to their command of inslaving their peoples. These swindlers make money off of war and killing nothing more than murderers in suits these far more dangerous then bank robbers and serial killers you read about because they commit fraud and murder on a grand scale atrocities for money and power just total utter evil trash right out of hell. Remember this when you send your kids off to war for the Bankers their not fighting for freedom do you call all this corruption freedom?

    • Mike from Canada says:

      You have the right idea, the government has been screwing the tax payer. But here is where you are wrong, military presence of the U.S forces has been responsible for the most peace and prosperity we have ever seen. I’d rather U.S bases all over the world than the Chinese, Russians, Iranians etc… What I see is a very angry American people, and if you people don’t get your facts straight quick the enemy will be running our countries.

  5. Mike the Canadian says:

    As much as I hate to say it I received a home loan from an affiliate of Acorn. The company did not care what my name was, or what my credit history was like. George Bush had to bail these banks out despite the corruption because the world economy was depending on it. Policies forced by Obama, Clinton, and other progressives forced banks lend to those who could not afford it. Glenn Beck did a very good job at exposing the cause of the housing market collapse. TIDES, TARP, ACORN, look into who has supported these very evil organizations that have brought the economic situation we see today. The progressive goal is to make the free market fail, so they can control us, and end the USA’s epic golden age.

    • Michael says:

      This would be more convincing if Fannie Mae hadn’t dramatically increased lending under Reagan, “pioneering” mortgage securitization. During that time Republican uber-lobbyist Alberto Cardenas was on the Fannie Mae Board of Directors. Cardenas is a partner in the law firm Tew-Cardenas. Tew, as in Jeff Tew, David Stern’s lawyer and mouthpiece.

      It’d might be a stronger argument if, when asked what sunk Merrill Lynch, then CEO Stan O’Neal hadn’t replied “super-senior” — the non-subprime mortgage debt.

      It’d probably ring through more clearly if Bush and Paulson weren’t the one’s who thought up TARP and literally begged Congress to (unwisely and disastrously) pass arguably the most economically destructive, unbalanced legislation in US history. Or if Republicans, to this day, weren’t essentially denying that bankers weren’t bailed out from the reckless, irresponsible lending decisions they made.

      It might resonate if Beck — a recovering alcoholic who talks about denial and a lack of personal responsibility a lot — said that the political party he favors, in conjunction with the political party he doesn’t, pulled a complete hatchet job on the US public.

      The market didn’t fail from the mortgage mess; the market failed because government stepped in to “save” one side of a contracting party while doing nothing for the other. Many banks would have collapsed from their own stupidity but that’s not failure, that is how the market functions.

      We should have been negotiating with insolvent banks, desperate for cash. Or maybe with smart bankers who purchased our notes for a penny or two on the dollar. Or maybe we could have been given to purchase our own notes for the same penny or two after the collapse by the banks liquidation trustees. The fact that we’re not — that this discussion is going on — is the real failure of the market. And it was caused by Republicans and Democrats, working hand in hand, to protect a small group of favored constituents at the expense of everybody else.

      • Mike the Canadian says:

        Its unfortunate that you would insult Glenn Beck like that, as all you’ve done is given some quick cheap shots about his personal life. Where we can agree is government just needs to stay out of the private sector.

      • Anon2010 says:

        What a ridiculously overbroad conclusion, Mike.

        What I hope we can all agree on is that government needs to *regulate* the private sector to make it obey the law, and to create the legal environment where the private sector will do the right thing instead of the wrong thing.

        This is quite distinct from government going into business as if it were part of the private sector — a terrible idea which gives the government the same incentives to commit fraud and perjury that the private sector already had.

        Government should stick with its “core competencies”, like having honest judges instead of rocket dockets.

  6. erlinda says:

    now the the congress identified the foreclosure fraud through fabricated documents and affidavits, we suggest that they have to go after the lawyers and the judges who are wiling participant of this foreclosure fraud. i called it “kangaroo court” the decision of all foreclosure cases were all predetermined esp. if you are a ” pro se”.

    impeach all the judges that suppress the evidence of this fabricated documents submitted to the court by ” foreclosure mills attorneys. indict them . we, homeowners for three years trying to tell the court, the government that all these foreclosures seizure are “FRAUD” from the very beginning, but no one listen in washington. put them all in prison.

  7. John R. says:

    Make this a Petition and I’ll sign!

  8. Truth says:

    The banks and the Federal Reserve are often mentioned. They are one of the same. The Federal Reserve is owned by the member banks (but regulated by no one), the biggest member (by shares) is JPMorgan Chase. Therefore it is a banking cartel. When the Federal Reserve enacted TARP and gave money to the banks it created fake/fiat money out of thin air and in fact the “banks were giving money to themselves. The act of creating, coining, and regulating money, other then by Congress, is in itself unconstitutional. The banks did not use this money to employ more people but to prop up their balance sheets via fractional reserves…which they can engage in lending money at which only 10% is colateralized…again creating money out of thin air which is again unconstitutional. In effect, your $200,000 mortgage was lent to you by a bank that only had $20,000 behind it and yet you have to pay back $200,000 over the term of the loan plus interest. The purpose of the Federal Reserve is to consolidate “banking power” and the purpose of the banks is to keep you in debt..nothing more. The seizure of WAMU’s assets (it was not declared bankrupt and had liquidity) and it’s sale to JPMorgan Chase was an illegal and unconstitutional act (no company can just seize another’s assets). The Fed and the Banking System is one big Ponzi scheme that has bought politicians and lobbyists. If we want to take back this country it begins by abolishing the Fed and the politicians that support it.

    • Anon says:

      Creating money out of thin air is perfectly legal and has always been legal. As long as people will accept it.

      Now, the big mistake is that government has been giving its “stamp of approval”, in the form of the ‘legal tender’ laws etc. to these private banks creating money out of thin air — whereas if I printed my own money (and there ARE local currencies, they are legal), I would get no government backing and would have to actually develop a reputation for trustworthiness in order for people to accept it.

      If the government is going to give its stamp of approval to money, it should be money created by our democratically elected government, not private bankers’ money.

      What’s really not legal is stealing people’s houses.

  9. The Judges pension funds are tied in to the bundles of fraud. A quick search will demonstrate the truth there.

  10. B.O. smells. Obama is run by the banksters and will not step up to any plate unless he is directed to. This guy that wrote the letter still thinks there is a difference in republicrats and demublicans. It is an illusion to hide the truth and divide the People. Vote the republicrat system out. Vote for libritarian or any other platform that is making sence to You. But do not vote for demublisans or republicrats.
    I cannot access the link to get to the Olenick site and I cut and pasted to get there also.

    • Michael says:

      Hi – There’s nothing on the Legalprise site; we’ll eventually start publishing our research, and asking for help spotting fraud that the computers can’t find (like signatures that don’t match), but it’s really just a placeholder with lots of servers cranking information. But anybody can write to me directly, or just publish here: just replace the -at- with an @ sign… olenick -at-

      I know it was both parties; that’s what I’m trying to say. Obama, love him or not, is our President; he’s the only one that we have. Obviously he’s way too close to the bankers or this would have stopped long ago.

      But President’s need to rise above their personal feelings: that’s part of the job. Lincoln was an open racist who ended slavery. FDR was rich and busted banks. Washington was a senior officer in the British army, and led a revolution against them. Virtually all the signers of the Declaration of Independence were doing financially and politically well under the colonial system but risked their lives because they knew it was wrong.

      Great President’s need to lead.

  11. Linda says:

    It would take me too long to write out the whole story, suffice it to say that I represent a famiy of 4, two of whom have TBI’s and are disabled. Because of FMLA and my position not being available I had to take a 15k pay cut only 2 years from vesting……….I could not find a job this summer to cover the two months I have no pay. Needless to say we are now caught in this foreclosure swirl. Chase refused to modify my loan and told me to refinance -I sent them my modification request before I was 30 days late, by the time I got their denial I was past 60 days late. I must have been transferred 18-20 times when I called them to people I could barely understand. Needless to say I hung up in tears. I refuse to give up and have requested a modification again. I have not heard back, but with all of the fraud, and apparently their “feining” to give modifications and then just cut people off, I do not hold out too much hope with the bank. We are REAL people out here. We need your help President Obama. I still have faith in you! Linda — CT

  12. Officer of the Law says:

    Don’t for get to investigate and prosecute every state and federal prosecutor who failed to take action to prosecute the bankers and their minions for their crimes.

    You should fire and investigate every U.S. Attorney and investigate every state prosecutor. If you do, you will find that many, maybe even all of them, got favors, also known as bribes, in exchange for ignoring the bankers’ crimes and ignoring the pleas for justice from millions of Americans who have had or are in the process of having their homes stolen.

    There is plenty of evidence to convict all of these bankers, their attorneys and their minions in government. All of their assets could be seized to cover the innocent depositors and repay the victims, or you could just continue to pretend that the banks did nothing wrong and let them continue to ruin our economy by throwing a few million more American families into the streets.

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