Securities Industry Commentator by Bill Singer Esq

December 11, 2017

The Damnatio Memoriae Of Former SEC Counsel Rory Flynn ( Blog)
After complaining about his concerns of the SEC's non-compliance with its own rules, former SEC lawyer Rory Flynn was fired. Flynn appealed and sought protection as a whistleblower. As frightening a tale of the worst of government and regulation. The exaltation of incompetency.
I'd like to think that this case is "fake news" but it's not -- and that makes the story all the more pathetic and outrageous. What should not get lost in the story is the shocking abuse of power and how easily it would have been for the victim to have become ensnared in the criminal justice system and convicted of the purported crime. Consider this narrative from the DOJ Press Release:

[F]ormer Sergeant King was working off-duty as a security officer at a Walmart store near downtown Atlanta when he observed a shopper weigh a tomato and walk toward the store's exit.  King stopped the victim near the door and, within seconds, began to strike the victim with an ASP baton. King struck the victim seven times, breaking two bones in the victim's right leg.  

As the victim lay on the Walmart floor bleeding from his injuries, King searched the victim and found a receipt for the tomato in the victim's bag. The receipt showed that the victim paid for the tomato only minutes before King's attack. King then wrote a false report to cover up his unjustified assault. Additionally, King charged the victim with obstructing a shoplifting investigation and with assaulting a police officer.  

Following emergency surgery at Grady Hospital, the victim was transported to the Fulton County Jail to be held on King's bogus charges. The victim's criminal charges were ultimately dismissed by a state prosecutor.

Former Hoboken City Council President Sentenced To 30 Months In Prison For His Participation In A $7 Million Car Loan Scheme (DOJ Press Release)
The former Hoboken, NJ City Council President and lawyer Christopher Campos was convicted of bank fraud, wire fraud, and conspiracy to commit each, and, thereafter, he was sentenced in the United States District Court for the Southern District of New York to 30 months in prison for his role in a car-loan scheme involving some 20 straw-buyers, 200 new vehicles, and over $7 million in loans. In total, the scheme carried out by CAMPOS, Alvarez, and others involved approximately 20 straw buyers, the purchase of approximately 200 new vehicles, and ultimately resulted in lenders disbursing over $7,000,000 in fraudulently obtained car loans that largely ended in default. As set forth in part in the DOJ Press Release:
Between approximately October 2012 and September 2013, CAMPOS and his co-conspirator Julio Alvarez, among others, orchestrated a scheme to fraudulently obtain new automobiles that they intended to lease to livery cab drivers.  In order to secure financing in connection with the purchase of these new cars, CAMPOS and other co-conspirators enlisted and aided individuals with good credit histories ("straw buyers") to submit fraudulent car loan applications to numerous lenders.  In order to obtain the new vehicles, CAMPOS and other co-conspirators sent straw buyers to several car dealerships located throughout the New York City area, where dealership employees helped straw buyers submit fraudulent loan applications. 
The auto loan applications submitted by the straw buyers falsely represented that the vehicles would be used for the buyers' personal use, rather than as part of the defendants' leasing business.  In addition, in many cases, the car loan applications misrepresented personal information about the straw buyers, including their incomes and assets.  CAMPOS also caused financing applications to be sent to multiple financial institutions at the same time so that the lenders would not know that the straw buyers were incurring obligations to other lenders in connection with the purchase of multiple new automobiles.