The
cruelty, predation and concentration of wealth today has sparked a new type of
murder that has more in common with insurgency violence than serial
murder.
Mark Ames, Corsortium News via AlterNet
April 9, 2012
|
I was working on an article about last month’s rampage massacre in
Afghanistan that left 17 villagers dead, when news hit of this past Monday’s
massacre at an Oakland, California, religious college, leaving seven dead. In
both cases, the shooters survived and face a possible death penalty — which is
rare: Usually these rampage killings end with self-inflicted bullet in the
mouth.
These “going postal” rampage killings like the one that just took
place at the Oikos University campus happen so often and with such relentless
rhythm, a lot of people might easily assume that these mass-shootings at
American schools and workplaces have always been with us.
It’s not true,
of course — as I wrote in my book Going Postal: Rage, Murder and Rebellion —
it’s an exclusively American phenomenon specific to our time. The first post
office rampage killing took place in Edmond, Oklahoma, in the mid-1980s, at the
height of the Reagan Revolution’s war on the American worker.
Those post
office massacres quickly migrated into private workplace massacres by the end of
the 1980s, where they’ve become a regular rhythmic staple of our murder culture
ever since – and from the adult workplace, the massacres migrated to our
schools.
We’ve had mass-killings before; and every now and then, you’ll
read about a rampage killing in some other country. But only in America, and
only since the mid-1980s, do American employees attack their own workplaces and
offices, and middle-class students attack their own schools, with such
consistency, year after year.
It was only after the crash in 2008 that
some Americans began to accept the obvious: That the cruelty, predation and
concentration of wealth and power introduced by the Reagan Revolution sparked a
new type of murder that has more in common with insurgency violence or
rebellious peasant violence than, say, the psychopathology of a serial
murder.
Like so many school rampage killers, last Monday’s alleged
murderer, One L. Goh, was reportedly bullied and mistreated at his nursing
school program at the small Korean Christian nursing program he enrolled in.
Bullying also was blamed for the high school rampage killing a few weeks ago in
suburban Cleveland that left three students dead and five wounded.
The
gruesome details about the way Goh is said to have lined up and executed his
victims, the way he apparently singled out women, make it hard not to caricature
him as a monster, a demonic psychopath — and yet, without excusing Goh’s
killings, one should try to make sense of what happened to him, the
downward-trending bleakness, the slow water-torture of low-five-figure debts,
the broken marriage, the $23,000 tax bill owed to the IRS.
Losing
Hope
In the Naughts, One L. Goh helped run a construction company. But
construction collapsed as an industry in 2006-7; and unless you were Countrywide
Financial CEO Angelo Mozilo, you’d have nothing to show for the few good
years.
In late 2007, Goh moved into the Yorkview Apartments complex in
Hayes, Virginia — a bleak, prefab looking structure in a rural corner of
Virginia. By the following summer, One L. Goh found himself unable to cover his
$575 rent payment two months in a row. He was evicted; and on the same day that
they they evicted him, creditors took his car.
The future
rampage-murderer took it all stoically, even politely, according to one of Goh’s
apartment complex neighbors, Thomas Lumpkin: “You would never expect it out of
him. He just don’t seem like that type of person.”
Here is how his
neighbor described the scene of One L. Goh’s last day at the Yorkshire
Apartments:
Lumpkin said he recalled the day when Goh was evicted and
his Nissan pickup was repossessed. Goh left by cab that day.
“He was
always neat, wore nice clothes,” Lumpkin recalled. “You would never expect it
out of him. He just don’t seem like that type of person.”
So he lost
his car the same day he was evicted from his apartment in bumfuck, Virginia—and
he took it all stoically as he cabbed away to god knows where.
I tried to
imagine what that cab ride felt like for One L. Goh, a pudgy 40-something
Korean-American dweeb, stewing with resentment, in his nice neat clothes. How
far did he go in that cab — and where to?
Eventually he wound up with his
father on the West Coast. One L. Goh’s father lives in an Oakland housing
project for senior citizens run by a Christian non-profit. Goh found work in a
San Mateo warehouse; he moonlighted as a mover. Anything to get back on his
feet.
It’s not a good place to be if you’re a middle-aged failure: San
Francisco has so much obscene wealth, and smug beauty — to be a fat 40-something
nerd working with your father in a grocery store in Daly City, in the shadow of
San Francisco, is some kind of Hell, a Hell for failures.
Goh, who was
born Su Nam Ko, had lived in the shadow of his more successful, celebrated war
hero brother, Su Wan Ko. In 2002, he changed his name from birth name, Su Nam
Ko, to One L. Goh, stating that he did “not like my current name because it
sounds like a girl’s name.”
And then last year, Goh’s brother, an Iraq
War veteran and Special Forces hero, died in a freak car accident when his
Toyota slammed head-on at 70 mpg into a “multi-ton” boulder lying on a Virginia
road. The photos of the accident scene look almost unreal, almost
staged.
The news of the brother’s death destroyed One L. Goh’s mother:
She died within months of her son’s funeral.
This is the backdrop to
Goh’s fateful decision to pull himself out of a years-long rut, and to start a
new career for himself as a nurse. It may have been the shock of the
back-to-back deaths in the family — or maybe it was his father who encouraged
him, or the experience of living with his father in a building for the
elderly.
Whatever the case, his widower father supported his son with a
$6,000 loan to pay for the vocational nursing school tuition. But after a few
months, One L. Goh was out of the program, bitter and vengeful, dead set on
murder; and his father was out $6,000, thanks to his son’s bad
bet.
Ignition to a Massacre
What set Goh off? Why did he leave the
nursing school so early? Most reports say he was teased by his classmates for
his age, 43, and his accent. Which is odd, considering most of the students are
foreigners and Koreans.
(Another Korean-American rampage-killer was
teased over his voice: Virginia Tech killer Cho Seung-Hui. As another Virginia
Tech student told reporters back in 2007, “As soon as [Cho] started reading, the
whole class started laughing and pointing and saying, ‘Go back to
China.’”)
Goh enrolled in what must have been one of the very worst
nursing programs in the entire state of California: the vocational nursing
program at Oikos University, a fundamentalist Korean-American Christian school
in Oakland.
The school’s nursing program is accredited, which is
important of course if you want your for-profit school program to make money. To
comply with the accreditation, Oikos U. had provide a “2010 Performance Sheet”
summing up its students’ performances both on the national nursing exam and,
once licensed, in the job market.
The “performance” is abysmal, to the
point where you almost wonder if it’s even statistically possible to fail as
spectacularly as Oikos University’s nursing students. Of the programs 28
graduates from the Spring 2010 – 2011 term, only 11 of those 28 managed to pass
the national nursing exam. That’s a 29 percent pass rate, almost unheard
of.
According to a spokesman for the California Department of Consumer
Affairs, it makes Oikos among the state’s very worst programs — the average
success rate for graduates of other programs is 75 percent. (An Oakland Tribune
article puts Oikos U’s exam pass rate at 41 percent of students who took the
test, but the actual Performance Sheet gives a lower 29 percent pass figure —
either way, both are awful).
Oikos University failed to prepare its
students for the test, and it failed those who passed when they turned to the
job market. According to the same Performance Sheet, of the school’s 11 students
who passed the exam, eight found paying jobs as nurses, with salaries ranging as
low as $5,000 per year to the one lucky top salary earner who earned up to
$35,000. That’s in the Bay Area, the most expensive region in America.
In
sum: One L. Goh could not have chosen a worse nursing program to pin his
personal hopes on. This nursing program was all but guaranteed to fail
him.
Fundamentalist Mission
One thing Oikos University does fairly
convincingly is fundamentalist evangelical Christianity for Korean-Americans.
Students at Oikos U. are required to attend regular church services; the pious
language of evangelical Christianity frames everything.
The school’s
president, Rev. Jongkin Kim, says his goal is “to foster spiritual Christian
leaders who abide by God’s intentions and to expand God’s nation through them.”
Under the university’s “Our Vision” it reads:
“The vision of Oikos
University is to educate emerging Christian leaders to transform and bless the
world at every level – from the church and local community levels to the realm
of world entire.”
And then there’s the reality, revealed in a
lawsuit filed last month by a former staffer of Oikos University named Jong Cha,
who says the school cheated her out of $75,000 in salary and expenses, and
stiffed her on a $10,000 loan that she personally gave to the Christian college
in 2008.
Viewed from this angle, One L. Goh might have come to the
conclusion at some point that he’d taken scarce funds from his poor old widower
father, and handed it over to religious hucksters running the Golden State’s
worst nursing program.
One thing to keep in mind here: It’s easy to see
why Oikos University introduced a nursing vocational program. If you get it
accredited, these nursing programs are guaranteed cash-cows. Most of the big
for-profit education predators like Kaplan Inc. (which provides the majority of
revenue to the Washington Post Company) are in on the vocational nursing
for-profit gig.
You can charge students insane tuitions, hire hacks as
teachers, pocket the difference, and dump the unpaid loans on the government in
exchange for 100 cents on the dollar.
The Reverend who founded Oikos
University certainly understood this — his good friend told the New York Times
that Rev. Kim “had established the nursing school to support the school’s
department of religion.” The cash must have rolled in quickly, because within a
year after launching its nursing program, Oikos doubled its size — meaning
doubling revenues.
And yet even with all those new revenues coming in,
the school couldn’t figure out a way to raise its graduates’ test results out of
the failure category. The school appears to have stiffed one of its top staffers
out of her pay and her loan, suggesting, in the words of the Oakland Tribune,
“that the school may have fallen on hard times.”
I wonder if this is what
set off One L. Goh a few months after he enrolled — the realization that he’d
been fleeced, that he enrolled in the wrong program on his father’s money. The
year 2011 had already taken his brother and his mother.
A Dashed Last
Hope
There is something in between the lines that suggests his plan to
become a nurse, worked out with his father’s assistance a kind of desperate last
attempt to turn everything around in the proverbial One Bold Swoop.
He
would do something practical, and morally good, helping the elderly, people like
his father — and earn a steady income that would allow him, at last, some
dignity and some chance to start paying off his debts.
It was as though
Goh pinned everything on this plan to reinvent himself as a nurse — and
according to all our cultural propaganda, all the Hollywood movies and newspaper
bromides, Goh would be rewarded for undertaking this self-transformation. It was
guaranteed to change everything. As the Oikos U. ad promised, “Dreams Do Come
True.”
And for a brief while last year, Goh’s mood was transformed, he
really did think he had a great future ahead of him. One of Goh’s former
employers at a food warehouse described Goh as “upbeat” when he ran into him
last year in Oakland — a change from the usually quiet, sullen Goh he’d
known.
This new “upbeat” One L. Goh boasted to his former employer “about
how he had returned to school to become a nurse and help elderly
people.”
The idea that you can reinvent yourself, that your fate is in
your own hands, that you have the power inside of you to make yourself a winner
(and if you fail, it’s all your own fault) — this may be America’s most toxic
cultural snake-oil. And yet it never fails to find takers.
Of course,
nothing changed — except that Goh had been conned out of his dad’s money. As his
former employer put it:
“Not many people go back to school at that
age. He was trying something new and it wasn’t working.”
It didn’t
take long for him to figure it out. Just a few months after enrolling, One L.
Goh dropped out of the Oikos University program. When he dropped out of the
program, he asked them to refund his father’s $6,000 that he paid for tuition.
He was denied. He fought with the administrators, but they didn’t budge. This
was what made him snap.
The administrator, whom Goh fought with for his
tuition refund and whom he came to kill that day, has now come forward. Her name
is Ellen Cervellon. She was gone on the day of the massacre because she also
teaches nursing to students at California State University at East
Bay.
Now she will have to wonder, why didn’t she just approve the refund
to a desperate man? What if she had approved it? Her argument was that he’d
already spent several months in the program. According to a friend of Ellen
Cervellon’s, Linda Music, she even denied Goh his last reasonable request, to
prorate the refund.
As Matthai Kuruvila reported at SFGate.com, Goh had
asked Ellen Cervellon for a full refund of his tuition and when he was denied
suggested prorating the tuition refund. Cervellon said no, Music
said.
That meant he threw his father’s money away: He had nothing to show
for the $6,000 given to the university; he would never be able to pay his father
back; and he would never be able to borrow a sum like that from him again. That
was it, the final act. The jig was up for him.
Lack of
Empathy
Why? Why couldn’t Cervellon meet this desperate failure half-way?
What was in it for Cervellon? What’s with the Ayn Randian lack of empathy in
this country among the non-oligarchy caste?
Cervellon seems to be asking
herself this same question: “In talking to several of the students and faculty
who were there, I think he was looking for me. I have that weight on my
shoulders and I don’t know what to do with it.”
School officials have
been painting a portrait of One L. Goh as a psycho and a freak, using phrases
like “behavioral problems” and calling him “angry” and “paranoid.” There must be
truth to that; nice, normal people in a healthy state of mind don’t
rampage-massacre others.
But the intended target, Ellen Cervellon,
disputes that: “He was never forced out, he showed no behavioral problems, and
he was never asked to leave the program. He decided on his own to leave the
program.”
The depressingly familiar dead-end life that One L. Goh found
himself in — surrounded by petty scams as revealed in the ex-staffer’s lawsuit
and the bleak performance of the school’s graduates, combined with the
back-to-back deaths of two family members — could make a lot of sane people
desperate and enraged and suicidal. Not to mention the larger context of an
inequality-ravaged America where opportunity and dignity are scarcer and
scarcer.
On top of all this, as he complained often, students at the
nursing program wouldn’t talk to him. That could be traumatizing even under
better circumstances, but under his conditions, being mocked and ignored by
fellow fundamentalist Christians for being an aging loser, would be
devastating.
One of Goh’s teachers continued criticizing Goh even after
the massacre: “I always advised him, ‘You go to school to learn, not to make
friends.’”
More great advice from the Oikos University
folks.
After quitting the nursing program, One L. Goh spent the last few
months working with his father at the Daly City supermarket. He was back at
square one: A failure, swindled, condemned to work in a shitty job beside his
struggling father whom he’d let down.
You might say that One L. Goh
snapped because for once, he saw things as they really were, stripped of hope,
stripped of fantasies about self-improvement or self-transformation.
He
failed at everything; he was one of those faceless, anonymous losers. But there
was one thing he could still excel at, something that could get him attention,
something that this country perversely celebrates: mass murder in a blaze of
anti-glory. So long as you’re ready to make that transformation-of-character
into a death row inmate, that option is always available here.
Last
Monday, according to police accounts, One L. Goh armed himself with a .45
caliber semi-automatic pistol and showed up at the Oikos school for his final
act. But the plan failed from the start: The administrator he was after was
gone. So the target became the entire setting, Oikos University, as it so often
happens in these “going postal” rampage killings.
There’s a section on
the Oikos University website about the 11 beliefs that the University holds to —
they call it their “Doctrinal Statement” and it’s the last belief, Number 11,
that sums up the malevolence of it all:
“We believe in the existence of a
personal, malevolent being called Satan who acts as tempter and accuser, for
whom the place of eternal punishment was prepared, where all who die outside of
Christ shall be confined in conscious torment for eternity.”
++
Murder, Suicide and Financial Ruin: How the Class War Is Destroying Americans' Lives
The financial fraudsters, the One Percenters,
fleece the most vulnerable -- military families, minorities, low-income people
-- to generate their fast riches.
Consortium News / By Mark Ames
April 17, 2012
This past Thursday, a Modesto, California, man whose house was in
foreclosure shot and killed the Sheriff’s deputy and the locksmith who came to
evict him from his condominium unit. Modesto authorities responded by sending
100 police and SWAT snipers to counter-attack, and it ended Waco-style, with the
fourplex structure burning to the ground with the shooter inside.
It’s
not surprising that this should happen in Modesto: Last year the Central
California city’s foreclosure rate was the third worst in the country, with one
in every 19 properties filing for foreclosure. The entire region is ravaged by
unemployment, budget cuts, and blight — the only handouts that Modesto is seeing
are the surplus military equipment stocks being dumped into the Modesto police
department’s growing arsenal.
The shooter who died was 45 years old and
he appears to have lost his condominium over a $15,000 home equity loan he took
out almost a decade ago, owed to Bank of America. The condo was sold at an
auction for just $12,988 to a shady firm, R&T Financial, that doesn’t even
have a listed contact number. Too much for the former security guard, who
barricaded himself in the condo which had been in the family for decades. He
refused to walk out alive.
These “death by foreclosure” killings have
been going on, quietly, around the country ever since the housing swindle first
unraveled. Like the story of the 64-year-old Phoenix man whose daughter and
grandson were preparing to move in with him after losing their home to
foreclosure — only to get a knock on his door surprising him with an eviction
notice on the house he’d owned for over 30 years. Bank of America foreclosed on
him despite his attempts to work out a fair plan.
We now know that the
same banks that had been bailed out over their subprime fraud disaster were, by
the time this happened, headlong into another criminal scheme, this time
foreclosure fraud. The fraud was effected both illegally and in bad faith on a
scale so vast it’s hard not to think that it was carried out by some marauding
foreign army.
Anyway, the old man grabbed a .357 and a beer, walked
outside into a sea of Phoenix cops and snipers, and fired his gun off until they
cut him down in a hail of bullets.
Sometimes the “losers” in this class
war make it easier on everyone else by killing themselves and setting themselves
on fire as they’re being evicted, as one Ohio couple recently did. Others class
war “losers” aren’t as cooperative, like a Florida man who was gunned down by
police after he set his foreclosed townhouse on fire last year.
It’s
exactly the sort of lopsided class war that Warren Buffett first officially
acknowledged in 2006:
“There’s a class war, all right, but it’s my
class, the rich class, that’s making war, and we’re
winning.”
Buffett is right to call it a one-way war, in both a
metaphorical sense and in a literal sense, given the endless wars being waged
for over a decade now, wars that are tied to the class wars at
home.
Murdering Afghan Civilians
Nothing illustrates the
interlinking between the class war at home and the imperial wars abroad more
starkly than the example of Staff Sgt. Roger Bales, the Army sniper accused last
month of killing 17 Afghan civilians, mostly women and children.
The Army
is trying to pin it all on Sgt. Bales’s supposedly deranged mental state, but
their version of events contradicts what the victims and eyewitnesses in the
village have been telling the few reporters who have had a chance to actually
interview them. They’re saying that they saw several American soldiers
participating in the massacre, as well as a helicopter.
Whatever the
case, whether alone or with others, most people familiar with the case agree
that for some reason, Sgt. Bales “snapped.” Invariably they’re
over-psychologizing why he “snapped” — the military has blamed it on everything
from his supposedly troubled marriage, to strain or stress, to an alleged
alcohol bender.
Less well-known or discussed is what happened to Sgt.
Bales on the other front: the class war front. Three days before his shooting
rampage, the house where Bales’s wife and two children lived in Tacoma,
Washington, put up for a short sale, $50,000 underwater. This was exactly what
Sgt. Bales and his wife feared might happen if the Army forced him into a fourth
battlefield deployment.
The last time Sgt. Bales deployed — to Iraq in
August 2009 — Bank of America foreclosed on the family’s rental property, a
duplex that his wife had bought in 1999 that was also underwater. Within months
of BofA taking their duplex, Sgt. Bales’s Humvee hit an IED and flipped over,
causing brain and head injuries. On a previous deployment to Iraq, Sgt. Bales
had one of his feet partially blown off by a bomb.
Before being deployed
to Afghanistan last year, he and his wife had been assured that the Army
wouldn’t force Sgt. Bales, a highly-decorated hero who’d already sacrificed his
physical wellbeing and his family’s financial health, back into
combat.
Bales and his wife were planning their future as a career
military family, on bases far from any combat zone, working up the Army’s pay
scale year by year. But then in March 2011, a year before Sgt. Bales’s massacre,
they were shocked and hurt by the Army’s decision to deny him his standard
promotion to Sgt. First Class, which came with a much-needed pay
hike.
(Last year, President Barack Obama’s Joint Chiefs of Staff
chairman, Adm. Michael Mullen, said many of the austerity cuts would fall on
soldiers’ pay and benefits rather than slashing weapons programs and force
levels, which he called the “relatively easy” thing to do.)
When Sgt.
Bales learned he wouldn’t get his promotion, his wife wrote on her
blog:
“It is very disappointing after all of the work Bob has done and all
the sacrifices he had made for his love of his country, family and
friends.”
Kathilyn Bales comforted herself with the assurances
they’d been given that at least her husband wouldn’t be sent back into combat
again — at least the family would be going together to one of the many
non-warzone bases around the world. She wrote:
“Who knows where we
will end up. I just hope that we are able to rent out the house so we can keep
it. I think we are both still in shock.”
Then came the real shock: the Army sent Sgt. Bales back into the war
zone, into Afghanistan. His wife would have to deal with the more than $500,000
in mortgage debts on her own.
It was all timed perfectly: Last December,
the month Sgt. Bales was deployed to Afghanistan, one of the subprime loans
worth $178,000, taken out in 2006, was timed to “reset” to as high as 10.8
percent interest, and call in its first full payment.
Joe Krumbach,
former president of the Seattle Mortgage Bankers Association, reviewed this loan
and the others sold to Sgt. Bales’s wife while he was in Iraq, and denounced
them as “unconscionable.”
He told the Seattle Times, “The margins on
these loans are disaster waiting to happen” and admitted that mortgage lenders
deliberately targeted military families like the Bales family, swindling them
into signing onto far pricier refinancing loans “that benefited lenders and
mortgage brokers” at the expense of vulnerable military families, as well as
minorities and low-income borrowers.
Another local real estate
businessman who specializes in short sales agreed, telling Businessweek that “we
set them up.”
“It’s not an unfamiliar story, but it’s sad,” said
Richard Eastern, a co-founder of Bellevue, Washington-based Washington Property
Solutions, which negotiates short sales. “We’re going to send you off to war but
we’re going to foreclose on your home.” He said many lenders offered loans they
knew borrowers couldn’t repay. “And it’s not just soldiers, it’s everybody. We
set them up.”
The extent to which mortgage lenders and banks
deliberately preyed on American military families is made clear by this
little-known fact: the Tacoma region, home to Fort Lewis-McChord, the largest
base in the Western United States and home to 100,000 military personnel and
family, suffered one of the worst predatory subprime loan epidemics in the
country, an anomaly in the state of Washington. According to Richard Eastern’s
firm, roughly half of all home sales in that region are either foreclosures or
short sales. As early as 2007, the Wall Street Journal singled out Tacoma as one
of the nation’s worst affected regions from subprime plunder.
Who’s at
Fault?
So who did this? Who, in the class war equation, waged and “won”
this class war on Sgt. Bales’s family, and so many other military families? What
are their names? Where are they now?
As a matter of fact, there is a
name: Paramount Equity Mortgage. And there is a name: Hayes Barnard, the CEO and
co-founder of Paramount Equity. He lives in Roseville, California. In many ways,
the story of the “winner” in this class war story is the most revealing, and
enraging part of all.
Paramount Equity was founded in 2004, and quickly
spread across the Western states, issuing some $8 billion in loans. Paramount
Equity’s subprime predation really took off in 2006, right after the Bush
Administration’s Department of Housing (HUD) and the FHA qualified Paramount
Equity government insurance on its mortgages.
Almost immediately,
Paramount Equity flooded the Tacoma region’s radio airwaves with deceptive ads
hard-selling refinancing loans, featuring the voice of CEO Hayes Barnard
promising the lowest rates, the most honest dealing, giving his personal
guarantee.
However, a raft of fraud and deception charges followed. In
2008, the Washington State Department of Financial Institutions announced it was
charging Paramount Equity Mortgage with deceptive lending practices and revoking
its license.
Paramount stood accused of charging and collecting unearned
fees, charging consumers to buy down interest rates without actually reducing
the rate, failing to make required disclosures and making state and
federally-required disclosures in a deceptive manner.
“Paramount failed
to make proper disclosures in almost every loan we reviewed,” said Deb Bortner,
director of DFI’s Division of Consumer Services.
“Washington [state] has
many licensed mortgage brokers who comply with the law. In today’s market, we
simply do not need a mortgage broker engaged in deceptive conduct doing business
in this state.”
The state’s charges also singled out Hayes Barnard for
“engaging in a deceptive advertising campaign.”
As is so often the case,
there’s far too little reported specifics on the actual nature of the fraud and
deception. Sometimes you have to look in the comments sections on real estate or
legal blogs from the affected region. Like this comment left on a marketing blog
posting calling out Paramount Equity’s “lies”:
“I apologize if this
is maybe a little off topic. I refinanced with Paramount back in 2004. Come
2009, my loan adjusted and I was left with no choice but to walk away with my 3
kids and stay at home wife. I had to rely on credit cards the last couple of
years, even charging a couple mortgage payments.
“We ended up filing ch.
7 and we are now renting and have ZERO (if not worse) credit. Today (Sept. 27,
2011) an auditor came to my door and gave me some info and verified other info
regarding B-of-A filing a PMI [private mortgage insurance] claim. Sorry so long
winded….
“One of the docs he showed me was of my stated income which was
double … DOUBLE my income at the time. I NEVER would put myself into such a
situation and lied. I honestly believe the number was changed and it was burried
[sic] in an inch of docs I had to sign and I just didn’t see it.
“I’m not
claiming complete innocence, because after all, I DID sign everything and agreed
to the loan (which I didn’t know was a negative amortization loan. Hell, I
didn’t even know what that meant). Now, we’re stable, but my financial future
and creditworthiness is screwed. I barely got a $500 limit credit card at
17%.
“Do I have any type of recourse here? I’m not frivolous, but I am at a
loss. In fact … I LOST everything. Thanks in advance.”
These sorts
of stories can be found everywhere, and they repeat themselves over and over.
And what’s most galling of all is that these plundering crooks preyed on those
most vulnerable — military families suffering from the chaos of war, minorities,
low-income people — to generate their fast riches, backed with government
guarantees.
Getting Off Easy
For all the swindling and
destruction, including the “unconscionable” exploding loans Paramount Equity
foisted on Sgt. Bales’s wife while he was off fighting in Iraq, the state of
Washington settled in 2009 with what can only be described as a wrist-massage: A
fine of a mere $392,000, no admission of guilt.
Paramount even got to
keep its license to operate. This, despite the incredible admission in the
signed consent that “Paramount admits that during the relevant time period,
Paramount did not maintain books and records.”
This is what a lopsided
class war looks like: The financial fraudsters, the One Percenters, fleece the
unsophisticated locals like 19th century Europeans plundering far-away
aborigines.
One victim of Paramount commented bitterly on the
settlement:
“We have not one, but TWO ugly loans which are breaking
us from good ol’ Paramount Equity Mortgage. …. The citizens who signed these
toxic documents are suffering EVERY DAY and losing their homes because Matt and
Hayes need to make their yacht payment.
“Our financial lives, that took
30 years to build, have been crushed because of the deception that occurred in
their office (where no employee appeared to be over 40 years of age) I remember
asking at the closing table, ‘Does anyone have gray hair in this building??!!’
It was unnerving. The parking lot looked like a BMW Sales Lot. …
“Soon, I
intend to stop crying about our mortgages, as I have been doing over the last
THREE YEARS… And Washington State Department of Financial Institutions: SHAME ON
YOU. Shame on you.”
Two “ugly loans” from Paramount Equity are what
broke Kathilyn and Roger Bales.
The end result: Hayes Barnard and
Paramount Equity Capital are doing better than ever. In 2009, Hayes Barnard was
named “Entrepreneur of the Year” by the Roseville Chamber of Commerce, the
wealthy Sacramento suburb where Paramount Equity Mortgage is headquartered. In
2010, the Sacramento Business Journal honored him as one of Sacrament’s “40
under 40” leaders.
The big payoff came last year, when one of the world’s
largest infomercial firms, Guthy-Renker, bought a “significant equity position”
in Hayes Barnard’s company. You might know Guthy-Renker as the company that
makes all those annoying Tony Robbins infomercials and Susan Lucci skincare
infomercials.
Guthy-Renker’s also owns an equity stake in RealtyTrac, the
leading foreclosure intelligence source. That’s good news for Hayes Barnard,
because it means he’ll be able to wet his beak on the aftermath of the subprime
plunder by getting first dibs on the best foreclosure deals. It’s a
win-win.
In this degenerate 21st Century version of America, Hayes
Barnard exemplifies everything that the current system rewards. In the
anti-meritocracy we live in, the sociopaths and crooks are the “winners.” Being
a “winner” means you get quoted adoringly in a Sacramento Business Journal
Q&A, spouting out the blackest of unintentional black humor:
“As
a younger professional, what is the biggest challenge you face?
“As a
young professional, the biggest challenge I face is finding the right balance
between raising my three children all under 3 years old, being a supporting
husband and leading my team as a CEO of three companies. … Achieving true
success is to give, give, give and help as many people as you can while leading
for your family, employees and community.”
That’s how the class war
“winners” rub it in on the rest of us — especially their victims. How can you
function after reading such self-serving drivel, particularly if you’re one of
the victims?
As for the “losers” in this class war: Sgt. Roger Bales’s
wife and children are ruined. They have no home; they only own debts to the tune
of hundreds of thousands of dollars, debts owed for life to the Hayes Barnards
of this country. The “winner” — the swindler — is a community hero.
As
for Sgt. Bales – whom the Army accuses of “snapping” for no good reason,
accusing him of being a drunk, or of mental weakness, incapable of handling his
marriage or the stress of combat – he might even be put to death. He now sits in
Fort Leavenworth military prison, charged with the murder of 17 Afghan
civilians.
The way the One Percenter “winners” see this story, it’s all proof that
the system is working perfectly.
As the National Journal reported,
“Nearly all of National Journal’s National Security Insiders agree that the
military justice system can conduct a fair trial for Staff Sgt. Robert Bales.”
++
“I believe that unarmed truth and unconditional love will
have the final word in reality. That is why right, temporarily defeated, is
stronger than evil triumphant.”
~ The Reverand Martin Luther
King
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