WHISTLEBLOWER
New Facts and Evidence



Here are some of the KEY FACTS and NEW EVIDENCE from the Sweeney Mediation Brief which demand be addressed, acknowledged, and explained by the FDIC.

1.        Secret documents that the court had ordered "destroyed" have been obtained. These papers reveal that the government agencies, in their own bank examinations, knew as early as 1985, and again in 1988 and 1990 of the fraud going on at ComFed Bank citing specifically the same exact individuals who had harmed us. Although our government banking agencies were established with our tax dollars to regulate banks like ComFed when wrongdoing occurs, they did nothing about protecting us or the many other customers of ComFed Bank who were defrauded.

2.        The Sweeney $4 million judgment was won against more than one defendant, namely ComFed Savings Bank and ComFed Mortgage Company, a subsidiary of the bank. The bank failed in 1990 and was taken over by the FDIC. It was recently learned through documents obtained that ComFed Mortgage Company was never taken over by the FDIC/RTC when ComFed Savings Bank failed. In fact, ComFed Mortgage Company, "operating wholly under state law," has been run by individuals in a private company in Columbus, Ohio. In addition, ComFed Mortgage Company is being run by officers of the FDIC and is presently located in the very same offices as the FDIC at 101 E. River Drive in Hartford, CT.

3.         A settlement agreement, signed by an unidentified attorney of the RTC, literally lets the worst wrongdoer, James G. Baldini, the former CEO of ComFed Mortgage, off the hook for a measly $100,000 in cash and a promissory note for $185,000. In one year alone 1985 Baldini was paid a base salary of $360,000 and a bonus of  $2,944,381, totaling $3,304,381, the following years his base salary remained at $360,000 but his bonus was capped at $800,000 in 1986, $1,300,000 in 1987 and $1,350,000 in 1988 respectively. On top of letting Baldini off with a clearly di minimis payment, the agreement purports to provide a "bar" to anyone suing him (it could be seen as an agreement by RTC/FDIC to indemnify him, too, but this would be outrageous).
What is wrong with this picture? Total compensation to Baldini over four years was $7,834,381. When ComFed failed it cost the taxpayer a reported $828,000,000, yet the RTC settles for only $285,000. They sign a document called "The Compromised Settlement Agreement and Release" that was entered into on November 20, 1995, just 40 days BEFORE the RTC went out of business as of December 31, 1995.

4.        Documents have been located that show "sweetheart deals" with investment bankers, Goldman Sachs ( one of the alleged owners of the Federal Reserve) and Lomas Mortgage USA.
A massive ComFed Mortgage Company loan servicing portfolio was sold to private interests before the RTC became receiver (which would have been a wholly unlawful transfer).  Current Secretary of the Treasury, Robert Rubin, was a partner at Goldman Sachs during this time.
Freedom of Information Act (FOIA)
August 3, 1991
ComFed Mortgage Co. Inc., (Subsidiary of ComFed Savings Bank) portfolio of $1,238,105,000 -- sold to Goldman Sachs, N. Y. for $182,000,000. (15 cents on the dollar)
August 31, 1991
ComFed Mortgage Co. Inc., (Subsidiary of ComFed Savings Bank) portfolio of $2,420,457,000 -- sold to Lomas Mortgage USA, in Dallas, TX for $218,500,000. (9 cents on the dollar)
        See Appendix Index at "V" supporting statement by Rhetta B. Sweeney Before the United States Senate Sub-Committee of Government Oversight Hearings of January 31, 1995, at 2 P.M.

5.        Other documents have been located from FDIC that claim the note in the Sweeney case was passed in 1991 to either Ryland (now indicted), Potomac, or State Street Bank, any one or all of which should have deprived FDIC of any standing in this action.

6.        The FDIC/RTC had a clear conflict of interest in their employment of Hanify & King who acted as counsel to ComFed prior to the bank's failure, including counsel to all ComFed defendants in the Sweeney cases. In addition, John Hanify of Hanify & King, had a clear conflict in representing all the ComFed Defendants, jointly, in the initial litigation (particularly when many of the top officials of ComFed Savings Bank were under criminal investigation already). He had an even worse conflict representing the RTC because the RTC was tasked with investigating the underlying bank failure on behalf of the U.S. Government.  The RTC's interest was thus clearly adverse to ComFed Savings Bank and the interests of ComFed Savings Bank were clearly adverse to those of ComFed Mortgage, ComFed Advisory, and Furey's interests were adverse to all the other defendants.  Despite these clear conflict of interests , John Hanify, in two sworn affidavits, claimed that he represented the RTC/FDIC.  Documents from the RTC/FDIC prove that John Hanify was not retained to represent the RTC/FDIC and never had a legal services agreement (required by the government)  to represent the RTC/FDIC.  These facts, coupled with Hanify's proven wrongdoing in removing this case, manifest clear intent to defraud, both the Sweeneys and the United States Government.

7.        The FDIC/RTC have knowingly acted on a summary judgment order which was granted to ComFed Savings Bank, F.A. NOTE: ComFed F.A. was never a party defendant in the Sweeney action. Even though the FDIC's own records document that the U. S. District Court was in error in granting a summary judgment order to the wrong parties, the FDIC/RTC have not corrected their mistake. In fact, the FDIC/RTC knowingly have relied upon the flawed summary judgment order to further gain foreclosure orders, eviction orders, and U. S. Marshall possession orders from Judge Harrington of the U. S. District Court for the District of Massachusetts. (see, FDIC/RTC admission that the Summary Judgment Order of April 14, 1992, "Motion to Substitute," filed in U. S. District Court, August 31, 1993, was granted to party defendants who were never substituted into the Sweeney case. Therefore, it is clear on the face of the FDIC/RTC's own documents, all orders granted by the U. S. District Court for the District of Massachusetts have been gained through known fraud.

8.        The FDIC cancels the Sweeney Debt in August of 1996 but NEVER tells the Sweeneys, Congress, a Federal Mediator or the Courts until AFTER they have seized the Sweeneys family home and possessions and only then do they report it to the IRS. See Washington Post-IRS Horror Stories.