bobbyw24
12-12-2009, 04:39 PM
In an attempt to hide its activities from the investigation of California Attorney General Jerry Brown, ACORN dumped thousands of documents into a dumpster which could result in class action lawsuits against banks working with the corrupt ACORN organization. Especially vulnerable at this time is Citibank (NYSE:C), and to a lesser extent, JPMorgan (NYSE:JPM).
Documents retrieved by a writer for Biggovernment.com revealed the inner workings of ACORN, along with the fact that 28 financial institutions, incredibly, still work with the organization, which is under investigation around the country for corruption. Receiving some class action lawsuits as a consequence of those poor decisions may wake up these financial companies and get them out of the ACORN business relationship.
Concerning Citigroup, the holding company for Citibank, they’ve been identified as working with ACORN through their Citi Outreach program as a recruiting tool for ACORN under the guise of helping them with their mortgages. While the homeowners could receive legitimate help, they were at minimum pressured by ACORN to start to pay membership dues before they were given assistance. A Bank of America program was also used by ACORN for the purpose of recruitment for the organization.
Amazingly, Citigroup would continue to pay ACORN whether there was any real assistance offered to homeowners or not; all they needed to get paid was to obtain a phone number from those they were recruiting for membership (not great news for shareholders). That is according to former ACORN employee Anita MonCrief, who testified before the House Oversight & Government Reform Committee and the House Judiciary Committee on the practices of ACORN as they related to the banking industry and mortgages.
While that’s all bad enough, what could general class action lawsuits was ACORN’s disregard for the legal protection of the private records of Citibank and others private records. Federal and state laws forbid to have documents or records revealed.
What could be a nightmare for Citigroup, JPMorgan and other financial institutions, is their vulnerability for class action lawsuits to be filed against them because of ACORN attempting to protect themselves by throwing sensitive records from the banks into a public dumpster, which recovered documents reportedly show, ACORN employees knew full well was illegal.
Not only is the inclusion on a private list by those struggling to pay their mortgages bad enough, but at lease one document recovered included information like names, addresses and mortgage loan numbers of individuals, which are illegal to reveal.
Banks and bankers have a duty to protect their customers, and doing business with an organization like ACORN is a relinquishment of the duty. To expose themselves, their customers and shareholders to this debacle is potentially criminal, and at least, very poor decisions be those in charge of mortgages in the banks.
http://www.americanbankingnews.com/2009/12/12/will-citibank-nysec-jpmorgan-nysejpm-others-regret-connections-to-corrupt-acorn-organization/
Documents retrieved by a writer for Biggovernment.com revealed the inner workings of ACORN, along with the fact that 28 financial institutions, incredibly, still work with the organization, which is under investigation around the country for corruption. Receiving some class action lawsuits as a consequence of those poor decisions may wake up these financial companies and get them out of the ACORN business relationship.
Concerning Citigroup, the holding company for Citibank, they’ve been identified as working with ACORN through their Citi Outreach program as a recruiting tool for ACORN under the guise of helping them with their mortgages. While the homeowners could receive legitimate help, they were at minimum pressured by ACORN to start to pay membership dues before they were given assistance. A Bank of America program was also used by ACORN for the purpose of recruitment for the organization.
Amazingly, Citigroup would continue to pay ACORN whether there was any real assistance offered to homeowners or not; all they needed to get paid was to obtain a phone number from those they were recruiting for membership (not great news for shareholders). That is according to former ACORN employee Anita MonCrief, who testified before the House Oversight & Government Reform Committee and the House Judiciary Committee on the practices of ACORN as they related to the banking industry and mortgages.
While that’s all bad enough, what could general class action lawsuits was ACORN’s disregard for the legal protection of the private records of Citibank and others private records. Federal and state laws forbid to have documents or records revealed.
What could be a nightmare for Citigroup, JPMorgan and other financial institutions, is their vulnerability for class action lawsuits to be filed against them because of ACORN attempting to protect themselves by throwing sensitive records from the banks into a public dumpster, which recovered documents reportedly show, ACORN employees knew full well was illegal.
Not only is the inclusion on a private list by those struggling to pay their mortgages bad enough, but at lease one document recovered included information like names, addresses and mortgage loan numbers of individuals, which are illegal to reveal.
Banks and bankers have a duty to protect their customers, and doing business with an organization like ACORN is a relinquishment of the duty. To expose themselves, their customers and shareholders to this debacle is potentially criminal, and at least, very poor decisions be those in charge of mortgages in the banks.
http://www.americanbankingnews.com/2009/12/12/will-citibank-nysec-jpmorgan-nysejpm-others-regret-connections-to-corrupt-acorn-organization/