FAIR HOUSING GROUPS: LEGALIZED EXTORTIONISTS?

Busted on Craigslist...

We are seeing an increasing number of complaints and lawsuits linked to the rental listings on the ever-popular Craigslist. The question is how many of these complaints and lawsuits are justifiable as eliminating real discrimination and how many of these are being filed by those organizations and attorneys who are simply trolling Craigslist seeking quick and easy bucks?

Like the immunity granted to newspapers for their classified advertisements, the courts have reaffirmed Craigslist's immunity in publishing offending listings.

Which leaves the individual advertiser at the mercy of those trolling the listings.

The latest egregious case comes from affluent Orange County and a rental of a small apartment on posh Balboa Island.

From the Orange County Register...

"Unfair fight? State and local housing councils act as prosecutor, judge and jury against perceived discrimination. Critics see a conflict of interest."

"A few little words could cost Dan Bader a fortune."

"In 2006, Bader advertised an apartment for rent on Craigslist. He wanted $1,950 a month for the adjoining 480-square foot unit in back of his Newport Beach home. As an afterthought, he added, 'Well suited for professional adults' and 'Perfect for 1 or 2 professionals.'"

"Bad move."

"That fall, the state notified Bader that the Fair Housing Council of Orange County had filed a complaint against him for "possible discrimination" against people with children. That was a surprise because he says previous tenants had children. Bader eventually agreed to a meeting."

Combined, judge, jury and executioner...

"But when Bader arrived at the state Department of Fair Employment and Housing office in Los Angeles, he says he found a surprise: The council wasn't represented. Only bureaucrats were there."

Pay up or else...

After an apparent expensive investigation; which featured a process server coming from Los Angeles to Orange County to personally serve the complaint, the review of numerous documents painstakingly provided by Bader, the embarrassing contacting  of old tenants and neighbors, Bader's actions were judged to be non-discriminatory.

"Bader says two state employees told him the state had determined he does not discriminate, but the ads were still a problem. He says they told him the complaint would be dropped if he paid the council $4,000 for expenses and agreed to take five years of the council's landlord classes at an additional cost."

What could you possibly learn about discrimination that takes five years, especially since you could earn a college law degree in that time? Sounds like a money-making racket to me. An 8-hour course, like that given to traffic offenders, seems about right. And there is no guarantee that any educational efforts will make a difference as traffic offenders may simply rush home after class -- right through a red light.

Perhaps, the real sentence should be a course of psycho-therapy to cure the real or imagined bigotry which may or may not exist. Given to the housing council's operators!

Extortion: If it looks like a duck, walks like a duck and quacks like a duck, it must be ... a duck!

Extortion...  is a criminal offense, which occurs when a person either unlawfully obtains money, property or services from a person, entity, or institution through coercion or intimidation or threatens a person, entity, or institution with physical or reputational harm unless he is paid money or property.

"Bader thought that sounded like extortion, so he refused to settle. In November, the state slapped him with a housing discrimination lawsuit seeking 'unlimited" damages on behalf of the council. The case is still pending."

Fair housing law...

Welcome to the weird world of fair housing enforcement. While the above proceedings might appear unfair, my research indicates they actually illustrate how the process is supposed to work. The law provides special rights for groups like the fair housing council. The Fair Housing Council of Orange County and others insist they act ethically. Critics disagree.

"There's an imbalance of power," said Los Angeles attorney Stephen C. Johnson, who's been involved in several cases similar to Bader's."

"'Fair housing groups are charged with enforcing the law, but they can also seek money from the people they bust. Johnson said there's nothing to stop them from abusing their power. Time after time, he said, he's seen these groups use their legal privileges to squeeze landlords.'"

"'They're not regulated,' he said, adding that government isn't likely to pull their funding. "

Legal vigilantes funded by public money...

"You read that right: Fair housing councils are funded primarily by your tax dollars. So, in Bader's case, his money not only pays for the state's lawsuit against him, it also funds for the agency accusing him. "

"For more information on this bizarre world, I turned to Shanna Smith, president and CEO of the Washington, D.C.-based National Fair Housing Alliance, the umbrella organization for nonprofit enforcement groups."

Smith told me the first of these organizations were founded in the 1960s during the civil rights movement, but many more were added in the 1980s when the federal government began offering grants for fair housing enforcement. Today, she said, there are roughly 75 such nonprofits nationwide."

"On my own, I found that the federal Department of Housing and Urban Development gave $6.5 million to eight California organizations from 2004 to 2007. Orange County's group received three grants for a total of $443,800. "

"Most of the fair housing groups are in California, Chicago and Ohio," Smith said.

Finding their own plaintiffs and making their own cases...

"Most fair housing centers don't wait for consumers to walk through the door because most consumers don't recognize discrimination because it's very, very subtle," Smith said. The only way to find it is through research."

Profitable work for a non-profit publicly-funded organization... 

"For this trouble, the courts have granted nonprofits a special perk, Smith said. Courts allow them to seek money from accused landlords to cover the cost of their investigations and to re-educate people about the law. That explains why Bader was asked for $4,000."

"Bader, for his part, appears madder at the council and said recent legal actions suggest the nonprofit was trying to shake him down."

Not all is well within the council... 

"The council's board is suing its CEO, D. Elizabeth Pierson, for allegedly interfering with a misuse of funds probe. And that probe, among other things, is looking into allegations that grant money was directed to fill other financial gaps in the agency."

Criminal intent, motive?

"My conjecture is they needed money, so let's just start filing complaints," Bader said."

"I asked Pierson to comment on Bader's case, but she said she couldn't go into specifics because the case was pending. In an e-mail, however, she wrote that Bader's accusations "lack any basis in fact. Certainly DFEH would not participate in that sort of unethical conduct and I would never condone it."

"Strong words – but even weak ones can cost you."

Time for legal action by the State of California...

California has taken action in the past to prevent such egregious abuses of the law by quick-buck attorneys...

From the California Bar Journal...

Trevor Law Group...

"The Trevor Group sued thousands of restaurant and auto repair shop owners, many of them minorities, for minor violations that were posted on the web sites of regulatory agencies. They denied doing anything illegal and justified their actions as legitimate consumer protection."

"Three Beverly Hills attorneys who faced possible disbarment as a result of using allegedly extortionate tactics in suing thousands of small business owners under the Unfair Competition Law resigned from the State Bar last month."

"The actions of the three lawyers, who were charged with 36 counts of professional misconduct in June and whose licenses already had been lifted by the bar in May, drew widespread attention to the Unfair Competition Law, also known as section 17200 of the Business & Professions Code."

"Their activities led to a lawsuit by Attorney General Bill Lockyer as well as legislative hearings to reform the law."

Brar & Gamulin...

"Lockyer sued Long Beach attorney Harpreet Brar and his law firm, Brar & Gamulin, last month, charging similar abuses of section 17200."

" The attorney general alleged that Brar and his firm committed illegal business practices in suing hundreds of nail salons solely to obtain nuisance settlements and attorney fees. He filed the complaint under §17200, the same statute he used to sue the Trevor Group and the same statute the Trevor lawyers and Brar used to sue small businesses."

Truth be told...

"The lawsuits filed by Brar and the other defendants were shams," said Lockyer. ". . . Their only interest was in lining their pockets with easy money. Brar & Gamulin is not so much a law firm as a quick-buck racket that has inflicted financial harm on law-abiding small business owners."

What can YOU do?

Recognize that the misuse of the legal process is not limited only to money-hungry attorneys acting on their own, but can easily include numerous cash-starved organizations who will grasp at any opportunity to raise additional funds.

The implementation of Red-light cameras and stop signs is a good example of making citizens wrong for the purpose of generating revenue.

As with these housing agencies, the quest for dollars has moved far beyond enforcing the public's safety and welfare (or insuring fair and equitable rental practices) into the realm of ensnaring innocent victims which may be trapped by circumstances.

In using red light cameras and stop sign devices, one can hardly argue with the prima facie case that can be made for public safety. But what about the motorist that chooses to safely cross the intersection as an alternative to slamming on the brakes and potentially injuring themselves and their passengers or causing an even more serious, life-threatening, rear-end collision? Even in these instances, you must spend additional time, effort and money defending yourself.

But that does not seem to keep certain municipalities and other quasi-governmental bodies from entering into deals with red-light equipment vendors to equip intersections which may have a high probability for transgression, but no serious accidents or fatalities. So the fiction of safety is papered-over in the quest for additional revenue. And the insurance companies are ecstatic as they simply increase their premiums for every ticket issue. The only person screwed is the consumer. 

Exert your rights as a taxpayer and demand that these type of rogue organizations be curtailed and that attorneys who have acted in an egregious manner either surrender their license to practice law or face trial. (How's that for extortionate karma?)

Do not vote for any candidate or current politician who is willing to subvert the safety, security, sovereignty and economic strength of the United States or limit an individual's right of self-defense for their personal philosophy, power, prestige or profits.

- steve

Quote of the Day: "Every man alone is sincere. At the entrance of a second person, hypocrisy begins." --Ralph Waldo Emerson

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane. -- Marcus Aurelius

Reference Links:

News: Unfair fight? | bader, housing, fair, council, smith - OCRegister.com

Trevor Law Group|California Bar Journal

Comments

[lars]

It is your taxpayer dollars that are given to HUD (US Department of Housing and Urban Development), which in turn give money to NACA - Neighborhood Assistance Corporation of America. HUD gives money to ACORN and other agencies that do this and much worse. They (HUD-financed ageny) are not regulated either. You need to write your elected officials and request that they REDUCE HUD funding, and cite this as a reason. It is not just if you are a lender, mortgage broker, or realtor, to be concerned. All citizens should understand what is happening here.

January 09
http://www.urbanitebaltimore.com/sub.cfm?issueID=68§ionID=4&articleID=1127

“Legalized extortion is what I call it,” says Thomas DiLorenzo, professor of economics at Loyola College in Maryland. Under the CRA......"

“The mechanism government decided to use was lower lending standards,” says Stan Liebowitz, professor of economics at the University of Texas at Dallas and adjunct scholar at the Cato Institute, a libertarian think tank. “Government tried to convince banks it was safe to lend with lower down payments and higher obligation ratios. They put pressure on Fannie Mae and Freddie Mac to make these loans. That whole ball got rolling because of it.”

For more on the HUD-sponsored ACORN SCAM:

http://theeprovocateur.blogspot.com/2009/01/inside-story-of-acorn.html

[Ben]

I relayed some of my experiences in a blog and got several interesting responses. The system is pure extortion!

http://activerain.com/blogsview/653721/Fair-Housing-truths-and-myths
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Thanks for sharing your experiences with us. -- steve

[SVC]

Kim Kendrick at HUD needs to be brought to a Congressional Hearing and face victims of this shakedown extortion that she perpetuates. It is not her first time. They know her well. A CONGRESSIONAL HEARING IS NECESSARY to STOP THIS! It still happens all over the country today.
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Kim Kendrick serves as HUD's Assistant Secretary for Fair Housing and Equal Opportunity. The U.S. Senate confirmed her nomination on October 7, 2005. Ms. Kendrick is the primary federal official charged with enforcing the federal Fair Housing Act, administering other civil rights laws and establishing national policies that guarantee all Americans equal access to the housing of their choice. She leads a staff of approximately 600 employees throughout the country.

[Tonya]

With the obvious greed among the various departments in los angeles county coupled with the economic crisis how can we regain control of our taxpayer dollars. The Los angeles county budget is not in a simplified format and after carefully evaluating spending I can see why! 5,000,000 in weed abatement? 3,500,000 in scanner verification, 5,000,000 emergancy prepardness, 5,000,000 intergovernmental relations. The amount allocated to homeless programs was only 700,000 or the impending cuts in education, were our children our now sacrificing their futures and safety with overcrowded classrooms were you can't walk normally to your desk but can only access it by walking sideways. With one way in and one way out if there were a fire, earthquake, terrorist attack or some other emergency only those closest to the door could survive.The County spends such a large amount on programs that must be inplace for personal gain.Los Angeles county has very little vacant land and five million dollars worth of weed abatement? That can't be!I believe that the CCC is responsible for the abatement with the use of those in custody by the courts.This was only a few of the areas that were wasteful. The lack of accounting and the general fund are both obvious signs of incompetence.Its not bad enough that the cost of living is at an all time high, but our economy is at a stand still. The foreclosure rate is continuing at a record pace,Gas is at 5.00 a gallon, our unemployement rate is at a high, how can we continue at this pace? Who will survive? Only those in charge of our money, i suppose.Programs that are in place to help those in times of need aren't really used for those in need but those with greed. There have been numerous grand jury reports about the vulnerabilities within these departments yet we allow them to function in the same capacity year after year! Why? It obviously is useful to those that are taking advantage of the vulnerabilities for personal gain. I could really go on with stories related to the judicial system, medical, welfare, county hospitals, abuse of power.I don't really know of many solutions.I believe this is probably the case for most, what can we do? We have a constitution protecting citizens yet when it is violated there is no consequence. Laws are impossed at the discretion of those breaking them. how do we begin to take the neccessary steps to clean house? Personally we need to draw attention nationally to the current situation, it must have validity and that comes with a verdict! We need Lawyers that are willing to stand up for what is right. We need to flood the courts with lawsuits in protecting the rights of the people, we will never achieve the change necessary for a harmonious and just system until will challenge those in charge. The courts could dismiss a few cases but eventually it would be impossible for even the most corrupt judge or judicial commision to not eventually hold these entities accountable. generate publicity surronding civil suits, with stories of misappropriations and mismanagement of funds to begin to circulate everywhere and anywhere creating attention. We must challenge them in a manner that can't be ignored. The money is being mismanaged and misappropriated to those in charge of it anyway.We have set up commissions, yet nothings changed, there are many civil rights groups yet nothing has changed, I would love a solution because we all have came to terms that corruption exists but how can we fix it? I know no other way!
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One way to curtail corruption is to make the raw financial data to the public in both electronic and image formats. Considering that the salaries of State employees is freely available on the web, there should also be a corresponding freedom in tracking payments of public money. Another way is to appoint a citizen's commission which would receive a fixed percentage of any money recovered from wasteful activities. Close scrutiny of payments to lobbyists, attorneys, media consultants and for non-essential purchases would be fair game. In addition, elected officials and others would not be allowed to file retroactive reports, pensions would be assigned back to the general treasury in cases of gross malfeasance and criminal activity. Signing statements, under perjury, that the ethics code has been followed in awarding a contract would also may individuals liable for their actions. The idea is to reduce government to a number of ethical individuals who are held in check by the fear of losing their job, pension and being forced to provide restitution. Other than that, it is a crap shoot. Thanks for reading and commenting on my blog entry. -- steve P.S. I had proposed such a program under the banner of CAP (Citizens Audit Program) with the tagline "We are putting a CAP on frivilous expenses."

[C. E. Chester]

COMMENTS:

1) Have we citizens reached the tipping point yet? It appears time for a citizen action group to institute a class action law suit against the state funded agencies for racketeering, restraint of trade, usurpation of property owner rights, rank intimidation by threat of financial penalty, mental anguish and causes 1-100 yet to be determined. The state and county appear to be creating added expenses to add to the mounting debt they have going for them currently, through actions of the exploitative use of government (taxpayer provided and paid for) resources against the very source of those taxes - - private property owner-enterprise citizens.

Through an organized effort, led by a recognized citizen action group, the class action group could be funded through individual citizen donations of perhaps as little as $ 5.00 which, when provided by millions, would provide significant backing to kick some bureaucrats butt and take back our state from the out of control, self serving, myopic and arrogant socialist legislators who have been feeding for a decade and more at the public trough.

#2) Did NOT the ad run in a privately owned advertising forum for a privately owned property offered to private citizens who met the criteria of the “adult” and “professional” description? Where does the Gestapo have any place in such private business - - as specified in the Constitution of the United States?

#3) The system is revealing the Orwellian things to come from a socialist legislative body that has had years to construct the labyrinth of cris-cross laws against private property rights. This reveals just a SMALL INSIGHT (for those who are paying attention) of what has yet to come under current government thinking and operatives. A “biggie” will be when the eminent domain rules engage in property “takings” at the whim and will of those who rule from Sacramento and the many other fiefdoms in the state. By then the howl of horror will be drowned out by the spin of the socialist anti-capitalist chant embraced and revered by those who comprise the ‘takers’ of government “services’ (dole).

#4) “Fair housing council” - - FOR WHOM? It would seem SUCH A BUREAUCRATIC HIT GROUP SHOULD BE FINDING HOUSING FOR THE TENS OF THOUSANDS OF ORANGE COUNTY HOMELESS ... NOT FOCUS ON BEATING PRIVATE PROPERTY OWNERS INTO SUBMISSION WITH LAWSUITS USING FUNDS PROVIDED BY THOSE VERY TAX PAYING PROPERTY OWNERS BEING SUED!

#5) NOT IF THEY KILL THE PRIVATE PROPERTY RIGHTS. It becomes only a matter of time, through such government thuggery, till the slum lords rule as they have the "Hutspa" to cope.
Re the word "Hutspa" (Hes vuv tzadek peyz he), pronounced somewhat differently. Hutspa (according U Weinreich) means impertinence, impudent and is derived from the same word in hebrew.

#6) This is an EXCUSE for extortion ... not “truth” ! The owner of the property is far more likely to be better educated in the ways of the “free enterprise process” than the socialists government worker seeking to impose fines and fees to support a failed agency that only spends and consumes funds provided by private property tax payers. Government agencies of this nature rarely, if ever, contribute to the gross domestic product of the community in which they rule. Such agencies are populated and staffed with a majority of Ne'er do well, also-ran’s, who lack the talent and expertise to succeed in private business or entrepreneurial endeavors involving the ownership, marketing and management of long term real estate investments. As for “reeducation” - - this smacks of the well known process of reorienting the minds (thinking processes) of subjects. “Reeducation” as it was implemented in Vietnam was both a means of revenge and a sophisticated technique of repression and indoctrination which developed for several years in the North and was extended to the South following the 1975 North Vietnam takeover. It is practiced today under a variety of governments, not only national but state operated.

#7) Oh sure! Which reminds me of the words of that guy who was in the TOP bureaucratic position of the U.S., the commander in chief, who said” “I did not have sex with that girl”. GIVE ME A BREAK. Don’t pee on my shoes and tell me it’s raining! Come on, government goon: We ain’t as dumb as you think we is!

DISSOLVE THE GRANT FUNDS AGENCY and divert the funds to help reduce the billions of dollars in state deficits.
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Definitions: rack·et·eer·ing -noun: the practice of conducting or engaging in a racket, usually involving intimidation & extortion for money, favors or property by individuals or a government official or agency engaging in such practice.