Minorities Exploited by Warren Buffett’s Mobile-Home Empire

Compliments of Seattle Times 

After a few years living with her sister, Rose Mary Zunie, 59, was ready to move into a place of her own.

So, on an arid Saturday morning this past summer, the sisters piled into a friend’s pickup truck and headed for a mobile-home sales lot here just outside the impoverished Navajo reservation.

The women — one in a long, colorful tribal skirt, another wearing turquoise jewelry, a traditional talisman against evil — were steered to a salesman who spoke Navajo, just like the voice on the store’s radio ads.

He walked them through Clayton-built homes on the lot, then into the sales center, passing a banner and posters promoting one subprime lender: Vanderbilt Mortgage, a Clayton subsidiary. Inside, he handed them a Vanderbilt sales pamphlet.

“Vanderbilt is the only one that finances on the reservation,” he told the women.

His claim, which the women caught on tape, was a lie. And it was illegal.

Clayton Homes’ sales lot in Gallup, N.M., markets the dream of homeownership to Navajo people, many of whom live in poverty. (Donovan Quintero)
Clayton Homes’ sales lot in Gallup, N.M., markets the dream of homeownership to Navajo people, many of whom live in poverty. (Donovan Quintero)

It is just one in a pattern of deceptions that Clayton has used to help extract billions from poor customers around the country — particularly people of color, who make up a substantial and growing portion of its business.

The company is controlled by Warren Buffett, one of the world’s richest men, but its methods hardly match Buffett’s honest, folksy image: Clayton systematically pursues unwitting minority homebuyers and baits them into costly subprime loans, many of which are doomed to fail, an investigation by The Seattle Times and BuzzFeed News has found.

Clayton’s predatory practices have damaged minority communities — from rural black enclaves in the Louisiana Delta, across Spanish-speaking swaths of Texas, to Native American reservations in the Southwest. Many customers end up losing their homes, thousands of dollars in down payments, or even land they’d owned outright.

Over the 12 years since Buffett’s Berkshire Hathaway bought Clayton Homes Inc., the company has grown to dominate virtually every aspect of America’s mobile-home industry. It builds nearly half the new manufactured homes sold in this country every year, making it the most prolific U.S. homebuilder of any type. It sells them through a network of more than 1,600 dealerships. And it finances more mobile-home loans than any other lender by a factor of more than seven.

In minority communities, Clayton’s grip on the lending market verges on monopolistic: Last year, according to federal data, Clayton made 72 percent of the loans to black people who financed mobile homes.

The company’s in-house lender, Vanderbilt Mortgage, charges minority borrowers substantially higher rates, on average, than their white counterparts. In fact, federal data shows that Vanderbilt typically charges black people who make over $75,000 a year slightly more than white people who make only $35,000.

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German Gangs Are Beating Up Immigrants After Syrian Refugees Sexually Assault Germany’s Women

Compliments of India Times 

Days after the sexual assaults on German women in Cologne city came to light, local gangs are uniting in a “manhunt” of foreigners.  And just this weekend, two Pakistanis and a Syrian man were injured in attacks by gangs of people in Cologne, German police said. On New Year’s Eve, Cologne was the scene of dozens of assaults on women, a number that has grown into hundreds as more and women have come forward to register complaints.

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Local newspaper Express reported that the attackers were members of rocker and hooligan gangs who via Facebook arranged to meet in downtown Cologne to start a “manhunt” of foreigners.

The assaults on women in Cologne and other German cities have prompted more than 600 criminal complaints, with the police investigation focusing on asylum seekers and migrants

police gangs germany

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The assaults, ranging from theft to sexual molestation, have prompted a highly charged debate in Germany about Chancellor Angela Merkel’s open-door policy on refugees and migrants, more than one million of whom entered the country last year. Cologne police said a group of about 20 people attacked six Pakistanis on Sunday evening, injuring two of them. In another incident a few minutes later, a group of five people attacked and injured a Syrian man, police said.

On Monday, a regional parliamentary commission in the state of North-Rhine Westphalia, whose largest city is Cologne, will question police and others about the events on New Year’s Eve.

Attack syrian immigrants

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The anti-Islam political movement, PEGIDA, whose supporters threw bottles and fire crackers at a march in Cologne on Saturday before being dispersed by riot police, will hold a rally in the eastern German city of Leipzig on Monday evening.

The attacks on women in Cologne have also sparked a debate about tougher rules for migrants who break the law, faster deportation procedures and increased security measures such as more video surveillance in public areas and more police.

movement was built on a similar issue.

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Upstate NY Police Seize $8.5 Million in Assets a Year Without Having to Prove a Crime

Compliments of Syracuse 

Justin Lucas gathered up $50,000 in cash in 2011 to bail his brother out of jail on a drug charge.

But when Lucas brought the money to the Otsego County jail in a brown paper bag, sheriff’s deputies seized the cash without releasing his brother. They told him the money was the subject of a drug investigation.

Lucas’ brother eventually pleaded guilty to a felony marijuana possession charge. But even with the case over, Lucas couldn’t get his money back. The sheriff’s office had already used a federal law to force him to forfeit the money to the government.

Investigators cited the fact that their drug-sniffing dog picked up the scent of marijuana on the cash, and Lucas’ admission that $10,000 of it had come from his brother’s co-defendant.

The federal civil asset forfeiture law allows local police to get up to 80 percent of money or property seized, with the rest going to the federal government for their role in the investigations and for administering the program.

Lucas’ case was among 117 in the 32-county Northern District of New York over the past five years in which the federal government used the law to seize $43 million in assets without having to charge the owners with a crime.

The Justice Department announced last month that it was shutting down the program, at least temporarily, under which the seized assets are shared among the police agencies involved in investigations. Federal officials cited budget constraints.

New York state seized more assets per capita under the civil asset forfeiture law than all but one other state in 2014. Police have been criticized for abusing the law to get quick access to money that they spend on new equipment, training and other expenses. They’re not allowed to use the money to pay salaries.

A Syracuse lawyer who specializes in fighting civil asset forfeitures says prosecutors in the Northern District of New York use the law fairly.

The bail seizure in Otsego County was an exception, according to Nicholas Lucas’ lawyer, Wayne Smith.

“A law-abiding citizen posts bail and they seize it? I mean, it’s outrageous,” Smith said. “In a case where a brother bails out a brother under the facts of this case, it not only doesn’t pass the laugh test – it pisses you off a little because it could happen to anybody.”

Nicholas Lucas took the case to court, but U.S. District Judge Gary Sharpe ruled he didn’t have standing to get the money back.

Smith appealed, and the case was argued in January. In unheard-of turnaround time, the 2nd U.S. Circuit Court of Appeals overturned the lower court’s ruling the day after the lawyers argued the case in court.

“They apparently felt strongly about what was done here,” Smith said.

After that, federal prosecutors dropped the case and returned the money to Nicholas Lucas. The police had held onto it for nearly four years.

The prosecutors cited a new policy issued in January 2014 from then-Attorney General Eric Holder that was designed to combat the growing criticism that the civil asset forfeiture law was being abused by police across the country.

“Because of the change of policy, we decided it would not be a case we would take, so we gave the money back,” said Assistant U.S. Attorney Tamara Thomson, who handles civil asset forfeiture cases in Syracuse.

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Goldman to Pay Up to $5 Billion to Settle Claims of Faulty Mortgages

Compliments of Times New Roman 

More than seven years after the worst of the financial crisis, Goldman Sachs is again paying a price for the role it played.

The Wall Street firm said on Thursday it had agreed to a civil settlement of up to $5 billion with federal prosecutors and regulators to resolve claims stemming from the marketing and selling of faulty mortgage securities to investors.

Goldman announced the settlement — the final terms of which are still being negotiated — after the markets closed.

Goldman, which is scheduled to report fourth-quarter earnings on Wednesday, said the settlement would reduce earnings in that period by approximately $1.5 billion on an after-tax basis.

In the early days of the financial crisis, Goldman Sachs received an outsize share of criticism from politicians and the media as its trading desk made money by betting against the housing market in the run-up to the crisis.

But in the end, Goldman’s role in churning out faulty mortgages and securities backed by home loans to borrowers who could not afford them was smaller than that of many other Wall Street firms like Bank of America or JPMorgan Chase.

As a result, Goldman’s settlement is far smaller than the sums paid by other firms for selling flawed mortgage securities. Goldman is among the last firms to reach a civil settlement with a task force of federal prosecutors, state attorneys general and regulators empowered to investigate Wall Street’s role in cobbling together securities from all the mortgages that borrowers found themselves unable to afford.

The agreement in principle requires Goldman to pay $2.385 billion in civil penalties and $875 million in cash and provide up to $1.8 billion in relief to consumers.

Bank of America in 2014 paid about $16.6 billion in a similar settlement with federal and state agencies, and JPMorgan Chase paid about $13 billion in 2013. In all, the banks have paid more than $40 billion in settlements to resolve claims investigated by the task force.

All the mortgage settlements have included a certain amount of so-called soft money that is intended for loan modifications or foreclosure relief for consumers harmed by the bad mortgages. Some consumer advocates have raised concerns about how that money is allocated and how much comes directly from each bank’s bottom line. In the case of Goldman, the soft money is the $1.8 billion.

In the case of Bank of America, the soft dollar portion of its settlement totaled about $7 billion. But Bank of America was involved in writing far more mortgages to consumers than Goldman Sachs, and it is unclear exactly how Goldman’s consumer relief will be doled out and to whom.

The settlement is on top of the approximately $3 billion Goldman paid to the Federal Housing Finance Agency in 2014 to settle claims with Fannie Mae and Freddie Mac over the sale of flawed mortgage securities. In that deal, Goldman settled the matter by buying back bonds from the mortgage finance firms.

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Planned Parenthood Sues Anti-Abortion Group Behind Secret Videos

Compliments of NBC 

Exactly six months after the anti-abortion group Center for Medical Progress released its first secretly recorded video accusing Planned Parenthood of trafficking in fetal tissue, the women’s health provider has filed suit in a San Francisco federal district court.

The suit alleges that the Center for Medical Progress and its contributors and advisers, who are individually named, broke federal and state laws, including the Racketeer Influenced and Corrupt Organizations Act, known as RICO, as well as invasion of privacy and recording laws. It asks for extensive monetary damages, saying Planned Parenthood providers have faced death threats, been forced to move or go into hiding and been picketed at their homes.

“We are filing this lawsuit to hold accountable the people behind this reckless smear campaign,” said Kathy Kneer, president and CEO of Planned Parenthood Affiliates of California, on a call with reporters.

For three years, anti-abortion activists led by David Daleiden posed as agents of a tissue procurement agency, allegedly using fake drivers’ licenses to attend closed conferences of abortion providers and try to catch them on video breaking the law. The videos, released in a series beginning in July, show Planned Parenthood staff, including doctors, casually discussing the mechanisms of donating fetal tissue after abortion for medical research purposes. The Center for Medical Progress claims the videos show Planned Parenthood is “selling baby parts” because they feature discussion of nominal fees, which Planned Parenthood maintains are legal reimbursements for costs and which it has since ceased charging. Planned Parenthood has also pointed out that none of its staffers signed the fake contracts offered by Daleiden and his associates.

No criminal charges have been brought against any party. At least eight state investigations have turned up no impropriety from Planned Parenthood, and though California state Attorney General Kamala Harris said she would look at whether the Center for Medical Progress has broken state law, no charges have been announced. But under law, Planned Parenthood has the right to bring its own case.

“The content of these videos was wrongfully and illegally obtained,” the complaint says. “Moreover, according to expert forensic analysis, Defendants’ heavily edited short videos and transcripts do not present a complete or accurate record of the events they purport to depict. Rather, the heavily edited short videos “significantly distort and misrepresent the conversations depicted.”

The lawsuit also says that in the months of July and August alone, there were 849 reported incidents of vandalism at Planed Parenthood centers, a nine-fold increase compared to the month before. It points to attempted arsons at Planned Parenthood centers in Illinois and New Orleans, as well as the November 27, 2015, shooting at a Planned Parenthood facility in Colorado Springs that killed three people and injured nine. Robert Lewis Dear, who took credit for the killings, told a Denver TV station this week,  “I picked Planned Parenthood because it’s murdering little babies.”

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Chipotle to Close aAll Restaurants for Company-Wide Meeting in February

Compliments of Fox 

Chipotle plans to close all of its stores for a few hours next month to host a company-wide meeting discussing food safety after the chain was tasked with dealing with food poisoning outbreaks last year.

Chris Arnold, a spokesman for Chipotle, told the Oregonian the meeting is expected to take place on Feb. 8 and will involve all staff members. A wide-range of topics are going to be covered in the meeting.

“We want to thank our teams for all their hard work, to discuss some of the changes we are making to enhance food safety, to talk about the restaurants role in all of that and to answer some questions from employees,” Arnold said in an email to the paper.

The company announced Wednesday it will launch a marketing campaign in February to kick off its road to recovery after the food scares. Sales plunged 30 percent in December from the food poisoning outbreaks.

First, an E. coli outbreak came to light at the end of October, with additional cases being reported over the next several weeks. Then, in what Chipotle says was an unrelated case, a norovirus sickened dozens at a Chipotle in Boston.

Last week, the company said it was subpoenaed by federal authorities as part of a criminal investigation tied to a different norovirus outbreak in California over the summer. Lawsuits have also been filed on behalf of customers sickened after eating at the chain.

Bill Marler, a food safety lawyer in Seattle, told the Oregonian that more lawsuits are coming.

“I represent a total of 75 people, but I haven’t filed all their lawsuits yet,” Marler added.

At an investment conference in Orlando, Florida on Wednesday, Chipotle executives said the company is taking measures to reduce the risk of another food scare to “near zero.” They said they would start “inviting customers back” to restaurants in February with stepped-up marketing and direct mail offers. They said food safety will not be explicitly referenced in the marketing, but that there might be a “clever headline.”

Chipotle Chief Financial Officer Jack Hartung noted the company’s recovery would be “messy,” with investments in food safety and marketing eating into profit margins.

During the half-hour presentation at the ICR conference, Chipotle founder and co-CEO Steve Ells noted customers will still see food preparation in restaurants, including the grilling of steaks and steaming of rice. That sense of freshly prepared ingredients has been one of Chipotle’s attractions as it has sought to distinguish itself from traditional fast-food chains.

Ells noted the company’s dedication to food quality in the past, and added that he was confident the company would win back customers and emerge as a stronger company.

Executives said they expect the Centers for Disease Control and Prevention to declare the E. coli outbreak to be over at some point. The agency has not identified an ingredient that was responsible for the E. coli outbreak, and Chipotle has said it may never know what was to blame.

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Netflix Cracks Down on Proxy Streaming

Compliments of BBC

Video-streaming giant Netflix has said it is going to stop subscribers from using internet proxies to view content not available in their home countries.

Due to licensing agreements, Netflix content varies between countries – many users have a virtual private network (VPN) or other proxy to get round this.

The firm said it would increase efforts in the next few weeks to block the use of such proxies.

Netflix expanded streaming services to more than 130 countries last week.

But some countries have more content than others – for example, the Australian Netflix catalogue has only about 10% of the content available to its US subscribers.

David Fullagar, vice president of content delivery architecture, said in a blog poston Thursday that the US firm was in the process of licensing content around the world.

But he said it had a long way to go before it could offer viewers the same films and shows everywhere.

“If all of our content were globally available, there wouldn’t be a reason for members to use proxies or ‘unblockers’ to fool our systems into thinking they’re in a different country than they’re actually in,” he said.

“In the meantime, we will continue to respect and enforce content licensing by geographic location.”

Subscribers that currently use proxies to view content outside their countries will only be able to access the service in their own countries in the coming week, the company said.

Those members that do not use VPNs will not be impacted by the crackdown, it added.

The move is a reversal of Netflix’s denial last week after reports had surfaced that they would be restricting VPN access to their content.

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U.S. Bombs ‘Millions’ in ISIS Currency Holdings

Compliments of CNN 

In an extremely unusual airstrike, the U.S. dropped bombs Sunday in central Mosul, Iraq, destroying a building containing huge amounts of cash ISIS was using to pay its troops and for ongoing operations, two U.S. defense officials told CNN.

The officials could not say exactly how much money was there or in what currency, but one described it as “millions.”

Two 2,000-pound bombs destroyed the site quickly. But the longstanding impact may be even more significant. The officials said the U.S. plans to strike more financial targets like this one to take away ISIS’s ability to function as a state-like entity.

This is a similar expansion to the target list as happened several weeks ago, when U.S. warplanes began hitting ISIS oil trucks.

The U.S. considers the Mosul strike extremely sensitive, as the building is in an area where civilians are also located, and there was a significant risk of civilian casualties.

Officials would not say how the U.S. learned of the location. But after getting intelligence about the so-called “cash collection and distribution point,” U.S. aircraft and drones watched the site for days trying to determine when the fewest number of civilians would be in the area.

Because civilians were nearby during the daylight hours, and ISIS personnel were working there at night, the decision was made to strike at dawn on Sunday.

U.S. commanders had been willing to consider up to 50 civilian casualties from the airstrike due to the importance of the target. But the initial post-attack assessment indicated that perhaps five to seven people were killed.

In recent weeks, the U.S. has said it will assess all targets on a case-by-case basis and may be more willing to tolerate civilians casualties for more significant targets.

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Putin Stakes No Claim to Superpower Status

Compliments of UPI 

As the national economy declines under pressure from sanctions and low oil prices, Russia’s president said there are no claims to a role as a superpower for Russia.

Lower crude oil prices are hurting the economies of nations like Russia that depend on energy for revenue. The situation for Russia is compounded by economic sanctions imposed in response to the Kremlin’s policies in Ukraine, sanctions that limit access to Western markets.

Russian President Vladimir Putin said in an interview with German newspaper Bild that Russia’s economy is, at best, fifth in the world in terms of volume.

“We do not claim the role of a superpower,” he said. “This role is very costly and it is meaningless.”

In the first phase of his interview, Putin said the economy was weakened to the point that revenue outside the energy sector was now feeling pressured. The worst threat, however, was the harm caused by falling oil prices.

In November, the International Monetary Fund said there were “tentative” signs of recovery in Russia. The economy for 2016 is expected to contract by 0.6 percent, compared with a 3.8 percent decline in 2015.

The Kremlin expects GDP growth of around 0.7 percent for 2016. From September to October, GDP grew by about 0.3 percent, compared with about 0.1 percent from the previous one-month period.

“[The economy] may have moved down to a lower place at present taking into account the economic difficulties,” Putin said. “But we are confident that we have very good development prospects and potential.”

Inflation is running in the double digits, but the IMF said that, absent a dramatic decline in crude oil prices, the pressure from rising costs should decline during 2016.

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US Thanks Iran For Swift Release of 10 Navy Sailors

Compliments of BBC 

The US has thanked Iran for the swift release of 10 US sailors held for entering its territorial waters.

Secretary of State John Kerry said the resolution of the matter was “testament to the critical role diplomacy plays in keeping our country safe”.

Republican presidential hopefuls had criticised the administration over its handling of the incident.

A deal on Iran’s nuclear activities – which they also disparage – is said to be days away from implementation.

The sailors were detained on Tuesday when one of their two vessels broke down while training in the Gulf.

The incursion was “unintentional”, a statement from the Iranian Revolutionary Guards quoted by state media said.

Iranian state media said the sailors were released into international waters after they apologised. But Vice-President Joe Biden denied this, saying the boat had had simply a problem and there was “nothing to apologise for”.

The US is investigating how the sailors entered Iranian waters.

Thanking Iranian authorities for their “co-operation and quick response”, Mr Kerry said: “These are always situations which have an ability if not properly guided to get out of control…

“This kind of issue was able to be peacefully resolved and officially resolved, and that is testament to the critical role diplomacy plays in keeping our country safe, secure, and strong,” he added.

Iranian state broadcaster Irib News has published pictures of the sailorsapparently being detained.

Iran-US relations pass a test: Jonathan Marcus, BBC diplomatic correspondent

The tentative and still largely potential softening of relations between Washington and Tehran in the wake of the nuclear deal seems to have passed a delicate initial test.

The Tehran authorities have quickly accepted that the US patrol boats strayed into their waters by accident.

The process to begin lifting the sanctions imposed on Iran due to its nuclear activities is expected to get under way at the end of this week.

There are many conservatives and hardliners in both countries who would dearly love to sabotage the deal. Consequently both governments may well have been eager to get this episode resolved as quickly as possible.

Clearly the economic benefits of lifting the sanctions may have been too great an inducement for the agreement to be derailed now.


Mr Kerry called Foreign Minister Mohammad Javad Zarif shortly after the incident. The pair developed a personal rapport during the nuclear talks.

Those detained – nine men and one woman – were taken to Farsi Island, in the middle of the Gulf, where Iran has a naval base.

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