VOICE OF DETROIT: The city's independent newspaper, unbossed and unbought

 Stifel Financial, being sued for securities fraud in cases across the U.S., will be city’s “investment banker,” sell assets

Other shady firms get millions to carry out de-structuring of city

Residents, workers to pay with huge wage, pension and benefits cuts, increased fees, loss of city assets including Belle Isle

Banks to profit from debt re-financing, no moratorium 

January 15, 2013 

By Diane Bukowski 

DETROIT – The Wall Street gang rape of Detroit, the nation’s poorest and Blackest major city, for its assets, resources, and $2.5 billion budget proceeded full speed ahead over the holiday break and into the New Year of 2013. 

Participants in the rape (shown above) are Michigan Governor Rick Snyder, State Treasurer Andy Dillon, Mayor Dave Bing, Program Management Director Kriss Andrews, City Council Fiscal Analysis Director Irving Corley, and Council members Charles Pugh, Gary Brown, Kenneth Cockrel, Jr., Saunteel Jenkins, James Tate, and Andre Spivey. 

The Council members are the Rogue Six who met with the Detroit News and Free Press prior to the holidays, purporting to represent the entire Council of nine members. 

“You are by far the most fascist, tyrannical sitting body in history,” Valerie Glenn told the Six at the body’s first meeting of the year Jan. 8, 2013. “You are firing Krystal Crittendon, you are not protecting our assets, including Belle Isle, and you support the Emergency Manager laws.” 

Chris Griffiths said, “This is a death threat to us, to eliminate democracy, sell our assets, bust our unions, and eliminate our vote. This is a plan for domination and dictatorship. I say to you will go down in history as responsible for resurrecting Hitler from the dead. Krystal Crittendon has done a wonderful job. She should be applauded for protecting the City Charter.” 

Crittendon’s firing, done at the behest of Bing and Snyder, overshadowed a stunning “Joint Mayor and City Council Plan to Address the City’s Current Cash Flow Crisis by June 30, 2013,” never approved by Council, which Corley brought to the body that day. It says the administration in concert with the new Financial Review Team and others, is planning to implement: 

• Increased fees for services, stepping up income tax collections, selling assets, etc. No mention of collection of $800 million corporations owe the city, and over $240 million the state owes Detroit. State Treasurer Andy Dillon has confirmed both amounts.
• At least 400 more city lay-offs.
• Additional 20 percent pay cuts for city workers on top of earlier 10 perent.
• Forty percent health care premium-sharing for active employees, 60 percent for retirees;
• Elimination of dental and vision benefits for active and retired workers;
• Unilateral imposition of new contracts June 30, 2013;
• Revisiting Belle Isle lease;
• Outsurcing vehicle maintenance and possibly law, IT, finance, DDOT;
• All recreation centers to be turned over to non-profits.
• Ten percent price reduction for vendors; decrease purchases by 10%;
• Long term debt-refinancing to reduce interest rates on outstanding debt (investment banker to be retained), POC [pension obligation certificates] swap restructuring, OPEB restructuring and pension restructuring. (VOD: Debt re-financing means higher interest rates for the banks. No mention is made of a moratorium on the city’s massive debt to the banks, or even negotiations to lower principal and interest payments.) 
  

  City Council Fiscal Analyst Irvin Corley.

Corley says the plan was concocted by a “working group including representatives of the Bing Administration, President Pugh, Pro Tem Brown, Councilman Cockrel, and Fiscal Analysis Division staff [during] the last few weeks to address the current cash flow crisis by June 30, 2013” to avoid appointments of either an emergency financial manager or an emergency manager, and to avoid bankruptcy. (Link to full report at end of story.) 

Councilman Andre Spivey inadvertently gave the lie to Corley’s contention that only three Council members were involved, blurting out that he had spent his entire holiday break in the meetings. Jenkins and Tate were also likely involved, since they were part of the Rogue Six that met with the News and Free Press. 

Outraged, Council members JoAnn Watson, Brenda Jones and Kwame Kenyatta said no one had contacted them about the holiday meetings, although they were available to attend. Kenyatta said all actions by the group must therefore be nullified under the Open Meetings Act. 

During the meeting, the Council Six approved contracts with five law firms and corporate restructuring entities, worth over $14 million.  The re-structuring firms have little or no experience in the public sector. 

The $1.8 million “investment banker’ contract is with New York-based Miller, Buckfire and Co., now a part of St. Louis, Missouri-based Stifel Financial. 

 “Miller Buckfire will act as the City’s investment banker and will provide financial advisory services, including possible strategic asset sales and related refinancing actions,” says Corley’s report. 

Councilwoman JoAnn Watson pointed out that Miller Buckfire no longer exists. 

“On Jan. 1, Miller Buckfire was wholly taken over by another firm, Stifel Financial, 100 percent,” Watson said. “They can’t even sign a contract. How can they restructure Detroit when they cannot restructure themselves?” 

Andrews scoffed at Watson’s concerns, saying, “Jack [Martin, Detroit CFO], and I are in contact with them constantly. I don’t understand why that affects their ability to assist Detroit.”

(Bloomberg) Oct. 23, 2012 — Hunter Keay, an analyst at Stifel, Nicolaus & Co., talks with Bloomberg’s Mark Crumpton about US Airways Group Inc.’s decision to cut 1,000 jobs and the outlook for the airline industry, calling “head count reduction” an area of “low-hanging fruit.)

Due diligence on the administration and Council’s part would have disclosed the following about Stifel’s shady history.

The company manages $91 billion in assets world-wide and has been gobbling up dozens of other companies, including 56 branches of UBS Wealth Care Management, acquired in 2009. UBS just paid a $1.5 billion fine to the U.S. Department of Justice, admitting to fraudulent interest-rate rigging on a global scale. 

• The South Florida Business Journal reported in April, 2012, “Florida regulators told Stifel, Nicolaus & Co. [a subsidiary of Stifel Financial] to “cease and desist” from violating securities laws pertaining to the sale of auction-rate securities (ARS) and to repurchase those securities from customers who were misled.
• In March 2012, Stifel paid a $350,000 fine to settle an action brought against it by the Financial Industry Regulatory Authority (FINRA), due to a fraudulent Ponzi scheme run in its home state of Missouri by one of its brokers. They also agreed to pay $250,000 plus interest in restitution to customers affected by the scheme.

  

  Students walked out of school in Wisconsin to protest union-busting and cutbacks during historic state uprising in 2010.

• In an ongoing 2011 case,’’ the Securities and Exchange Commission (SEC) charged Stifel with “defrauding five Wisconsin school districts by selling them unsuitably risky and complex investments funded largely with borrowed money,” totaling $200 million. “Stifel . . . . abused their longstanding relationships of trust with the school districts by fraudulently peddling these inappropriate products to them, Elaine C. Greenberg, Chief of the SEC Division of Enforcement’s Municipal Securities and Public Pensions Unit, said in a release. They were clearly aware that the school districts could ill afford to bear the risk of catastrophic loss if these investments failed,” as they did. 
• In 2009, Indiana Secretary of State Todd Rokita, a Republican, brought an administrative complaint for securities fraud against Stiffel, charging that the firm failed to disclose risks on $55 miliion that 142 individuals in Indiana invested. 
  

  “A little child shall lead them”: Workers at Detroit’s Wastewater Treatment Plant struck Sept. 30, 2012 to protest Water Dept. giveaway, deep wage and pension cuts.

“Today, we are further in debt since state has been in city of Detroit,” Ed McNeil, executive assistant to Al Garrett, head of the state-wide AFSCME Council 25, told the Council.  “You are paying $1.4 million for state officials [appointed under the consent agreement]. . . . I confronted Andy Dillon on the $800 million in receivables outstanding and he acknowledged it. But has anybody gone to get the money? You would rather lay off employees, and slash their wages and benefits. The Ernst Young contract started off at $4 million, it is now $7.8 million after five change orders. Now you’re going to give Miller Canfield another $20 million, and the State Treasurer is holding our escrow money unless we agree to these contracts.” 

Ernst & Young, as VOD has repeatedly pointed out, is being sued by the states of New York and New Jersey for losses they sustained due to the collapse of Lehman Brothers, which triggered a global economic meltdown in 2008. Ernst & Young, which now maintains a glitzy office building in downtown Detroit, was the bookkeeper for Lehman Brothers. 

“By the end of January, Miller Canfield should complete its legal analysis on retiree healthcare,” Corley says in his report regarding Miller Canfield. “At minimum, Miller Canfield needs to review all labor contracts/ordinances that possibly impact the provision of retiree healthcare and retiree benefits. There is Michigan case law where retiree healthcare is protected. Private sector employers have been successful in eliminating retiree health benefits but this process has only begun taking root. in the public sector in recent years. Stockton, CA was able to eliminate retiree healthcare recently but through bankruptcy proceedings.” 

(VOD: NOTE WHAT NEGATIVE CONSEQUENCES A MUNICIPAL BANKRUPTCY FILING, ADVOCATED BY SOME DETROITERS, COULD HAVE.)

Miller Canfield has already been well-exposed as a co-author of Snyder’s Public Act 4, and the city Consent and Milestone Agreements. It also represented the city AND the state in negotiating the April state loan of $137 million to Detroit, a conflict of interest which caused the Council at first to vote down its contract 8-1 Nov. 20, only to later reverse itself and approve it Dec. 11. 

Another elephant in the room is a contract with  Seattle-based Milliman, Inc. for a total of $332, 500, “to evaluate pension and health care cost reduction alternatives.” 

Milliman is one of the largest actuarial and business consulting firms in the world. with revenues of $676 million in 2010. It operates 54 offices worldwide with 2,500 employees. 

Milliman has done several national studies on public pension plans, claiming in one issued Oct. 15, 2012, that “the aggregate funded status of the 100 largest U.S. public pension plans is nearly $300 billion worse than what the plans state in their annual reports,.” Another report, however, basically says the plans are adequately managed. 

However, according to a Maryland Appeals Court, Milliman itself was responsible for underfunding the Maryland State Retirement System.

On July 20, 2011, an appeals court for the state of Maryland upheld an earlier decision by the State Board of Contract Appeals, “which determined that Milliman, Inc., . . had breached contracts to provide actuarial services to the Maryland State Retirement System . . . allegedly resulting in approximately $73 million in losses to the System.”

In Milliman v. State Retirement, 25 A.3d 988 (2011) 421 MD. 130, the COA agreed with the state board that Milliman “had understated the contributions required to fund three of the State’s ten retirement and pension systems because of the actuary’s misinterpretation of a particular data code. . . .and that the System was entitled to recover ‘$34.2 million in contributions that would have been received but for Milliman’s errors, and $38.8 million in lost income that would have been earned on those contributions.’ ” 

In conjunction with the Milliman contract, says Corley, “the Administration is requesting that your Honorable Body pass a resolution indicating the City should move away from its current structure of providing retiree health care toward an alternative model structured to better match the provision of retiree health care benefits with the City’s ability to pay the benefits in a sustainable fashion.”

Joint Mayor and City Council Plan 1 7 13

CC agenda New Business 1-8-13

http://www.bizjournals.com/southflorida/news/2012/04/25/florida-regulators-tell-stifel.html

http://www.stockbrokerfraud.com/law-blog/stifel-nicolaus-fined-350000-for-failure-to-supervise-scheming-broker .

http://www.ibj.com/securities-firm-balks-at-fraud-charge/PARAMS/article/7489

http://www.huffingtonpost.com/2012/07/27/stockton-bankruptcy-retiree-health-care_n_1712260.html

http://www.nytimes.com/2012/08/24/business/creditors-of-stockton-fight-city-over-pensions-while-in-bankruptcy.html

http://letters.ocregister.com/tag/public-pensions/

 

 

•  Says Mayor Bing, Council Six are disrespecting the will of Detroiters
• Announces she will explore formation of slate in addition to Mayoral run 

By Diane Bukowski 

January 15, 2013 

DETROIT – In an exclusive phone interview with VOD Monday night, Attorney Krystal Crittendon expanded on remarks she made earlier that day on WCHB Radio, announcing the formation of a committee to explore a mayoral run rthis year. 

“People in the community have always supported me,” Attorney Crittendon said. “When I came to work this morning at CAYMC, a security guard gave me a big hug, and people lined up waiting to pay their taxes, including seniors, sent up a cheer.” 

Attorney Crittendon explained further how she plans to collect what State Treasurer Andy Dillon has admitted are $800 million in funds owed by corporations and others to the city, if she is elected. She had said on WCHB that she would launch an immediate review of the city’s books, including outstanding debts owed to and by the city. 

“The Mayor came out last week with a statement that we don’t know exactly how much people owe us due to our bookkeeping methods. However, for instance, in the case of the Red Wings and Mike Illitch [which the Detroit News recently reported owes Detroit $70 million], we have the right to audit Illitch Holdings accounts ourselves. They owe us concession fees, television and other fees. The statute of limitations on such debts goes back six years. After you figure out what the number is, penalties and interest are added.” 

Crittendon said a culture of indifference has existed among the city’s debtors, because they face no significant consequences for non-payment, and therefore they continue not to pay.

Crittendon said another reason she is considering a mayoral run is her concern over who Bing will appoint as Corporation Counsel to replace her. 

“About a month ago, the Mayor went to the City Council and told them he wants his own counsel, so they voted for the Miller Canfield contract. Now the Mayor’s going to appoint another person to represent the city [as Corporation Counsel]. He’s got his own lawyers; there should be no need to do so.

“Now that he has removed me for supporting the provisions of the Charter the peopled voted for, this will have a chilling effect on anyone who replaces me; they will be afraid they will be removed from office. This nullifies the fact that we had a Charter revision process, which sought to ensure that the office of Corporation Counsel could not be politicized. The people of Detroit further confirmed this in November by voting overwhelmingly for Detroit’s Proposal 3.” 

That proposal further solidified the powers of the Corporation Counsel, which Ingham County Circuit Court Judge William Collette ignored when he dismissed Crittendon’s lawsuit against the city’s Public Act 4 consent agreement in May. Collette said he had his mind made up from the beginning because he did not believe a Corporation Counsel could act independently of a Mayor. 

“In addition to being a City employee, I’m also a resident,” Crittendon said. “The Mayor and City Council represent me as well, and I am concerned that the will of the people is not being honored and respected.” 

Throughout 2012, hundreds of residents packed City Council meetings to oppose the consent agreement, the Miller Canfield contract, the Milestone Agreement, and the Hantz Farms contract, among other matters. Three days of hearings were held on the consent agreement before the Council passed it 5-4 on April 4, with virtually every speaker condemning it.. Over 600 people packed an east-side church to oppose what they said was a blatant land grab by Hantz Farms. 

During hearings in Council chambers, hundreds of people were consigned to the hallway, unable to see or hear proceedings, because Pugh refused to move them to the auditorium. (VOD is still seeking attorneys to represent the public in an Open Meetings Act lawsuit, in particular with regard to the Council’s Dec. 11 meeting. The public has six months to file such a suit.)

Judi Briggs, a VOD reader who was at the Hantz Farms hearing, posted the following comment Dec. 31. 

“I must comment, at the Hantz Farm hearing, I went to the side hallway and held the door open for someone who was coming out and he [Pugh] went barreling past both of us into the hallway before either of us could move and started ordering people around like he owned the place,” Briggs said. “‘We need someone to get out here and keep people from walking BEHIND THE TABLE, They have NO BUSINESS on our side of the table!’ I was startled that a politician had so little awareness of how he appeared to his presumed constituents.” 

Before Detroiter Marie Thornton conducted a civil rights-style sit-in at the Council’s Dec. 11 meeting, Pugh remarked that the reason he doesn’t hold Council meetings in the auditorium is that he is afraid of actions by the people. 

He referred specifically to the famous “grapes of wrath” incident at a 2004 Detroit Board of Education meeting, where Agnes Hitchcock of Call ‘em Out tossed a handful of grapes at the stage after the Board voted to close 50 schools, the first in a long series of public school closings and privatization that has devastated the district. 

Crittendon said she favors transparency with the public, and that she would prefer that large meetings be held in the Council auditorium. 

“I have not been a politician,” she said. “I’ve just been trying to represent the city of Detroit as a lawyer. People don’t vote for the Corporation Counsel, but they did vote for the Charter. I believe everything we do should benefit the people of Detroit. In addition to a run for Mayor, I have also begun exploring a the possibility of a slate in order to get people who can work together for the people [on the Council]. “ 

Since Crittendon has indicated she would take on powerful entities like the corporations, VOD asked her what she would do to mobilize the people to support actions she takes. 

“I have no political favors to repay,” she said. “I am not a retread. I am just trying to do the right thing. I am not compromised, and as the people become energized and mobilized by my campaign, I believe they will remain so once I take office. People have become disconnected from city politics because of the actions of many current leaders. People began coming up to me last year and telling me, ‘I have hope now.” As long as I continue to stand with them, they will stand with me.”

 

Then Corporation Counsel Krystal Crittendon tells City Council Nov. 20, 2012 that she cannot ethically recommend they vote for a contract with the Miller-Canfield law firm and other portions of the “Milestone Agreement” because they represent stae “extortion.”

 

 

By Diane Bukowski

January 14, 2013 

DETROIT – Detroit’s former Corporation Counsel Krystal Crittendon, known for her firm stance against the city’s Public Act 4 consent agreement and what she termed “extortion” on the part of the state in the subsequent “Milestone Agreement,” announced today that she is forming an exploratory committee on a run for Mayor of Detroit this year. 

“Many people have been approaching me,” Attorney Crittendon said on WCHB’s  Mildred Gaddis show. “Detroit needs a strong leader and I believe that I can be that leader. . . .Detroit is at the crossroads. People need someone very strong, who will not compromise, who will work with them in the best interests of the city.” 

Crittendon said she has been contemplating the possibility for the last year, and that her announcement is not retaliation for her demotion by Bing and six City Council members last week. She stressed the insight into the city’s workings that she has gained as Corporation Counsel and in the Law Department, along with her total of 18 years in the profession. 

“The papers have portrayed me as a polarizing figure,” she said. “This is not true. I can work with both branches of government, as well as residents and the business and  corporate community. . . .This is not about me. It’s about what events have done [for people’s consciousness]. They have gotten them believing we can reclaim this city. So many people are saying to me, what can I do to help you? There are so many bright talented people in Detroit. If we get together, the city of Detroit can be turned around and manage her own future.” 

She said her first course of action would be to thoroughly examine the city’s books, find out how much is owed to the city, and the exact amount of the city’s debt. Then, she said, she would begin by hiring more revenue collectors. 

Councilwoman JoAnn Watson had the Council pass a resolution which estimates that $800 million is owed to Detroit, even aside from more than $300 million Crittendon said the state owes the City when she filed suit to overturn the Apri 4 consent agreement in May. (Click on Money Owed the City12-11-12 final and Crittendon Lawsuit 6 1 12.)

“The City Council should not be afraid to take a bold stand . . .listen to the people, not be afraid,” she stressed. Even if the Council passes every demand made by the state, she said, there is “no guarantee the governor wouldn’t appoint an Emergency Manager anyway.” 

She added that even if an EM is appointed prior to the election, “he will not be here forever. Bright people should not be scared off from getting involved.” 

She said she is not contemplating a run for any other elected position because Detroit has a strong mayor form of government, and true leadership must come from that position. 

Attorney Crittendon said that attorney Phil Brown  is heading her exploratory committee, which currently has eight working members. She expressed thanks to City Council members JoAnn Watson, Kwame Kenyatta, and Brenda Jones as well. 

Reaction from Detroiters who heard her announcement during the show was almost exclusively supportive, although only a few calls were taken. Attorney Richard Mack, who represents AFSCME Council 25 on many matters, was one of the positive callers, as were Stephen Boyle and “Bernice” of Detroit. 

VOD interviewed others afterwards. 

“It’s a breath of fresh air,” Cecily McClellan of Free Detroit-No Consent said. “I was not feeling good about this race, but I feel better now. She has a thorough knowledge of the city and I would be pleased to have someone with a legal background who is a woman as well.” 

Sandra Hines, a long-time community activist who won 40 percent of the vote in her run for a school board position agreed that having a female mayor would make a difference.

“She knows the law and would be an asset in terms of running the administration,” Hines said.

Edith Lee Payne is a long-time civil rights activist who marched as a young woman with Dr. Martin Luther King, Jr. and was also a litigant in a state-wide class action lawsuit against Public Act 4. 

“Krystal Crittendon would be a formidable opponent in the Mayoral race because of her direct involvement with city government,” Payne said. “Her legal experience is a strength that should be brought to the Mayor’s office, so that its legal representation would not be compromised as it has been under the current administration.” 

Bing has refused to consult with Crittendon over the past year on critical matters, preferring instead to use Attorney Michael McGee of Miller Canfield. McGee is a co-author of Public Act 4, who also helped draft the Consent and Milestone Agreements, and represented both the state and the city in setting terms of a $137 million loan from the state Municipal Finance Authority. State Treasurer Andy Dillon has repeatedly refused to release portions of that loan unless the Mayor and Council agreed to various state demands. 

“Corporation Counsel Crittendon was dismissed for standing on the side of justice,” Payne added. “I applaud her integrity and believe that’s the kind of leadership we need if justice is to prevail.”

Related articles:

http://voiceofdetroit.net/2012/12/23/councils-craven-cave-in-brings-new-assault-on-detroit-state-declares-new-financial-review/

http://voiceofdetroit.net/2012/12/10/state-blitzkriegs-detroit-to-get-deal-with-wall-street-will-council-stand-up-at-meeting-dec-11/

http://voiceofdetroit.net/2012/11/25/detroiters-storm-council-nov-20-to-stop-takeovers-bing-plots-to-reconsider-contracts-mon-nov-26-1-p-m/

http://voiceofdetroit.net/2012/10/22/dillon-bing-cabal-at-council-demands-action-on-drastic-re-structuring-of-detroit/

http://voiceofdetroit.net/2012/07/07/crittendon-intervenors-fight-dictatorship-of-banks/

http://voiceofdetroit.net/2012/07/04/corporation-counsel-krystal-crittendon-speaks-out/

http://voiceofdetroit.net/2012/06/21/showdown-community-supports-crittendon-bing-wants-council-to-remove-her-june-22/

http://voiceofdetroit.net/2012/06/14/collette-dismisses-detroit-suit-says-mind-made-up-from-beginning/

http://voiceofdetroit.net/2012/06/07/lawsuit-hearing-on-detroit-consent-agreement-june-13-dozens-pack-council-meeting-to-support-action/

http://voiceofdetroit.net/2012/06/04/detroits-top-counsel-crittendon-takes-consent-agreement-to-court/

http://voiceofdetroit.net/2012/04/09/banks-state-take-control-of-detroit-council-assassinates-city-in-5-4-consent-vote/

http://voiceofdetroit.net/2012/04/03/labor-community-threaten-to-shut-city-down-if-council-passes-pa4-consent-agreement-council-may-vote-apr-3/

                                                                                     January 9, 2013

The unexpected firing of the Detroit’s Charter defender and Corporation Counsel, Krystal Crittendon, yesterday is perhaps the most egregious violation of the city’s new Charter to date. The without cause firing leaves Detroiters defenseless before very powerful forces which the new charter was designed to protect the people from.

As of now, Miller-Canfield, a dubious city vendor, is the unofficial, de facto “Shadow Corporation Counsel” for the City of Detroit and will likely decide the Law Department’s next head. This despite multiple conflicts of interest by representing the State of Michigan, the City of Detroit in negations and by codifying a contract for itself into the Consent Agreement and Memorandum of Understanding foisted upon the City by the State. 

“This is an affront to the city residents of Detroit and an offense to our very democracy. Unfortunately, it bodes ill for the future of governing in Detroit and how it will be managed,” said Tom Barrow. 

“I urge Detroiters to become outraged at this ‘State Ordered’ firing of the citizens’ watchdog carried out by a weak Mayor and City Council, both under the seeming control of Michigan’s Governor, “said Barrow. 

Each City Council member who voted to eliminate Ms. Crittendon must immediately explain why they chose this action and whether and where any meetings occurred with Mr. Bing and or Governor Snyder or their representatives at which this seeming treasonous action was discussed. 

Citizens for Detroit’s Future stands ready in the fight against the unscrupulous forces which seek to take and control our city’s resources and assets and holds Council members to account for this hurtful and destructive vote.

 

Anthony King (center) lived in his home 41 years, caring for his parents before their deaths there. Members of Moratorium NOW!, other groups and his neighbors moved him back in March 11, 2009, but he eventually lost his home, as have millions of others across Detroit and the U.S. King is featured in Michael Moore’s movie, ‘Capitalism: A Love Story.” Photo by Diane Bukowski

 

By Jerry Goldberg January 14, 2013  

Two settlements were announced Jan. 7 in ongoing legal actions against the major banks for abuses in placing millions of homes into foreclosure throughout the U.S. But both only help banks, not homeowners.

In one settlement, the Office of the Controller of the Currency (an agency of the federal Treasury Department) and Federal Reserve, in exchange for a meager payment of $8.5 billion by the banks, agreed to lift consent decrees under which they had placed major mortgage lenders. Under the decrees, the lenders were required to review 4.3 million foreclosures initiated in 2009 and 2010. The banks involved in the settlement were Aurora, Bank of America, Citibank, JP Morgan Chase, MetLife Bank, PNC, Sovereign, SunTrust, U.S. Bank and Wells Fargo.

The Office of the Controller had mandated independent foreclosure reviews of every foreclosure conducted or initiated in 2009 and 2010 for two reasons. One was due to massive abuses by the banks in placing homeowners not in default into foreclosure. The other was lenders’ failures in implementing federal programs mandating evaluations of homeowners for loan modifications under the Home Affordable Modification Program.

Under the OCC Financial Remediation Framework of June 21, 2012, homeowners claiming servicing errors on their mortgages were to have their foreclosures suspended pending review, reversed if violations were discovered, and paid compensation ranging from $5,000 to $15,000 for those still in their homes and $125,000 plus lost equity to those who illegally lost their homes.

The OCC paid private contractors $1.5 billion to conduct reviews for the 495,000 homeowners who applied for them. Another 3.8 million homeowners eligible for review did not apply because they never received applications or because they were demoralized by the constant bad news they received from the banks. (http://www.huffingtonpost.com, Jan. 7)

Not one homeowner received the promised relief! And despite the published regulations, not one foreclosure was suspended pending reviews with lawyers representing the banks. The federal government continues to execute foreclosures in direct violation of its own regulations.

The settlement provides a pool of $3.3 billion in direct payments to eligible borrowers. This amounts to only $868 per homeowner, comparable to the meager payments extended to homeowners under the previous Attorney General/federal settlement announced several months ago. Another $5.5 billion will be allocated for loan modifications — probably to “incentivize” the same banks that refused to carry out the modifications in the first place — and for forgiveness of deficiency judgments on foreclosures that never should have happened.

Bank of America & Fannie Mae settlement

In the second mortgage settlement, also revealed Jan. 7, Bank of America announced it would pay $8.5 billion to Fannie Mae to settle claims by the U.S. Justice Department that Bank of America and Countrywide, the notorious subprime lender taken over by Bank of America, had sold Fannie Mae and Freddie Mac 30,000 defective and fraudulent mortgages worth $1.4 trillion from Jan. 1, 2000, through Dec. 31, 2008. The $8.5 billion is a tiny fraction of the $300 billion that was lost on these mortgages as a result of Countrywide’s and Bank of America’s practices. (Deutsche Well, Jan. 7; huffingtonpost.com, Jan. 7)

Because Fannie Mae and Freddie Mac were completely taken over in 2008 by the federal government as part of the Housing and Economic Recovery Act, this settlement means that taxpayers will be responsible for $290 billion in losses not recovered from the banks.

Feds still bail out banks while people suffer

These new mortgage “settlements” reflect the collusion of the federal government with the banks in the housing debacle that continues to cost millions of working-class families their homes.

While the corporate-owned media try to make it sound like the foreclosure crisis has ended, as of the third quarter of 2012 there were 1.17 million homes in the foreclosure process. (dsnews.com, Dec. 21) In that quarter, mortgage servicers initiated 252,604 new foreclosures. More than 11 percent of all mortgages were delinquent, with 4.4 percent seriously delinquent, meaning 60 or more days past due. (OCC report, Dec. 21) A 1 percent seriously delinquent rate would have been considered a national crisis 10 years ago.

The federal government has fully nationalized the mortgage industry. Seventy-five percent of all mortgages originated since 2008 are guaranteed by Fannie Mae or Freddie Mac. The remainder of the loans are insured by the Federal Housing Agency. Private mortgage securitization has completely disappeared.

Taxpayers have already paid $180 billion to cover the losses on payments to the banks on failed mortgages insured by the government. According to the January 2010 Congressional Budget Office Report, the CBO estimates the tab for this taxpayer bailout as $389 billion, with many estimates much higher.

While the banks make record profits by servicing government-backed mortgages and selling them to borrowers at inflated interest rates, homeowners continue to be deprived of their homes by the callous and fraudulent practices of the bailed-out banks.

Homeowners, renters and all concerned activists must continue to organize and demand that the federal government put the people before the banks. We need a moratorium on all foreclosures and foreclosure-related evictions and an immediate reduction in principal, so mortgages reflect the true value of homes. With the federal takeover of the mortgage industry, President Barack Obama can implement these policies today through an immediate executive order.

Goldberg is a people’s attorney in Detroit who fights the banks in foreclosure cases, as well as a leading organizer in the Moratorium NOW! Coalition to Stop Foreclosures, Evictions & Utility Shutoffs.

VIDEO ABOVE: Bryan Stevenson, founder and executive director of the Equal Justice Initiative and a MacArthur Fellow, argued the cases of Miller v. Alabama and Jackson v. Arkansas before the U.S. Supreme Court on behalf of two prisoners who were 14 when they were sentenced to life without parole. On June 25, 2012, the high court ruled that sentencing children under the age of 18 to death is prison is “cruel and unusual punishement” and therefore unconstitutional. Stevenson’s own grandfather was killed by a group of youths, but he has devoted his own life to fighting for fair sentencing, particularly for juveniles.

•  State stalls enactment of US Supreme Court Miller/Jackson ruling;
• Cortez Davis sentencing hearing Fri. Jan. 25 9 a.m. Judge Massey-Jones 

By Diane Bukowski 

January 8, 2013 

DETROIT – Michigan’s 361 juvenile lifers, at first elated by last year’s U.S. Supreme Court (USSC) decision outlawing mandatory life without parole for children, are now waging a protracted battle to have the state’s courts and legislators recognize that the decision is retroactive, and speedily act to re-sentence them.

Michigan has the second highest per capita number of juvenile lifers in the country. Seventy-five percent of them are individuals of color. It spends over $2 billion a year on corrections, making it one of only four states where spending on prisons exceeds spending on higher education.

“There are some older juvenile life without parole offenders who could very well die in prison before they realize their change in fate because of their ages, being in their late 60’s to early 70’s,” says Edward Sanders, 53, incarcerated since 1975 for a crime committed when he was 17. 

A Michigan Appeals Court panel held Nov. 15, 2012that the U.S. high court ruling on Miller v. Alabama/Jackson v. Arkansas, of June 25, 2012, is not retroactive. In People of Michigan v. Raymond Carp, the appeals court did rule that the state’s current parole statute as applied to juveniles is now unconstitutional.  

But its ruling against retroactivity has temporarily suspended a massive campaign by 150 progressive Michigan attorneys to win re-sentencings for all the state’s juvenile lifers, pro bono if need be. An appeal aided by the state ACLU, the State Appellate Defenders’ Office, the University of Michigan Juvenile Justice program, and many other groups is progressing. 

“The state courts of Louisiana, North Carolina and Illinois have all determined that Miller v. Alabama must be applied retroactively to relieve those individuals who are serving a mandatory life without parole sentence, for offenses committed as a child, from cruel and unusual punishment,” said attorney Deborah LaBelle, a coordinator of the juvenile lifers campaign, in a filing in a related federal case, Hill vs. Snyder.  

“The most recent ruling, [by an Illinois appeals court] People v. Carl Williams, (Nov. 27, 2012) recognized Miller as a ‘watershed rule of criminal procedure,’” LaBelle continued. “Holding that it would also be ‘cruel and unusual’ punishment to apply the Miller case only to new cases, the Williams case found Miller to be retroactive.” 

A favorable ruling by U.S. District Court Judge John Corbett O’Meara in the Hill case may nullify the Carp decision. 

Meanwhile, says Sanders, who was not the shooter in his case and completed his college degree in prison, “Both the Appeals Court and Michigan lawmakers are favoring the prosecutors in these ‘re-sentencings’ over the trial judges who oversaw the trials. I have not heard anything from my attorney [Susan Reed] yet. Note that most of these attorneys have not yet filed anything. They all are waiting on a green light on the issue of retroactivity.  I am very hopeful that our state high court will overturn Carp. My case is where it is due to the ACLU, who provided me with the attorney pro bono; the court had nothing to do with it.”  

Damion Todd, 43, has been incarcerated since 1986, when he was 17. Both he and Sanders, who met while both were housed in Mound Road Prison in Detroit, have become jailhouse lawyers and helped mentor other prisoners. Todd said he and a group of older prisoners at Carson City Correctional Facility concentrate in particular on counseling young offenders. He plans to continue doing so on his hoped-for release. 

“It’s been a roller coaster ride,” he said. “We were very excited when the Supreme Court decision came down, but then state Attorney General [Bill] Schuette filed a challenge contending that it isn’t retroactive for people like myself, who have been locked up for decades. That was very disappointing, but we are still hopeful. I don’t want to dismiss the pain our actions caused our victims, but we have to live with the horrible decisions we made for the rest of our lives as well. In my case, I consider my greatest achievement to have been forgiven by the victim’s family after expressing my remorse and sympathy.” 

Todd’s sentencing judge, Michael Talbot, gave the 17-year-old not only life without parole, but said he should serve it in solitary confinement at hard labor, a sentence not currently recognized by the Michigan Department of Corrections. Talbot is now an Appeals Court Judge. He wrote the Carp decision, and was also the original sentencing judge in the Carp case. 

Todd’s friend Tracy Williams told VOD that Vera Rucker, the mother of Melody Rucker, the 16-year-old killed in a cross-fire between two groups of male youths in 1986, has embraced both Todd and herself, essentially taking them into her family. Williams calls her “Mom.” (For more on Todd’s case, which made the front page of the local Metro Times, click on http://www2.metrotimes.com/editorial/story.asp?id=9966.) 

So far, a bright light still shines for juvenile lifer Cortez Davis.  The Michigan Supreme Court remanded his key case back to Wayne County Circuit Court Judge Vera Massey Jones Sept. 7, while refusing to weigh in on the issue of retroactivity.  With passionate remarks, Judge Massey Jones granted his motion for re-sentencing Dec. 11, 2012. His sentencing hearing is set for Jan. 25, 201e. (See sidebar for Judge Jones’ decision.) 

“The most important thing she said, especially in light of the Carp case, is that she declared the mandatory life sentence to be cruel and unusual in this case 18 years ago—before the case had not yet become final,” Davis’ attorney Clinton Hubbell told VOD. “The Court of Appeals in Carp, however, is bootstrapping a denial of resentencing to Mr. Davis by indicating that his case is already final in spite of Judge Jones’ 1994 ruling, and that the Miller/Jackson decision is not retroactively applicable.” 

Wayne County Prosecutor Kym Worthy has filed an emergency Application for Leave to Appeal to the Appeals Court, asking that a decision be made by Jan. 24, 2013 banning the re-sentencing. She argued that the Carp decision binds lower courts, although it was rendered after the state Supreme Court remanded the Davis case to Judge Jones.

During the Dec. 7 hearing, Judge Jones asked Assistant Prosecutor Timothy Baughman, “Mr. Davis has waited how many years? After I ruled that the thing was cruel and unusual, how many years has Mr. Davis been in prison waiting for the Supreme Court of the United States to come to a rational decision on this case?’

Baughman replied that it has been 18 years. He argued that Judge Jones is bound by the Carp decision, and that a final decision on retroactivity has to go through the appeals process to the U.S. Supreme Court all over again.

Judge Jones, who has been on the bench for over 30 years, is set to retire in 2015. She said people have asked her why she stayed so long.

“I stayed here because I wanted to see justice done to my people,” Judge Jones said. “I followed my father around Recorder’s Court when I was a little kid . . . .I had a great deal of respect for him and for the other people who happened to be African-American lawyers, and really fought for people’s rights. And so, to me, doing the right thing was more important than anything else. And doing the right thing back then was not to sentence Mr. Davis to natural life in prison.”

She noted that it has taken 18 years for the U.S. Supreme Court to confirm her 1994 ruling that juvenile life without parole was “cruel and unusal” punishment.”

“And so it would be unfair to keep Mr. Cortez Davis tethered by wrong decisions made by other courts over the years,” Judge Jones explained. “And so Carp, in my opinion, does not apply to this case.”

While Davis awaits his sentencing hearing, the federal class action case filed on behalf of 13 Michigan juvenile lifers in Nov. 2010, still lingers in front of  U.S. District Court Judge John Corbett O’Meara, of the Michigan Eastern District.

The plaintiffs, represented by Attorney LaBelle and others with the ACLU, moved for summary judgment on the unconstitutionality of the current parole statute, asking the court to go beyond Miller/Jackson to include even non-mandatory sentencing of juveniles. 

During hearing on their motion Sept. 20, Judge O’Meara did not make a ruling. He said he was inclined to rule in favor of the plaintiffs, but wanted to hear arguments and ideas from both sides on enforcing the USSC ruling in Miller/Jackson, as well as prisoners serving life without parole sentences in general. 

Attorney LaBelle noted that even the Carp COA panel agreed the parole statute is unconstitutional in light of Miller/Jackson. 

“You know, we extensively briefed it, and Defendants [the state of Michigan] do not disagree with the fact that Miller and Graham and Roperall make arguments that say that children are different than adults,” LaBelle argued. “Children are less culpable than adults, and that all the legitimate penological objectives for life without parole sentences simply cannot apply to children.” 

She referred to two earlier USSC decisions outlawing juvenile life without parole in non-homicide cases, Graham v. Florida, and the death penalty for juveniles, in Roper v. Simmons. 

She continued, “Miller went even further and said that Graham’sreasoning implicates any life without parole sentence imposed on a juvenile, and it’s not crime specific, it’s child specific. This court can, and we think should, determine that the harshest punishment available in Michigan to anyone who commits a crime as an adult, a first degree murder crime, cannot be applied to children in the same way as adults . . . .the Court says no one, no psychologist, no soothsayer, no judge can stand and look at a child and say I know who you will be when you mature. No one can do it, and to impose a life without parole sentence does exactly that and says I know you’re irredeemable now.” 

Since the Sept. 20 hearing, both sides have continued to submit filings to Judge O’Meara, with no indication as to when he will finally rule. The last submission, by Attorney LaBelle, was filed on Nov. 28, 2012.  (See link below.)

Meanwhile, State Rep. Joe Haveman (R-Holland) submitted a package of bills Nov. 8, including HB 6014, which makes a grudging attempt to comply with Miller/Jackson. It would however confirm Miller’s retroactivity. It does not provide for re-sentencing, but provides parole eligibility for individuals sentenced before the age of 16 after serving 15 years, and those sentenced between the ages of 16 and 18 after 20 years.

 However, Michigan’s parole board is appointed by the governor and has been extremely restrictive about granting parole to anyone, including parolable lifers convicted of offenses like second-degree murder. 

The bill requires that the parole board consider numerous factors not part of Miller, including whether the offense “occurred during an act of terrorism,” whether three or more individuals were involved in committing the offense, whether there were multiple murders, whether victims were minors, disabled adults, or law enforcement officials; whether the victim was threatened with torture, or whether the victim was killed due to witnessing a crime. 

The bill does include other factors specified in Miller, including the previous record of the individual, whether another individual dominated him or her in the commission of the crime, and “whether the individual’s age, family circumstances or mental development substantially affected his or her ability to appreciate the consequences of his or her actions.” 

The bills were referred to the House Judiciary Committee. It is unclear what will happen to them in the 2013-14 session. 

“Both the court and the House Bill only provide for a ministerial act of sentence correction and not what the U.S. Supreme Court ordered, sentences that look at the person on a case by case basis,” Sanders summed up. “They only look at life with or without parole.”

EJI website is at http://www.eji.org/childrenprison/deathinprison

Related documents:

Miller v Alalbama decision

Carp COA ruling 11 15 12

Hill filing 11 28 12 re state courts on Miller

Hill case Carl Williams

Hill motion hearing transcript 9 20 12

Cortez Davis Combined Written Order and Hearing Transcript

 Related stories: 

http://voiceofdetroit.net/2012/10/28/michigans-juvenile-lifers-want-state-to-comply-with-u-s-supreme-court-ruling/

http://voiceofdetroit.net/2012/10/28/michigans-juvenile-lifers/

http://voiceofdetroit.net/2012/08/16/michigan-challenges-u-s-supreme-court-ruling-on-juvenile-life-without-parole/

http://voiceofdetroit.net/2012/07/02/us-supreme-courts-juvenile-lifer-decision-brings-hope-to-thousands/

http://voiceofdetroit.net/2012/07/02/nations-high-court-ends-mandatory-life-without-parole-sentences-for-youth/

http://voiceofdetroit.net/2012/03/18/us-supreme-court-to-hear-key-juvenile-lifer-homicide-cases-march-20-2012/

http://voiceofdetroit.net/2012/03/04/juvenile-lifer-anthony-jones-wins-new-sentence-battle-for-justice-for-all-juvenile-and-parolable-lifers-still-needed/ 

Some of Michigan’s 371 juvenile lifers involved in current litigation: (l to r, top through bottom row), Cortez Davis and Raymond Carp, awaiting re-sentencing under USSC decision; plaintiffs in USDC case Henry Hill, Keith Maxey, Dontez Tillman, Jemal Tipton, Henry Hill, Nicole Dupure, Giovanni Casper, Jean Cintron, Matthew Bentley, Bosie Smith, Kevin Boyd, Damion Todd, and Jennifer Pruitt; Edward Sanders and David Walton, in prison since 1975 at the age of 17; (photos show some lifers at current age, others at age they went to prison).

 

 

Prisoners are shown at the Ryan Correctional Facility in Detroit, Thursday, May 3, 2007. Michigan Gov. Jennifer Granholm’s administration is scaling back plans to release more than 5,000 parole-eligible prisoners to ensure only nonviolent or sick inmates get out. Under a revised plan obtained by The Associated Press, officials trying to slow Michigan’s prison spending are eyeing around 3,200 inmates for parole, or about 36 percent fewer than originally proposed. (AP Photo/Paul Sancya)

 ©2012 Timothy Murphy                                                                                                         MDOC #183248, Bellamy Creek Correctional Facility, Ionia, Michigan

(VOD: this article was forwarded to VOD by writer Mitch McKay in December, 2012.)

Michigan Governor Rick Snyder has wasted no time in brandishing his broad budget battle-axe in an effort to chop away at the state’s excessive deficit by, among other things, closing several State Police Posts and cutting public funding for universities by 15 percent, but with little or no positive reform effect on the out-of-control prison spending that has plagued the state for decades.

Snyder’s prison budget for 2011 comes in at just over $2 billion and appears to be the same ol’ story for Michigan Department of Corrections (MDOC) funding; retaining otherwise ill-conceived, inadequate or grossly underfunded prison programs and services implemented under former MDOC Director Patricia Caruso & Company, while making minor and largely symbolic changes aimed at diminishing the quality of life for prisoners.

This is in stark contrast to his predecessor, former Governor Jennifer Granholm, who in her tenure as the state’s Governor implemented numerous prison cost cutting measures including closing a total of fourteen (14) of the State’s 47 prisons from 2003 to 2009 (See Prison Legal News [PLN], Dec. 2009, page 46). Snyder’s efforts to solve the prison budget problems appear slightly, if not completely, misguided, perhaps even downright dangerous. 

His official budget plan calls for closing one prison for an estimated annual savings of $18.9 million, statewide privatization of the prison food service and prisoner store operations, and reducing additional administrative costs to save another estimated $32 million. However, if Governor Snyder thinks that privatization is the panacea for effective service and savings he obviously hasn’t been paying attention to the countless problems experienced by other prison systems that have privatized prison food service operations (See PLN, April 2010, pgs. 1-7).

This is a potentially dangerous move for staff and prisoners alike in an already volatile, overcrowded prison system, with fewer work opportunities for already hungry prisoners to supplement their daily diets from the overpriced prison canteen.

In August 2010, under pressure from State Rep. John Proos –R, the MDOC implemented a statewide standardized prison food service menu and dramatically reduced the portion size of prisoner meals in an effort to save an estimated $6 million a year (See PLN, Dec. 2010, pg. 46).

Early rumors indicate that under the new privatization of the MDOC food service operations prisoners will receive only one hot meal per day while being provided cold bag meals or meals-ready-to-eat for the other two meals. And for prisoners serving relatively short sentences, up to a few years, this might be acceptable.

However, for prisoners serving Life or long, indeterminate sentences, one must question the wisdom of such an imprudent contract. The more the system squeezes these long-term or Lifer prisoners, the less incentive there is for them to conform and go with the flow. They become embittered and angry at the system that continues to take and take from them. The result is increased violence against staff and other prisoners borne of utter frustration, anger and desperation. This in turn results in increased prison spending to house these now assaultive prisoners in higher custody levels, medical expenses and perhaps even prosecution costs resulting from these otherwise avoidable violent acts of discontent.

In another unwise move touted to save money, Governor Snyder has done away with the Granholm-appointed 7-member Executive Clemency Advisory Council which reviewed some 20 cases a month and made recommendations for or against commutations. Since its inception, to justify the former Governor’s reforms, there have been no commutations for prisoners whose victims have been law enforcement officers or minors; for prisoners who are healthy and have committed armed robbery or criminal sexual conduct; for prisoners who committed first degree murder; or for drug offenders who were responsible for operating a drug ring.

In her November 6, 2010 address to the attendees of the annual Michigan CURE meeting Ms. Barbara Sampson, then Chairwoman of the Michigan Parole and Commutation Board (MPCB), reported that “very few individuals whose sentences were commuted…have been returned to prison. And each of those returned had been serving a sentence for a property crime or [minor] drug offense when his or her sentence was commuted.”

By Executive Order 2011-3, which took effect April 15, 2011, Governor Snyder also abolished the Granholm-appointed 15-member MPCB and replaced it with a new 10-member Michigan Parole Board appointed, not by Governor Snyder but, by the new MDOC Acting Director Richard M. McKeon. (Effective June I, 2011 Jackson County Sheriff Daniel Heyns became the new MDOC Director). Five members of the new 10-member board, are former MPCB members including former MPCB Chairwoman Barbara Sampson, and of the remaining five members four are longtime MDOC staff and the other a former prosecutor. Continue reading →

 

The Wilmington 10, falsely convicted for the 1972 bombing of a Wilmington, N.C. grocery, served many years in prison before their release on various dates, including Rev. Ben Chavis, (bottom left), released in 1979.

 

 

 By Jamil Smith, @JamilSmith

12/31/2012

(Thanks to Kenny Snodgrass, VOD videojournalist, for forwarding these articles.)

The Wilmington Ten are truly free, at last.

Outgoing North Carolina Governor Bev Perdue issued and signed a “pardon of innocence” for the group Monday. There are currently six surviving members.

The nine African-American men and one white woman had been convicted in the 1972 firebombing of a Wilmington, NC grocery store during civil-rights protests that arose after police shot an African-American teenager. Between the ten, they received combined sentences totaling 282 years in prison.

, Governor Perdue, a Democrat, said that she “decided to grant these pardons because the more facts I have learned about the Wilmington Ten, the more appalled I have become about the manner in which their convictions were obtained.” That manner was outlined on our show Saturday by host Melissa Harris-Perry, who added her voice to the more than 130,000 who signed their names to petitions delivered to the governor’s office:

“…it was so overt that by 1977, at least three witnesses had recanted their testimony. And in 1980, the U.S. Court of Appeals overturned the convictions of the Wilmington Ten—noting that the chief witness lied on the stand and that prosecutors concealed evidence.

And now, according to the NAACP, newly discovered notes from the prosecutor suggest he racially-profiled prospective jurors—writing ‘KKK —good’ next to some names and referring to at least one black candidate as an ‘Uncle Tom.’”

Governor Perdue used similarly strong language in her statement about the injustices done in the trial:

This conduct is disgraceful. It is utterly incompatible with basic notions of fairness and with every ideal that North Carolina holds dear. The legitimacy of our criminal justice system hinges on it operating in a fair and equitable manner with justice being dispensed based on innocence or guilt – not based on race or other forms of prejudice. That did not happen here. Instead, these convictions were tainted by naked racism and represent an ugly stain on North Carolina’s criminal justice system that cannot be allowed to stand any longer.

Wilmington Ten member Wayne Moore, who was 19 at the time of the firebombing and received a nearly 30-year prison sentence, shouted his joy at the governor’s decision via Twitter:

———————-

WBOY-TV
updated 12/31/2012

By MARTHA WAGGONER
–Associated Press

RALEIGH, N.C. (AP) – Outgoing North Carolina Gov. Beverly Perdue issued pardons Monday to the Wilmington 10, a group wrongly convicted 40 years ago in a notorious Civil Rights-era prosecution that led to accusations that the state was holding political prisoners.

Perdue issued pardons of innocence Monday for the nine black men and one white woman who received prison sentences totaling nearly 300 years for the 1971 firebombing of a Wilmington grocery store during three days of violence that included the shooting of a black teenager by police.

The pardon means the state no longer thinks the 10 – four of whom have since died – committed a crime.

“I have decided to grant these pardons because the more facts I have learned about the Wilmington Ten, the more appalled I have become about the manner in which their convictions were obtained,” Perdue said in a news release Monday.

The three key witnesses in the case later recanted their testimony. Amnesty International and other groups took up the issue, portraying the Wilmington 10 as political prisoners.

In 1978, then-Gov. Jim Hunt commuted their sentences but withheld a pardon. Two years later, the 4th U.S. Circuit Court of Appeals in Richmond, Va., threw out the convictions, saying perjury and prosecutorial misconduct were factors in the verdicts. Continue reading →

 

AUTOWORKERS TO TARGET WORSENING WORKING CONDITIONS AS AUTO COMPANY PROFITS SOAR, PLAN TWO DAYS OF PROTEST AT THE NA INTERNATIONAL AUTO SHOW

Contact: Frank Hammer AUTOWORKER CARAVAN
313-863-3219

WHO: Autoworker Caravan
WHAT: Informational Picket Lines
WHEN: Sunday, January 13th and Monday, January 14th, 1:30-3 PM
WHERE: Cobo Center, 1 Washington Blvd,, Detroit 48226

WHY: As the successful turnaround of GM and Chrysler (and Ford’s ongoing success) continue to be touted in the main stream media, the story of the continued sacrifices of the workers who are making it possible continues to be ignored. As a result, the public is left with the impression that autoworkers are sharing in the new-found prosperity, which is decidedly not the case.

Still trying to recover from the “austerity” measures imposed by the White House Auto Task Force during the bailout of 2009, autoworkers are continuing to lose rights and benefits once considered untouchable.

“If they dare complain,” says Martha Grevatt, a tool and die maker at Chrysler’s Warren Stamping Plant, “they are told to be silent and just ‘be happy you have a job.’” Workers are thus being forced, for example, to accept so-called “Alternative Work Schedules” and “Flexible Operating Patterns” by which the employers extract more value from the workers for less pay, all the while their personal and family lives are increasingly disrupted and stressed.

More and more workers are being hired as low-paid permanent “temporaries,” as the auto companies accelerate to eliminate long-term, permanent workers. According to line worker Debi Muncy, who suffered a work-related injury at her former Ford plant in Saline, Michigan, “once injured on the job, we often are harassed by management, and forced back to work and put back on jobs we shouldn’t do.” In these and other ways the Detroit 3 are importing their so-called “maquiladora” labor practices developed in countries like Mexico, Colombia and Brazil into their US operations.

U.S. autoworkers have more reason than ever to express their solidarity with workers in the global south who are confronted with these “maquiladora” practices. “The auto show is a perfect opportunity,” says Nick Waun, a GM worker in Lake Orion Michigan, “for us to show our support for GM workers in Colombia, for example, who’ve suffered crippling occupational injuries and who’ve been fired by a heartless company. We will stand with these heroic workers who have gone to great lengths – including a 525 day encampment and hunger strikes – to win their jobs back, and their right to a union.”

Fresh from witnessing the attacks on union rights in states like Wisconsin, Indiana and now Michigan, autoworkers will be demanding repeal of such anti-union measures as the recently enacted, so-called “Right to Work” laws. “Allowing these to laws to remain,” according to Chrysler hi-lo driver Melvin Thompson, “will weaken labor and set the stage for Colombia style-working conditions to be introduced here.”

“The global restructuring of the Detroit Three is being accomplished not only at the expense of the workers, but also at a huge cost to the environment,” adds Dianne Feeley, a retiree from the now closed American Axle plant in Hamtramck, Michigan. “Autoworkers will be demanding a restructuring of the auto industry and a retooling of the closed plants, to build what is necessary to stop global warming, and prevent more disasters like Superstorm Sandy. We need renewable energy and more public transit. We know that such a project would unleash workers’ energies and create much-needed jobs for Detroit and other hard hit communities.”

RALLY WITH US AGAINST RICK SNYDER & RIGHT TO WORK!

When: Friday, January 18, 2013
Time: 5:00 PM
Where: Cobo Hall (We will meet here at the Local hall first, located at 2604 Fourth Street, Detroit, MI 48201)

Join us on Friday, January 18th when we tell Gov. Rick Snyder that we won’t stand for his attacks against Michigan workers. As you all know, Snyder signed Right to Work legislation into law in December. What you may NOT know is:

– On average, workers in Right-to-Work states earn $5,000 less than those in free bargaining states.

– Fewer people — 21% of workers in Right-to-Work states — have health insurance.

– The poverty rate in Right to Work states is considerably higher than in free bargaining states.

– Workplace deaths are 51% higher in Right to Work states

The fight is far from over. We have to keep letting our voices be heard so join us at Cobo Hall for this important action. We will meet at the Local Hall at 5:00 pm. See you all there!
Transportation and food will be available. For more information call Good Jobs Now at (877) 740-5033 or email us at info@goodjobsnow.org.  You can also receive our mobile updates by texting ‘weareMI’ to 64336.

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https://www.facebook.com/events/146719912144768/

Protest initiated by Rev. Charles Williams II and Kenneth Snodgrass.