Saturday, November 14, 2009

TOUCH 106.1 continues investigation into malfeasant government agencies: The Division of Banks.

Fidelity Guarantee Mortgage Corporation v. T Reben, 809 F2d 931 (1987).
"Fidelity, a Massachusetts corporation authorized to do business in Maine, opened an office in Portland, Maine, in February of 1980 for the purpose of dealing in residential mortgage loans. In July 1980, the superintendent of the Maine Bureau of Consumer Credit Protection, Barbara Reid Alexander, notified Fidelity pursuant to Me.Rev.Stat.Ann. tit. 9-A, Sec. 6-108 that it was in violation of Maine law prohibiting charging interest in excess of 12.25% on consumer loans without Bureau approval. Alexander issued a cease and desist order at the same time. Between June and September 1980, thirty consumer actions were brought against Fidelity in the federal district court based on its violation of Maine law."

In the above case, the Court of Appeals affirmed a finding that the lower court held that a Civil Rights Conspiracy lawsuit under 42 U.S.C. 1985 was frivolous, and it taxed costs against Fidelity for a frivolous appeal as well.

Further, I am verifying an allegation that Fidelity Principal Herb Jacobs was convicted and sentenced to jail time.
But what happened when complaints were filed with the Division of Banks against Fidelity (a Caucasian-owned business) in the Greater Boston area after these problems?

Answer: Nothing, really. But the Division did set out to issue a Cease and Desist against a black female broker (one of only 3 in the State) who complained about Fidelity. She alleges retaliation and has filed a complaint with the Massachusetts Commission Against Discrimination. Stay tuned for details when we receive a copy of the Complaint and her request for public information that was drawn last week.

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