Thursday, November 13, 2014

Friday November 14 Housing and Economic stories


The IRS Has Been Holding This Guy's $447,000 For 2 Years, And He's Never Been Charged With A Crime - (www.businessinsider.com) More than two years ago, the IRS used a controversial policy known as civil forfeiture to empty the bank account of a small business owned by three Long Island brothers. The brothers, Jeff, Mitch, and Rich Hirsch, haven't even been charged with a crime. But the IRS is holding their $446,651 hostage while they struggle to run their convenience-store distribution business without that cash. "We're very angry about this," Jeff, 55, said recently over the phone. "I think it's wrong, especially when you do nothing wrong, and you can prove you've done nothing wrong, and they still have your money." The process of civil forfeiture allows the government — often the police, but in this case, the IRS — to seize money thought to have been obtained illegally. The IRS has been seizing funds it believes were deposited in an illegal way. Banks must report deposits of over $10,000 to the federal government. Anybody who makes repeated deposits of just under $10,000 specifically to avoid this requirement is guilty of a crime called restructuring (also known as "smurfing").

Immigration officer union sounds alarm over DHS order for millions of blank work permits, green cards - (www.foxnews.com)   A union that represents thousands of federal immigration officers is raising alarm after the U.S. government ordered supplies to create millions of blank work permits and green cards, touching off speculation that the Obama administration may be preparing executive action on immigration. The Associated Press reported last week that the new federal contract proposal from the Homeland Security Department would allow the government to buy enough supplies to make as many as 34 million immigrant work permits and residency cards over the next five years. Though the Obama administration now says the proposal is unrelated to any executive action, the move raised concerns the administration is preparing for a surge of work permit applications from illegal immigrants.  Kenneth Palinkas, the president of the National Citizenship and Immigration Services Council, said in a press release Monday that he believes the move indicates the administration is planning to enact “massive unilateral amnesty” after the midterm elections.

IPO That Brought In $1 Billion in March Implodes in Denmark - (www.bloomberg.com) Denmark’s second-biggest initial public offering since 2010 has just imploded. OW Bunker A/S (OW), which provides fuel to the marine industry, said it couldn’t persuade its bankers to give it the cash it needs to keep doing business. That followed an announcement last night revealing senior OW Bunker employees in Singapore committed fraud, costing as much as $125 million. The company, whose shares have been suspended since yesterday, now says investors need to assume that its equity has been wiped out as it files for an in-court restructuring. Just eight months ago, investors were lining up, eager to throw their money into an IPO that valued the company at almost $1 billion and then drove its shares up 21 percent in their first day of trading. Nordea Bank AB (NDA), which helped arrange the sale and has been urging clients to buy OW Bunker shares since Oct. 24 until suspending its recommendation today, says it’s “shocked” by the company’s subsequent collapse.

Those Sunspots Approaching Earth Could Bring Blackouts - (www.bloomberg.com) A new group of sunspots that has come into view of Earth has the attention of the U.S. Space Weather Prediction Center. The area, referred to as 2205, spat out an x-ray flare that produced a moderate radio blackout today, according to the center’s website. Earlier this week, it let loose several coronal mass ejections, explosions of magnetic fields and plasma from the sun’s atmosphere that can knock out power grids and disrupt navigational systems. Most of the material in today’s flare, along with the earlier eruptions, was pointed away from Earth, thus sparing the planet severe storms. “We’re kind of seeing a bit of resurgence now,” said Robert Rutledge, lead operations at the center. “The sun is making a second run at us.”

How A Small, Family-Owned Company Taught Cops Around America To Seize Millions In Cash  - (www.businessinsider.com) A controversial police tactic that lets cops seize large amounts of suspicious cash has been aided by a family-owned company that won millions in federal contracts, Robert O'Harrow and Michael Sallah write in The Washington Post. That company, Desert Snow, has trained cops around the US on the art of roadside asset forfeiture, which allows police to take cash or other assets they believe have been illegally obtained. Cops can take these assets from people even if they're never convicted of or even charged with a crime, and people must go to court to get their stuff back. In five years, cops trained by Desert Snow seized $427 million from motorists stopped on America's highways, the Post found. The company, which retired California Highway Patrol veteran Joe David started in his garage in 1989, eventually won federal contracts worth $2.5 million from the Department of Homeland Security, the Justice Department, and other agencies, according to the Post. David's wife and kids still work there, and the contractor employs about 75 instructors and administrators (though it's unclear how many, if any of these instructors work there full-time).





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