Psst... Wall Street's Achilles Hell... Don't Tell Anybody...

[WillyT]

The Martin Act, New York General Business Law article 23-A, sections 352-353,<1> <2> is a 1921 piece of legislation in New York that gives extraordinary powers and discretion to an attorney general fighting financial fraud. People called in for questioning during Martin Act investigations do not have a right to counsel or a right against self-incrimination. The act's powers exceed those given any regulator in any other U.S. state.<3>

Link: http://en.wikipedia.org/wiki/Martin_Act

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And from 2004...

The Sword Of Spitzer: http://www.legalaffairs.org/issues/May-June-2004/feature_thompson_mayjun04.msp

The purpose of the Martin Act is to arm the New York attorney general to combat financial fraud. It empowers him to subpoena any document he wants from anyone doing business in the state; to keep an investigation totally secret or to make it totally public; and to choose between filing civil or criminal charges whenever he wants. People called in for questioning during Martin Act investigations do not have a right to counsel or a right against self-incrimination. Combined, the act's powers exceed those given any regulator in any other state.

Now for the scary part: To win a case, the AG doesn't have to prove that the defendant intended to defraud anyone, that a transaction took place, or that anyone actually was defrauded. Plus, when the prosecution is over, trial lawyers can gain access to the hoards of documents that the act has churned up and use them as the basis for civil suits. "It's the legal equivalent of a weapon of mass destruction," said a lawyer at a major New York firm who represents defendants in Martin Act cases (and who didn't want his name used because he feared retribution by Spitzer). "The damage that can be done under the statute is unlimited."

And from yesterday...

New York Investigates Banks’ Role in Financial Crisis: http://www.nytimes.com/2011/05/17/business/17bank.html?_r=1

No word about the Martin Act in the NYT piece, but you know the AG's Office is sitting pretty with this weapon.

:shrug:

[notesdev]

1. Yes but

someone would actually have to put it to use before the statute of limitations runs

not looking good on that score

[WillyT]

4. Well... From Today's 'The Guardian':

US officials have alleged banks, including Goldman Sachs, deliberately misled investors by encouraging them to invest in mortgage-backed securities they knew to be junk. The allegations are also being investigated by the SEC and the Justice Department.

Schneiderman, like his predecessors, has a powerful legal tool at his disposal: the 1921 Martin Act. The act gives the prosecutor sweeping powers of investigation, allows him to subpoena any document he wants, and makes it easier for the attorney general to bring prosecutions. It was most extensively used by Spitzer after the stock market crash at the turn of the millennium.

During his election campaign Schneiderman pledged to tackle Wall Street over the credit crisis.

"The mortgage fraud crisis is devastating working families in every corner of New York State – it's upending our economic recovery upstate and downstate," he said.

The broad nature of Schneiderman's investigative powers make it uncertain where his investigations may lead but the attorney general has said he is interested in scam lenders and foreclosure practices as well as Wall Street investments.

Link: http://www.guardian.co.uk/business/2011/may/17/wall-street-banks-scrutiny-loan-packaging

:shrug:

[notesdev]

5. let's see him use it

He took office in Jan, this is mid-May, now I'm perfectly willing to give him a chance to act but we don't seem to have any serious charges being filed to date, and with quite a number of the frauds we already have "beyond a reasonable doubt" level evidence.

[WillyT]

6. They're Coming...

Will it be enough ???

Will it EVER be enough ???

:shrug:

[notesdev]

14. I'll believe it when I see it

I've gotten my hopes up only to see them crushed as some major offender gets off with a slap-on-the-wrist fine and NO criminal charges enough times that I can only take the position of "show me the indictments".

I don't believe they intend to do a damn thing, this is all smoke and mirrors designed to make us think something is happening while they run out the statute of limitations clock.

[hootinholler]

2. Oh Heel Yes! n/t

[Cronus Protagonist]

3. I belive the Constitution trumps that

5th amendment.

[Scruffy1]

7. Not so-same for Federal grand juries.

[markpkessinger]

8. A state law cannot override a U.S. Constitutional right . . .

. . .and I suspect that if the Martin Act were ever challenged at the SC level, it would be struck down.

[LoZoccolo]

9. Fire Dog Lake: automatic unrecommend n/t

[WillyT]

11. Well... It's True What They Say...

Ya can't argue with teh stupid.

:rofl::rofl::rofl:

:crazy:

[LoZoccolo]

13. lol I was just kidding this tiem!

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=105&topic_id=9691462&mesg_id=9692096

[hugo_from_TN]

10. A truly horrible law

It goes against multiple civil liberties.

[WillyT]

12. And Quite Possibly Our Only Chance Against Our Criminal Corporate Overlords...

I won't lose much sleep if they put the right guys away.

[GeorgeGist]

15. SCOTUS