$3 BILLION BANK BUSTER FILED IN CA AND NV

HUGE PRIVATE LAWSUITS FOR TAX EVASION BY SECURITIZATION PLAYERS:

Totaling more than $3 billion between just three states and probably more, my estimate is that these cases will succeed and that they will lead to settlements that will dwarf the Tobacco settlements.

California Qui Tam False Claims Recording Fees

Nevada Qui Tam

Nevada Qui Tam False Claims Tax Exemption

This is the case we have been waiting for. It will lead to the cure of state deficits where these actions are brought privately or by the AG of the state. I spent a good part of the Spring of 2009 trying to get Arizona to do this. They even figured out that their $3 billion deficit would be eliminated. But POLITICALLY they decided against it because people like McCain and Kyle were getting so much money from the bank lobby.

The $3 Billion figure is mine. I put pen to paper and came up with figures that dwarf that number, but in an effort to be conservative, I can’t up with figures less than that amount. The total figures would most likely be ten times that amount, although the eventual settlements would more likely be closer to the low figure.

There are many cases filed under seal in many states. In a nutshell these cases are going after the obvious – the taxes, transfer fees, costs and other statutory amounts that are due to the states and counties from the multiple transfers and movement of interests in real property without reporting it, recording it, or paying for it. There is at least $50 billion by my estimation in unreported taxable profits in Arizona alone but Arizona doesn’t permit qui tam actions like Florida, California and Nevada. So it’s up to the State AG. AZ official calculated the taxes due at $3 billion, exactly the amount of the States deficit, and that is without all the filing fees that were avoided. Hager and Hearne law firm in Reno heard me and expanded on what I (and others) have been saying for three years — we don’t need to be in a financial hole. All we need to do is collect what is due.

NOTE RECEIVED FROM BOB HAGER, A PRIME MOVER IN THESE LAWSUITS
There are two different cases in NV.  One is the MERS recording fee qui tam and the other is for false claims of tax exemption made to avoid payment of transfer taxes on foreclosures taken by Fannie and Freddie.  One week after Fannie was served with the NV transfer tax qui tam, the Federal Housing Finance Association ordered Freddie and Fannie to de-list from the New York Stock Exchange.  Please note in the transfer tax complaint where I lay out the factors the courts have looked at in determining without exception going back to the 1970’s that Fannie and Freddie are not tax-exempt for purposes of state transfer taxes.  The 9th Circuit so ruled in 1996.  I estimate the penalties and treble damages for unpaid taxes in the transfer tax case in NV to be from $300 M to $500 M.

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