Advocates Rally to Eliminate ‘Sub-Minimum Wage'
Brooklyn Daily Eagle - October 23, 2014, by Matthew Taub - Hundreds of tipped and low-wage workers and advocates, including fast food, car wash and other low-wage workers, rallied...
Brooklyn Daily Eagle - October 23, 2014, by Matthew Taub - Hundreds of tipped and low-wage workers and advocates, including fast food, car wash and other low-wage workers, rallied outside a Domino’s Pizza location in Harlem before marching to the second public hearing of Gov. Andrew Cuomo’s Wage Board, where they testified and called on the Wage Board to eliminate the sub-minimum wage for the 229,000 tipped workers in New York state.
“In an increasingly unaffordable city, tipped workers remain among the lowest-paid hourly workers,” said New York City Public Advocate Letitia James, who joined the workers at the rally and wage board hearing. “An hourly wage of $5 an hour is simply not sustainable for an individual or a family. Now is the time to ensure that low-wage workers receive a fair and sustainable income. I join the many voices today calling on Gov. Cuomo to help bring fair wages to these industries.”
Employers in New York are allowed to pay less than the minimum wage — just $5 an hour — to restaurant servers, delivery workers and other service workers. Employers are legally required to “top off” a tipped worker’s pay when it falls short of the regular minimum wage, but lax enforcement enables employers to routinely violate minimum wage, overtime and other wage and hour laws with minimal repercussion.
“We work very hard and deserve a raise, just like other minimum wage workers in this state,” said Juana Tenesaca, a tipped worker and member of Make the Road New York. “I have worked as a waitress for years, earning the tipped minimum wage, and it’s impossible to raise my children never knowing how much money I’ll bring home at the end of the day. My daughter had to get a job while she was still in high school to help support our family and that breaks my heart.”
A July report by the National Employment Law Project finds that eliminating the sub-minimum wage would benefit an estimated 229,000 tipped workers in New York.
“Tipped workers are employed in industries like hospitality that are among the fastest growing in today’s economy,” said Tsedeye Gebreselassie, senior staff attorney at the National Employment Law Project. “If we want to stimulate consumer spending and boost our local economies, we need to make sure that the growing number of New Yorkers relying on these jobs actually have money to spend on basic necessities at their neighborhood stores.”
“Having to live entirely off tips means the customer is always right, which means I’ve had to put up with unwanted advances and uncomfortable situations from guests,” said Ashley Ogogor, a tipped worker and member of Restaurant Opportunities Center-United. “The guest shouldn’t have to feel pressured at the end of the night to pay me a decent wage. If seven other states can require restaurant owners to pay their employees a full minimum wage, so can New York.”
As part of last year’s legislative deal to increase New York’s minimum wage to $9 an hour by Dec. 31, 2015, the sub-minimum wage for tipped workers was set to automatically rise in proportion to the full minimum wage whenever the latter is raised with one exception: workers in the hospitality industry. The final deal froze these workers’ wages at $5 an hour and instructed Gov. Cuomo’s Department of Labor to convene a “wage board” to determine whether these workers will get a raise, and if so, by how much.
“We call on Gov. Cuomo and the wage board to do whatever it takes to lift up working families in the Empire State,” said Tony Perlstein, campaigns co-director for the Center for Popular Democracy. “Wealthy restaurant employers shouldn’t receive special treatment that allows them to pay poverty wages to working New Yorkers, including the women who make up more than two-thirds of the tipped wage workforce. Seven states have already eliminated their sub-minimum wages, and more are seriously considering it. Their restaurant sectors are not suffering for it, and in fact are thriving.”
The wage board, consisting of Timothy Grippen, Retired Broome county executive; Heather C. Briccetti, president and CEO of the Business Council; and Peter Ward, president of the New York Hotel Trade Council, heard hours of testimony detailing how New York’s tipped subminimum wage fuels unstable paychecks and poverty for thousands of workers, particularly women, across the state.
“People want to work hard at a place where they feel valued,” said Amado Rosa, a tipped worker at a Thai restaurant and a member of Make the Road New York. “Being paid $4 or $5 an hour does not make a worker feel validated and does not generate enough income to support a single person or a family. I have faced many hardships over the years, and my anxiety stemmed from not knowing what my take-home pay would be in a given week.”
The poverty rate among New York’s tipped workers is more than double that of the regular workforce. Seven states across the country have adopted policies requiring employers to pay tipped workers the full minimum wage and have shown that eliminating the sub-minimum wage reduces poverty without slowing job growth. In fact, according to projections by the National Restaurant Association in their 2014 Industry Forecast, all of the states that require employers to directly pay the full minimum wage to tipped workers are expected to have greater restaurant job growth than New York in the next decade — in most cases, much greater. Tipped workers are already being paid $9 or more in California, Washington and Oregon, and will soon be getting raises to over $9 in Minnesota, Hawaii and Alaska.
“More than 3 million New Yorkers work low-wage jobs, and they need our state government officials on their side,” said Michael Kink of the Strong Economy for All Coalition. “New York needs a one-two punch for good jobs: a big increase in the minimum wage, and elimination of the second-class sub-minimum wage for tipped workers. This combination could boost the paychecks of millions of workers and help revive the New York economy from the ground up — the Wage Board should take direct action to provide one fair wage to a quarter-million tipped workers to get us moving now.”
Advocates who testified at today’s hearing are members of Raise Up NY, fighting for #1FairWage, a coalition comprised of tipped workers, the National Employment Law Project, Make the Road New York, the Center for Popular Democracy, Fast Food Forward, New York Labor-Religion Coalition, New York Communities for Change, ROC-NY, ROC-NY affiliate of Restaurant Opportunities Centers (ROC) United, Strong for All, United New York, Citizen Action New York, Tompkins County Workers Center, Worker Center of Central New York, Metro Justice, Coalition for Economic Justice, Alliance of Communities Transforming Syracuse (ACTS) and other community groups and advocates around New York State calling for the elimination of New York’s sub-minimum wage for tipped workers.
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Taxing the rich: how Seattle leads a ‘go-local’ trend in liberal politics
Taxing the rich: how Seattle leads a ‘go-local’ trend in liberal politics
Seattle is trying to tackle income inequality one local move at a time – and becoming a case study in how cities are testing liberal policies that lack traction at the state or federal level....
Seattle is trying to tackle income inequality one local move at a time – and becoming a case study in how cities are testing liberal policies that lack traction at the state or federal level.
Read the full article here.
Poor Immigrants Get Free Legal Defense in New York City Program
NBC News - June 25, 2014, by Kat Aaron and Seth Freed Wessler - Leroy Samuels walked into the Varick Street immigration court in lower Manhattan, his wrists handcuffed and attached to a chain...
NBC News - June 25, 2014, by Kat Aaron and Seth Freed Wessler - Leroy Samuels walked into the Varick Street immigration court in lower Manhattan, his wrists handcuffed and attached to a chain around his waist. “My heart is beating,” Samuels’ older sister Anneisha said from a courtroom bench as her father beside her, his head in his hands to hide tears. Samuels, dressed in an orange jumpsuit, nodded at his family and lowered his eyes.
Three days earlier, the 24-year-old had been in a New Jersey detention center preparing to appear at his first hearing alone. Immigrants facing deportation, like Samuels, aren’t eligible for court-appointed attorneys. And like most immigrants in his position, he couldn’t afford one on his own
“I found some lawyers online, but they asked for $4,000,” Anneisha said. “I just hung up.”
Without legal defense, Samuels was sure he’d be deported to Jamaica, the country where he was born but has not been for nearly 15 years since his father brought him to the U.S.
But Samuels arrived in court that December morning with an attorney anyway. He is one of 190 people facing deportation from New York City who have been provided a free lawyer through the Family Unity Program, a city council-funded pilot initiative that provides for two public defenders’ offices to hire lawyers to represent poor immigrants in detention. It's the first program of its kind in the country. Now city lawmakers are poised to expand it almost ten-fold, making New York City the first municipality to provide legal defense to all detained indigent residents facing deportation.
“Justice shouldn't depend on the income level of anyone,” says Judge Robert Katzmann, Chief Judge of the U.S. Court of Appeals for the Second Circuit, who convened a multi-year study group from which the pilot emerged. “I think that the project will create momentum for greater support for providing counsel for people facing deportation.”
A number of other cities, including Boston and Chicago, are exploring similar programs. And this year, Alameda County, California, which includes the cities of Oakland, Fremont and Berkeley, started a program that approaches New York’s.
“This is part of a trend,” says Raha Jorjani, the immigration attorney hired by Alameda County. “Public defenders are saying that until Congress acts to provide legal defense for immigrants in deportation proceedings, we at the county level have to do our part to mitigate harm to clients.
In recent years, more immigrants have found themselves in court as the U.S. government has deported and detained nearly 400,000 each year. Though not all people facing deportation are detained, those who get locked up, either because they were previously charged with a crime or entered the country without papers, are less likely to have an attorney to represent them and more likely to be deported. The two biggest factors in successfully resolving a case are having a lawyer and being free during the trial, according to a report by Katzmann’s group.
Preliminary data on the New York City pilot, which comes to a close on June 30th, shows that of 190 detainees, almost half have been released or have a legal case to argue for release. Some may still be deported but can now fight from outside prison.
Providing these immigrants with legal defense, Katzmann says, creates both fairness and efficiency, saving county and federal governments money they’d otherwise spend locking people up. “It's a benefit to the judge, it’s a benefit to the government and to the non-citizen. It's really an example of how the government process can be made better.”
For Samuels, the road to immigration court started with legal trouble in 2010. He’d been without a place to stay and was sleeping on a friend’s couch. The friend, Samuels says, asked him to hold onto a package of drugs. Samuels says police officers arrived at the apartment and arrested him. He pleaded guilty and was convicted of criminal possession of a controlled substance and sentenced to time-served, six days in jail.
Samuels and his family say he quickly straightened his life. He found a steady job at a pharmacy, stopped hanging with friends who sold drugs and made sure to see his son, who lived with his ex-girlfriend, at least twice a week. A year passed and then two. He thought the criminal case was behind him.
Then at around 8:30 one morning last December, as he walked home to his Brooklyn apartment after working the night shift, he was stopped on the street and arrested by federal immigration agents. He was placed in detention in New Jersey, facing deportation. Immigration attorneys say it’s not uncommon for officials to detain immigrants long after an arrest.
“I never really thought about being deported,” Samuels said this winter from behind glass in the visitation room at the Hudson County, New Jersey, detention center. “I had a good job. I had visits with my son. I was on my way,” Samuels said. He’d hoped to enroll in culinary school, but from detention, he saw his plans evaporating. And his live-in girlfriend was pregnant and due in May. “What if I’m not there?” he said.
“The first time that I visited my brother at Hudson,” Anneisha Samuels says, “I didn’t know what to do. It’s not like when people are arrested, regular arrested, and they get a lawyer.”
Anneisha had recently lost her job as a home health aide. Their father was between jobs, too.
The next day, Anneisha received a call from Talia Peleg of Brooklyn Defenders Services, one of three attorneys from her office working on the immigrant defense pilot program. (The Bronx Defenders office employs three others.) Peleg bore good news: She would represent Leroy in court free of charge.
“An attorney knows how to talk the talk and walk the walk,” Peleg explained recently. “And to translate these complex immigration issues into a narrative that makes sense to the court,” without a lawyer, “I don’t know if that would be possible.”
The program attorneys say their representation by no means guarantees that their clients will stay in the U.S. For people with many criminal convictions, there’s no viable legal argument to stay. Many of these people are subject to what's known as mandatory detention. For them, fighting to remain in America can mean months or even years in detention while their case winds through the system. Some opt to leave.
Diego Garcia, originally from Guerrero, Mexico, picked up several misdemeanor and disorderly conduct charges in New York. He was fired from a catering job and was drinking heavily.
Eventually, those arrests led to deportation proceedings. He landed in the Hudson County detention center, and then at the Varick Street Immigration Court, where he, too, met Peleg. He was so eager to get out of prison that he told her he just wanted to be deported, but she encouraged him to sit through a 35-minute intake questionnaire to see what his options might be.
It turned out Garcia was eligible for a U visa, a special visa for victims of crime–in his case, witness tampering. The catering company he’d worked for had paid him and others far less than minimum wage, according to the Department of Labor. Garcia’s lawyers say his employer then pressured him to lie to federal investigators who were at the time looking into workplace violations.
Garcia was thrilled to hear there was a possible path to staying in America.
Peleg explained that the visa—if it came through—would take months, and he'd have to stay at Hudson while they fought. Rather than wait in jail, Garcia accepted the removal order, and went back to Mexico. “I wanted to be free,” he said recently by phone from Mexico City, “and fight from there.”
“It's very hard to be incarcerated, waiting,” Garcia said “When you're there, you feel confused, fearful.”
Peleg and Garcia are in regular contact as she pursues his U visa. And he has some money to help him get through the wait. When Peleg contacted the Department of Labor, which had repeatedly fined the catering company, officials said they had more than $3,000 in back wages for Garcia.
According to New York City Councilwoman Julissa Ferreras, who represents several heavily immigrant communities in Queens, before the pilot project, she heard from families who spent thousands of dollars on immigration lawyers. “Often times it was money that these families didn't have,” she said. But no one was beating down her door demanding publicly-funded lawyers, she said. “My constituency didn't even know that that's what they needed to cry out for.”
Now, that’s changed. The families she talks to are getting help from attorneys whose sole focus is on immigration defense. “We're raising the level of justice,” Ferreras said.
The final draft of the budget, released by the city council Tuesday night, allocates $4.9 million to expand the program. Now, all poor New Yorkers facing deportation, both at Varick Street and nearby immigration courts in New Jersey, will be appointed an attorney.
Ultimately, the goal of the project’s advocates is to provide counsel for all migrants facing deportation in New York State, which would cost $7.4 million, said Peter Markowitz, who runs the immigration legal clinic at Cardozo School of Law, which has helped lead advocacy for the pilot program.
That price tag would be offset by savings for the state, which would spend less on health care and foster care for children whose parents are deported, according to a study by the Center for Popular Democracy, another group supporting the program. The private sector would benefit, too; New York State employers now lose an estimated $9.1 million dollars in turnover costs to replace detained and deported workers, the study found.
Nationally, it would cost just over $200 million to give a lawyer to every indigent immigrant facing deportation, according to one recent study. The federal government would save close to $175 million in detention costs, the study found.
In April, Leroy Samuels appeared in in the Varick Street court again. He walked through the doors in cuffs, and his sister and father sat in the same spot. His attorney had already made a deal with the federal government’s lawyer: Samuels would be granted release. After a short hearing, the judge warned Leroy not to get into any more trouble, and then told the now-25-year old that he could leave. In the courthouse cafeteria Samuels embraced his father and sister and thanked his attorneys.
Samuels’ return has been difficult. He says that he hasn’t been able to get his job back—his former boss told him the company isn’t hiring.
But weeks ago, his girlfriend gave birth to their son. The day he was released, Samuels said, “I feel like I got a fresh start because of these lawyers.”
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I Was Detained in a Hellish Private Prison—And Wall Street Corporations Are Behind It All
I Was Detained in a Hellish Private Prison—And Wall Street Corporations Are Behind It All
As a report, “Bankrolling Oppression,” from the Center for Popular Democracy, Make the Road New York, New York Communities for Change, Enlace International, and The Strong Economy for All...
As a report, “Bankrolling Oppression,” from the Center for Popular Democracy, Make the Road New York, New York Communities for Change, Enlace International, and The Strong Economy for All Coalition, uncovers, these corporations provide large loans and a revolving line of credit to private prison companies, which depend on debt to sustain their business model. JPMorgan alone holds $167 million in debt, which is 62 percent larger than the second biggest lender to these companies. And these companies’ shareholdings in GEO and CoreCivic have increased enormously since Trump’s election.
Read the full article here.
On-call Shifts String Retail Workers Along
The Boston Globe - April 19, 2015, by Dante Ramos - Because life-threatening crises arise at odd times, people in some fields have days when they’re on call. EMTs get called...
The Boston Globe - April 19, 2015, by Dante Ramos - Because life-threatening crises arise at odd times, people in some fields have days when they’re on call. EMTs get called to accident scenes. Doctors have patients who might fall ill or go into labor at any moment. But do unforeseen variations in sweater sales, or in foot traffic in the housewares department, have the same urgency? Of course not.
Recently, New York Attorney General Eric Schneiderman sent letters demanding information from Gap, Abercrombie & Fitch, Urban Outfitters, and 10 other major retail chains about their use of on-call shifts — periods for which an employee must keep an open schedule but might not end up working.
Instead of simply reporting for work, the employee has to check in with a supervisor a few hours in advance. If she gets called in, she may have to scramble for a babysitter. If she doesn’t get called in, she doesn’t get paid, and it’s too late to get a shift on a second job. “People will be scheduled for eight on-call shifts in a pay period and only get called in for one shift,” says attorney Rachel Deutsch of the Center for Popular Democracy, a labor advocacy group.
Some of the retailers Schneiderman targeted have written the practice into their employee handbooks. Others, such as JC Penney, told reporters last week they have policies against it. Still others have responded cryptically to reporters’ inquires; TJX, the Massachusetts-based discount giant, told CNN Money that its schedules “serve the needs” of workers and the chain. I contacted the company to clarify, but it didn’t respond.
On-call shifts are a new frontier: They’ve proliferated at big chains because of just-in-time scheduling software, which uses up-to-the-minute data to maximize sales while minimizing the number of employees on the clock at slower times. Statistics are hard to come by, although a 2011 survey by Retail Action Project, another advocacy group, found that 43 percent of New York City retail workers were assigned to on-call shifts sometimes or often. Until Schneiderman’s office started sending out letters, the practice had attracted little regulatory attention. (In Massachusetts, the attorney general’s office is watching what happens in New York, but hasn’t taken similar action.)
Despite their relative novelty in retail, on-call shifts speak to an age-old tension. Economic life is full of uncertainty. How much should employers bear, and how much should fall on workers? Jon Hurst, president of the Retailers Association of Massachusetts, argues that stores face stiff competition from e-commerce and survive at the mercy of the customer who, he says, “moves on a dime.” He adds, “If you choose to work in retailing, you have to live with the consumer.”
In other sectors, though, people who work on call are often paid salaries that presume some unpredictability, or they’re paid for the time they spend waiting around. Deutsch used to work as a union rep for hospitals in the Bay Area. One hospital, she says, had a handful of technicians on staff who performed echocardiograms during the workday. After hours, there was a technician on call, who was paid half-time for those shifts even when there was no work.
A key difference: Echocardiogram techs have a specialized skill. Entry-level retail workers don’t, and those averse to on-call shifts are easily replaced.
Businesses aren’t social-service agencies. To rely on employers as guarantors of health care and retirement security, as the US government did after World War II, is to assume they and their workers want to be bound together intimately, for decades on end. But at the other extreme, companies that treat employee relationships as fleeting and transactional — the workplace equivalent of a one-night stand — will end up with lots of churn in their ranks.
Or they’ll be subject to lots of government mandates. Responding to a variety of complaints about unpredictable schedules, San Francisco last year approved a far-reaching “retail worker bill of rights” that, among other things, requires employers to post schedules weeks in advance. A proposed Massachusetts law has similar provisions. Hurst points out that parts of the bill would have hamstrung local retailers in February, when sales plunged during a four-week Ice Age.
Retail chains can forestall such rules by changing their ways. When stores train workers to do more than scan tags and say “I can help who’s next,” those workers can improvise. They might tend to customers during a sudden rush while prioritizing other jobs, like restocking shelves, at slower moments. If employers still believe they need on-call shifts, they can simply guarantee employees some pay for those periods. Ideally, chains would do so voluntarily. In practice, some will need a regulatory nudge.
When retailers can claim free options on hourly workers’ time, they have no incentive to make firm decisions in advance. But no one likes being strung along, and no one’s life is infinitely flexible.
Soure
JPMorgan Chase Is Funding and Profiting From Private Immigration Prisons
JPMorgan Chase Is Funding and Profiting From Private Immigration Prisons
One of America's largest banks, JPMorgan Chase, is quietly financing the immigration detention centers that have detained an average of 26,240 people per day through July 2017, according to a new ...
One of America's largest banks, JPMorgan Chase, is quietly financing the immigration detention centers that have detained an average of 26,240 people per day through July 2017, according to a new report by the Center for Popular Democracy and Make the Road New York. Through over $100 million loans, lines of credit and bonds, Wall Street has been financially propping up CoreCivic and GeoCorp, America's two largest private immigration detention centers.
Read the full article here.
As Wells Fargo is Accused of Fabricating Foreclosure Papers, Will Banks Keep Escaping Prosecution?
Democracy Now - March 21, 2014 - A new internal report says the Justice Department massively overstated its successes in targeting mortgage fraud while in fact ranking it as a low priority for...
Democracy Now - March 21, 2014 - A new internal report says the Justice Department massively overstated its successes in targeting mortgage fraud while in fact ranking it as a low priority for investigation. The Justice Department’s inspector general says despite playing a central role in the nation’s financial crisis, mortgage fraud was deemed either a low priority or not a priority at all. This comes as a recently revealed internal Wells Fargo document appears to guide lawyers step by step on how to fabricate missing documents to foreclose on homeowners. Wells Fargo is the country’s largest mortgage servicer and services some nine million home loans.
Transcript
This is a rush transcript. Copy may not be in its final form.
JUAN GONZÁLEZ: A new internal report says the Justice Department massively overstated its successes in targeting mortgage fraud while in fact ranking it as a low priority for investigation. The Justice Department’s inspector general says despite playing a central role in the nation’s financial crisis, mortgage fraud was deemed either a low priority or not a priority at all. In one instance, Attorney General Eric Holder claimed to have filed lawsuits on behalf of homeowner victims for losses totaling more than $1 billion, but the actual amount was 91 percent less, around $95 million.
This comes as a recently revealed internal Wells Fargo document appears to guide lawyers step by step on how to fabricate missing documents to foreclose on homeowners. Wells Fargo is the country’s largest mortgage servicer and services some nine million home loans.
AMY GOODMAN: State and federal regulators are now focusing on the allegations in the lawsuit brought by Linda Tirelli, who joins us now. She’s an attorney representing clients being foreclosed on by Wells Fargo. Earlier this month, she discovered the Wells Fargo manual on how to produce missing documents to foreclose on homeowners. She’s a partner at the Garvey, Tirelli & Cushner law firm in White Plains, New York.
In Minneapolis, we’re joined by Kevin Whelan, campaign director for the Home Defenders League, a national movement of underwater homeowners and allies who organize to keep people in their homes and demand accountability.
Wells Fargo declined Democracy Now!'s interview request, saying they're in a, quote, "quiet period" pending the announcement of their quarterly earnings.
We welcome you both to Democracy Now! Linda Tirelli, let’s begin with you.
LINDA TIRELLI: Good morning.
AMY GOODMAN: Can you describe this manual, how you got it and what it reveals?
LINDA TIRELLI: Absolutely. The manual that I have, it’s actually entitled the "Wells Fargo Home Mortgage Foreclosure Attorney [Procedure] Manual, Version 1." And it says on it that it’s last published 2/24/2012. Mind you, the national mortgage settlement agreement was announced a week prior, on 2/19/2012.
The way I obtained it, it was actually sitting right there on the Internet, of all things. A colleague of mine, through a Max Gardner’s Bankruptcy Boot Camp, which I am a member, an active member, gave it to me and said, "Hey, I found this online, and I know you’re doing a lot of Wells Fargo cases. Maybe you can use this."
Reading it, my jaw just dropped. As I see it, it’s clearly outlining procedures, not just for the $12-an-hour robo-signers that we’ve heard about all these years, but for the lawyers, who need to be held accountable to a much higher degree. It’s the manual for the lawyers to actually fabricate documents, as I see it, and request that documents that are lacking be fabricated by Wells Fargo. It’s absolutely appalling.
JUAN GONZÁLEZ: Well, you know, we’ve had on Democracy Now! a couple of times the Brooklyn Supreme Court judge, Arthur Schack, who raised a campaign over—not only over the robo-signers in many cases that he had before his court, but also over the bank officials and the attorneys who participated in this fraud. And there have been several judges in different parts of the country who have raised these issues. How do you think this advances the whole issue of going after—of having the smoking gun to go after these companies?
LINDA TIRELLI: Well, I think that judges cannot make determinations based on suspicion. OK? This is the first and only internal document that I’m aware of that clearly outlines the fraud. And that’s how I put it in my allegations to the court. And we are very, very fortunate in New York to have a number of proactive judges who get it, but unfortunately, they’re few and far between across the country. My hope is that judges as wonderful as Arthur Schack and as great as many of our federal judges—I do appear mostly in federal courts—that they will be proactive, they will take this seriously and start to question Wells Fargo on their procedures.
AMY GOODMAN: I want to read a bit from the Wells Fargo document. In this section called Note Endorsement, it says, quote, "If the blank endorsement is in the file for an original state, execute the endorsement, send the original document to the attorney, and complete the Z02 step." Can you explain what this means?
LINDA TIRELLI: Sure. I take that to mean that if there is actually an endorsement that exists, they need to endorse it. But as the party in—
JUAN GONZÁLEZ: And by "endorsement," you mean?
LINDA TIRELLI: Sign it over.
JUAN GONZÁLEZ: Oh.
LINDA TIRELLI: OK. But the question is: Do they have the authority to sign it over? Is it an authorized endorsement? Who’s signing it over? As the lawyer, I would need to know that before proceeding with a foreclosure. If it’s a document that needs to—if it was a note that needed to be endorsed, under a pooling and servicing agreement, which is followed by every securitized trust—and most of these loans, let’s face it, are owned by securitized trusts in some form or another—they should have been endorsed long before the foreclosure was ever started, at the time that it was actually acquired by the trust, or allegedly acquired by the trust.
AMY GOODMAN: So this manual talks about how to fabricate a document—
LINDA TIRELLI: Absolutely.
AMY GOODMAN: —that you don’t have, that you need.
LINDA TIRELLI: That’s how I’m reading it.
AMY GOODMAN: That Wells Fargo would need.
LINDA TIRELLI: Exactly. That’s—
AMY GOODMAN: To foreclose on the house.
LINDA TIRELLI: Exactly right. That’s exactly how I’m reading it. I’m reading it to say that it’s not just, when there is a blank endorsement, fill in the blank. But sometimes when there—there’s actually a procedure in here, as I read it, for when there’s no endorsement, OK? Go ahead and endorse the note. Just request that the note be endorsed. And that’s what we call, in our area of law, a "tada endorsement." The bank produces a copy of a note, just for example, that has no endorsement on it, and then when we ask about it and say, "Gee, this note is not endorsed to your client. How is it that you’re—you know, you’re bringing foreclosure?" and they say, "Oh, here, use this version. Tada! Now we have an endorsement." And it’s always a rubber stamp, that you or I could go to Staples and purchase for $9.95.
JUAN GONZÁLEZ: You also, one of your cases, came across a document which was purportedly from an official of Washington Mutual Bank in 2010, but Washington Mutual didn’t exist in 2010, because it had collapsed back in 2008.
LINDA TIRELLI: 2008, that’s right. That document was signed by Mr. John Kennerty in—who works for Wells Fargo, or worked for Wells Fargo at the time. And in this procedure manual, there’s actually a procedure for obtaining what’s called an assignment of mortgage, OK? So, basically, as I’m reading this procedure, it’s saying, "Gee, if you need an assignment, the attorney should request it through the document department, and then, magically, one will appear for you." And that’s exactly what we’re seeing. The people that work for Wells Fargo in these various departments, when they receive a request from an attorney, they take that as permission to actually sign something, without doing any research whatsoever. How is it, as you point out, we had anything assigned from in a company that ceased to exist two years prior? It just simply makes no sense. That document’s fabricated. And in that particular case, I will point out, the judge actually deemed that document to be a fraudulent document on record.
AMY GOODMAN: I remember when Congresswoman Marcy Kaptur was standing on the floor of the House and telling homeowners, "Stay in their homes and demand that they produce the note. Produce the note." I wanted to go to Eric Schneiderman. Last May, the New York attorney—the New York attorney general announced plans to sue Bank of America and Wells Fargo for violating the terms of a settlement aimed at curbing foreclosure abuses. The $26 billion settlement was reached in 2012 between five major banks and 49 attorneys general. It provided basic protections for homeowners, such as requiring banks to notify them about missing documents within a certain time period. But Schneiderman said the banks had violated the terms of the settlement with impunity. At the news conference in May, he lifted a massive sheaf of papers to show the hundreds of complaints issued by homeowners against the banks.
ERIC SCHNEIDERMAN: Two of the participating servicers, Wells Fargo and Bank of America, have flagrantly violated their obligations under the settlement. I’ve sent a letter to the monitoring committee, the body that oversees the implementation of the national mortgage servicing settlement, notifying them of my intention to sue both Wells Fargo and Bank of America for noncompliance with servicing standards spelled out in the settlement. This enforcement action, which is the first taken under the settlement, is based on 339 individual complaints from New Yorkers against these two banks in just the last six months
AMY GOODMAN: Linda Tirelli, can you explain what happened with this case?
LINDA TIRELLI: Yes. Well, first of all, I want to point out, and very much to Mr. Schneiderman’s credit, within four hours of the New York Post writing the article exposing this documents, within four hours, I received not only a phone call, but an email from Attorney Schneiderman’s office, and we had a long discussion about it. I also received the phone call and an email from the New York State Division of Financial Services. So I’m hoping that they are now launching new investigations.
Basically, to put—as I understand Mr. Schneiderman’s point, Wells Fargo was signing off on the national mortgage settlement agreement out of one side of its mouth. Out of the other side, they were republishing their manual to say, "Hey, we’re going to continue business as usual. All right? Throw some money at it. It’s done. Quiet down the homeowners. We’ll just continue business as usual." And that’s what we’re seeing. That’s exactly what we’re seeing.
JUAN GONZÁLEZ: Kevin Whelan, from the Home Defenders League, can you put this in a national context of the mortgage crisis? Here we are now, six years into the home mortgage crisis that crashed the entire economy.
KEVIN WHELAN: Absolutely. Thanks you for having me, very much, today. We hear, every time there is an uptick in real estate prices in some parts of the country, that the foreclosure crisis or the mortgage crisis is over. And certainly, Wells Fargo and the big banks are back to making record profits and feel like everything is great. But foreclosures are still tearing apart many communities, particularly communities of color that were targeted for predatory and subprime lending. And one in five American homeowners is still underwater, meaning they owe more on their house than the house is currently worth.
So we’ve made the banks whole without effectively curbing their abusive practices to give homeowners the runaround, to use falsified documents and to rush toward foreclosure when there’s a perfectly good way to reach a different settlement. And they’ve not done enough to make homeowners whole, including doing principal reduction that they promised to do under settlements.
AMY GOODMAN: And can you respond to this latest news about the attorney general—the office making a low priority or no priority at all going after these mortgage lenders?
KEVIN WHELAN: Yeah, absolutely. The news is no surprise to people that have been fighting foreclosure in communities around the country. We work with 25 community groups in our at-large organization, so people can come find us at HomeDefendersLeague.org and get on a phone call and learn how to start a petition and fight for their homes. And people have been, you know, in cases all over the place, trying to stave off foreclosure.
We had a family in New Jersey last month, Paulette McQueen and her 86-year-old mom, who had missed one mortgage payment in 2010, went to Wells Fargo the next month with both checks in hand, and Wells Fargo wouldn’t take their money and started a three-year campaign to take their house. That was only resolved when people in 13 cities delivered petitions to Wells Fargo’s offices around the country. And they finally got a call back and are going to work out a solution to be able to stay in their home. It was a whole week before a sheriff’s sale.
So, it’s—you know, families that are facing this know both that the housing crisis isn’t over and that nothing has happened that’s on a deep enough or broad enough scale to make the banks fearful or sorry for either the harm they’ve done, or change their behavior in fundamental ways.
JUAN GONZÁLEZ: Now, there are some localities, some local governments, that have tried—intervened themselves in trying to beat back the crisis of people being kicked out of their homes. Could you talk about some of those examples?
KEVIN WHELAN: Yeah, there—one thing that’s—we know there’s something to it, because the banks, led by Wells Fargo, are especially panicked and angry about the solution. But in Richmond, California—I think you had the mayor of Richmond, Gayle McLaughlin, on the show before—has been a city that’s led the way—and many more are going to follow—to enact principal reduction, meaning resetting loans to their current market value on the local level. And this is exciting because, while these federal agencies, like the Justice Department, are too often captive of the big banks, people can use democracy and win on the local level sometimes.
The concept for this particular program is that cities would work with other investors to buy the loans at their fair market value on the secondary market, which is pennies on the dollar of what these underwater loans are worth, and help refinance homeowners into new loans that have equity. And this is a concept that has gotten started in Richmond, but people are meeting even today in different cities around the country to spread this. And I think, not so much because it would cost them money as because it’s a chance for people to use the rule of law and democracy to impact the economy and impact banks’ behavior, banks like Wells Fargo have sued, unsuccessfully, and made all kinds of threats about redlining communities in order to try to stop it. People can go to FightingForeclosures.org and learn more about that particular plan and get involved in that campaign.
AMY GOODMAN: Kevin Whelan, you’ve been arrested outside of Attorney General Eric Holder—outside the Justice Department, demanding more action. And yet, Linda Tirelli, we have this latest news that as—that the attorney general claimed to have filed lawsuits on behalf of homeowner victims for losses totaling more than a billion dollars. In fact, it was 91 percent less than this, at $95 million. What do you think should happen? Who gets prosecuted here, and who is let go free?
LINDA TIRELLI: I think that at this point, let’s face it, we’re never going to see a perp walk, as much as we’d like to see one, because this is illegal activity that we’re talking about. At the very least, I think now this document gives the New York attorney general free access to every attorney who’s ever followed this manual and hold them accountable, because it is illegal. And we are held, as attorneys, to a much higher standard. We have to do a certain amount of due diligence, and we cannot knowingly produce false documents and submit them into a court of law. Our entire judicial process is based on integrity. This document, as I read it, OK, is going to bypass the integrity of the entire system, and it becomes now the civil procedure rules according to Wells Fargo. And that’s the rules they’re willing to play by.
JUAN GONZÁLEZ: And more importantly, the author of that document, right, who approved that document for all these lawyers to use.
LINDA TIRELLI: Exactly right, exactly right. And I want to point out that I actually introduced this document—
AMY GOODMAN: We have five seconds.
LINDA TIRELLI: —in a motion to reopen discovery after a trial, and my hope is that we will get discovery and get someone to a deposition table and get the answer to that.
AMY GOODMAN: Before Eric Holder was attorney general, he was a senior partner at Covington & Burling. Among the banks they represented, the four largest: Bank of America, Citigroup, JPMorgan Chase and Wells Fargo.
LINDA TIRELLI: No shock there.
AMY GOODMAN: Linda Tirelli, attorney representing clients being foreclosed on; Kevin Whelan of Home Defenders League, thanks so much for joining us.
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