http://www.propublica.org/article/billion-dollar-bait-switch-states-divert-foreclosure-deal-funds

States have diverted $974 million from this year’s landmark mortgage settlement to pay down budget deficits or fund programs unrelated to the foreclosure crisis, according to a ProPublica analysis. That’s nearly forty percent of the $2.5 billion in penalties paid to the states under the agreement.

-SNIP-

What stands out is that even states slammed by the foreclosure crisis are diverting much or all of their money to the general fund. In California, among the hardest hit states, the governor has proposed using all the money to plug his state’s huge budget gap. And Arizona, also among the worst hit, has diverted about half of its funds to general use. Four other states where a high rate of homeowners faced foreclosure during the crisis are spending little if any of their settlement funds on homeowner services: Georgia, South Carolina, Wisconsin, and Maine.

And Kentucky is a part of it. Though, the funds aren’t rolling to the General Fund:

The Office of the Attorney General for the Commonwealth of Kentucky … shall direct the payment of $19,198,220 to the Commonwealth in a manner consistent with the terms of the Consent Judgment to which this Exhibit B-2 refers, such that any funds distributed by the Attorney General shall be used for purposes intended to avoid preventable foreclosures to ameliorate the effects of the foreclosure crisis, to enhance law enforcement efforts to prevent and prosecute financial fraud or unfair or deceptive acts or practices, to address the collateral consequences of such conduct, and to compensate the Commonwealth for costs resulting from the alleged unlawful conduct of the Defendants. Such payments shall include:

i) $5,048,220 in agency restricted funds to directly compensate the Office of the Attorney General for the reasonable costs of investigation and litigation of the alleged unlawful conduct of the Defendants, and to finance, within the Office of the Attorney General, ongoing consumer protection actions including, but not limited to, actions addressing any conduct similar to the alleged unlawful conduct of the Defendants by any entity not released by the State Release contemporaneously executed within this Consent Judgment; any civil and criminal investigations emanating from any allegedly improper conduct not released pursuant to the State Release perpetrated by any Defendant or any other person or entity; investigations and potential litigation pertaining to MERS or any related entity involving mortgage assignments in the Commonwealth; and claims of fraud or improper mortgage assignments in the Commonwealth; and claims of fraud or improper conduct relating to the pooling of, marketing of, or sale of any securities product involving or containing mortgage related payment streams; and

ii) $14,150,000 to be distributed at the express direction of the Attorney General to agencies, organizations or entities to avoid preventable foreclosures, to ameliorate the effects of the foreclosure crisis, to enhance law enforcement efforts to prevent and prosecute financial fraud or unfair or deceptive acts or practices, to address the collateral consequences of such conduct, and to compensate the Commonwealth for costs resulting from the alleged unlawful conduct of the Defendants, including, but not limited to, the following:

a. The Kentucky Housing Corporation, for purposes including, but not limited to, mortgage assistance to Kentucky homeowners, down payments and/or closing costs assistance for qualifying homebuyers, state and local foreclosure prevention and mediation programs, housing rehabilitation and anti-blight projects;

b. The Kentucky Homeownership Protection Center, to provide homeownership and mortgage-related credit counseling to Kentucky consumers;

c. The four federally-funded civil legal aid service organizations within the Commonwealth, to provide housing-related legal assistance to low income consumers;

d. The Commonwealth’s Unified Prosecutorial System (“UPS”), to support and sustain new and ongoing investigations and prosecutions relating to the foreclosure crisis and consequential criminal conduct plaguing local communities throughout the Commonwealth;

e. The Commonwealth’s Department of Financial Institutions (“DFI”), to assist in regulatory and educational efforts targeting financial services institutions subject to DFI’s jurisdictional oversight, and consumers purchasing products and services from such institutions;

f. The Commonwealth’s Department of Public Health, to support and maintain consumer safety and injury prevention programs, including but not limited to, lead abatement programs affecting low income individuals or communities; and

g. Within the discretion of the Attorney General, any other organization or entity substantially able to implement, manage, develop or support any program consistent with the aims of this settlement.

Funds directed to any agency, organization or entity by the Attorney General pursuant to the terms of this paragraph shall be appropriated, administered and expended consistent with terms of KRS Chapter 48, as applicable.

But that doesn’t mean those piddly millions Kentucky received won’t get gobbled up for other purposes.

Chris Christie and some other bloated white men love to claim Barack Obama is the least experience president ever. Apparently, they’ve never heard of George W. Bush. [Politico]

The teabaggers are going absolutely crazy in Tennessee. Watching these shenanigans will make you proud to be a Kentuckian because our teabaggers are a bit less insane. [Reuters]

Vice President Biden said he understood the frustration that led many West Virginia Democrats to vote for a felon over President Obama in the state’s presidential primary. [The Hill]

Twenty-two states and the District of Columbia are backing Montana in its fight to prevent the U.S. Supreme Court’s 2010 Citizens United decision from being used to strike down state laws restricting corporate campaign spending. [NPR]

And you still want to claim it’s wrong to try to stop kids from getting fat. Here’s what’s happening. They’re all going to die before they’re 40. [HuffPo]

On Sunday, Local 619M of GCC/IBT (the union the C-J press people belong to) unanimously rejected the contract offered by Gannett and unanimously voted to seek a strike sanction. [Deep Kentucky Newspaper Thoughts]

Lawwwd, look at this fat white lady hollering about how mean the non-whites are. Pee alert/gag alert. Where is Skoal Rebel?! [Wonkette]

The University of Pikeville will soon have a new president. Paul Patton will be replaced by James Hurley in July 2013. Patton will remain as “chancellor,” raking in more and more cash. [WKYT]

Is 2016 tempting to Rand Paul? You know it is. Because his ego, unlike ours, is real. He believes he’s presidential material. [C-J/AKN]

Does it really matter if Loretta Lynn is 77-years-old or 80-years-old? What a silly story for people to be freaking out about. [WLKY]

Dan Rather once again hit the nail on the head about corporate media and its gross relationship with government. [HuffPo]

White House visitor logs provide a window into the lobbying industry. And the extreme extent of lobbyist access. [WaPo]

Cultivating Fear: The Vulnerability of Immigrant Farmworkers in the US to Sexual Violence and Sexual Harassment. You should go read the 95-page report. [Human Rights Watch]

Here’s the gist: Massie didn’t provide notice for at least eight meetings of the Lewis County Fiscal Court that took place in 2011. His office has been pressed since April to provide documentation and cannot do so.

So Jim Parsons filed a complaint with Massie and with the OAG, which we hear is investigating and encouraged Parsons to file the complaint.

Here’s a look at the latest letter sent to Massie from Parsons:

Pursuant to the provisions of the Kentucky Open Meetings Act (the “Act”) I hereby file this complaint that 8 meetings of the Lewis County FIscal Court in 2011 were conducted in violation of the Act. On April 17, 2011 you responded to my open records request wherein I requested copies of the notices sent in advance of 14 special or recess meetings of the Lewis County Fiscal Court that took place in 2011. However, you were only able to produce notices for 6 of those meetings and produced no notice for any of the recess meetings. Therefore, if the notices do not exist for the 8 meetings in question, it is my contention that such meetings were held in violation of the Act; and pursuant to the Act any action taken at those meetings (including the adoption of the county budget) are voidable by a court of competent jurisdiction.

The recess meetings that occurred should be treated as special meetings under the Act and, therefore, you should have issued notice for those meetings in compliance the Act’s requirements for calling special meetings.

For your information, I have included my open records request, your response and a list of the 2011 meetings of the Lewis County Fiscal Court which indicates which of the recess or special meetings that you were able to provide notice.

Should you have questions regarding this matter please contact me.

Parsons CCd the letter to Amye Bensenhaver, one of Jack Conway’s deputies.

CLICK FOR PDF

The meetings Massie provided notice for are in bold:

• Recess Meeting on 2/28/11
• Recess Meeting on 3/3/11
• Recess Meeting on 3/28/11
• Recess Meeting on 4/25/11
• Recess Meeting on 5/23/11
• Special Meeting on 5/27/11
• Special Meeting on 6/27/11
• Special Meeting on 7/22/11
• Special Meeting on 8/26/11
• Special Meeting on 9/6/11
• Special Meeting on 9/13/11
• Special Meeting on 9/29/11
• Special Meeting on 10/24/11
• Special Meeting on 11.29/11

The others? Seems he’s got something to hide for some reason.

It is our understanding, according to folks in the OAG, that the letter of complaint had to be filed with Massie before the OAG could investigate.

Update on May 17: A note to Jack Conway’s office: You can tell a reporter what you want about you not investigating or sniffing around. You can say you don’t have a valid complaint because the County Attorney hasn’t been consulted. You can’t go back on your word. That said – the CA has donated to Massie. So… let’s get real. Your office told Parsons what to do and told me what you were up to. Now do your job. The reporter may be easily snowed by you but we won’t be. We know Parsons followed – to a T – what you told him to do.

Aww, Michele Beard Bachmann decided to flip-flop and withdrew her Swiss citizenship or whatever. Funny how that works. [Wonkette]

Where was Greg Stumbo months ago when ARH officials reached out to legislators about a certain Medicaid manager? Nowhere to be found. [Chicago Tribune/H-L]

Here’s Mittens Romney hating the gays at Jerry Falwell’s little school. [NPR]

Here’s Mittens Romney being a homophobic prick all the way back in the 1960s. [WaPo]

Let’s talk about how Mittens Romney has flip-flopped left and right about whether or not he hates the gays or loves them. [Wonkette]

Oh, look, it’s the head of the Republicans pretending that the gays haven’t faced persecution, crimes and discrimination. [Politico]

The fates of the American economy and the presidency of Barack Obama are inextricably linked, and both of them hit a bump in April. [The Economist]

Teachers in Boone County have decided to forgo raises in order to keep 46 positions from being cut. [H-L]

President Barack Obama and Vice President Joe Biden honored 34 police officers at the White House on Saturday for “extraordinary acts of bravery,” including two cops from Los Angeles who halted a shooting and one from Chicago who intervened during an armed robbery. [Reuters]

U.S. lawmakers have been unusually silent about federal regulators’ decision to allow a Chinese bank to take over 13 bank branches in New York and California, suggesting that they think American banks have much to gain. [The Hill]

Looks like Michele Beard Bachmann’s glittery husband’s line of work is under major scrutiny. [HuffPo]

Haha, so, funny story… A Kentucky Newspaper’s telephone system didn’t even work after it recklessly and confusingly announced paywalls and subscription price increases. Also, Wes Jackson is pushing the paper because of it’s “coupon savings.” These folks are doing a real disservice to the hardworking people employed by the paper and the community in general. [C-J/AKN]

We’re not sure how horses have anything to do with Mother’s Day but whatever. The newspaper seems to think it’s a big deal. [H-L]

A majority of Kentuckians favor a statewide smoking ban. Interesting that David Williams supports it and Steve Beshear does not. [WFPL]

The copilot in the Comair 5191 crash speaks in a new documentary film. [H-L]

There is a party in the pants of “Exodus International,” and nobody wants to come! And that is why the group has canceled its upcoming “Love Won Out” convention, in which ex-gay ladies show off their human male husbands, and ex-gay men show off Michele Bachmann. [Wonkette]

Let’s get something clear: Crit Luallen did have enough information from Richie Farmer’s employees to do a scathing audit like Adam Edelen did. Jack Conway even had information about wrongdoing. I know because I’ve discussed it with their staffers for years. With more than 100 people on staff, Luallen certainly had the manpower to conduct such an audit. And while we’re talking about Farmer… why aren’t we talking about corrupt former Democratic commissioners like Logsdon? [Joe Gerth]

Hillary Clinton says she wants to see a female U.S. President but that it won’t be her. [HuffPo]

Why is it so expensive to buy or sell a house in the United States? The foreigns take a hard look at it. [The Economist]

Just changing your name when you’re a mega bank with mega problems won’t solve anything. [Reuters]

Lawwwd, you can’t even rent your house out in Lexington without finding two dead bodies in it. [WKYT]

Also, you probably can’t even go anywhere in Lexington without catching the pertussis! Whatever that is. (Okay, we know it’s whooping cough, but go with it.) [WLEX18]

US hostage Warren Weinstein has pleaded with President Barack Obama to meet his captors’ demands in a video released by al-Qaeda’s media arm, says US monitoring group Site intelligence. [BBC]

Remember last week when he got our hands on that fancy letter about state payroll problems? The mainstreamers wouldn’t have seen it otherwise. Yes, we’re tooting our own horn. [Page One]

This is proof that craft beer in Kentucky is a hot ticket. Now, if only Kentucky would recognize that killing the silly label tax could seriously fatten the state coffers. [H-L]

Defense spending trumps poverty in the Republican Congress. That’s how it always works with people like Hal Rogers and Ben Chandler. [Politico]

Whattya mean the white supremacists aren’t crazy as hell? Another instance of gun deaths related to neo-Nazis. [Reuters]

Banks are fighting to keep major mortgage reforms from becoming permanent. Specifically the big banks that Morgan McGarvey has profited from. [HuffPo]

Have you seen what the local AFSCME labor union in Louisville is doing to the Metro Parks whistleblower? [The 'Ville Voice]

Of course income inequality has warped our political system. That’s not going to change any time soon. [NYT]

How desperate is Pikeville University for cash? Paul Patton got both Greg Stumbo and Rand Paul to keynote. [Floyd County Times]

Now Jack Conway says Richie Farmer “appears” to have abused the public trust? HAHAHAHA. [WHAS11]

Mitch McConnell wet himself and started crying when A Kentucky Newspaper wrote an editorial about how, you know, much off a butt cramp he is. [C-J/AKN]

Let’s just try pretending it’s not hilarious that Michele Beard Bachmann has endorsed Mittens Romney. Would would her glitter queen husband, Mary Kay… er… Marcus… think of that? [Wonkette]

You can’t even just be in your own neighborhood in Lexington these days without being shot dead. [H-L]

One in seven senior citizens faces the threat of hunger. Even in Kentucky. It’s not something you should be ignoring. [HuffPo]

“60 Minutes” will profile the case of corrupt former Whitley County Sheriff Lawrence Hodge. Yet another embarrassing moment on the national state for the Commonwealth of Kentucky. [WKYT]

“Public awareness plays an important role in our fight against prescription drug abuse,” General Conway said. “I am traveling the state to make sure Kentucky kids know that when they take a pill that wasn’t prescribed to them they are jeopardizing their lives and their futures.”

We wish people in Kentucky would recognize that DARE and similar programs are complete failures.

That said… let’s take a look at McGarvey’s real world problem.

You’re familiar with writ of possession/writ of eviction, right? The process where a bank goes to court for an order instructing the sheriff to forcibly evict people from their home within 24 hours? Even if the person is elderly or a family member is deathly ill or pregnant? Sure you are. You can Google it if you’re not.

You’re probably also familiar with the reality that the big banks that were investigated for mortgage fraud – and subsequently settled with the Department of Justice with the blessing of Jack Conway (McGarvey’s former boss) – are the very banks McGarvey’s law firm represents. Writ of possession is even a service his law firm promotes on its website:

Some of his firms big Wall Street clients that utilized writ of possession – often illegally and in instances of robosigning?

• Chase
• Bank of America
• CitiFinancial

Here it is on his site:

Just to name a few.

It’s a practice that has cost not only hard working families without the ability to pay a lawyer their homes, it’s directly impacted thousands of Louisvillians and Kentuckians.

It’s a practice many of those big banks continue to rely on as they’re continually investigated for mortgage fraud.

Unfortunately for McGarvey, he can’t say his salary paid by the firm never included funds derived from the practice. So just roll your eyes when he and his folks foam at the mouth about it in reaction.

It’s a real shame the Courier-Journal editorial board ignored this reality when the group gave him preferential treatment during a recent interview of the candidates. Gary Demling, Sarah Lynn Cunningham and Amy Shoemaker were repeatedly cut off while McGarvey was allowed to speak at length. Strangely, none of them were allowed to follow-up on what McGarvey had to say.

It’s also a real shame his opponents don’t have the drive to really differentiate themselves from the establishment by discussing issues like this.

And you wonder why Kentucky can’t have nice things.

Did Richard Beliles finally wake up from his nap? ALEC is the least of the issues he should be complaining to Jack Conway about these days. Not that ALEC is puppies and rainbows or anything. [C-J/AKN]

Danville police arrested a man after he crashed his van into two buildings and then hitched a ride away from the scene Tuesday night. [WLEX18]

The poor economy is tied to a rise in domestic violence incidents, according to the latest survey. [HuffPo]

Mitch McConnell won’t be in Warshington to have funtimes with President Barack Obama and the University of Kentucky Wildcats on Friday. He’ll be in Kentucky playing horsey stuff– i.e., wining and dining people who will make him even richer. [The Hill]

Even the Frankfort paper is alarmed at the severity of Richie Farmer’s shenanigans. Still sad watching him fall apart. [State-Journal]

Mining minerals from astroids sounds crazy. Could it work? Is this what Newtpooper should have been talking about instead of his moon stuff? [The Economist]

Space commander Newt Gingrich has issued a special sad secret video communique from space with terrifying news from the future: “I want to take this opportunity to give you an insider advance notice that…” — WHAT IS IT, WE HATE SUSPENSE — “…on Wednesday, I’ll be officially suspending the campaign.” [Wonkette]

A man in Frankfort was arrested for being on Washington’s most-wanted list. Unfortunately, he was not a legislator. [H-L]

Lawwwwd, you can’t even go to Walmart in Georgetown these days without getting robbed in the parking lot. Tell your meemaw to watch herself! [WKYT]

Aww, Mittens Romney was ashamed that one of his aides/advisors was super-gay. Everybody feel sorry for him, because the gay. [WaPo]

This is how embargoes should be used, state government folks. Only when there’s a serious threat to security. [HuffPo]

Lately, her people and those who work with Jack Conway, say the two are considering a gubernatorial ticket with Crit as the Number Two. It’d give her more free time and freedom to be outside Frankfort when she wasn’t feeling the nastiness of that cesspool.

All this comes as Jack Conway also floats around his desire to run for the U.S. Congress (again) if/when John Yarmuth decides to retire.

Greg Fischer is also waiting in the wings and folks around him are hilariously tossing his name into the gubernatorial rumor ring. Can you imagine the hilarity that would ensue? There are at least half a dozen attack ads that Jim King didn’t run and twice as many that Hal Heiner wimped out on in 2010. It’d be a dream come true for political writers.

There’s also discussion about a prominent politician switching from one of the major parties to Independent status. With the rancor and distaste for electeds that the public has these days? We can only assume something like that could have a serious chance if there’s enough money available.

We think Daniel Mongiardo should give it a go.