IRS Deputy Associate Chief Counsel Thomas Kane emails backups may exist, More computer problems with less than 20 individuals, Chairman Issa IRS attempted to keep key witness Mr. Kane away from investigators

IRS Deputy Associate Chief Counsel Thomas Kane emails backups may exist, More computer problems with less than 20 individuals, Chairman Issa IRS attempted to keep key witness Mr. Kane away from investigators

“Don’t think I want to be on stage with Grassley on this issue.”…Lois Lerner email

“The IRS is clearly in full cover-up mode,” “It is well past time for the Obama administration to answer to a federal court about its cover up and destruction of records.”…Judicial Watch President Tom Fitton

 

“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″

 

 

From the the House Committee on Oversight and Government Reform July 21, 2014.

“New Testimony: IRS May Still Have Missing Lois Lerner E-mails Backed Up”

“Official in charge of document production also raises possibility of new e-mail losses from ‘less than 20’ officials

During a transcribed interview with congressional investigators on Thursday, July 17, IRS Deputy Associate Chief Counsel Thomas Kane, who supervises the IRS’s targeting scandal document production to Congress, testified that new developments now make him uncertain whether e-mail back-up tapes containing lost e-mails from key IRS targeting official Lois Lerner exist or not.  The new testimony is at odds with the June 13, 2014, memo sent to Sens. Ron Wyden (D-OR) and Orrin Hatch (R-UT) by the IRS which reported that the IRS, “Confirmed that back-up tapes from 2011 no longer exist because they have been recycled.”  Kane had reviewed the June 13 memo but noted his current uncertainty with investigators.

Kane and a Committee investigator had the following exchange during Thursday’s transcribed interview:

Investigator: You stated at the time that document was produced to Congress, the document, the white paper in Exhibit 3[the June 13 memo], that it was accurate to the best of your knowledge.  Is it still accurate?

Kane: There is an issue as to whether or not there is a ‑‑ that all of the backup recovery tapes were destroyed on the 6‑month retention schedule. 

Investigator: So some of those backup tapes may still exist?

Kane: I don’t know whether they are or they aren’t, but it’s an issue that’s being looked at. 

Kane also testified that in addition to the IRS officials who had experienced hard drive crashes, as reported to the House Ways & Means Committee, a number of officials above and beyond these officials “have had computer problems over the course of the period covered by the investigations and the chairman’s subpoena” that could prevent the IRS from fully complying with the subpoenas.  Kane characterized the number of such individuals as “less than 20” and named IRS officials Andy Megosh, Kimberly Kitchens, Justin Lowe, and David Fish as members of the new group.

Justin Lowe – Technical Advisor to the Commissioner of Tax-Exempt and Government Entities, before that he was a tax-law specialist in EO (Exempt Organizations) Technical and then EO Guidance.  Advisor to Tax-Exempt and Government Entities Commissioner Joseph Grant.

David Fish – Manager of EO Guidance (which develops formal and informal guidance to the public on tax-exempt issues); Fish also served as Acting Director of Rulings and Agreements in late 2011/early 2012. Advisor to Lois Lerner.

Andy Megosh – Group manager in EO Guidance.  Megosh was cited in the Ways and Means Committee’s referral of Lerner Lerner to the Justice Department.

Kimberly Kitchens – IRS revenue agent in Cincinnati who donated to President Obama’s reelection campaign.

Chairman Issa issued the following statement on the new revelations in Kane’s testimony:

“I’m struck by the fact that the IRS attempted to keep a key witness like Mr. Kane away from investigators and only agreed to his appearance after I issued a subpoena for his testimony. Finding out that IRS Commissioner Koskinen jumped the gun in reporting to Congress that the IRS ‘confirmed’ all back-up tapes had been destroyed makes me even more suspicious of why he waited months to inform Congress about lost Lois Lerner e-mails.  Commissioner Koskinen has repeatedly blamed the reporting delay on an effort to be sure what he said was correct, we now know that wasn’t the case.”

 An expanded transcript of Mr. Thomas Kane’s exchange about the possibility that e-mail back-up tapes may still exist falls below:

Q1- And the white paper that you identified, that you called a white paper in Exhibit 3, you said that you had an opportunity to review that before it was produced.  Is that accurate?

A- Yes.

Q1- And to the best of your knowledge, was that document an accurate representation of the information within it?

A- At that time, that was certainly accurate. 

Q1- And if you had had any concerns about the accuracy of that document, would you have raised them?

A- Yes. 

Q1- And did you raise any concerns about the accuracy of that document?

A- As I indicated earlier, I had some issues that are suggested edits that I thought needed to be made, and there was a discussion about those, and there were some changes made.  They weren’t major, but, you know, I was accommodated. 

Q1- So the end product was accurate?

A- That was the state of knowledge and facts as we knew it when the document was set up.

Q1- Thank you very much.  I really appreciate the many hours you’ve spent with us. 

Q2- Sir, if I could just ask you one clarifying question based on your answers to those questions.  You stated at the time that document was produced to Congress, the document, the white paper in Exhibit 3, that it was accurate to the best of your knowledge.  Is it still accurate? 

A- There is an issue as to whether or not there is a ‑‑ that all of the backup recovery tapes were destroyed on the 6‑month retention schedule. 

Q2- So some of those backup tapes may still exist?

A- I don’t know whether they are or they aren’t, but it’s an issue that’s being looked at. 

Q2- By who?

A- It’s part of the TIGTA investigation.

Q2- So no one in the IRS, to your knowledge, outside of TIGTA, is looking at that issue?

A- The IRS is not looking at anything being investigated by TIGTA. 

Q2- And when was that issue identified?

A- Sometime after the white paper was sent up. 

Q2- And has there been any discussion about disclosing that issue to Congress, to the best of your knowledge?

A- I don’t know whether it has or it hasn’t been.  I thought Chairman Issa asked a question about it at the last hearing, but I could be wrong about that. 

Q2- The hearing with Commissioner Koskinen?

A- Yes.

Q2- And did the Commissioner give an accurate response to that question?

A- I forget how the question was framed, but I thought I had a recollection that Chairman Issa had asked the Commissioner about a backup tape issue looking ‑‑ being looked at by TIGTA.  That’s the context of my recollection. 

Q2- Anything else that you’re aware of that you can tell us about about the issue of the potential availability of a backup tape? 

Kane’s Counsel – Objection to form.

A- Again, it’s all under investigation by TIGTA at this point in time.  And I don’t know if there is a backup tape with information on it or there isn’t.  I know that there’s an issue out there about it. 

Q2- Okay.  Thank you, sir. 

(Q1= Committee investigator #1; Q2= Committee investigator #2; A= Kane)”

http://oversight.house.gov/release/new-testimony-irs-may-still-missing-lois-lerner-e-mails-backed/

NC lost thousands of jobs in June, Labor force participation rate plummeted 3.8 percent since Obama took White House in January 2009, Reduced unemployment benefits and labor force dropouts lower unemployment rate

NC lost thousands of jobs in June, Labor force participation rate plummeted 3.8 percent since Obama took White House in January 2009, Reduced unemployment benefits and labor force dropouts lower unemployment rate

“Nearly half of U.S. companies are reluctant to hire full-time employees because of the ACA. One in five firms indicates they are likely to hire fewer employees, and another one in 10 may lay off current employees in response to the law.

Other firms will shift toward part-time workers. More than 40 percent of CFOs say their companies will consider switching some jobs to less than 30 hours per week or targeting part-time workers for future employment.”…Duke University Fuqua School of Business December 11, 2013

“Over the last six months, of the net job creation, 97 percent of that is part-time work,”…Keith Hall, former BLS chief

“11.4%: What the U.S. unemployment rate would be if labor force participation were back to January 2008 levels.” …James Pethokoukis, American Enterprise Institute, June 2013

 

 

NC lost thousands of jobs in June.

The big story is that the NC labor force participation rate plummeted 3.8 percent since Obama took the White House in January 2009.

From Triangle Business Journal July 18, 2014.

“N.C. economy sheds thousands of jobs in June”

“North Carolina lost more than 8,500 jobs in June, wiping out job gains experienced since March. The net job loss was attributable largely to job losses in the government sector.

The unemployment rate of 6.4 percent was unchanged from May to June, though that has to do with how the rate is artificially measured. A more accurate depiction of the jobs picture is to look at total jobs.”
“The state measures unemployment in two ways, one through a survey of households, which is where the official unemployment rate comes from, and one from a survey of employers, typically referred to as “nonfarm employment.” This nonfarm measure excludes workers in general government, teachers, private households, nonprofit organizations and individual or corporate farms, a measure that makes up roughly 77 percent of the total gross domestic product, according to the Bureau of Labor Statistics.

By that measure, the state lost an estimated 5,800 jobs from May to June, though it still had 74,800 more jobs than in June of last year.
Going by the household survey reflects a job loss of 8,577, but an unchanged unemployment rate of 6.4 percent. Since last year, the rate had been steadily declining, but looking at only the rate gives a false overall jobs picture. One of the major policies implemented by the state government was to reduce the length of time that individuals receive unemployment benefits after being laid off. This policy has had the effect of artificially reducing the unemployment rate.
By reducing benefits, the household unemployment survey technically tallies fewer people in the labor force, even if those people haven’t actually found jobs or stopped looking for work. Reducing the officially counted labor force number, even if that number is reduced artificially because of reduced unemployment benefits, will drive the unemployment rate down – artificially in North Carolina.”

Read more:

http://www.bizjournals.com/triangle/news/2014/07/18/nc-economy-sheds-thousands-of-jobs-in-june.html?page=all

 

Edward Snowden interview with the Guardian July 17, 2014, NSA culture passed around nude surveillance photos, Journalism immeasurably harder, Journalists conscious of network signalling connections licence-plate reading device use of credit card phone use email contacts

Edward Snowden interview with the Guardian July 17, 2014, NSA culture passed around nude surveillance photos, Journalism immeasurably harder, Journalists conscious of network signalling connections licence-plate reading device use of credit card phone use email contacts

“His earlier thought returned to him: probably she was not actually a member of the Thought Police, but then it was precisely the amateur spy who was the greatest danger of all. He did not know how long she had been looking at him, but perhaps for as much as five minutes, and it was possible that his features had not been perfectly under control. It was terribly dangerous to let your thoughts wander when you were in any public place or within range of a telescreen. The smallest thing could give you away. A nervous tic, an unconscious look of anxiety, a habit of muttering to yourself — anything that carried with it the suggestion of abnormality, of having something to hide. In any case, to wear an improper expression on your face (to look incredulous when a victory was announced, for example) was itself a punishable offence. There was even a word for it in Newspeak: facecrime, it was called.”…George Orwell “1984″

“A Party member lives from birth to death under the eye of the Thought Police. Even when he is alone he can never be sure that he is alone. Wherever he may be, asleep or awake, working or resting, in his bath or in bed, he can be inspected without warning and without knowing that he is being inspected. Nothing that he does is indifferent.”…George Orwell, “1984″

“The US government is not going to be able to cover this up by jailing or murdering me,”…Edward Snowden

 

 

From the Guardian July 17, 2014.

“Edward Snowden urges professionals to encrypt client communications
Exclusive: Whistleblower says NSA revelations mean those with duty to protect confidentiality must urgently upgrade security”

“The NSA whistleblower, Edward Snowden, has urged lawyers, journalists, doctors, accountants, priests and others with a duty to protect confidentiality to upgrade security in the wake of the spy surveillance revelations.

Snowden said professionals were failing in their obligations to their clients, sources, patients and parishioners in what he described as a new and challenging world.

“What last year’s revelations showed us was irrefutable evidence that unencrypted communications on the internet are no longer safe. Any communications should be encrypted by default,” he said.”

“During the seven hours of interview, Snowden:

• Said if he ended up in US detention in Guantánamo Bay he could live with it.

• Offered rare glimpses into his daily life in Russia, insisting that, contrary to reports that he is depressed, he is not sad and does not have any regrets. He rejected various conspiracy theories surrounding him, describing as “bullshit” suggestions he is a Russian spy.

• Said that, contrary to a claim he works for a Russian organisation, he was independently secure, living on savings, and money from awards and speeches he has delivered online round the world.

• Made a startling claim that a culture exists within the NSA in which, during surveillance, nude photographs picked up of people in “sexually compromising” situations are routinely passed around.

• Spoke at length about his future, which seems destined to be spent in Russia for the foreseeable future after expressing disappointment over the failure of western European governments to offer him a home.

• Said he was holding out for a jury trial in the US rather a judge-only one, hopeful that it would be hard to find 12 jurors who would convict him if he was charged with an offence to which there was a public interest defence. Negotiations with the US government on a return to his country appear to be stalled.

Snowden, who recognises he is almost certainly kept under surveillance by the Russians and the US, met the Guardian at a hotel within walking distance of Red Square.”

“”An unfortunate side effect of the development of all these new surveillance technologies is that the work of journalism has become immeasurably harder than it ever has been in the past,” Snowden said.

“Journalists have to be particularly conscious about any sort of network signalling, any sort of connection, any sort of licence-plate reading device that they pass on their way to a meeting point, any place they use their credit card, any place they take their phone, any email contact they have with the source because that very first contact, before encrypted communications are established, is enough to give it all away.””

Read more:

http://www.theguardian.com/world/2014/jul/17/edward-snowden-professionals-encrypt-client-communications-nsa-spy?CMP=twt_gu

 

Snowden interview.

http://www.theguardian.com/world/video/2014/jul/17/edward-snowden-video-interview

 

 

Blagojevich appeal update July 16, 2014, Rod Blagojevich lawyers submit additional argument, Why appeals court should overturn convictions

Blagojevich appeal update July 16, 2014, Rod Blagojevich lawyers submit additional argument, Why appeals court should overturn convictions

“Why wasn’t Rod Blagojevich, Governor of IL, prosecuted before Tony Rezko, a businessman?”…Citizen Wells

“Why was Tony Rezko’s sentencing delayed?”…Citizen Wells

 

“I believe I’m more pristine on Rezko than him.”…Rod Blagojevich

 

From ABC News July 16, 2014.

“Blagojevich Files New Argument in Appeal

Rod Blagojevich’s lawyers have submitted an additional argument on why an appeals court in Chicago should overturn the convictions of the imprisoned former governor.”

“Defense lawyers say that ruling also indicated the solicitation of contributions was corruption only when a politician gave a clear promise to take some official action in exchange for the donation. They say Blagojevich never made such promises.

Prosecutors are expected to file a response in the coming days.”

Read more:

http://abcnews.go.com/US/wireStory/blagojevich-files-argument-appeal-24584780

Gallup poll reveals high inflation and struggling economy, July 13, 2014, Almost 60 percent paying more for groceries gasoline, 42 percent paying more for healthcare

Gallup poll reveals high inflation and struggling economy, July 13, 2014, Almost 60 percent paying more for groceries gasoline, 42 percent paying more for healthcare

“If you’ve got health insurance we’re going to work with you to lower your premiums by $2,500 per family per year.”…Barack Obama

“We can’t drive our SUVs and eat as much as we want and keep our homes on 72 degrees at all times… and then just expect that other countries are going to say OK”…Barack Obama

 

“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”George Orwell, “1984″

 

I am certain you have been reading the horse poop about the improving economy, lower unemployment rate and low inflation.

I am also certain that informed readers and certainly frequenters of Citizen Wells have dismissed the Orwellian brainwashiong attempts.

Here is more evidence of what you already know and have experienced.

From Gallup July 11, 2014.

“Consumers Spending More, Just Not on Things They Want
Groceries, gasoline top list; leisure, travel, dining out at bottom”

“Slightly less than half of all Americans (45%) report spending more than they did a year ago, while 18% report spending less. A closer look at these numbers reveals Americans’ increased spending is on household essentials, such as groceries, gasoline, utilities, and healthcare, rather than on discretionary purchases.

The Items Americans Spend Money on, Summer 2014

At the other end of the spectrum, roughly one-third of Americans report spending less on discretionary items such as travel (38%), dining out (38%), leisure activities (31%), consumer electronics (31%), and clothing (30%). More than half of Americans say they are spending about the same for rent or mortgage, household goods, telephone, automobile expenses other than fuel, personal care products, and the Internet.

All of this suggests that the increasing cost of essential items is further constraining family budgets already hit hard by the Great Recession and still reeling from a stagnant economy. This is the first time Gallup has measured household spending in this way, so it is unclear whether the current patterns are typical, or if the results on discretionary spending are better now than during the recession. Gallup’s daily measure of consumer spending has been significantly higher the last two years than in 2009 through 2011 — although this could be partly the result of higher spending on essentials.”

“These results paint a picture of consumers straining against rising prices on daily essentials to afford summer travel, dining out, and discretionary household purchases — the kinds of purchases that ordinarily keep an economy humming. And while the two-thirds of Americans who plan to travel this summer is the highest level Gallup has measured since 2006, nearly one-third plan to spend just one night or less away from home, meaning it is not much of a vacation.

Those who do intend to travel this summer expect to spend more in all travel categories — transportation, food, lodging, and entertainment — than last year, further pressuring their already-strained budgets. Most will take their own cars despite relatively high gas prices. If there was any doubt that the U.S. economy is still struggling to get back on its feet, the results of this poll reinforce that reality. Because consumer spending is the lifeblood of a healthy economy, these findings suggest that discretionary spending still has a ways to go before it will fuel the kind of economic growth Americans have been hoping for.”

GallupSpending2014

Read more:

http://www.gallup.com/poll/172532/consumers-spending-not-things.aspx

 

FDIC v Amrish Mahajan et al update July 12, 2014, Obama Rezko lot Mutual bank loan, Mary Hakken-Phillips pleads fifth, Board minutes altered by Mahajan and Regas

FDIC v Amrish Mahajan et al update July 12, 2014, Obama Rezko lot Mutual bank loan, Mary Hakken-Phillips pleads fifth, Board minutes altered by Mahajan and Regas

“Why wasn’t Rod Blagojevich, Governor of IL, prosecuted before Tony Rezko, a businessman?”…Citizen Wells

“Why was Tony Rezko’s sentencing delayed?”…Citizen Wells

“Why did Mutual Bank fire whistleblower Kenneth J Connor after he
challenged the appraisal on the land purchased by Rita Rezko, just
prior to the land sale to Obama?”…Citizen Wells

 

 

From a memorandum opinion and order by Magistrate Judge Young B. Kim July 9, 2014 we learn.
“Background

Previous opinions resolving Defendants’ motions to dismiss, see FDIC v.
Mahajan, No. 11 CV 7590, 2012 WL 3061852, at *1-3 (N.D. Ill. July 26, 2012), and the FDIC’s motion to strike, see FDIC v. Mahajan, 923 F. Supp. 2d 1133, 1135-36 (N.D. Ill. 2013), describe the details of this case’s background facts and procedural history. What follows are the facts and allegations most pertinent to the questions presented in the current motion.

According to the FDIC, in November 2009, FDIC representatives interviewed
Hakken-Phillips concerning her work as the secretary of the Bank’s Board of
Directors and as the administrative assistant to Bank President Amrish Mahajan.
(R. 289, Mot. ¶ 1.) In support of its current motion the FDIC submitted an affidavit from Tina Solis, one of the FDIC’s attorneys, stating that during the interview Hakken-Phillips described preparing handwritten Board minutes which she then submitted to senior officers. (R. 289-1, Mot., Ex. A ¶¶ 4-5.) According to Attorney Solis’s affidavit, Hakken-Phillips said Defendants Mahajan and James Regas altered the minutes to remove references to “certain adverse matters,” and that she signed the final minutes “feeling that she had no choice but to do so.” (Id. ¶ 4.) The affidavit goes on to say that Hakken-Phillips discussed the Bank’s lending and credit administration practices, compiling reports on the Bank’s real estate portfolio and loan deficiencies, document shredding at the Bank, and Regas’s role in Bank operations. (Id. ¶¶ 5-6.) The FDIC alleges that several weeks after the interview, Hakken-Phillips voluntarily provided the FDIC with her handwritten draft Board minutes and handwritten “diaries” describing tasks, meetings, and communications with the Bank’s senior officers. (R. 289, Mot. ¶ 3.)

On October 25, 2011, the FDIC sued Defendants, each of whom was a
director, officer, board member, or attorney for the Bank. (See R. 1, Compl.) When the FDIC deposed Hakken-Phillips on October 31, 2013, she chose to invoke the Fifth Amendment in response to every question except those asking for her name, address, and educational background. (See R. 289-7, Mot., Ex. G, Hakken-Phillips Dep.) The FDIC filed the instant motion on June 2, 2014, to compel her testimony regarding the authenticity of the draft minutes, the explication of certain passages in those minutes, and the process of preparing the Bank’s final minutes. (R. 289, Mot. ¶ 16.) Hakken-Phillips filed a response on June 19, 2014, in which she requested leave to provide the court with “additional information” regarding the basis of her Fifth Amendment privilege assertion for an in camera review. (R. 302, Opp. ¶ 2.) With the court’s leave, Hakken-Phillips submitted her “additional information” on June 24, 2014, ex parte. (R. 304.) On June 26, 2014, the FDIC filed a reply in support of the current motion. (R. 306, Reply.)”

http://docs.justia.com/cases/federal/district-courts/illinois/ilndce/1:2011cv07590/261603/311

 

 

From Citizen Wells December 27, 2013.

“The FDIC lawsuit against Amrish Mahajan, et al is still alive.

Amrish Mahajan, the former president of Mutual Bank of Harvey, the bank that loaned Rita Rezko the money to buy the lot subsequently sold to the Obamas, has been barred from banking.

From Chicago Business July 1, 2013.

“Politically connected ex-Mutual Bank president barred from banking”

“Amrish Mahajan, former president of failed Mutual Bank of Harvey and a major fundraiser for imprisoned former Gov. Rod Blagojevich, has been barred from future participation in the banking industry under a newly released regulatory order.”

http://citizenwells.wordpress.com/2013/12/27/amrish-mahajan-obama-rezko-lot-bank-president-barred-from-banking-fdic-receiver-for-mutual-bank-v-mahajan-rita-rezko-loan-kenneth-conner-whistleblower/

Read more about the Mahajan Obama Rezko connection here.

http://citizenwells.wordpress.com/2013/07/09/obama-rezko-lot-transaction-bank-president-mahajan-fdic-lawsuit-motion-hearing-july-10-2013-judge-virginia-m-kendall-rezkos-sold-lot-to-obamas-kenneth-j-conner-whistleblower/

 

Walmart CEO questions US employment, People dropping out of the work force and lower disposable income, Bellwether Walmart sales and traffic sluggish, Part time jobs and labor force participation rate

Walmart CEO questions US employment, People dropping out of the work force and lower disposable income, Bellwether Walmart sales and traffic sluggish, Part time jobs and labor force participation rate

“11.4%: What the U.S. unemployment rate would be if labor force participation were back to January 2008 levels.” …James Pethokoukis, American Enterprise Institute, June 2013

“Approximately 1 million more people could only find part time employment since Obama took office in January 2009.”…Citizen Wells August 2013

“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″

 

 

Citizen Wells has warned for years of the plummeting labor force participation rate and part time jobs replacing full time jobs.

Evidence of the impact of reduced full time employment comes from Walmart.

From Zero Hedge July 8, 2014.

“When the CEO of the world’s biggest company doubts the veracity of US economic data, you know you have a problem. After quarters of disappointing growth in the face of miraculous equity market performance; Wal-Mart CEO Bill Simon warns that shoppers aren’t returning at the pace one might expect years after the recession peaked, despite mainstream media interpretation of the data showing unequivocal growth. Simply put, he exclaims, “the unemployment numbers particularly have been difficult to read with the number of people dropping out of the work force,” adding that if we see a further drop in the participation rate it would fit with the fact that “middle-class and lower-class are still economically challenged, only spending during holidays and for family occasions,” adding that traction has only come at the top-end.”
“CNBC “Is that the problem with sales, your consumers don’t have as much disposable income to spend?”

Wal-Mart CEO: “Yes – Retail in general has not been robust in the last six years, in the last year particularly.””

“This is not a tin-foil-hat-wearing blogger or ranting Chicagoan (or former GE chairman) – this is the current CEO of the world’s largest revenue-producing firm casting doubt on the reality of the jobs picture the government is painting and furthermore confirming things are anything but back to normal…”

Read more:

http://www.zerohedge.com/news/2014-07-08/what-rosy-job-numbers-wal-mart-ceo-slams-recovery-mirage