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The Dictatorship

All of the officials Trump is targeting for mortgage fraud seem to have one thing in common

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All of the officials Trump is targeting for mortgage fraud seem to have one thing in common

This is an adapted excerpt from the Sept. 4 episode of “The Briefing with Jen Psaki.”

Donald Trump wants you to believe that his administration is tough on crime. And if there is one crime that his administration says it absolutely will not tolerate — one crime that they will go to the ends of the earth to prosecute — it appears to be mortgage fraud.

According to Trump’s director of the Federal Housing Finance Authority, Bill Pulte, this administration is laser-focused on prosecuting mortgage fraud, no matter who commits it. But here is the thing: so far, all the people Pulte has accused of mortgage fraud have one thing in common — they’re all people the president considers his enemies.

It seems Pulte is happy to talk about alleged mortgage fraud by Democrats, but he can’t talk about mortgage fraud allegations against Republicans.

In April, Pulte asked the Justice Department to investigate New York’s Democratic Attorney General Letitia James for alleged mortgage fraud. In May, Pulte asked the Justice Department to investigate another Democrat, Sen. Adam Schiff of California, for alleged mortgage fraud.

Earlier this month, he did it again, this time alleging that Federal Reserve Board governor Lisa Cook committed mortgage fraud. Trump then used those claims as a pretext to fire Cook, and on Thursday, NBC News reported that the Justice Department had officially opened a criminal investigation into Cook.

All of these officials have denied any wrongdoing, and both Cook and James have said the allegations against them are the result of clerical errors. But Pulte says that does not matter.

“There are a lot of other people that have been criminally referred, and they don’t have this type of benefit being given to them, which is, ‘Oh, maybe it’s a clerical error, or maybe it’s this.’ Did you sign these documents or did you not?” Pulte told CNBC on Thursday.

Pulte definitely wants people to believe he has a zero-tolerance policy for mortgage fraud. But when CNBC’s Andrew Ross Sorkin asked Pulte in that same interview about credible allegations that Texas’ pro-Trump Republican attorney general, Ken Paxton, committed this same type of mortgage fraud, he had a much different response.

“Unless it’s been made public by lawyers like Norm Eisen or in criminal referrals, I’m not going to comment on any specific situation,” Pulte told Sorkin. “If things are made public or if we decide to make them public, then I will talk about it.”

It seems Pulte is happy to talk about alleged mortgage fraud by Democrats, but he can’t talk about mortgage fraud allegations against Republicans. Not unless it’s “made public.”

Now, set aside how much that last part seems to contradict everything he said before, the allegations against Paxton have already been made public.

A simple Google of “Paxton” and “mortgage fraud” pulls up quite an array of articles from a range of national and local outlets that have been reporting on the attorney general’s mortgages for months. Paxton’s Republican primary opponent, Sen. John Cornyn, has even started running attack ads all about his mortgage problem.

But Paxton isn’t the only Republican with apparent mortgage issues that Pulte seems to be ignoring. On Thursday, Propublica reported that not one, not two, but three separate Trump Cabinet members appear to have committed this same type of mortgage fraud.

ProPublica reported that not one, not two, but three separate Trump Cabinet members appear to have committed this same type of mortgage fraud.

Trump’s labor secretary, Lori chavez-degreemer; his Environmental Protection Agency administrator, Lee Zeldin; and his transportation secretary, Sean Duffy, all have mortgages on more than one home that they claim as their primary residence. When asked for comment, spokespeople for each of those officials suggested they had done nothing wrong.

A spokesperson for Zeldin said that “EVERY ‘I’ was dotted and ‘t’ was crossed.” A spokesperson for Chavez-DeRemer said that she and her husband bought a home with the intent to retire there, but then Chavez-DeRemer decided to run for Congress and did not move. And a spokesperson for Duffy said “The bank, not the Secretary, determined and classified both mortgages as primary residences.”

Maybe that’s true, maybe the bank screwed up the documents. That happens. But according to Pulte, this administration has a zero-tolerance policy, even when it comes to seemingly innocent mistakes.

But let’s be real: Going after mortgage fraud isn’t really Pulte’s goal at all. His goal is to ingratiate himself with Trump by going after the president’s enemies — and that double standard is getting more and more obvious by the day.

Only PSAKI

Jen Psaki is the host of “The Briefing with Jen Psaki”airing Tuesdays through Fridays at 9 p.m. EST. She is the former White House press secretary for President Joe Biden.

Allison Detzel

contributed

.

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The Dictatorship

The Latest: Trump seeks help opening the Strait of Hormuz as Iran war chokes oil shipping

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The Latest: Trump seeks help opening the Strait of Hormuz as Iran war chokes oil shipping

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The Dictatorship

BBC asks a court to dismiss Trump’s $10 billion lawsuit

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BBC asks a court to dismiss Trump’s $10 billion lawsuit

LONDON (AP) — The BBC filed a motion Monday asking a U.S. court to dismiss President Donald Trump’s $10 billion lawsuit against it, warning that the case could have a “chilling effect” on robust reporting on public figures and events.

The suit was filed in a Florida court, but the British national broadcaster argued that the court did not have jurisdiction, nor could Trump show that the BBC intended to misrepresent him.

Trump filed a lawsuit in December over the way a BBC documentary edited a speech he gave on Jan. 6, 2021. The claim seeks $5 billion in damages for defamation and a further $5 billion for unfair trade practices.

Last month a judge at the federal court for the Southern District of Florida provisionally set a trial date for February 2027.

The BBC argued that the case should be thrown out because the documentary was never aired in Florida or the U.S.

“We have therefore challenged jurisdiction of the Florida court and filed a motion to dismiss the president’s claim,” the corporation said in a statement.

In a 34-page document, the BBC also argued that Trump failed to “plausibly allege facts showing that defendants knowingly intended to create a false impression.”

Trump’s case “falls well short of the high bar of actual malice,” it said.

The document further claimed that “the chilling effect is clear” when Trump is “among the most powerful and high-profile individuals in the world, on whose activities the BBC reports every day.”

“Early dismissal is favoured given the powerful interest in ensuring that free speech is not unduly burdened by the necessity of defending against expensive yet groundless litigation, which would constrict the breathing space needed to ensure robust reporting on public figures and events,” it said.

The documentary — titled “Trump: A Second Chance?” — was aired days before the 2024 U.S. presidential election.

The program spliced together three quotes from two sections of a speech Trump made on Jan. 6, 2021, into what appeared to be one quote, in which Trump appeared to explicitly encourage his supporters to storm the Capitol building.

Among the parts cut out was a section where Trump said he wanted supporters to demonstrate peacefully.

Trump’s lawsuit accuses the BBC of broadcasting a “false, defamatory, deceptive, disparaging, inflammatory, and malicious depiction” of him, and called it “a brazen attempt to interfere in and influence” the 2024 U.S. presidential election.

The broadcaster’s chairman has apologized to Trump over the edit of the speech, admitting that it gave “the impression of a direct call for violent action.” But the BBC rejects claims it defamed him. The furor triggered the resignations of the BBC’s top executive and its head of news last year.

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The Dictatorship

The DOJ’s ethics proposal would have a corrupt fox guarding the henhouse

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State bar associations play an important accountability role across the country. Trump administration lawyers know that their legal licenses are subject to censure, because practicing law in the United States remains a privilege, not a right. But if Attorney General Pam Bondi has her way, even this guardrail could disappear.

Last week, Bondi proposed a new rule that would allow the Department of Justice to take over investigations of alleged attorney misconduct of its own lawyers. State bar authorities would have to pause their investigations while the Justice Department conducts its own probe. The rule gives the DOJ the ability to delay or even derail a state investigation.

The rule gives the DOJ the ability to delay or even derail a state investigation.

It doesn’t feel like a coincidence that there has been a series of state ethics complaints filed against Trump administration lawyers, including Bondi, Deputy Attorney General Todd Blanche and federal prosecutors handling immigration cases. President Donald Trump’s polarizing pardon attorney Ed Martin is currently facing just such a complaint from the D.C. Bar.

As outlined in the Federal Registerthe proposal argues that “political activists have weaponized the bar complaint and investigation process.” Of course, even if it were true that frivolous complaints were being filed against Justice Department lawyers, state bar grievance authorities should be able to weed them out just as effectively as the department’s own investigators. In fact, having an independent review process would provide more credibility than the DOJ would in dismissing such claims.

Federal law requires all federal prosecutors to comply with the ethics rules of the state where they practice law, including the District of Columbia. The new rule requires Justice Department lawyers to obey the substance of their state’s ethics rules, but gives the DOJ the authority to investigate violations. According to the proposal, whenever a bar grievance is filed, “the Department will have the right to review the allegations in the first instance and shall request that the bar disciplinary authority suspend any parallel investigations until the completion of the Department’s review.”

From there, multiple scenarios are possible. First, “if the Attorney General decides not to complete her review,” the state bar disciplinary authorities “may resume their investigations or disciplinary hearings.” Second, if the attorney general finds misconduct, “the State bar disciplinary authorities will then have the option of beginning or resuming their investigations or disciplinary proceedings” and, if appropriate, “to impose additional sanctions beyond those already imposed by the Department, including suspension or permanent disbarment.”

But what is missing from the language of the rule itself is a potential third scenario. What if the attorney general clears the attorney of misconduct? On that, the rule is silent.

Say, for example, a federal prosecutor in Minnesota is accused of making false representations to an immigration judge. The judge or opposing party could file a grievance with the Minnesota Office of Lawyers Professional Responsibility. Under the new rule, the state bar would be required to stand down and await a DOJ investigation, with no provisions for time limits or transparency. Of course, even the delay could compromise the subsequent Minnesota probe. But if the Justice Department clears the lawyer, it is also unclear what happens next. According to Bloomberg“If the DOJ finds no violation, that blocks the state from investigating the alleged infraction.” This conclusion may be a fair inference for a department that has thrown its weight around. According to the proposed rule, “the Attorney General retains the discretion to displace State bar enforcement and to create an entirely Federal enforcement mechanism.”

But even if the rule merely delays state enforcement, the DOJ could slow-walk a grievance into oblivion. According to a comment posted by the Illinois State Bar Association, the DOJ is attempting to “shield” its lawyers from accountability. The proposed rule also includes an ominous provision that if bar disciplinary authorities refuse the attorney general’s request, “the Department shall take appropriate action to prevent the bar disciplinary authorities from interfering with the Attorney General’s review of the allegations.”

Even if the rule merely delays state enforcement, the DOJ could slow-walk a grievance into oblivion.

In the decades since the Watergate scandal, the Justice Department has conducted robust investigations of allegations of ethical misconduct by its own attorneys and imposed discipline. In fact, it was common for state bar authorities to wait for the DOJ to complete its investigations before initiating their own probes, because the federal process held attorneys to standards even higher than state ethics rules. But that landscape changed last year, when Bondi fired the head of the department’s Office of Professional Responsibility and its chief ethics officer. Now there is a risk that DOJ lawyers will be even further sheltered from meaningful ethical oversight.

In the first nine days of the 30-day notice and comment period, the proposed rule has attracted more than 30,000 comments. And once implemented, the rule will no doubt invite legal challenges and ultimately could be struck down. But until then, it threatens to give carte blanche to DOJ lawyers who represent the Trump administration not just zealously but with impunity, knowing that the attorney general can simply delay or even block state bar ethics complaints. And the rule represents one more openly regressive blow against the checks and balances that are essential to democracy.

Barbara McQuade is a former Michigan U.S. attorney and legal analyst.

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