Taibbi: A Whistleblower’s Horror Story – Infàmia e Disgrazia

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Posted on 18th February 2015 by Administrator in Economy |Politics |Social Issues

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Guest Post by Jesse

“Crush humanity out of shape once more, under similar hammers, and it will twist itself into the same tortured forms. Sow the same seed of rapacious license and oppression over again, and it will surely yield the same fruit according to its kind.”

Charles Dickens, A Tale of Two Cities

“Flagrant evils cure themselves by being flagrant.”

John Henry Newman

If a whistleblower reveals benign ‘secrets’ of government actions to a domestic reporter in the time honored tradition, they may be prosecuted as ‘enemies of the state’ under the abusive misuse of the Espionage Act.

And if they tell the truth about a massive fraud involving one of the privileged financial institutions, they may find themselves involved in a cruel farce of officially sanctioned retribution in the judicial system.

This story is almost incredible, of how an appellate judge overturned the verdict of a jury of this man’s peers, and then another Court turned this man over to officially sanctioned retribution, on an almost absurd rationale, for daring to tell truth to power about Countrywide Financial.

Deceit and theft by the privileged is excused and protected, while honesty and innocence are severely punished. And the great mass of official journalists are silent, so we hear the news about this in a rock ‘n roll magazine.

Rolling Stone
A Whistleblower’s Horror Story
By Matt Taibbi
18 February 2015

Two years ago this month, Winston was being celebrated in the news as a hero. He’d blown the whistle on Countrywide Financial, the bent mortgage lender that one could plausibly argue nearly blew up the global economy in the last decade with its reckless subprime lending practices.

He described Countrywide’s crazy plan to give anyone who could breathe a mortgage in a memorable January, 2013 episode of Frontline called “The Untouchables,” a show that caught the eyes of several influential politicians in Washington. The documentary inspired Senate hearings and even the crafting of new legislation to combat too-big-to-jail corruption in the financial world.

Winston was later featured in the New York Times as the man who “conquered Countrywide.” David Dayen of Salon described Winston as “Wall Street’s greatest enemy.”

But today, Winston is tasting the sometimes-extreme downside of being a whistleblower in modern America.

He says he’s spent over a million dollars fighting Countrywide (and the firm that acquired it, Bank of America) in court. At first, that fight proved a good gamble, as a jury granted him a multi-million-dollar award for retaliation and wrongful termination.

But after Winston won that case, an appellate judge not only wiped out that jury verdict, but allowed Bank of America to counterattack him with a vengeance.

Last summer, the bank vindictively put a lien on Winston’s house (one he’d bought, ironically, with a Countrywide mortgage). The bank eventually beat him for nearly $98,000 in court costs.

That single transaction means a good guy in the crisis drama, Winston, had by the end of 2014 paid a larger individual penalty than virtually every wrongdoer connected with the financial collapse of 2008.

When Winston protested his preposterous punishment on the grounds that a trillion-dollar company recouping legal fees from an unemployed whistleblower was unreasonable and unnecessary, a California Superior Court judge denied his argument — get this — on the grounds that Winston failed to prove a disparity in resources between himself and Bank of America!

This is from the court’s ruling:

Plaintiff argues that the disparity in the resources between the individual plaintiff and the defendant Bank of America make it unfair to place the cost of the premium on plaintiff. Plaintiff offered no evidence in support of this argument; it is rejected…

Read the entire story in Rolling Stone here.

9 Comments
  1. Rise Up says:

    Justice in America today (not!). Read the whole story from the link to RS provided. There is a “punchline” at the end that makes this relevant to the pending appointment of the new Attorney General. Bottom line and moral is you can’t fight the banks, as this saga demonstrates. Ask Mary Malone (“Who Is Your Lender” thread). This is why I didn’t fight my mortgage, which was originally from Washington Mutual, bought wholesale by JPMorgan even though the WaMu president admitted that they did not turn over any mortgage deeds to JPM. Mine was one of them, and technically I could have filed a quiet title, but I knew the courts wouldn’t stand for it.

     

    18th February 2015 at 6:37 pm

  2. Westcoaster says:

    All the banksters are fucks, but especially Chase and Quicken Loans, who are each double-fucks.

     

    18th February 2015 at 8:29 pm

  3. AC says:

    I suggest reading the book ‘Curbside Justice for Dummies.’

     

    18th February 2015 at 10:00 pm

  4. backwardsevolution says:

    Winston lost and Bank of America recovered their lawyer “costs” to the tune of a $98,000.00 lien on his house. This kind of stuff is absolutely unforgivable. Why everyone in America is not up in arms over things like this is beyond me! I feel so sorry for this man. Here he is, telling the truth, and….. Those judges at the appellate level, are they elected? Probably not; they’re probably appointed. On what grounds did the appellate judge overturn the jury’s decision? An error in the rule of law?

    Is there no lawyer out there who would take this case on pro bono? Winston needs to get back into court and prove a disparity in resources between himself and Bank of America. That shouldn’t be too hard. Then he needs to appeal the overturning of the jury’s decision.

     

    19th February 2015 at 2:06 am

  5. flash says:

    oh noze…Don’t let on that there is no longer a rule of law in the land, SSS will shit his depends.

     

    19th February 2015 at 8:33 am

  6. Rise Up says:

    @backwards: you aren’t going to win against the banks in any court…ever.

     

    19th February 2015 at 10:07 am

  7. BUCKHED says:

    Flash…SSS doesn’t wear depends these days…he’s going Commando !

     

    19th February 2015 at 11:11 am

  8. BUCKHED says:

    Hey Mary M…where are you these days ?

     

    19th February 2015 at 12:13 pm

  9. starfcker says:

    I don’t like that story. There is a whole lot of ink wasted identifying the good guys and the bad guys, and zero information about the case itself. What did he disclose exactly? What were the circumstances of his termination? Why was he awarded all that loot? I love jesse, and taibii has written some amazing stuff, but I want facts.

     

    19th February 2015 at 8:26 pm

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