Before It’s News has recently received the following email from John DiNardo who has requested that it be published in full.

Special-Ops Dire Ebola Warning! Ebola Vaccine Is Trigger For The Plague!
Saturday, October 11, 2014 8:23

0
Get FREE private and secure Email and Messaging click now!
(Before It’s News)

Before It’s News has recently received the following email from John DiNardo who has requested that it be published in full. The email contains information gleened from a special-ops source within the United States military who warns that the Ebola vaccine is most likely the trigger for the coming Ebola plague. Videos below include the 3rd one from KafkaWinstonWorld called “US MILITARY IN EBOLA HOT ZONE; ISRAELI MILITARY NOT GOING; ENTIRE COUNTRIES MAY BE VACCINATED!”.

I received the following information from an ex-military guy whom I have known for about eight years. He served in special operations. I’m recalling some of the many things he said.

He suspects that the 1,600 US Army troops who were recently sent to Africa to contend with the Ebola threat are to be exposed to this Ebola virus (which is not the true Zaire Ebola, but a man-made variant; you’ll find out why in a moment), and that these troops will be injected with the new Ebola vaccine, which will subdue that specific virus. However, recalling his victimization as a virus vector in the Army, he suspects that the anti-Ebola vaccine will be given to these US soldiers in Africa, and — just as they did to him — this vaccine will also contain a “trigger” element. These soldiers, who have unwittingly been made virus vectors, will then come home to the United States, and many of them will be discharged; thusly, they will be dispersed to all areas of the United States. This man told me that when these vector soldiers come home to the United States, pathogens will later be released into the atmosphere, perhaps in chemtrails and/or in ground releases, such as in the subway systems of major cities. The latter plot has already been perpetrated in the New York City subway system when they released the serratia marcescens bacteria, which was encapsulated in light bulbs and tossed into the subways. This diabolical plot is documented in the book, CLOUDS OF SECRECY, by Prof. Leonard Cole of Rutgers University. My ex-military friend told me that the trigger element planted in the U.S. soldiers’ ebola vaccinations in Africa will then “recombine” in their bodies with the pathogen that is to be released throughout the United States. The product of this recombination of the pathogen, to be released, and the trigger element that was earlier injected into these 1,600 vector soldiers . . . the product will be a deadly biological weapon< of mass extermination, calculated and designed to go airborne and thus, to be highly contagious. Remember the BATMAN comic book series of 1996, foretelling, in a symbolic story line, this diabolical plot for mass extermination of the American population. You see, the flu vaccine contains the trigger element which, when injected into thousands of victimized vectors, will recombine within the bodies of some of these vectors to make the lethal-but-non-contagious virus (to be released) become an airborne mutant of that virus. My contact also believes that the recent ushering in of thousands of children from Central America across the Texas border near San Antonio is a part of this very same plot that is being perpetrated against our 1,600 U.S. soldiers . . . and I suspect that the ushering in of thousands of illegal Mexicans across the border is likewise another part of this very same diabolical plot of mass extermination of the American population. In fact, infowars.com reporters have confirmed that the Centers for Disease Control is spearheading an unprecedented roundup of illegal Mexicans, who are exhibiting flu-like symptoms. Infowars.com is asking a vital question: Where are the CDC’s disease agents taking all of these illegal, apparently diseased Mexicans? My ex-military, special operations, vaccine-victimized contact told me that he has learned that those thousands of Central American children are being housed at Lackland Air Force base in San Antonio, near the Texas border. He believes that these children are likewise being infected and injected with the trigger element, as part of this diabolical plot to exterminate the American population. The sick Mexicans, who today are being rounded up and sequestered by the CDC, are probably also being brought to Lackland Air Force Base. And Lackland or some similar place is where all the ill Mexicans are probably being sequestered for vaccination with the trigger element that will later make their disease go lethally airborne. And so, we begin to realize that this vaccination victimization of our soldiers in Africa is for the very same purpose as that of ushering many thousands of illegal Mexicans across the Texas and Arizona borders, and as that of ushering in many thousands of Central American children across our borders. We have yet more indications that this diabolical American genocide plot — indeed, this global humanicide plot — is now underway. BeforeItsNews.com has recently broken the story of a disease epidemic at Lackland Air Force Base — an epidemic that is now kept under a veil of tight secrecy, enforced by ominous threats against the insiders at Lackland. And we have reports that people fleeing Africa are being given easy entry into the United States. More desired fuel to feed the fires of contagion! My contact tells me that airports in twenty-four more U.S. cities have just been added as welcome centers for passengers from Africa. John DiNardo

Part 2) Alex Jones: Clues to Killer Flu Conspiracy

In March of 2009, pharmaceutical giants Baxter and Bayer attempted to infect the populations of 18 countries with a deadly laboratory-made bird flu which — when introduced to sizable populations — was certain to mutate and/or recombine with the non-lethal airborne seasonal flu virus in the vaccines which health departments of nations typically dispense to their citizenries. This means that the lethal, but non-airborne bird flu virus would become airborne to unleash a worldwide plague via the masses who are deceived into clamoring for the vaccine, their perceived agent of protection, which would have ironically been the agent of their demise.

However, the eighteen victimized nations detected the lethality of this
Baxter/Bayer trojan horse concoction, and voiced strong objections to this genocidal plot by “big pharma.” Today, a comparably malicious plot is likely being foisted upon the world. Judging by their past treachery, we can be sure that this deadly ebola virus has been concocted in a laboratory and was released by the same demonic perpetrators (sitting atop the pyramid of world power) who tried to murder us with the lethally spiked seasonal flu vaccine five and a half years ago. JD

Advertisements

Obama Administration Suppresses Talk of Muslim Persecution of Christians


http://www.freerepublic.com/focus/f-news/3181378/posts

Obama Administration Suppresses Talk of Muslim Persecution of Christians
FrontPage Magazine ^ | July 17, 2014 | Raymond Ibrahim 

Posted on 7/17/2014 8:07:32 AM by SJackson

Obama Administration Suppresses Talk of Muslim Persecution of Christians

Posted By Raymond Ibrahim On July 17, 2014 @ 12:35 am In Daily Mailer,FrontPage | 1 Comment

Originally published by the Gatestone Institute.

Along with an especially egregious list of atrocities committed against Christian minorities throughout the Islamic world, March also saw some callous indifference or worse from the U.S. government.

President Barack Hussein Obama was criticized by human rights activists for not addressing the plight of Christians and other minorities during his talks with leaders in Saudi Arabia, where Christianity is banned.

According to the Washington-based International Christian Concern (ICC) advocacy group, Obama did not “publicly broach the subject of religious freedom” during talks on March 28 with Saudi King Abdullah, despite a letter from some 70 members of Congress urging him to “address specific human rights reforms” both in public and in direct meetings with Abdullah and other officials.

“This visit was an excellent opportunity for the president to speak up on an issue that affects millions of Saudi citizens and millions more foreign workers living in Saudi Arabia,” said Todd Daniels, ICC’s Middle East regional manager, adding that it was “remarkable that the president could stay completely silent about religious freedom” despite pressure from Congress “to publicly address the issue, as well as other human rights concerns, with King Abdullah…”

U.S. officials reportedly responded by saying that “Obama had not had time to raise concerns about the kingdom’s human rights record.”

Separately, after the United States Institute for Peace (USIP) brought together the governors of Nigeria’s mostly Muslim northern states for a conference in the U.S., the State Department blocked the visa of the region’s only Christian governor, Jonah David Jang, an ordained minister, citing “administrative” problems.  The USIP confirmed that all 19 northern governors were invited, but the organization did not respond to requests for comments on why they would hold talks without the region’s only Christian governor.

According to Emmanuel Ogebe, a Nigerian human rights lawyer based in Washington, the Christian governor’s “visa problems” are due to anti-Christian bias in the U.S. government:  “The U.S. insists that Muslims are the primary victims of Boko Haram. It also claims that Christians discriminate against Muslims in Plateau, which is one of the few Christian majority states in the north. After [Jang, the Christian governor] told them [U.S. authorities] that they were ignoring the 12 Shariah states who institutionalized persecution … he suddenly developed visa problems…  The question remains—why is the U.S. downplaying or denying the attacks against Christians?”

March’s roundup of Muslim persecution of Christians around the world includes (but is not limited to) the following accounts, listed by theme and country alphabetical order, not necessarily according to severity.

The Slaughter of Christians

Egypt: During pro-Muslim Brotherhood riots, a young Coptic woman named Mary was murdered—simply because her cross identified her as a Christian to Brotherhood rioters.  According to an eyewitness who discussed the entire event on the Egyptian program, 90 Minutes, Mary Sameh George was parking by the church to deliver medicine to an elderly woman: “Once they saw that she was a Christian [because of the cross hanging on her rear view mirror], they jumped on top of the car, to the point that the vehicle was no longer visible. The roof of the car collapsed in.  When they realized that she was starting to die, they pulled her out of the car and started pounding on her and pulling her hair—to the point that portions of her hair and scalp came off.  They kept beating her, kicking her, stabbing her with any object or weapon they could find….  Throughout [her ordeal] she tried to protect her face, giving her back to the attackers, till one of them came and stabbed her right in the back, near the heart, finishing her off.  Then another came and grabbed her by the hair, shaking her head, and with the other hand slit her throat.  Another pulled her pants off, to the point that she was totally naked.”

Nigeria:  A Muslim father allegedly slaughtered or had someone else slaughter his daughter with a machete, wounding a pastor and four others in the attack, because she had earlier converted to Christianity. According to police reports, “the suspect allegedly sneaked into the church premises and inflicted machete cuts on the four persons” seriously wounding them and killing his daughter. Prior to that, the father had threatened his daughter to return to Islam or else, and she had taken refuge in the church.  Police had not made clear if it was the father or an accomplice who committed the assault.  Separately, Muslim Fulani herdsmen launched another night raid into a Christian majority region, massacring over 150 people, including a pastor, his wife and children; some 200 homes were torched.  A surviving eyewitness said that attackers were about 40 in number and were armed with knives, guns and other unidentifiable equipment.  They came in the night and began by setting fire to the homes, burning dozens of Christians alive: “Those that tried to escape were butchered or gun down.”

Pakistan:  “A young Christian girl was killed by the Pakistani Taliban in the northern region of Pakistan,” reported Agenzia Fide: “The girl had spent a few months on the run and in hiding with her cousin, a Muslim who converted to Christianity a few years ago. Since the conversion, the man is considered an ‘apostate’ and since then he has been the target of the Taliban. In past days, some militants discovered where the two were hiding: the girl in the escape was reached by a bullet and was killed, while the man managed to escape.”

Somalia: Members of the militant Islamic group, al-Shabaab, publicly beheaded a mother of two girls and her cousin after discovering they were Christians.  According to local sources, the Islamists “called residents to the town center to witness the executions of the 41-year-old mother, Sadia Ali Omar, and her 35-year-old cousin, Osman Mohamoud Moge.”  Before slaughtering the two women, an al-Shabaab member announced, “We know these two people are Christians who recently came back from Kenya—we want to wipe out any underground Christian living inside of mujahidin [jihadi] area.”  The two daughters of one of the women, ages 8 and 15, “were witness to the slaughter, sources said, with the younger girl screaming and shouting for someone to save her mother. A friend helped the girls, whose names are withheld, to relocate to another area,” saying “We are afraid that the al-Shabaab might continue monitoring these two children and eventually kill them just like their mother.”

Attacks on Christian Churches

Egypt: After numerous death sentences were handed out to convicted Muslim Brotherhood members, their supporters protested and rioted in the streets.  According to Spero News, “Violence spilled over from demonstrations in the Cairo suburb of Ain Shams when Muslim protesters attacked a Coptic Orthodox Christian church on March 28. Four people were killed in the attack on the church, dedicated to the Virgin Mary and Archangel Michael. Among the dead are a 25-year-old journalist and a Coptic Christian worshipper. When Egyptian security forces intervened, violence spread throughout the surrounding neighborhood. Muslim radicals are frequently whipped up into frenzy by their religious leaders on Fridays when they gather for prayer.”

Kenya: During Sunday worship service, two heavily-armed gunmen entered the Joy in Jesus Church in Monbasa—a region which according to authorities has a mosque with ties to the Somali Islamic terrorist group al-Shabaab—and “sprayed the congregation with bullets, killing at least seven Christians and leaving several others in critical condition,” including the assistant pastor, reports Morning Star News:  “As the attackers fled Joy in Jesus Church, a box holding 26 bullets dropped outside the church,” indicating that they intended for even more carnage.  According to one church leader, “We as the church feel that what happened is a retaliation for the attack [by police] that took place in Masjid Musa Mosque recently.  When the Muslims are attacked, there is a false generalization that the Christians are the ones doing it. We as the church became a scapegoat for the recent attack on the mosque.”  (This logic is very similar to the barrage of church attacks the Coptic Christians of Egypt suffered in “retaliation” after the Muslim Brotherhood and former president Morsi were ousted during the June 30 revolution.)

Pakistan:  One day after Christians placed a cross on a partially constructed church that was being built on a fellow Christian’s land, a Muslim mob “damaged the building and the land by ploughing the ground with the help of a tractor” and “desecrated” the cross, reported The Express Tribune.  The chairman of the Human Liberation Commission Pakistan added that “the Christian community was not protected in Pakistan and that they face discrimination at every level.” Discussing this incident Agenzia Fides reports that “when a large group of Islamic extremists saw the Christian symbol [the cross] they arrived unexpectedly with bulldozers and started demolishing the building…. the perpetrators were not arrested, thanks to the political clout they have. Christians in the neighborhood who have asked for protection to civil authorities, on the other hand have received threats and have to abandon the idea of the project to build a church.”

Uganda: In the predominantly Muslim districts of the Christian-majority African nation, “Islamic extremists burned down two church buildings of the Free Church of Christ in February and the home of a church leader” in March, reported Morning Star News.  Bishop James Kinyewa, 47, recounted the atrocity: “While I was preaching, I heard loud noise, people saying, ‘Fire! Fire!’ coming from nearby neighbors.”  He found “rowdy Muslim youths with clubs and machetes” who prevented him and others from trying to put out the fire from his house. “They were shouting, ‘Allahu Akbar [Allah is greater],’” he said. “Now the same militant group is hunting for my life. My family and I are now hiding ourselves, homeless and waiting for God’s intervention.” Everything inside the two razed church buildings, which served a total of 240 people, was destroyed, leaving the bishop to lament, “My church members have no place to worship.”

Attacks on Christian Freedom: Apostasy, Blasphemy, Proselytism

Brunei: A new penal code in the Muslim majority nation threatens school principals and schoolteachers with five years’ imprisonment and up to $20,000 in fines if they teach or speak to a Muslim child of religions other than Islam. (Future punishments may include amputation and even execution.) According to the new law, which is based on Sharia, or Islamic law, it is a crime “to persuade, influence, incite, encourage a child with non- Islamic teaching.”  It is also a crime to “expose the child to any ceremony or act of worship which is not Islamic or allow the child to participate in activities for the benefit of other religions.”  The new law is of especial concern to private Christian schools, where Muslim students attend.

Iran: Vahid Hakkani, a Christian man who was imprisoned and sentenced to 44 months jail-time, after being found guilty of “attending a house-church, spreading  Christianity, having contact with foreign [Christian] ministries” and “disrupting national security,” began a hunger strike in prison to protest the rejection of his conditional release appeal by the Revolutionary Court, despite concerns over his health.  Far from rethinking his sentence, according to his family, “prison authorities will transfer him to solitary confinement because he refuses to stop his hunger strike.”

Separately, eight more Christians were detained, blindfolded, and interrogated by security forces over their “Christian activities,” said rights activists.  Some members of the group had their personal items, including cell phones, confiscated.

KazakhstanChristian preaching is “extremely harmful to mental health of the people”: such was the ruling of a law court which led to the sentencing of a Christian pastor, Bakhytzhan Kashkumayev, to four years in prison. According to Agenzia Fides, “the [67-year-old] Pastor, who is responsible for the Grace Church in the Kazak capital Astana was found guilty of ‘causing serious mental disorder’ to a presumed victim Lyazzat Almenova. The Pastor will also have to pay a heavy fine … for the ‘moral damage’ inflicted.” The pastor’s lawyer said that this is one of the “strangest cases he has ever come across, in terms of legality.”

Pakistan: Last March, 2013, after a Christian man was accused of maligning the prophet of Islam he was arrested by police. Nonetheless, thousands of Muslims attacked Christian colonies, burning churches and homes; protesting Christians were attacked by the police, while not one of the thousands of rampaging Muslims was convicted.  Now, one year later, the blasphemer, Sawan Masih, has beensentenced to death at a hearing held in the prison cell of the Christian, “out of fears that Masih might be attacked on his way to court.”  Separately, two other Christians, a paralyzed, sickly man and his wife, also accused of “blasphemy via sms”—that is, blaspheming via text messaging—remained in prison.  According to “World Vision in Progress,” the “judges of the High Court were initially convinced of what was said by the defense. But after pressure from Muslim religious leaders and the threats of extremists in Gojra, the judges denied bail, saying the case will be completed within two months. Radical Muslims had already threatened defense lawyers many times.” Concerning the aforementioned Christian man sentenced to death, Fr. James Channan OP, Director of the Peace Center in Lahore, Pakistan, said the following: “It was a dispute over a matter concerning property. But the Muslim took advantage, finding a shortcut and accused Sawan of blasphemy. The whole world knows what happened next. Over 100 Christian homes of Joseph Colony, a Christian neighborhood in Lahore, were destroyed, 2 churches burned, Bibles desecrated and Crosses destroyed by an angry mob of more than 3,000 fanatics. The Christians of Joseph Colony still live in danger and fear that the mob might attack again at any time….  After Sawan’s death sentence, I ask myself: where is justice? Why is nothing done against these innocent Christians who have been attacked and have lost their possessions? What about the churches which were desecrated, Bibles burned and crosses destroyed? Is this not blasphemy?”

Uganda:  when a 23-year-old Muslim woman converted to Christianity and a neighbor informed her father, “My father began beating me with clubs and blows, and I started screaming in great pain,” she said. “While I was down on the floor bleeding, my father went looking for a knife to kill me. A neighbor named Saleem arrived and helped me escape.”  She found lodging from a nearby church and was taken to a hospital the next day.

Dhimmitude

BangladeshThe home of a Catholic family was torched and destroyed during the night, and the culprits, according to residents, “could be Islamic fundamentalists.”  The family, two women and two children, managed to escape the blaze.  According to one of the women, “Three days before the fire we saw some people unknown to us behind our house. They asked around if we were Christians. We feel that this attack was premeditated by them. We have lost in [sic] everything, including our Bible and the crucifix. All we have left are the cloth[e]s on our backs.” A local priest adds: “This is an attack against the minority, and could be the hands of Islamic extremists. They are very powerful in the area.”

Iraq: A Christian politician and member of the Assyrian Democratic Movement “denounced some officials of the Nineveh province after collecting documented evidence on the corrupt system where many properties—land and houses—belonging to Christians change hands in an illegal and secret manner, without any mandate on behalf of their legitimate owners.”  He also called on Iraqi Christians who fled their homeland to check the status of the property they left in Iraq and reaffirm their full rights on them.

Pakistan: A March report by Agenzia Fides offers a glimpse of the endemic rape and sexual abuse of Christian girls at the hands of Muslims: “The rape of girls belonging to religious minorities is a very common phenomenon in Pakistan. Christian women are a prime target, because the most vulnerable and defenseless. The majority of cases are not even reported to the police and, when it happens, the perpetrators of violence often go unpunished. The Christian community is still shocked by the recent case of Sumbal, a 5-year-old Christian girl, raped by a group of Muslim men on a street in Lahore….  Another recent case … concerns a Muslim man from Lahore who attempted to rape two Christian girls, sisters, aged 1 and 3….  A few months ago another case aroused indignation: that of a 9-year-old Christian girl who suffered a gang rape by three young Muslims. Violence against children are committed with ease, explains a source of Fides that assists victims, especially because the perpetrators remain unpunished: injustice fuels the vicious cycle of violence.  In 2004, a case that caused uproar around the world was the brutal rape of a-two-year old child Neha Munir raped because her father, Munir Masih, a Christian, refused to convert to Islam.”

Syria: Al-Qaeda linked Islamic jihadis crossed into Syrian territory from the Turkish border and launched a jihad on the Christian/Armenian town of Kessab.   Among other things, “Snipers targeted the civilian population and launched mortar attacks on the town and the surrounding villages.”  Reportedly eighty people were killed.  The jihadis later made a video touring the devastated town.  No translation is needed, as the main phrase shouted throughout is Islam’s triumphant war cry, “Allahu Akbar” (which, according to Sen. John McCain, simply means “thank God”).  About two-thousand Armenians were evacuated to neighboring areas. While occupying Kessab, the jihadi terrorists desecrated the town’s three Armenian churches/

Turkey:  Five men held in prison as suspects in the 2007 “Malatya Massacre”—when three Christian missionaries were tortured to death—were released.  The five walked free from their high-security prison because their time in detention while on trial exceeded new legal limits.  “It is deeply disturbing to hear that the five men responsible for these brutal murders have been freed on bail, including three who were arrested at the crime scene,” said Christian Solidarity Worldwide’s chief executive Mervyn Thomas: “We urge the Turkish authorities to take every necessary measure to ensure they remain in the country to face justice, which has been exceedingly long in coming.  This trial has been ongoing for six years with no indication of a conclusion in the near future.  Our thoughts and prayers are with the families and friends of the victims, to whom the release of these men has dealt yet another blow, no doubt leaving them with a deepening sense of uncertainty as to whether they will ever see justice for their loved ones. For their sakes, the Turkish authorities must ensure that justice is served as a matter of urgency.”

About this Series

The persecution of Christians in the Islamic world has become endemic.  Accordingly, “Muslim Persecution of Christians” was developed to collate some—by no means all—of the instances of persecution that surface each month. It serves two purposes:

1)    To document that which the mainstream media does not: the habitual, if not chronic, persecution of Christians.

2)    To show that such persecution is not “random,” but systematic and interrelated—that it is rooted in a worldview inspired by Islamic Sharia.

Accordingly, whatever the anecdote of persecution, it typically fits under a specific theme, including hatred for churches and other Christian symbols; apostasy, blasphemy, and proselytism laws that criminalize and sometimes punish with death those who “offend” Islam; sexual abuse of Christian women; forced conversions to Islam;  theft and plunder in lieu of jizya (financial tribute expected from non-Muslims); overall expectations for Christians to behave like cowed dhimmis, or second-class, “tolerated” citizens; and simple violence and murder. Sometimes it is a combination thereof.

Because these accounts of persecution span different ethnicities, languages, and locales—from Morocco in the West, to Indonesia in the East—it should be clear that one thing alone binds them: Islam—whether the strict application of Islamic Sharia law, or the supremacist culture born of it.

 

 


TOPICS: News/Current EventsPolitics/ElectionsWar on Terror
KEYWORDS: christiangenocidechristianpersecutionmemuslimsobamareligiouscleansing

Statement of Facts for CitiGroup Settlement – Dept. Of Justice Action

http://www.justice.gov/iso/opa/resources/558201471413645397758.pdf

1
STATEMENT OF FACTS
In 2006 and 2007, Citigroup Inc., through certain of its affiliates (“Citigroup”), securitized thousands of residential mortgage loans and sold the resulting residential mortgagebacked securities (“RMBS”) for tens of billions of dollars to investors, including federally insured financial institutions. Prior to securitization, Citigroup conducted due diligence on loans (including credit, compliance, and valuation due diligence). In securitizing and issuing the RMBS, Citigroup provided representations in offering documents about the characteristics of the underlying loans. As described below, in the due diligence process, Citigroup received information indicating that, for certain loan pools, significant percentages of the loans reviewed did not conform to the representations provided to investors about the pools of loans to be securitized.  Citigroup’s RMBS securitization process and representations In 2006 and 2007, Citigroup securitized and sold RMBS, through both “thirdparty” and “principal” transactions.  For “third-party” transactions, Citigroup served as an underwriter. In certain of those transactions, Citigroup served as the lead underwriter. In that role, Citigroup, among  other things, structured the transaction and sold RMBS certificates to investors. Citigroup acted as an underwriter through its wholly-owned subsidiary Citigroup Global Markets Inc. For “principal” transactions, Citigroup purchased groups or “pools” of loans from third parties prior to securitization and, in certain instances, originated the loans itself through another of its subsidiaries. Citigroup also acted as underwriter for certain of the principal transactions. Citigroup bought pools of mortgage loans from numerous lending  institutions, or “originators.” These lending institutions included Ameriquest Mortgage Company, Argent Mortgage Company LLC, Accredited Home Lenders, Inc., Countrywide Home Loans, Inc., New Century Mortgage Corporation, Wells Fargo Bank, N.A., and others. 
2
In these transactions, Citigroup securitized the loans under its own shelf registration, such as its shelf  known as “Citigroup Mortgage Loan Trust Inc.” or “CMLTI.” In various RMBS offerings, Citigroup provided representations, or otherwise disclosed information, in certain offering documents, about the loans it securitized, telling investors that:
 Loans in the securitized pools were originated generally in accordance with the loan originator’s underwriting guidelines.
 Exceptions to those underwriting guidelines had been made when the originator identified  “compensating factors” at the time of origination.
 The securitization sponsor or originator (which, in certain instances, was Citigroup) represented that each loan had been originated in compliance with federal,  state, and local laws and regulations.
 The loans being securitized had various characteristics, such as loan-to-value ratios at origination within various ranges.

In the base prospectus for certain RMBS offerings, Citigroup further represented that it would not include any loan “if anything has come to [Citigroup’s] attention that would cause it to believe that the representations and warranties made in respect of such mortgage loan will not be accurate and complete in all material respects as of the date of initial issuance of the related series of securities.”  Citigroup’s due diligence process Citigroup reviewed due diligence results on loans prior to securitization.
3
In principal transactions, before purchasing a pool of loans from a third-party originator, Citigroup conducted due diligence on those loans.  Citigroup typically conducted this due diligence by reviewing certain loans in the loan pool, rather than the entire pool. This sample was generally composed of certain loans from the pool with characteristics that Citigroup viewed as warranting review. Citigroup  would contract with a due diligence vendor to review the sampled loans. The vendor would “re-underwrite” the individual loan files in the sample.  Part of this review focused on “credit,” including whether the loan met the originator’s underwriting guidelines, or whether the originator had found the loan to possess sufficient “compensating factors” to warrant a deviation from the guidelines. Another part of this review was focused on “compliance,” to determine whether the loan had been originated in compliance with federal, state, and local laws and regulations. For each sampled loan reviewed for “credit” and “compliance,” the due diligence vendor assigned a grade. In general, the vendor graded a loan “EV1” when the loan was underwritten according to the applicable guidelines and originated in compliance with applicable laws. The vendor generally graded a loan as “EV2” when the loan did not comply with applicable underwriting guidelines, but nonetheless had sufficient compensating factors that the originator had found to justify the extension of credit. The vendor graded a loan “EV3” when the loan was not originated in compliance with applicable laws and regulations, the loan did not comply with applicable underwriting guidelines and lacked the sufficient offsetting compensating factors, or the loan file was missing a key piece of documentation.  Citigroup obtained the results of the credit and compliance reviews from the due diligence vendors and was provided information about the number or percentage of loans in the sample that the vendor had graded EV3. Citigroup also was provided with the reasons that the vendor had assigned the EV3 grades, including the nature of the defects, such as 

4
whether the borrower had unreasonable stated income, when the borrower’s credit score was below guidelines, when the ratios of loan-to-property value and debt-to-income exceeded the underwriting guidelines, and when the loan file reviewed was missing  documents or had inadequate documentation. Citigroup referred to EV3 loans as “kicks,” “kickouts,” or “rejects.” Citigroup also used a due diligence process to assess the reported values of the properties that served as collateral for the mortgage loans. This “valuation” review was intended to determine whether information about the property’s value sufficiently supported the reported value for the property. The valuation review was conducted by a vendor, using methods such as automated valuation models, broker price opinions, and appraisal reviews.  The vendor used one or more of these methods to calculate a valuation determination for the property being reviewed. Citigroup used thresholds or “tolerances” for the valuation firm to assess whether the information about the property’s value sufficiently supported the reported value as determined by an appraiser. Citigroup instructed the vendor to recommend the loan for rejection if the vendor’s valuation determination differed from the appraised value by more than 15 percent with respect to certain types of loans. In other words, Citigroup had an internal “tolerance” of up to 15 percent. This meant that Citigroup routinely accepted, for purposes of  the valuation review, specific types of loans for purchase and securitization when the valuation firm’s determination deviated by less than 15 percent from the reported appraised value. Citigroup’s thresholds further provided that if a valuation firm determined that the combined loan-to-value ratio for a loan exceeded 100 percent, the loan would be recommended  for rejection.  In third-party transactions, depending on the role played by Citigroup, Citigroup would work with due diligence vendors to perform diligence on samples of loans selected with
5
the participation of the issuer or otherwise review reports from due diligence vendors retained by the issuer or other underwriters to the transaction.  Due diligence on Citigroup RMBS in 2006 and 2007 In 2006 and 2007, Citigroup’s due diligence vendors provided Citigroup with reports reflecting that the vendors had graded certain of the sampled loans as EV3. For numerous pools, the reports showed that the vendors had graded significant percentages of the sampled loans as EV3.1  In addition, Citigroup’s internal due diligence personnel reevaluated loan grades and subsequently directed the due diligence vendor to assign grades of EV1 or EV2 to loans as  to which Citigroup’s due diligence vendors had previously assigned grades of EV3. Certain of Citigroup’s main due diligence vendors would track when loans that they had graded as EV3 were “waived” in by Citigroup. Citigroup’s contemporaneous records did not in all cases document Citigroup’s reasons for directing the due diligence vendors to re-grade loans.  Further, in certain instances, Citigroup learned from the vendors conducting valuation due diligence that loans in particular loan pools exceeded Citigroup’s valuation tolerances. The vendors also reported that a number of the properties securing the loans had reported or appraised values that were higher than the vendors’ valuation determination. In certain instances, Citigroup securitized loans that its vendors had reported exceeded Citigroup’s valuation tolerances or where the vendor’s valuation determination exceeded the reported or appraised value.

1 There were loans in each of the RMBS reviewed by the Justice Department that did not comply with underwriting guidelines, including the securitizations set forth on Appendix 1, which the Justice Department determined to contain significant percentages of  defective loans.
6
Examples In the following deals, Citigroup securitized loans, making representations of the type described earlier that the loans generally complied with underwriting guidelines or  had sufficient compensating factors, had been originated in compliance with law, and possessed certain characteristics.
1. In three CMLTI RMBS issued and underwritten by Citigroup in 2006, Citigroup’s due diligence vendors reported to Citigroup their findings that loans in the samples had not been originated in compliance with underwriting guidelines and with applicable federal law and regulations. Certain of these loans were missing documentation, such as HUD-1 documents that Citigroup had told the vendor were necessary. A due diligence report sent to Citigroup, after the re- underwriting was complete, showed that more than 12 percent of loans in the sample had been graded EV3. A due diligence report for another large pool, which contributed over 2,000 loans to another RMBS, showed that more than 29 percent of the sampled loans had been graded EV3. Citigroup securitized the loans from these pools that had not been rejected at the end of the due diligence process in the three RMBS. 

2. In an RMBS where Citigroup served as the lead underwriter in 2006, the due diligence report provided to Citigroup by its vendor showed that more than 25 percent of the loans in the sample reviewed for credit and compliance had been graded by the vendor as EV3 or were found to have missing file documents. Many of the loans did not comply with underwriting guidelines or represented exceptions to those guidelines: more than 67 percent were graded as EV2 by the vendor. The vendor graded only approximately 6 percent of the loans in the sample as EV1. Notwithstanding these results, Citigroup securitized loans from this pool in the RMBS. 

3. In a CMLTI RMBS issued and underwritten by Citigroup in 2007, the due diligence vendor initially reviewed a sample of loans selected based on certain criteria (the
7
“adverse sample”). Early in the diligence process, the vendor notified Citigroup employees that it had graded over 44 percent of the adverse sample as EV3s. The vendor identified trends associated with its review of those loans and stated that, if the trends continued, it expected the pool to have an “unusually large” number and percentage of rejects.  Later in the due diligence process, the vendor asked Citigroup whether it would  be “prudent” to perform additional diligence based on a random sample, to determine whether the large number of “kick outs” were the result of the adverse selection method or reflective of the loans across the entire pool. Thereafter, the due diligence vendor advised Citigroup that it had graded over 32 percent of the random sample as EV3.  In addition, during the due diligence on the same loan pool, Citigroup’s due diligence personnel reevaluated certain of the vendor’s loan grades and directed the due diligence vendor to change some of those grades from an EV3 to an EV2 or EV1. The final report from the vendor graded approximately 20 percent of the sample as EV3.  Apart from the random sample, Citigroup did not conduct further due diligence to determine whether the remaining loans in the pool contained defects. Instead, Citigroup securitized loans from this pool in the RMBS.

4. In two CMLTI RMBS issued and underwritten by Citigroup in 2007, Citigroup’s due diligence vendor identified a number of loans that were outside of Citigroup’s valuation rules and tolerances. These included loans where the difference between the reported original appraisal and the vendor’s valuation determination exceeded 15 percent, or otherwise exceeded Citigroup’s thresholds. Citigroup also instructed the due diligence vendor to change the grades of loans that its vendor had recommended for rejection, following Citigroup’s review of those loans and loan grades. Citigroup then securitized hundreds of the loans that its vendor had identified as outside of Citigroup’s tolerances.
8
In addition, early in the due diligence process, a trader at Citigroup wrote an internal email that indicated that he had reviewed a due diligence report summarizing loans that the due diligence vendor had graded as EV3s and had noted that “a lot” of these rejected loans had unreasonable income and values below the original appraisal, which resulted in combined loan- to-value in excess of 100 percent. The trader stated that he “went thru the Diligence Reports and think that we should start praying… I would not be surprised if half of these loans went down. There are a lot of loans that have unreasonable incomes, values below the original appraisals (CLTV would be >100), etc. It’s amazing that some of these loans were closed at all.”   Despite this trader’s observations, Citigroup securitized loans from this pool in the two RMBS.

5. In four CMLTI RMBS issued and underwritten by Citigroup in 2007, Citigroup securitized loans from two loan sellers.  Citigroup employees had been informed that in prior RMBS securitizations where the underlying loans were from the same companies, a significant number of loans had already gone into early default.  In addition, prior to the securitization of those four RMBS, Citigroup received additional information about the quality of mortgage underwriting at those companies. Prior to the issuance of the four RMBS in 2007, Citigroup had begun the process to acquire assets from one of the companies. As part of that acquisition, Citigroup conducted due diligence on the companies. As part of that due diligence, Citigroup received some of the company’s internal audit reports, and distributed them to, among others,  a Managing Director who was involved with Citigroup’s RMBS securitizations. The internal audit reports showed that the seller had itself found, in the prior year, that it lacked key internal controls over its quality assurance for loan production, and that substantial percentages of the loans failed to adhere to underwriting guidelines, which the seller itself labelled as “high risk.”
9
Citigroup also conducted its own reviews of a sample of loans provided by the seller. In that process, Citigroup identified issues with the seller’s internal quality controls. During this time, Citigroup’s due diligence vendors graded a number of sampled loans, both from loan pools to be securitized and from loans funded through “warehouse” lines of credit, as EV3, including loans that the vendors found did not comply with applicable laws and regulations due to missing documentation. In certain instances, Citigroup’s due diligence personnel reevaluated certain of the vendors’ loan grades and instructed its due diligence vendor to change some of those grades from an EV3 to an EV2 or EV1.  Notwithstanding the information Citigroup had received about the companies’ loans, Citigroup purchased the loan pools and securitized loans from those pools in the four RMBS.

CitiGroup Penalty “Largest of It’s Kind”! FINALLY Someone is Paying For Misleading Investors About Toxic Mortgages

Department of Justice

http://www.justice.gov/opa/pr/2014/July/14-ag-733.html

Office of Public Affairs

FOR IMMEDIATE RELEASE

Monday, July 14, 2014

Justice Department, Federal and State Partners Secure Record $7 Billion Global Settlement with Citigroup for Misleading Investors About Securities Containing Toxic Mortgages

Citigroup to Pay the Largest Penalty of Its Kind – $4 Billion

The Justice Department, along with federal and state partners, today announced a $7 billion settlement with Citigroup Inc. to resolve federal and state civil claims related to Citigroup’s conduct in the packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities (RMBS) prior to Jan. 1, 2009.  The resolution includes a $4 billion civil penalty – the largest penalty to date under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).  As part of the settlement, Citigroup acknowledged it made serious misrepresentations to the public – including the investing public – about the mortgage loans it securitized in RMBS.  The resolution also requires Citigroup to provide relief to underwater homeowners, distressed borrowers and affected communities through a variety of means including financing affordable rental housing developments for low-income families in high-cost areas.  The settlement does not absolve Citigroup or its employees from facing any possible criminal charges.

This settlement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group, which has recovered $20 billion to date for American consumers and investors.  

“This historic penalty is appropriate given the strength of the evidence of the wrongdoing committed by Citi,” said Attorney General Eric Holder.  “The bank’s activities contributed mightily to the financial crisis that devastated our economy in 2008.  Taken together, we believe the size and scope of this resolution goes beyond what could be considered the mere cost of doing business.  Citi is not the first financial institution to be held accountable by this Justice Department, and it will certainly not be the last.”

 The settlement includes an agreed upon statement of facts that describes how Citigroup made representations to RMBS investors about the quality of the mortgage loans it securitized and sold to investors.  Contrary to those representations, Citigroup securitized and sold RMBS with underlying mortgage loans that it knew had material defects.  As the statement of facts explains, on a number of occasions, Citigroup employees learned that significant percentages of the mortgage loans reviewed in due diligence had material defects.  In one instance, a Citigroup trader stated in an internal email that he “went through the Diligence Reports and think[s] [they] should start praying . . . [he] would not be surprised if half of these loans went down. . . It’s amazing that some of these loans were closed at all.”  Citigroup nevertheless securitized the loan pools containing defective loans and sold the resulting RMBS to investors for billions of dollars.  This conduct, along with similar conduct by other banks that bundled defective and toxic loans into securities and misled investors who purchased those securities, contributed to the financial crisis.                                  

“Today, we hold Citi accountable for its contributing role in creating the financial crisis, not only by demanding the largest civil penalty in history, but also by requiring innovative consumer relief that will help rectify the harm caused by Citi’s conduct,” said Associate Attorney General Tony West.  “In addition to the principal reductions and loan modifications we’ve built into previous resolutions, this consumer relief menu includes new measures such as $200 million in typically hard-to-obtain financing that will facilitate the construction of affordable rental housing, bringing relief to families pushed into the rental market in the wake of the financial crisis.”

Of the $7 billion resolution, $4.5 billion will be paid to settle federal and state civil claims by various entities related to RMBS: Citigroup will pay $4 billion as a civil penalty to settle the Justice Department claims under FIRREA, $208.25 million to settle federal and state securities claims by the Federal Deposit Insurance Corporation (FDIC), $102.7 million to settle claims by the state of California, $92 million to settle claims by the state of New York, $44 million to settle claims by the state of Illinois, $45.7  million to settle claims by the Commonwealth of Massachusetts, and $7.35 to settle claims by the state of Delaware.

Citigroup will pay out the remaining $2.5 billion in the form of relief to aid consumers harmed by the unlawful conduct of Citigroup.  That relief will take various forms, including loan modification for underwater homeowners, refinancing for distressed borrowers, down payment and closing cost assistance to homebuyers, donations to organizations assisting communities in redevelopment and affordable rental housing for low-income families in high-cost areas.  An independent monitor will be appointed to determine whether Citigroup is satisfying its obligations.  If Citigroup fails to live up to its agreement by the end of 2018,  it must pay liquidated damages in the amount of the shortfall to NeighborWorks America, a non-profit organization and leader in providing affordable housing and facilitating community development.  

The U.S. Attorney’s Offices for the Eastern District of New York and the District of Colorado conducted investigations into Citigroup’s practices related to the sale and issuance of RMBS between 2006 and 2007.

“The strength of our financial markets depends on the truth of the representations that banks provide to investors and the public every day,” said U.S. Attorney John Walsh for the District of Colorado, Co-Chair of the RMBS Working Group.  “Today’s $7 billion settlement is a major step toward restoring public confidence in those markets.  Due to the tireless work by the Department of Justice, Citigroup is being forced to take responsibility for its home mortgage securitization misconduct in the years leading up to the financial crisis.  As important a step as this settlement is, however, the work of the RMBS working group is far from done, we will continue to pursue our investigations and cases vigorously because many other banks have not yet taken responsibility for their misconduct in packaging and selling RMBS securities.”

“After nearly 50 subpoenas to Citigroup, Trustees, Servicers, Due Diligence providers and their employees, and after collecting nearly 25 million documents relating to every residential mortgage backed security issued or underwritten by Citigroup in 2006 and 2007, our teams found that the misconduct in Citigroup’s deals devastated the nation and the world’s economies, touching everyone,” said U.S. Attorney of the Eastern District of New York Loretta Lynch.  “The investors in Citigroup RMBS included federally-insured financial institutions, as well as a host of states, cities, public and union pension and benefit funds, universities, religious charities, and hospitals, among others.  These are our neighbors in Colorado, New York and around the country, hard-working people who saved and put away for retirement, only to see their savings decimated.”

This settlement resolves civil claims against Citigroup arising out of certain securities packaged, securitized, structured, marketed, and sold by Citigroup.  The agreement does not release individuals from civil charges, nor does it release Citigroup or any individuals from potential criminal prosecution. In addition, as part of the settlement, Citigroup has pledged to fully cooperate in investigations related to the conduct covered by the agreement.

 Michael Stephens, Acting Inspector General for the Federal Housing Finance Agency said, “Citigroup securitized billions of dollars of defective mortgages, after which investors suffered enormous losses by purchasing RMBS from Citi not knowing about those defects. Today’s settlement is another significant step by FHFA-OIG and its law enforcement partners to hold accountable those who committed acts of fraud and deceit in the lead up to the financial crisis, and is a necessary step toward reviving a sound RMBS market that is crucial to the housing industry and the American economy.  We are proud to have worked with the Department of Justice, the U.S. Attorneys’ Offices in the Eastern District of New York and the District of Colorado. They have been great partners and we look forward to our continued work together.”

The underlying investigation was led by Assistant U.S. Attorneys Richard K. Hayes, Kevin Traskos, Lila Bateman, John Vagelatos, J. Chris Larson and Edward K. Newman, with the support of agents from the Office of the Inspector General for the Federal Housing Finance Agency, in conjunction with the President’s Financial Fraud Enforcement Task Force’s RMBS Working Group.

The RMBS Working Group is a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis.  The RMBS Working Group brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, 10 U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than 10 state Attorneys General offices around the country.

The RMBS Working Group is led by its Director Geoffrey Graber and its five co-chairs: Assistant Attorney General for the Civil Division Stuart Delery, Assistant Attorney General for the Criminal Division Leslie Caldwell, Director of the SEC’s Division of Enforcement Andrew Ceresney, U.S. Attorney for the District of Colorado John Walsh and New York Attorney General Eric Schneiderman.

Learn more about the RMBS Working Group and the Financial Fraud Enforcement Task Force at: http://www.stopfraud.gov .