Have been meaning to mention a story I authored in last week’s magazine about the rise in so-called “Foreclosure Rescue Scams,” in which unscrupulous individuals or groups approach homeowners facing foreclosure and promise to help them save their homes. In many instances, they convince the troubled homeowner—who is desperate to save their homes—to transfer the deed over to them with the promise that the investor will make the mortgage payments going forward, and the previous owner can rent while they try to rebuild their savings and repair their credit.
You know how this ends: Once the supposed “angel investor” gets the deed to the house, they boot the former owner out—and sell the property for what’s often a hefty profit. Sometimes they comb through tax records for listings of homes whose owners are in default on their mortgage. In other instances, they market their services—using everything from billboards to those little hand-drawn “We Buy Houses” signs you see sticking out of the ground at intersections.
I mention the story because in the week since it appeared I’ve received emails from a few private investors who took me to task for the story. They claim that, in my zeal to take to task the growing number of “foreclosure rescue” scamsters, that I also tarred legitimate investors like themselves who, yes, buy homes from owners facing foreclosure, but try to help the previous owner salvage something from the deal.
But what? This is where I’m stuck. I’ve contacted a couple of the “foreclosure investors” who contacted me, and hope to get back to everyone, but when I ask, “So, give me the details of how one of these deals work,” they clam up. Don’t want to give away their secrets. I had this same problem when I was reporting out the original story.
So if you feel you were wronged, tell me: What are the normal terms of the deals you strike with these distressed homeowners? I’m all ears.
Source: Bloomberg
Thursday, June 21, 2007
Wednesday, June 20, 2007
First Sierra Leone war crimes verdicts
Three men have been convicted of war crimes and crimes against humanity during Sierra Leone's decade-long war. These were the first verdicts of Sierra Leone's UN-backed war Special Court for Sierra Leone. Alex Tamba Brima, Brima Bazzy Kamara and Santigie Borbor Kanu were senior members of an armed faction that toppled the government in 1997. They were found guilty of 11 of the 14 charges, but acquitted of alleged sexual slavery and other inhuman acts. The men will be sentenced on 16 July.
The judges read out their verdicts before a packed courtroom in Sierra Leone's capital, Freetown. The three men face lengthy prison terms. During the conflict tens of thousands were killed as the rebel forces raped and mutilated defenceless innocent civilians.
The US-based Human Rights Watch hailed the verdict as "the first time that an international court has issued a verdict on child recruitment". The three had pleaded not guilty to the 14 counts of war crimes and crimes against humanity including murder, rape and the use of child soldiers. They belonged to the Armed Forces Revolutionary Council (AFRC), which formed an alliance with the notorious Revolutionary United Front (RUF) rebels.
As the rebel groups attempted to hold power they were allegedly backed by the former president of Liberia, Charles Taylor, in return for Sierra Leone's diamonds. Following the end of the conflict five years ago, a UN-backed court was set up to try those people who bore the greatest responsibility for the atrocities committed. Trying all those who committed crimes would have been an impossible task says the BBC's West Africa correspondent, Will Ross. So many in Sierra Leone now live side-by-side with the very people they saw committing atrocities, he says.
The court has indicted 12 people, including http://en.wikipedia.org/wiki/Charles_Taylor_%28Liberia%29, although three of them have since died or are presumed to have died. Mr Taylor is currently in The Hague, where his war crimes trial is due to resume next week. His case was moved there to avoid unrest in Sierra Leone and Liberia. The head of the AFRC rebels was never apprehended but is presumed dead. The most notorious rebel leader, the RUF's Foday Sankoh, died in custody while awaiting trial.
Another high profile figure, former Interior Minister Sam Hinga Norman, died after surgery with his verdict pending. It may be slow and expensive but many view the court's work as an important step to help end impunity, our correspondent says.
Source: BBC
The judges read out their verdicts before a packed courtroom in Sierra Leone's capital, Freetown. The three men face lengthy prison terms. During the conflict tens of thousands were killed as the rebel forces raped and mutilated defenceless innocent civilians.
The US-based Human Rights Watch hailed the verdict as "the first time that an international court has issued a verdict on child recruitment". The three had pleaded not guilty to the 14 counts of war crimes and crimes against humanity including murder, rape and the use of child soldiers. They belonged to the Armed Forces Revolutionary Council (AFRC), which formed an alliance with the notorious Revolutionary United Front (RUF) rebels.
As the rebel groups attempted to hold power they were allegedly backed by the former president of Liberia, Charles Taylor, in return for Sierra Leone's diamonds. Following the end of the conflict five years ago, a UN-backed court was set up to try those people who bore the greatest responsibility for the atrocities committed. Trying all those who committed crimes would have been an impossible task says the BBC's West Africa correspondent, Will Ross. So many in Sierra Leone now live side-by-side with the very people they saw committing atrocities, he says.
The court has indicted 12 people, including http://en.wikipedia.org/wiki/Charles_Taylor_%28Liberia%29, although three of them have since died or are presumed to have died. Mr Taylor is currently in The Hague, where his war crimes trial is due to resume next week. His case was moved there to avoid unrest in Sierra Leone and Liberia. The head of the AFRC rebels was never apprehended but is presumed dead. The most notorious rebel leader, the RUF's Foday Sankoh, died in custody while awaiting trial.
Another high profile figure, former Interior Minister Sam Hinga Norman, died after surgery with his verdict pending. It may be slow and expensive but many view the court's work as an important step to help end impunity, our correspondent says.
Source: BBC
Tuesday, June 12, 2007
Fidentia victims mounting
The head of the Transport Education and Training Authority (Teta), Piet Bothma, has been placed on "compulsory leave" following a probe into his role in placing R246m of the body's funds with Fidentia, Business Day reported on Tuesday. Teta, a quasi-government body which collects skills levies from 10 000 transport firms, pumped R246m - nearly 75% of all its funds - into Fidentia, despite the company's almost non-existent track record.
Investigators now say this cash has been "misappropriated". This is likely to shed new light on exactly why Teta placed so much money with Fidentia, especially after it emerged that its first R88m investment in Fidentia took place without a proper risk assessment. It also adds to a list of casualties that has already seen Danisa Baloyi resign all her public positions because of the uproar at her conflict of interest in being a Fidentia shareholder and trustee of the Living Hands Trust, which poured R1.47bn into Fidentia. The links between Bothma and Fidentia, which have remained buried until now, are likely to emerge in the Teta probe.
Source: News 24
Investigators now say this cash has been "misappropriated". This is likely to shed new light on exactly why Teta placed so much money with Fidentia, especially after it emerged that its first R88m investment in Fidentia took place without a proper risk assessment. It also adds to a list of casualties that has already seen Danisa Baloyi resign all her public positions because of the uproar at her conflict of interest in being a Fidentia shareholder and trustee of the Living Hands Trust, which poured R1.47bn into Fidentia. The links between Bothma and Fidentia, which have remained buried until now, are likely to emerge in the Teta probe.
Source: News 24
Sunday, June 10, 2007
Special Tribunal for Lebanon
On 13 December 2005, the Government of the Republic of Lebanon requested the United Nations to establish a tribunal of an international character to try all those who are alleged responsible for the attack of 14 February 2005 in Beirut that killed the former Lebanese Prime Minister Rafiq Hariri and 22 others. Pursuant to Security Council resolution 1664 (2006), the United Nations and the Lebanese Republic negotiated an agreement on the establishment of the Special Tribunal for Lebanon. Further to Security Council resolution 1757(2007) of 30 May 2007, the provisions of the document annexed to it and the Statute of the Special Tribunal thereto attached, entered into force on 10 June 2007.
The mandate of the Special Tribunal for Lebanon is to prosecute persons responsible for the attack of 14 February 2005 resulting in the death of former Prime Minister Rafiq Hariri and in the death or injury of other persons. The Tribunal’s jurisdiction could be extended beyond the 14 February 2005 bombing if the Tribunal finds that other attacks that occurred in Lebanon between 1 October 2004 and 12 December 2005 are connected in accordance with the principles of criminal justice and are of a nature and gravity similar to the attack of 14 February 2005.
This connection includes but is not limited to a combination of the following elements: criminal intent (motive), the purpose behind the attacks, the nature of the victims targeted, the pattern of the attacks (modus operandi), and the perpetrators. Crimes that occurred after 12 December 2005 can be eligible to be included in the Special Tribunal’s jurisdiction under the same criteria if it is so decided by the Government of the Republic of Lebanon and the United Nations and with the consent of the Security Council.
Source: Special Tribunal for Lebanon
The mandate of the Special Tribunal for Lebanon is to prosecute persons responsible for the attack of 14 February 2005 resulting in the death of former Prime Minister Rafiq Hariri and in the death or injury of other persons. The Tribunal’s jurisdiction could be extended beyond the 14 February 2005 bombing if the Tribunal finds that other attacks that occurred in Lebanon between 1 October 2004 and 12 December 2005 are connected in accordance with the principles of criminal justice and are of a nature and gravity similar to the attack of 14 February 2005.
This connection includes but is not limited to a combination of the following elements: criminal intent (motive), the purpose behind the attacks, the nature of the victims targeted, the pattern of the attacks (modus operandi), and the perpetrators. Crimes that occurred after 12 December 2005 can be eligible to be included in the Special Tribunal’s jurisdiction under the same criteria if it is so decided by the Government of the Republic of Lebanon and the United Nations and with the consent of the Security Council.
Source: Special Tribunal for Lebanon
Friday, June 8, 2007
Systemic Stability & Transparency of Financial Markets
We discussed recent developments in global financial markets, including hedge funds, which, along with the emergence of advanced financial techniques and products, such as credit derivatives, have contributed significantly to the efficiency of the financial system.
Nevertheless, the assessment of potential systemic and operational risks associated with these activities has become more complex and challenging. Given the strong growth of the hedge fund industry and the increasing complexity of the instruments they trade, were affirm the need to be vigilant.
Source: G8 Summit, Heiligendamm, 8 June 2007
Nevertheless, the assessment of potential systemic and operational risks associated with these activities has become more complex and challenging. Given the strong growth of the hedge fund industry and the increasing complexity of the instruments they trade, were affirm the need to be vigilant.
Source: G8 Summit, Heiligendamm, 8 June 2007
Growth and responsibility in Africa
The discussions with African representatives were "very honest, very open" German Chancellor Angela Merkel said after the first working session on the last day of the Summit in Heiligendamm. US$60 billion have been pledged over the coming years to combat HIV/AIDS, malaria and tuberculosis.
The Chancellor's message to the countries of Africa was this: "We are aware of our responsibility and we will honour our commitments." The G8 needed to "fulfil the promises we made," she said.
Source: G8 Summit 2007
The Chancellor's message to the countries of Africa was this: "We are aware of our responsibility and we will honour our commitments." The G8 needed to "fulfil the promises we made," she said.
Source: G8 Summit 2007
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