<http://www.examiner.com/law-enforcement-in-national/obama-justice-departmen
t-sued-for-records-on-slush-funds>
http://www.examiner.com/law-enforcement-in-national/obama-justice-department
-sued-for-records-on-slush-funds

 

  <http://www.examiner.com/law-enforcement-in-national/jim-kouri> Jim Kouri


Obama Justice Department sued for records on "slush funds" 


.         November 17th, 2010 4:33 pm ET

A public interest group that investigates and prosecutes government
corruption has filed a Freedom of Information Act (FOIA) lawsuit against the
Obama Department of Justice to obtain information about a DOJ policy that
directs large sums of cash settlements from DOJ Civil Rights Division
discrimination lawsuits to organizations that are not officially connected
to these lawsuits. 

According to Judicial Watch's lawsuit:

"In August 2010, Judicial Watch commenced an investigation into [the DOJ's]
practices regarding the distribution of leftover settlement funds to
'qualified organizations' not otherwise connected with the settled
litigation. [Judicial Watch] sought this information in furtherance of its
educational mission after learning of an apparently novel settlement
arrangement used in two recently settled cases brought by the Civil Rights
Division of the Justice Department, United States v. AIG Federal Savings
Bank and Wilmington Finance, and United States v. Sterling. Byron York,
"Justice Department steers money to favored groups," The Washington
Examiner, August 5, 2010.

"According to Mr. York's report, in the past, when the Civil Rights Division
filed discrimination lawsuits against banks or landlords, such cases often
resulted in a settlement whereby the defendant put aside a sum of money to
compensate the particular victims of the alleged discrimination. In these
two recently settled cases, however, [the DOJ] agreed not only to put aside
money for the victims of the alleged discrimination, but also to provide
money to "qualified organizations" approved by the Justice Department which
are not connected to these lawsuits nor alleged to be victims of
discrimination by the defendants." (Judicial Watch v. U.S. Department of
Justice).

 

Judicial Watch filed separate FOIA requests with the DOJ on August 6 and
August 31 seeking information about the controversial use of the funds as
well as the general policies regarding the selection of "qualified
organizations." DOJ acknowledged receipt of both requests and was required
to respond by September 14 and October 5 respectively. But to date, Judicial
Watch has received no documents and no indication when documents will be
forthcoming.

In the lawsuit United States v. AIG Federal Savings Bank and Wilmington
Finance, AIG was accused of allowing third-party mortgage brokers to charge
a higher fee to black borrowers than for white borrowers. AIG disputed the
claims and there was no factual finding of any wrongdoing, according to
York.

Nonetheless, by consent decree, AIG (in which the Obama administration has a
controlling interest) agreed to pay $6.1 million to aggrieved victims of the
alleged crime and guaranteed that $1 million of these funds would be
distributed to "qualified organization(s) to provide credit counseling,
financial literacy, and other related educational programs targeted at
African-American borrowers."

In the Sterling lawsuit (filed in 2006) the DOJ accused a California
landlord of discriminating against prospective Korean tenants. Again, the
defendants denied the charges and there was never any fact finding of
wrongdoing according to York. Nonetheless, by consent decree, the defendants
agreed to pay $2.65 million to alleged victims. If enough victims could not
be located, the remaining funds would be distributed to "qualified
organizations." The DOJ selected the California Housing Rights Center to
receive a portion of the funds.

"This policy effectively allows the Justice Department to use its vast
resources to initiate baseless lawsuits and funnel huge financial rewards
for its leftist allies, including potentially groups such as ACORN. And, as
our lawsuit shows, the Obama-Holder team wants to funnel this money in
secret. Let's hope our federal lawsuit stops the cover up," stated Judicial
Watch President Tom Fitton.

 

Jim Kouri, CPP is currently fifth vice-president of the National Association
of Chiefs of Police and he's a columnist for Examiner.com and New Media
Alliance (thenma.org).  In addition, he's a blogger for the Cheyenne,
Wyoming Fox News Radio affiliate KGAB (www.kgab.com). Kouri also serves as
political advisor for Emmy and Golden Globe winning actor Michael Moriarty.


He's former chief at a New York City housing project in Washington Heights
nicknamed "Crack City" by reporters covering the drug war in the 1980s. In
addition, he served as director of public safety at a New Jersey university
and director of security for several major organizations.  He's also served
on the National Drug Task Force and trained police and security officers
throughout the country.   Kouri writes for many police and security
magazines including Chief of Police, Police Times, The Narc Officer and
others. He's a news writer and columnist for AmericanDaily.Com,
MensNewsDaily.Com, MichNews.Com, and he's syndicated by AXcessNews.Com.
Kouri appears regularly as on-air commentator for over 100 TV and radio news
and talk shows including Fox News Channel, Oprah, McLaughlin Report, CNN
Headline News, MTV, etc.

 



[Non-text portions of this message have been removed]



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