Archive for the ‘Waste and Fraud’ Category

LinkSwarm for April 22, 2023

Friday, April 21st, 2023

I finally finished and sent off my taxes this week. It’s a load off my mind! Now I can get back to my low calorie life substitute!

This week: The Biden Administration tries to cram transexism down America’s throat, more Blue City crime dysfunction, and the Babylon Bee is on fire!

  • “How Americans have taken a pay cut every month since Biden took office.”

    House Speaker Kevin McCarthy has laid out the devastating results of runaway government spending on the middle class and why it’s so important to claw back lost ground for the average American, who has “received a pay cut for 24 consecutive months … as inflation has persisted.”

    He also noted the average American family has lost the equivalent of more than $7,000 in annual income.

    There is a direct link between spending, borrowing and printing trillions of dollars, and these disastrous results for Americans.

    President Biden has spent trillions of dollars the nation didn’t have.

    These unchecked costs drove the deficit to record highs and pushed the debt over $31 trillion.

    (Hat tip: Stephen Green at Instapundit.)
    

  • Ex-Planned Parenthood exec commits suicide after botched child porn raid in Connecticut.

    A former Connecticut Planned Parenthood honcho took his own life days after police failed to arrest him on child pornography charges — botching the raid by knocking down the door of the suspect’s New Haven neighbor.

    Tim Yergeau, 36, the former director of strategic communications at the Southern New England branch of Planned Parenthood, died by suicide on Tuesday amid a child pornography investigation in Connecticut last week.

  • The Biden Administration desperately wants to cram transexism down America’s throats.

    The Biden administration on Thursday unveiled a proposal that would prohibit schools from instituting policies that “categorically ban transgender students from participating on sports teams consistent with their gender identity.” The policy would allow schools to implement certain limitations in the interest of fairness or safety, however.

    The proposed rule, which would impact any school or college that receives federal funding, would expand Title IX protections to include gender identity. Under the proposal, a “one-size-fits-all” ban on transgender athletes playing on teams that match their stated gender identity would be a violation of Title IX. The rule, which is likely to face challenges, will face a lengthy approval process.

    This is, in fact, the exact opposite of the text of Title IX, which provides special protection for biological women, not men pretending to be women.
    

  • “Pennsylvania Teachers, Activists Concocted Bogus LGBTQ Bullying Epidemic for Political Gain, Investigation Finds.”
  • Meanwhile, Twitter has moved in the opposite direction, saying it will no longer ban users for “misgendering” or “dead-naming,” i.e. daring to say that a biological man is a man.
  • Meanwhile, Democrats in Minnesota are planning to shove social justice down children’s throats.

    Under the radar, a package of bills is ramming through sweeping changes that will reorient our public schools around a new paradigm — subordinating academic basics to an obsessive, politicized preoccupation with race and social justice activism.

    “Critical Social Justice” ideology (CSJ) — the vehicle for manipulating our young people into adopting this worldview — is laced strategically through a variety of bills, including “ethnic studies” (HF 1502), “Teachers of Color” (HF 320) and now the House and Senate omnibus education bills (HF 2497/SF 2684).

    Taken together, this legislation will inject reductive, racialized thinking into every classroom in Minnesota’s approximately 500 school districts and charter schools; change the fundamental mechanics of education in our state; and give the Minnesota Department of Education (MDE) and the Professional Educator Licensing and Standards Board (PELSB) broad new powers that amount to an end-run around our state’s hallowed tradition of local control.

  • More blue city dysfunction. “Portland REI to Close Due to Record Number of Break-Ins, Thefts.”
  • California’s crazy program to subsidize poor home owners with mortgage down-payments runs out of money in 12 days.
  • Related: “Joe Biden Wants Homebuyers With Good Credit to Subsidize High Risk Mortgages.”
  • TikTok’s Democrat Lobbyists Visited Biden White House At Least 40 Times In Past Year.” Beijing Joe likes his dough.
  • Here’s a story I missed earlier: “Kazakhstan Impounds Property of Roscosmos Subsidiary.” That’s the Russian company that’s the main operator of Baikonur spaceport. Haven’t seen any resolution to this, mainly because Russia is so broke thanks to mismanagement, sanctions, and an illegal war of territorial aggression.
  • Ruh-roh!

  • ATF Director Steve Dettelbach says he’s not a firearms expert. Sounds like he should have another job.
  • No wonder they hid it. “Louisville Shooter’s Manifesto Details His Intent To Push Gun Control.”
    

  • Anheuser-Busch Thinks We’re Idiots.” (Hat tip: Sarah Hoyt at Instapundit.)
  • BuzzFeed shuts down. Dwight whipped this up:

  • Jay Leno drives the 1,025 horsepower 2023 Dodge Challenger SRT Demon 170. I have an irrational desire to own something with a Hellcat engine, which I need like I need a hole in my head. Plus I like the look of the Shelby GT-500 Mustang better, and I’m not buying one of those either.
  • Size comparison video of different science fiction starships.
  • “Disney World Forced To Close After DeSantis Builds Elementary School Within 1,000 Feet.”

    “Disney has proudly employed sex predators for years, and this act of aggression by DeSantis will force thousands of our proud pedo-American workers to leave the park to stay outside the 1,000-foot radius required by law,” said Disney CEO Bob Iger. “This is tyranny!”

  • “Hasbro Introduces New ‘Transition Me Elmo’ Doll.”
  • “Budweiser Replaces Clydesdales With Cows Dressed As Horses.”
  • “Chicago Mayor Warns That If Local Walmart Locations Close People Will Have Fewer Places To Shoplift.”
  • “Newlyweds In San Francisco Looking For Nice One Bedroom, Zero Bath Starter Tent.”
  • 

    Ex-LA Sheriff Alex Villanueva Discusses The Homeless Industrial Complex

    Sunday, April 16th, 2023

    Here’s a video where Ex-LA Sheriff Alex Villanueva discusses how the Homeless Industrial Complex racket works there.

  • Five people a day die on the streets of LA in the gutter like a dog. Five a day. Like, five on drugs from overdosing overdosing on drugs, from illnesses that are treatable. But if you’re not being treated, like, for example, you’re insulin dependent type one [diabetes]. Without insulin you die. That’s what happens, because these are people are not in a state of mind to actually accept and seek medical care for a problem, so it goes untreated they die, or they overdose and they die, or they do both and they die. I think in 2020-2021, they registered, I think, over 1,800 deaths of that type on the street, which is mind-boggling, but it’s consistent.

  • “If you don’t pay attention, people are going to die. So the people, the activists, they want to get in the way. ‘Don’t touch them, you’re criminalizing poverty!’ or this or that. Yet they have no answer. And their solution is just to let people die on the street. That’s not a solution.”
  • “The [homeless] count is getting bigger, not smaller.”
  • “There’s a perception in the entire nation that, if you’re homeless and you like to use drugs, go to LA. Until that train stops, it doesn’t matter what you do locally in LA. You can’t defeat 49 other states sending all their homeless their derelicts their drug addicts to LA.” I don’t know, a lot still seem to be going to San Francisco. And we need to do more to spread the word to Austin’s drug addicted transients in hopes they move there.
  • When he started trying to clean things up, he got immediate pushback from the Los Angeles County Board of Supervisors. They had “no desire whatsoever” to work with him.
  • “They’re not doing anything about it because the homeless industrial complex is alive and well. Look at the career arc of Holly Mitchell, supervisor. Karen Bass, mayor. Community organizers. Now they’re running non-profits. Now they’re receiving contracts from the county, from the city. Now they’re in public office. Those two in particular prime example of it, and that’s the wave of the future.”
  • “You’ve got a whole community of people that are in the 501c3s, the non-profits, and uh Boards of Directors, CEOs. The amount of money is pouring into the nonprofits is just incredible. There’s no governance, there’s no oversigh, there’s no accountability on the results. They just keep shoveling money at them, and the problem keeps getting worse and worse.”
  • “This has become a system for people to to get in and get involved, and actually build a career and build a path to politics. The top 10 CEOs of non-profits eight hundred thousand dollar a year. They were making more than twice what I was making as sheriff, and the size of my operation dwarfed all of them probably combined. But that tells you the influence the money involved.”
  • “From 2011 to 2021, L.A. County spent 6.5 billion dollars on homeless initiatives. The homeless count went from 39,000 to over 80,000. it doubled in size.”
  • “It’s engulfing every corner of life in L.A County.”
  • Watch the whole thing.

    LinkSwarm for March 31, 2023

    Friday, March 31st, 2023

    One quarter of the year gone! Career criminals coddled by Soros Stooges, crazy woman who thinks she’s a man murders children, lots of Flu Manchu fraud, and Botox makes you crazy(er). It’s the Friday LinkSwarm!

  • Everyone and their dog is covering the ham sandwich Trump indictment, so I’ll leave that to others. I will note that Alan Dershowitz is not impressed. “Based on what we know about this case, it may be one of the weakest cases in my six years of experience.”
    

  • Voter Suppression Is Real And It’s Not What You Were Told.

    On the morning of Election Day last November, William French went to his local polling place in Freeland, Pennsylvania, to cast his vote. But the qualified and registered voter wasn’t allowed to. The disabled U.S. Army veteran was told that the precinct had run out of paper for ballots and he had to come back later in the afternoon.

    So that’s what he did, returning at 3:30 p.m. But the precinct still didn’t have ballots. Election workers told him to return yet again. But by nightfall, it was too difficult. French has endured 17 surgeries on his destroyed leg and uses a cane to walk. But the sidewalks are a mess, and he was worried about the risk of falling and further injury.

    That same morning, Melynda Reese and her husband went to their polling location in Shickshinny, Pennsylvania. But only Reese’s husband was allowed to vote, and for the same reason: The precinct had run out of paper. They came back at 4:00 p.m. and were told there would be a lengthy wait.

    Reese is a corrections officer and her husband’s primary caregiver. He had recently suffered two cardiac arrests and a stroke. He required regular medication and attention and couldn’t be left alone. Long waits were also too much to bear. The couple returned at 6:30 p.m., and saw a line that stretched so long that they knew they couldn’t wait. Around 9:15 p.m., an election official called Reese and told her that ballots were finally available and she could vote. But her husband had just taken his sleeping pills and she couldn’t leave him unattended.

    French and Reese are just two of the thousands of voters affected by poor election administration in Luzerne County, Pennsylvania. The two just sued Luzerne County, its Board of Elections and Registration, and its Bureau of Elections in federal court for violations of their constitutional right to vote.

    “Voters in Luzerne County through no fault of their own, were disenfranchised and denied the fundamental right to vote. William French and Melynda Reese are two of those voters. They bring suit to vindicate the denial of their sacred right to vote, to make sure voters are not disenfranchised in the future, and to bring integrity back to elections in Luzerne County,” said Wally Zimolong, lawyer for French and Reese.

    (Hat tip: Ace of Spades HQ.)

  • Did the FBI have a “mole” that would tip Hunter Biden off about any China probes.

    The House Oversight Committee is investigating the explosive claims by Dr. Gal Luft, a former Israel Defense Forces lieutenant colonel with deep intelligence ties in Washington and Beijing, who says he was arrested to stop him from revealing what he knows about the Biden family and FBI corruption — details he told the Department of Justice in 2019, which he says it ignored.

    Luft, 56, first made the claims on Feb. 18 on Twitter, after being detained at a Cyprus airport as he prepared to board a plane to Israel.

    “I’ve been arrested in Cyprus on a politically motivated extradition request by the U.S. The U.S., claiming I’m an arms dealer. It would be funny if it weren’t tragic. I’ve never been an arms dealer.

    “DOJ is trying to bury me to protect Joe, Jim, and Hunter Biden.

    “Shall I name names?”

    Luft remains in jail awaiting extradition to the US over what he says are trumped-up charges of arms trafficking to China and Libya, and violations of the Foreign Agents Registration Act.

    Luft claimed that he tried to reach out to the DOJ about the Chinese energy company CEFC paying Hunter $100,000 and James Biden, Joe’s brother, $65,000 “in exchange for their FBI connections and use of the Biden name to promote China’s Belt and Road Initiative around the world.”

    Maybe. Could just be a grifter trying to skate.

  • “James O’Keefe Uncovers Possible Lucrative Money-Laundering Scheme for Dems.”

    James O’Keefe has not allowed his forced exit from Project Veritas to stop him. His new journalism outfit, O’Keefe Media Group (OMG), just released a video uncovering evidence of what O’Keefe calls a possible “money-laundering scheme” for the Democrats. Some individuals reportedly appear to have donated thousands of times over a relatively short period to the tune of hundreds of thousands of dollars to ActBlue and Biden for President, based on Federal Election Commission records.

    “FEC data shows that some senior citizens across the U.S. have been donating thousands of times per year,” O’Keefe began. “Some of these individuals’ names and addresses are attached to over $200,000 in contributions. We went and knocked on a few of their doors to corroborate the data that we received from a group of citizen journalists called Election Watch in Maryland.” The video then showed O’Keefe visiting someone who is listed as donating over $217,000, through 12,000 separate contributions. This money was earmarked for various entities through leftist platform ActBlue over three years’ time. Some of the donations were made with variations of the person’s name and address, O’Keefe stated.

    The data he obtained was state and FEC data, O’Keefe said. “We’re wondering if these donors are victims of what appears to be a money-laundering scheme, or [if] these residents actually participated in the scheme. We’re making phone calls, we’re knocking on doors, these are things that you can do, we hope you do that.” There are “bizarre amounts of data” on homes and individuals making many thousands of dollars of donations, O’Keefe said, urging others to help him investigate.

    The first person shown opening the door to O’Keefe, a Marylander listed as donating $32,000 in 3,000 different contributions, said he was unaware of the donations but advised O’Keefe as a solution to hit Donald Trump “with a bat.” The man added, “I want to see a scar on his f**king head. Now stop f**king with me,” and slammed the door.

    Another donor, Cindy, according to O’Keefe, supposedly donated over $18,000 in 1,000+ donations to ActBlue in 2022, which would necessitate donating “three times a day, every day, for the whole year.” When asked if she’d donated over $18,000, Cindy responded with a quick laugh, “I doubt that. No, I don’t think so… I wish I could have donated $18,000 to Biden’s presidency.”

    Meanwhile Carolyn Lenz, in Tucson, Ariz., told OMG that she “absolutely [did] not” donate over 18,000 times for $170,000+ to ActBlue. She looked at the data showing “she” donated multiple times a day, often in $5 to $15 increments, and insisted that the donations were not hers. “They must be” fraudulent, Lenz said.

    (Hat tip: Stephen Green at Instapundit.)

  • “Judge stops California Soros prosecutor from slashing triple murderer’s sentence.”

    After rejecting her in 2018, the voters of Alameda County, California selected Pamela Price as their new District Attorney last year. Price had taken hundreds of thousands of dollars from George Soros for her two campaigns. That probably tells you most of what you need to know, since Soros only funds candidates who are soft on crime and willing to empty the jails as much as possible. Price quickly proved herself no exception, seeking to cut a plea deal with a killer who had been arrested for one triple murder for hire, was accused in the murder of a court witness, and several other violent crimes. Rather than the 75 years to life sentence that Delonzo Logwood was eligible for, Price wanted to cut him loose after fifteen years. Thankfully, a County District Judge stepped in and rejected the deal out of hand. (Free Beacon)

    A California judge this week blocked a newly-elected progressive prosecutor’s effort to slash a triple murderer’s sentence.

    Alameda County district judge Mark McCannon rejected District Attorney Pamela Price’s plea deal for a 31-year-old man jailed for a 2008 triple murder-for-hire, among other crimes. Price, who took office in November and has taken hundreds of thousands of dollars from the progressive billionaire George Soros, attempted to sentence Delonzo Logwood to just 15 years in prison, though he was eligible for a sentence of 75 years to life.

  • 10 Arrests, 33 Charges, 31 Days — One Man!

    You can’t keep a bad man down. Keith Chastain, 38, is a one-thug crime spree.

    Chastain racked up an impressive array of arrests in Fresno County, California, (of course). Between Feb. 19 and March 21, he was arrested 10 times for a menagerie of crimes encompassing 15 misdemeanors and 18 felonies, including:

    • six stolen cars
    • fraud
    • DUI (duh)
    • drugs (duh)
    • vandalism

    Chastain was hit with three additional charges — DUI, trespassing, and auto theft — but those were dropped when cops failed to file the charges in time.

    Snip.

    “Unfortunately, this is not as unique of a situation as it seems,” Tony Botti, spokesman for the Fresno County Sherriff’s office, stated. “California has watered down the laws so much over the years for property criminals and repeat offenders that they are not held accountable like they should be. Sadly, it is our community members who suffer due to these soft-on-crime policies.”

    (Hat tip: Stephen Green at Instapundit.)

  • “Aggravated robbery defendant violates bond conditions more than 1,000 times, gets rewarded by two judges.”

    According to court documents, Edwin Maldonado spent many months thumbing his nose at what he was ordered by the court to do.

    His punishment for that is more like a prize.

    “You’ve got someone who was rewarded for being a failure, and this guy was a failure over 1,000 and some odd times,” said Andy Kahan with Crime Stoppers.

    First, Maldonado gets a felony charge for drug possession. A few weeks later, he’s charged with aggravated robbery with a deadly weapon. He makes his $30,000 bond and walks out of jail.

    “I’ve certainly had clients hauled back into court on violations, maybe two or three times that have been alleged,” said criminal defense attorney Emily Detoto.

    Associate Judge Tiffany Hill presided over a bond revocation hearing for Maldonado.

    “For obvious reasons, you are not abiding by your rules and conditions period, and God knows what he was doing when he wasn’t where he was supposed to be,” Kahan said.

    According to court documents, Maldonado failed to comply with any of his bond conditions for eight months.

    According to his GPS monitor, he left his curfew zone 847 times, was called 453 times about his whereabouts, and had more than 1,000 GPS monitor violations.

  • “Suspect Charged in Robbery that Paralyzed Victim Was Out on $100 Bond for Weapons Charge.”

    A suspect arrested and charged in a recent brutal “jugging” robbery in Houston that left a woman paralyzed was out on a $100 bond for a weapons-related charge.

    On the morning of February 13, Nung Truong, 44, withdrew money from a bank ATM but was followed for approximately 24 miles by two suspects. Surveillance video released by the Houston Police Department shows a black male bumping into Truong and causing her to drop her belongings. The suspect initially fled with an envelope but returned seconds later to body-slam Truong to the ground before taking $4,300 in cash.

    A mother to three children aged 13, 15, and 20, Truong is now paralyzed and unable to walk or care for herself.

    Last Friday, Houston Police arrested Joseph Harrell, 17, and Zy’Nika Ayesha Woods, 19, for the attack and charged both suspects with Aggravated Robbery with Serious Bodily Injury.

    According to court records, on January 26, 2023, Harrell had been granted a General Order bond of $100 for Unlawful Possession of a Weapon. He also faces charges of Aggravated Assault with a Deadly Weapon related to an incident in February in which he threatened another victim with a gun. Harrell is currently being held in the Harris County jail on bonds totaling $240,000.

    Snip.

    Although Harrell’s Unlawful Possession of a Weapon charge was assigned to Harris County Court 2 under Judge Paula Goodhart, his bond was signed by Judge David Singer.

    Elected to Harris County Criminal Court 14 in 2018, Singer lost in the March 2022 Democratic primary election and his term ended December 31, 2022. As a one-term judge, Singer is not eligible under state code to serve as a visiting judge.

    The 11th Administrative Judicial Region confirmed to The Texan that Singer is not listed as a visiting judge.

    The Harris County Office of Court Management emailed the following statements to The Texan:

    “David Singer was appointed as associate judge pursuant to Section 54A.002 of the Texas Government Code and the Local Rules for Harris County Criminal Courts at Law. His start date was Jan. 1, 2023.”

  • Finland gets the green light to join NATO, with Turkey and Hungary approving their membership. Sweden’s application is still under negotiation. As I noted previously, tangling with the Finns has not been a source of happiness for Russia.
  • Poor priorities. “European Ammo Maker’s Growth Stymied By TikTok Data Center Sucking Up Electricity.”
  • “Several homeless encampments have popped up behind shops at South Town Square in South Austin, driving business and customers away.”
  • “Florida Governor DeSantis Signs Universal School Choice Bill.”
  • LA City Council member Mark Ridley-Thomas convicted of taking bribes. “He was convicted of one count of bribery, one of conspiracy, one count of honest services mail fraud, and four counts of honest services wire fraud. The jury acquitted him on 12 other counts.”
  • “Protesting WA’s capital gains tax, Fisher Investments says HQ moving to Texas.” This is in response to a Washington state supreme court ruling allowing a state capital gains tax.
  • Crazy woman who thinks she’s a man murdered children in a Christian school this week.
  • “As Veterans Learned the DCCC Had Leaked Their Data, the VA’s Tech Chief Was Meeting With His Wife. She Runs the DCCC.”

    Veterans Affairs assistant secretary Kurt DelBene is married to Rep. Suzan DelBene (Wash.), chairwoman of the DCCC. It’s a big club, and you’re not in it. (Hat tip: Stephen Green at Instapundit.)

  • Covid crook convicted.

    Federal prosecutors announced a 58-year-old Plainview man is facing 102 years in prison after pleading guilty to stealing $4 million in federal relief funds passed during the COVID-19 pandemic.

    On Friday, Andrew Johnson pleaded guilty in the Northern District of Texas to three counts of bank fraud, one count of aggravated identity theft, and one count of engaging in monetary transactions in property derived from unlawful activity, according to a news release published by the U.S. Department of Justice (DOJ).

    Johnson swindled millions from the Paycheck Protection Program passed in the early weeks of the pandemic to help stave off the economic effects of business closures, government restrictions, and shelter-in-place mandates. As part of the fraud, Johnson applied for and received forgiveness for 27 bogus loans.

    He spent more than $3.5 million of the stolen funds on “home renovations, vacations, clothing, cosmetic surgery, college tuition, cars, wedding expenses, and equipment for an unrelated business venture,” according to the DOJ.

  • Speaking of fraud: “Nonprofit vendor defrauded Austin Public Health of $417K.”

    After an investigation that took longer than a year, the Office of the City Auditor in Austin said it found Central Texas Allied Health Institute (CTAHI), a nonprofit City of Austin contractor, committed fraud against Austin Public Health and falsified health records.

    According to the investigative report, CTAHI misrepresented over $1.1 million in financial transactions across three contracts with Austin Public Health and was incorrectly paid roughly $417,000 between December 2020 and September 2021 because of fraudulent contract claims. The report also claimed CTAHI falsified its COVID-19 vaccine contract performance by overstating vaccination totals and fabricating patient data.

    “This is up there with some of the biggest cases we’ve investigated on my team,” said Brian Molloy, chief of investigations at the Chief of the City Auditor.

    CTAHI, President Todd Hamilton, and Dr. Jereka Thomas-Hockaday — both of whom were named in the report — denied the claims made in the report in a statement Thursday.

    Snip.

    CTAHI’s three contracts with Austin Public Health were for COVID-19 testing, workforce development, and COVID-19 vaccines, according to the city. Between December 2020 and September 2021, the city said CTAHI submitted 23 claims for reimbursement to APH under the workforce development and COVID-19 vaccine contracts.

    Flu Manchu is the fraud fount that just keeps giving… (Hat tip: Dwight.)

  • NHL might stop pushing gay pride after backlash from players and fans. “Philadelphia Flyer’s player Ivan Provorov didn’t want to participate in a ‘Pride’ event during warmups…Soon, other players also refused to participate after Povorov showed it could be done, and some entire team organizations dropped their planned LGBT pride events. And thanks to this one man’s stand, the NHL is considering dropping the whole ‘Pride’ push.”
  • Gordon Moore, one of the founders of Intel and coiner of Moore’s Law, is dead at age 94. Semiconductors have radically changed just about every facet of the world.
  • Italy refuses to eat the bugs.
  • Botox alters brain activity connected to emotions.” (Hat tip: Sarah Hoyt at Instapundit.)
  • Samsung phones fake moon photos.
  • An aperiodic monotile exists!
  • “This woman was visiting Asia and noticed that all the plus-sized clothing stores have very direct names.”
  • “Progressives Across Nation Locked Out Of Accounts After CAPTCHA Asks ‘Select All Squares That Contain A Woman.'”
  • “Media Calls For Moment Of Silence For Shooter Who Was Misgendered.”
  • MiniLinkSwarm for March 25, 2022

    Saturday, March 25th, 2023

    For several weeks, I’ve been running out of time to post every link I’ve gathered, so I’ve been bumping some links (generally ones that seemed less time-sensitive or required more commentary than others) to the next week’s LinkSwarm, whereupon I may use one or two, but otherwise the process repeats.

    Well, I’m just going to post all those today to clear the decks.

  • California’s leftwing Democratic Governor Gavin Newsom is using his position as governor subsidize his wife’s own leftwing business empire.

    In the summer of 2022, Governor Gavin Newsom convinced the state legislature to provide $4.7 billion for K-12 mental health services, which, among other things, funded 10,000 new school counselors.

    Gavin Newsom convinced the legislature because Jennifer Siebel Newsom, the wife of the governor, convinced him. The biggest advocate for mental health funding within the K-12 California public schools in the Newsom administration was Mrs. Newsom, according to published accounts.

    In fact, Gavin Newsom created The Office of First Partner so his wife could promote her policy agenda using taxpayer money. Since 2019, Siebel Newsom’s been armed with nearly $5 million and nine staffers within her subdivision of the governor’s office.

    Snip.

    Siebel Newsom spent years laying the ideological groundwork and political infrastructure to support her policy ambitions.

    In 2012, Siebel Newsom founded a nonprofit, The Representation Project, that licenses “gender justice” films and curricula to 5,000 schools in all 50 states. The year Gavin Newsom became governor, the California Board of Education adopted guidance that recommended her films and curriculum be licensed and used in classrooms.

    Policy making in California isn’t magic. Turns out, it’s a carefully thought through process to maximize political power and personal return from public investments.

    Last week, we investigated the sophisticated scheme through which Siebel Newsom’s film and curricula “gender justice” nonprofit, The Representation Project, leverages taxpayer dollars to promote radical ideologies, personally profit, and push the political ambitions of her husband. She brags that 2.6 million students have seen the films nationwide.

    The Representation Project contracts with her for-profit film-production company, Girls Club Entertainment. Since 2012, Siebel Newsom received $1.5 million in salary from the nonprofit. Furthermore, since 2012, the Siebel’s nonprofit paid her for-profit Girls Club $1.6 million to produce films.

    Last month, our investigation broke the story that The Representation Project was not in compliance with the California Charitable Solicitation Act. The organization was not permitted to operate or solicit donations in California most of 2022 – yet spent all last year in operation and fundraising.

    Now, we dig deeper, investigating the $4.8 million “Office of the First Partner” Gavin Newsom established for his wife’s policy work, and how Jennifer Siebel Newsom used her position to impact social and political processes, cashing checks along the way.

    n 2019, Gov. Newsom created an office for his wife as a division within the governor’s executive team. According to a press release “the First Partner and her team will focus on lifting up women and their families, breaking down barriers for our youth, and furthering the cause of gender equity in California.”

    Since inception, Siebel Newsom’s office has received nearly $4.8 million in directed taxpayer funding. The Office of First Partner has grown from seven employees with a budget of $791,000, to nine employees with a budget of $1,166,000 proposed for 2023-2024.

    Snip.

    Parents have complained about the pornographic content in Newsom’s films shown to 11-year-olds (such as an animated, upside-down stripper with tape over breasts) and 15-year-olds (nearly naked women being slapped, handcuffed, and brutalized in images taken from porn sites) — to view images, viewer discretion is advised.

    Editorials have criticized the activities in Newsom’s film The Great American Lie as “emotionally abusive.” The activities ask students to publicly reveal personal information and force commentary on their relative “privilege” and “oppression.”

    So Jennifer Siebel Newsom is using California taxpayer money to propagandize children for radical social justice and transexism.

  • An Australian comedian, YouTuber and Journalist, made videos making fun of Australian politicians and covering their oppressive Flu Manchu lockdown policies. That’s when they started trying to use the state machinery to shut him up. Then they firebombed him.

    Jordan Shanks is an Australian comedian, also know as freindlyjordies, who fell in to doing YouTube videos about Australian politicians and powerful companies over the past few years. Along the way he became a journalist, the only journalist covering some of the things being done by the government and the corporations. Then in November of 2022 his house was firebombed. It was only by chance that he wasn’t in the house at the time.

    And hey, if that sounds too dry, well you kids like Knives Out or whatever. Stick around. It’s a pretty interesting whodunit.

    Most of the Australian press is even more in the bag for the powers-that-be than the US national media is for the Democrats. There were numerous stories, all but ignored by the mainstream. One example, the Premiere of New South Wales was under investigation. That was all but ignored by the press until she resigned. Then there were the antics of her Deputy Premiere, John Barilaro.

    That is the most entertaining — or damaging to powers that be — story friendlyjordies covered.

    As a result of that coverage, the Australian anti-terrorism machinery was directed at Shanks and his employees. Of course that turned out to be a group of Keystone cops, which got their own exposure on freindlyjordies. Along the way he exposed the abuse of the anti-terrorism squad, the relationship between some of the politicians and large corporations and perhaps organized crime. Then in November of the last year, after the lawsuits failed, the anti-terrorism actions failed, and the intimidation failed, someone moved to direct action, and tried to kill him.

  • You may remember my previous post on the army selecting the M5 Next Generation Squad Weapon. So how is that going? Evidently not well.

    On all key technical measures, the Next Generation Squad Weapons program is imploding before Army’s very eyes. The program is on mechanical life support, with its progenitors at the Joint Chiefs obstinately now ramming the program through despite spectacularly failing multiple civilian-sector peer reviews almost immediately upon commercial release.

    Indeed the rifle seems cursed from birth. Even the naming has failed. Army recently allowed a third-party company to scare it off the military designation M5. The re-naming will certainly also help scupper bad public relations growing around ‘XM-5′ search results.

    Civilian testing problems have, or should have, sunk the program already. The XM-5/7 as it turns out fails a single round into a mud test. Given the platform is a piston-driven rifle it now lacks gas, as the M-16 was originally designed, to blow away debris from the eject port. Possibly aiming to avoid long-term health and safety issues associated with rifle gas, Army has selected an operating system less hardy in battlefield environments. A choice understandable in certain respects, however, in the larger scheme the decision presents potentially war-losing cost/benefit analysis.

    Civilian testing, testing Army either never did or is hiding, also only recently demonstrated that the rifle seemingly fails, at point-blank ranges, to meet its base criteria of penetrating Level 4 body armor (unassisted). True, the Army never explicitly set this goal, but it has nonetheless insinuated at every level, from media to Congress, that the rifle will penetrate said armor unassisted. Indeed, that was the entire point of the program. Of course, the rounds can penetrate body armor with Armor Piercing rounds, but so can 7.62x51mm NATO, even 5.56x45mm NATO.

    The fundamental problem with the program is there remains not enough tungsten available from China, as Army knows, to make the goal of making every round armor piercing even remotely feasible. The plan also assumes that the world’s by far largest supplier will have zero problems selling tungsten to America only for it to be shot back at its troops during World War III. Even making steel core penetrators would be exceedingly difficult when the time came, adding layers of complexity and time to the most time-contingent of human endeavors. In any case, most large bullet manufacturers and even Army pre-program have moved to tungsten penetrators for a reason, despite the fact it increases the cost by an order of magnitude and supply seems troubled. Perhaps Army has a solution, perhaps.

    The slight increase in ballistic coefficiency between the 6.8x51mm and 7.62x51mm cartridges neither justified the money pumped into the program nor does the slight increase in kinetic energy dumped on target. Itself a simple function of case pressurization within the bastardized 7.62mm case. Thus the net mechanical results of the program design-wise is a rifle still chambered in a 7.62×51 mm NATO base case (as the M-14), enjoying now two ways to charge the weapon and a folding stock. This is the limit of the touted generational design ‘leap’ under the program. And while the increased case pressure technology is very welcome the problem is, in terms of ballistics, the round is in no way a leap ahead compared to existing off-the-shelf options as those Army nearly went with under the now disavowed Interim Combat Service Rifle program, or it in fact did purchase schizophrenically just before the NGSW program began with the HK M110A1.

    The Army is evidently still moving ahead with the program.

    I can’t tell you whether the criticisms are true or not unless Sig Saur sends me a example to shoot. While that would be cool, I suspect it’s pretty unlikely, and I fear many test ranges have picayune policies against using military grade automatic weapons…

  • How Georgetown Law cracked down on Flu manchu mandate heretics.

    For questioning Covid restrictions, Georgetown Law suspended me from campus, forced me to undergo a psychiatric evaluation, required me to waive my right to medical confidentiality, and threatened to report me to state bar associations.

    The Dean of Students claimed that I posed a “risk to the public health” of the University, but I quickly learned that my crime had been heretical, not medical.

    Just before I entered Georgetown Law in August 2019, I watched The Paper Chase, a 1973 film about a first-year Harvard Law student and his experiences with a demanding professor, Charles Kingsfield.

    The movie has the standard themes of law school: teaching students how to think, challenging the premises of an argument, differentiating fact patterns to support precedent. Kingsfield’s demands represent the difficulty of law school, and the most important skill is articulate, logic-based communication. “Nobody inhibits you from expressing yourself,” he scolds one student.

    “Nobody inhibits you from expressing yourself.”

    Two years later, I realized that Georgetown Law had inverted that script. The school fired a professor for commenting on differences in achievement between racial groups, slandered faculty members for deviating from university group-think, and threatened to destroy dissidents. Students banished cabinet officials from campus and demanded censorship of a tenured professor for her work defending women’s rights in Muslim-majority countries.

    Unaware of the paradigm shift, I thought it was proper to ask questions about Georgetown’s Covid policies.

    In August 2021, Georgetown Law returned to in-person learning after 17 months of virtual learning. The school announced a series of new policies for the school year: there was a vaccine requirement (later to be supplemented with booster mandates), students were required to wear masks on campus, and drinking water was banned in the classroom.

    Dean Bill Treanor announced a new anonymous hotline called “Law Compliance” for community members to report dissidents who dared to quench their thirst or free their vaccinated nostrils.

    Meanwhile, faculty members were exempt from the requirement, though the school never explained what factors caused their heightened powers of immunity.

    Shortly thereafter, I received a notification from “Law Compliance” that I had been “identified as non-compliant” for “letting the mask fall beneath [my] nose.” I had a meeting with Dean of Students Mitch Bailin to discuss my insubordination, and I tried to voice my concerns about the irrationality of the school’s policies.

    He had no answers to my simple questions but assured me that he “understood my frustration.” Then, he encouraged me to “get involved in the conversation,” telling me there was a Student Bar Association meeting set to take place the following Wednesday.

    I arrived at the meeting with curiosity. I had no interest in banging my fists and causing a commotion; I just wanted to know the reasoning – the “rational basis” that law schools so often discuss – behind our school’s policies. There were four simple questions:

  • What was the goal of the school’s Covid policy? (Zero Covid? Flatten the curve?)
  • What was the limiting principle to that goal? (What were the tradeoffs?)
  • What metrics would the community need to reach for the school to remove its mask mandate?
  • How can you explain the contradictions in your policies? For example, how could the virus be so dangerous that we could not take a sip of water but safe enough that we were required to be present? Why are faculty exempt from masking requirements?
  • I feared there were simple answers to my questions that I had overlooked: these administrators made hundreds of thousands of dollars per year, surely they must have had some reasoning behind their draconian measures. Right? The contradictions appeared obvious to me. The data seemed to be clear, but maybe there was an explanation.

    I delivered the brief speech without a mask, standing fifteen feet away from the nearest person. I awaited a response to my questions, but I realized this wasn’t about facts or data, premises or conclusions. This was about power and image.

    Arbitrary. Irrational. Capricious. Students learn in their first days of their legal education to invoke these words to challenge unfavored laws and policies. I figured that I was doing the same, and I thought the school would welcome a calm, albeit defiant, student asking the questions rather than loud and angry crowds.

    But this assumption turned out to be an incorrect premise. Nobody cared about my points regarding rationality – they cared that I had been reading from the wrong script. Even worse, not wearing a mask had been a more objectionable wardrobe malfunction than Janet Jackson’s Super Bowl performance.

    (Hat tip: Sarah Hoyt at Instapundit.)

  • Scrapped Railway Project Could Derail Putin’s Arctic Ambitions.

    Moscow’s ability to develop its own resource-based economy, expand the Northern Sea Route, cement ties with China and support Vladimir Putin’s ambitions to project power into the Arctic depends on the development of land-based infrastructure in the northern regions of the Russian Federation…

    Yet, that ability has now been called into question, as the Russian government has canceled, despite Putin’s repeated orders to the contrary, a program to complete the broad-gauge Northern Broad-Gauge Railway. The route was intended to link settlements that support the Northern Sea Route, military bases and the locations of key sources of raw materials across the Russian North with the rest of the country…

    Snip.

    What appears to be this project’s death knell, at least for the time being, is instructive in its own right. It occurred not with some dramatic single action by the Kremlin but in a rolling fashion as has often been the case with the backtracking of decisions under Putin. In April 2021, to much acclaim, the Russian president called for construction of the Northern Broad-Gauge Railway to begin, with the goal of completing the project in the next few years. Yet, despite Putin’s words, nothing happened, at least in part because of the COVID-19 pandemic, increased spending for his war against Ukraine and the impact of Western sanctions. Then, in 2022, Putin issued a new order for the project to go ahead. Again, nothing happened. Instead, less than a month later, Marat Khusnullin, a Russian deputy prime minister, quietly stopped all work on the project without giving anyone reason to think it would be resumed. Indeed, many Russian experts and commentators concerned with infrastructure issues believe that this railway plan has come to the end of its line, and one has even suggested that the cancellation of this project puts “a cross on the future of Russia.

    Russia was broke before it launched its illegal war of territorial aggression against the Ukraine. Now it’s even more broke.

  • Turns out I got through all but one…

    LinkSwarm for March 24, 2023

    Friday, March 24th, 2023

    More on the collapse of Silicon Valley Bank, Syria gets spicy again, woke companies like Disney are having massive layoffs, and Sig Saur gets into the Killbot business. It’s the Friday LinkSwarm!

  • Things that make you go Hmmmm:

    Courtesy of Bloomberg’s reporting, it appears that not only were insiders dumping their shares faster than syphilitic hooker, there were loading up on loans from the bank at a scale that makes a mockery of any regulatory oversight…

    Yes, that’s real.

    Loans to officers, directors and principal shareholders, and their related interests, more than tripled from the third quarter last year to $219 million in the final three months of 2022 – a record dollar amount of loans going back over 20 years.

    Many questions come to mind – what were the terms, who were the recipients, what was the collateral?

    But, sadly, we will likely never know.

    However, we do note that the banking execs may be facing a serious shortfall (like their bank): if the loans were collateralized by SVB shares for example, those shares are now worthless, leaving the loan-heavy C-suite left to come up with the cash to repay the loans (and no, these loans don’t disappear with the bank’s liquidation).

    Between that and the insider share dumping, people need to go to jail.

  • Speaking of insiders, let’s talk about FTX and Silicon Valley Bank’s ties to the World Economic Forum.

    After the implosion of the FTX crypto exchange run by Sam Bankman Fried, questions of due diligence and competency immediately arose, suggesting that perhaps the company mishandled assets “accidentally” and that Fried was naive and “in over his head.” Numerous central bank officials and globalist organizations jumped into the debate almost immediately, arguing that FTX was a perfect example of why centralized regulation of crypto and digital currencies was necessary. They claimed that without oversight by banking elites, disaster was inevitable.

    Of course, what they did not mention was that FTX and Sam Fried already had extensive connections with globalist groups including the World Economic Forum. In fact, the very basis of Fried’s business model was the WEF’s “Stakeholder Capitalism” theory, which he often referred to as “Effective Altruism.”

    Stakeholder Capitalism is essentially the opposite of free markets – It is a socialist/globalist framework which uses corporations as a kind of economic enforcement tool. Corporations are already highly socialistic in their operations, and their existence is completely dependent on their special relationship with government. Corporations are created through government charter, enjoy special protections under “corporate personhood” laws and avoid direct consequences for criminal activities through limited liability.

    Many corporations are not even allowed to fail because governments backstop their operations. That’s socialism, not free markets. However, “stakeholder capitalism” expands on this dynamic a hundred-fold.

    Where free markets assert that businesses must make profit their primary objective for the overall economy to function, the WEF asserts that companies including banking institutions have a social obligation that goes beyond making money. To the typical leftist this probably sounds like a Utopian vision filled with promise, but to anyone that actually understands economics it sounds like a recipe for the collapse of civilization.

    The WEF paints stakeholder capitalism an effort to reign in the power of the corporate system in favor of social causes. In reality, it’s a way to give corporations ultimate power over everything, including ultimate influence over public behavior.

    We have seen extensive evidence of this through widespread corporate ESG investment programs implemented in the past several years. It is no coincidence that the invasion of woke ideology into the mainstream happened at the exact same time that ESG-based lending accelerated.

    The institutions lending to various companies were able to set social rules for access to credit, and these rules required businesses to adopt far-left politics in their marketing and policies as a result. Stakeholder capitalism is about homogenizing all business into a single ideological entity – Instead of competing with each other for market share through innovation, companies have been abandoning merit based competition and are colluding to saturate the mainstream with social justice cultism, climate change propaganda and globalist rhetoric.

    By making corporate elites “responsible” for society, we give them the power to engineer society.

    However, the WEF’s model of false altruism is turning out to be a disaster for corporate survival. I have to wonder now if this was the intent all along – To create a kind of ESG fueled woke financial bubble that was always intended to come crashing down, leaving the western world in ruins.

    Snip.

    Looking into SVB’s operational history, the company was a woke nightmare.

    Take a gander at their 66 page ESG report compiled in 2021 to get a sense of how far to the extreme political left the bank was. SVB is the pinnacle example of why “Get Woke, Go Broke” is more than a mantra, it’s a rule.

    Digging even deeper we then find that SVB’s leadership was highly involved in the WEF and their Stakeholder Capitalism Metrics (SCM), along with corporate governance. SVB was not only implementing every single policy the WEF outlines in its agenda, they were reporting back to the WEF on their progress.

    SVB’s capital exposure was heavily tied up in securities, but also venture capital for woke tech startups, climate change related projects and leftist activist groups which qualified for ESG loans; everything from BLM to Buzzfeed. In other words, they were investing aggressively into money-pit projects that devoured cash and gave nothing back. The real question is, how many US banks are involved in ESG and WEF operations at the same level as SVB? Dozens? Hundreds?

  • “U.S. Carries Out Airstrikes in Syria after Iranian Drone Kills U.S. Contractor, Wounds Five Service Members.” As I’ve mentioned before the withdrawal of most U.S. troops from Iraq and Syria doesn’t mean all. And the same goes for Africa.
  • Fifth Circuit Court of Appeals blocks Biden’s Flu Manchu mandate.
  • After demanding that the police be defunded, San Francisco District Supervisor Hillary Ronen now demands more cops in her district.

    (Hat tip: Stephen Green at Instapundit.)

  • 56% of liberal white women age 18-29 have been diagnosed with a mental health condition.” Well, you already said “liberal”…
  • Louisiana state Rep. Francis Thompson switched from the Democratic to the Republican Party, given Republicans a super-majority in both houses and thus the ability to override any veto by Democratic Governor John Bel Edwards. ““The push the past several years by Democratic leadership on both the national and state level to support certain issues does not align with those values and principles that are a part of my Christian life,” said Thompson.
  • World Athletics, the governing body for international track and field competition, has banned men from international competition. “I’ll take ‘Headlines no one in the 20th century would understand’ for $600, Alex.”
  • “Dallas Bar Cancels All-ages Drag Event.” Funny how the threat of having your TABC license yanked concentrates the mind…
  • Get Woke, Go Broke Part 1: After a string of expensive bombs and streaming losses, Disney to lay off 7,000 employees.
  • Get Woke, Go Broke 1.5: “Woke Marvel Producer Victoria Alonso Gone From MCU.” She was one of the central figures pushing Disney to adopt a pro-groomer position in Florida. The ostensible reason for her firing was breach of contract for producing a non-Marvel movie, but a lot of industry insiders think her outspoken wokeness was a key reason for her getting the axe.
  • Get Woke, Go Broke Part 2: “Twitch Streaming Service To Sack 36% Of Employees.”
  • Another headline I didn’t expect: “SIG Sauer Acquires General Robotics.”

    SIG Sauer announced late last week it has acquired General Robotics, one of the world’s premier manufacturers of lightweight remote weapon stations and tactical robotics for manned and unmanned platforms as well as anti-drone applications. The companies have been working in concert for some time, a fact made obvious at January’s SHOT Show when they debuted a Polaris ATV equipped with a General Robotics PitBull remote weapons station that aimed and fired the vehicle-mounted SIG MG 338 belt-fed machine gun remotely.

    “This acquisition will greatly enhance SIG Sauer’s growing portfolio of advanced weapon systems,” said Ron Cohen, president and CEO of SIG Sauer. The team at General Robotics is leading the way in the development of intuitive, lightweight remote weapon stations with their battle-proven solution.”

  • Nobody should still be using cardboard sheathing on houses.
  • The Y-shaped Chicago building made more stable by adding a giant water tank at the top.
  • “Alex, I’ll take ‘The Rapist Zach‘ for $400.”
  • “It is a belief in the Cocaine Bear’s authority that allows it to officiate legally binding weddings in Kentucky.”
  • “Family Does Modified Version Of Dave Ramsey Plan Where They Just Never Budget And Spend Way Too Much Money.”
  • “Democrats Vow To Arrest As Many Political Opponents As It Takes To Defeat Fascism.”
  • “Trump To Be Indicted For Removing Mattress Tag In 1997.”
  • No one expects SwordDog!
  • Square Zero

    Thursday, March 23rd, 2023

    Dwight sent over this Hindenberg Research piece on Block AKA Square AKA Cash App.

    Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping. The “magic” behind Block’s business has not been disruptive innovation, but rather the company’s willingness to facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology, and mislead investors with inflated metrics.

    There’s also a negative side.

    Even the summary is pretty breathtaking in the rang of allegations:

  • Most analysts are excited about the post-pandemic surge of Block’s Cash App platform, with expectations that its 51 million monthly transacting active users and low customer acquisition costs will drive high margin growth and serve as a future platform to offer new products.
  • Our research indicates, however, that Block has wildly overstated its genuine user counts and has understated its customer acquisition costs. Former employees estimated that 40%-75% of accounts they reviewed were fake, involved in fraud, or were additional accounts tied to a single individual.
  • Core to the issue is that Block has embraced one traditionally very “underbanked” segment of the population: criminals. The company’s “Wild West” approach to compliance made it easy for bad actors to mass-create accounts for identity fraud and other scams, then extract stolen funds quickly.
  • Even when users were caught engaging in fraud or other prohibited activity, Block blacklisted the account without banning the user. A former customer service rep shared screenshots showing how blacklisted accounts were regularly associated with dozens or hundreds of other active accounts suspected of fraud. This phenomenon of allowing blacklisted users was so common that rappers bragged about it in hip hop songs.
  • Block obfuscates how many individuals are on the Cash App platform by reporting misleading “transacting active” metrics filled with fake and duplicate accounts. Block can and should clarify to investors an estimate on how many unique people actually use Cash App.
  • CEO Jack Dorsey has publicly touted how Cash App is mentioned in hundreds of hip hop songs as evidence of its mainstream appeal. A review of those songs show that the artists are not generally rapping about Cash App’s smooth user interface—many describe using it to scam, traffic drugs or even pay for murder…
  • “I paid them hitters through Cash App”— Block paid to promote a video for a song called “Cash App” which described paying contract killers through the app. The song’s artist was later arrested for attempted murder.
  • Cash App was also cited “by far” as the top app used in reported U.S. sex trafficking, according to a leading non-profit organization. Multiple Department of Justice complaints outline how Cash App has been used to facilitate sex trafficking, including sex trafficking of minors.
  • There is even a gang named after Cash App: In 2021, Baltimore authorities charged members of the “Cash App” gang with distribution of fentanyl in a West Baltimore neighborhood, according to news reports and criminal records.
  • Beyond facilitating payments for criminal activity, the platform has been overrun with scam accounts and fake users, according to numerous interviews with former employees.
  • Examples of obvious distortions abound: “Jack Dorsey” has multiple fake accounts, including some that appear aimed at scamming Cash App users. “Elon Musk” and “Donald Trump” have dozens.
  • To test this, we turned our accounts into “Donald Trump” and “Elon Musk” and were easily able to send and receive money. We ordered a Cash Card under our obviously fake Donald Trump account, checking to see if Cash App’s compliance would take issue—the card promptly arrived in the mail.
  • Former employees described how Cash App suppressed internal concerns and ignored user pleas for help as criminal activity and fraud ran rampant on its platform. This appeared to be an effort to grow Cash App’s user base by strategically disregarding Anti Money Laundering (AML) rules.
  • The COVID-19 pandemic and nationwide lockdowns posed an existential threat to Block’s key driver of gross profit at the time, merchant services.
  • In this environment, amid Cash App’s anti-compliance free-for-all, the app facilitated a massive wave of government COVID-relief payments. CEO Jack Dorsey Tweeted that users could get government payments through Cash App “immediately” with “no bank account needed” due to its frictionless technology.
  • Within weeks of Cash App accounts receiving their first government payments, states were seeking to claw back suspected fraudulent payments—Washington State wanted more than $200 million back from payment processors while Arizona sought to recover $500 million, former employees told us.
  • Once again, the signs were hard to miss. Rapper “Nuke Bizzle”, made a popular music video about committing COVID fraud. Several weeks later, he was arrested and eventually convicted for committing COVID fraud. The only payment provider mentioned in the indictment was Cash App, which was used to facilitate the fraudulent payments.
  • We filed public records requests to learn more about Block’s role in facilitating pandemic relief fraud and received answers from several states.
  • Massachusetts sought to claw back over 69,000 unemployment payments from Cash App accounts just four months into the pandemic. Suspect transactions at Cash App’s partner bank were disproportionate, exceeding major banks like JP Morgan and Wells Fargo, despite the latter banks having 4x-5x as many deposit accounts.
  • In Ohio, Cash App’s partner bank had 8x the suspect pandemic-related unemployment payments as the bank that processed the most unemployment claims in the state, even though the latter bank processed 2x the claims as Cash App’s, according to data we obtained via a public records request.
  • The data shows that compared to its Ohio competitor, Cash App’s partner bank had nearly 10x the number of applicants who applied for benefits through a bank account used by another claimant – a clear red flag of fraud.
  • Block had obvious compliance lapses that made fraud easy, such as permitting single accounts to receive unemployment payments on behalf of multiple individuals from various states and ineffective address verification.
  • In an apparent effort to preserve its growth engine, Cash App ignored internal employee concerns, along with warnings from the Secret Service, the U.S. Department of Labor OIG, FinCEN, and State Regulators which all specifically flagged the issue of multiple COVID relief payments going to the same account as an obvious sign of fraud.
  • Block reported a pandemic surge in user counts and revenue, ignoring the contribution of widespread fraudulent accounts and payments. The new business provided a sharp one-time increase to Block’s stock, which rose 639% in 18 months during the pandemic.
  • As Block’s stock soared on the back of its facilitation of fraud, co-founders Jack Dorsey and James McKelvey collectively sold over $1 billion of stock during the pandemic. Other executives, including CFO Amrita Ahuja and the lead manager for Cash App Brian Grassadonia, also dumped millions of dollars in stock.
  • With its influx of pandemic Cash App users, our research shows Block has quietly fueled its profitability by avoiding a key banking regulation meant to protect merchants. “Interchange fees” are fees charged to merchants for accepting use of various payment cards.
  • Congress passed a law that legally caps “interchange fees” charged by large banks that have over $10 billion in assets. Despite having $31 billion in assets, Block avoids these regulations by routing payments through a small bank and gouging merchants with elevated fees.
  • Block includes only a single vague reference in its filings acknowledging it earns revenue from “interchange fees”. It has never revealed the full economics of this category, yet roughly one-third of Cash App’s revenue came from this opaque source, according to a 2022 Credit Suisse research report.
  • Competitor PayPal has disclosed it is under investigation by both the SEC and the CFPB over its similar use of a small bank to avoid “interchange fee” caps. A Freedom of Information Act (FOIA) request we filed with the SEC indicates that Block may be part of a similar investigation.
  • Block’s $29 billion deal to acquire ‘buy now pay later’ (BNPL) service Afterpay closed in January 2022. Afterpay has been celebrated by Block as a major financial innovation, allowing users to buy things like a pair of shoes or a t-shirt and pay over time, only incurring massive fees if subsequent payments are late.
  • Afterpay was designed in a way that avoided responsible lending rules in its native Australia, extending a form of credit to users without income verification or credit checks. The service doesn’t technically charge “interest”, but late fees can reach APR equivalents as high as 289%.
  • The acquisition is flopping. In 2022, the year Afterpay was acquired, it lost $357 million, accelerating from 2021 losses of $184 million.
  • Fitch Ratings reported that Afterpay delinquencies through March 2022 had more than doubled to 4.1%, from 1.7% in June 2021 (just prior to the announced acquisition). Total processing volume declined -4.8% from the previous year.
  • Block regularly hypes other mundane or predatory sources of revenue as technological breakthroughs. Roughly 31% of Cash App’s revenue comes from “instant deposit” which Block says it pioneered and works as if by “magic”. Every other major competitor we checked provides a similar service at comparable or better rates.
  • On a purely fundamental basis, even before factoring in the findings of our investigation, we see downside of between 65% to 75% in Block shares. Block reported a 1% year over year revenue decline and a GAAP loss of $540.7 million in 2022. Analysts have future expectations of GAAP unprofitability and the company has warned it may not be profitable.
  • Despite this, Block is valued like a profitable growth company at (i) an EV/EBITDA multiple of 60x; (ii) a forward 2023 “adjusted” earnings multiple of 41x; and (iii) a price to tangible book ratio of 13.1x, all wildly out of line with fintech peers.
  • Despite its current rich multiples, Block is also facing threats from key competitors like Zelle, Venmo/Paypal and fast-growing payment solutions from smartphone powerhouses like Apple and Google. Apple has grown Apple Pay activations from 20% in 2017 to over 70% in 2022 and now leads in digital wallet market share.
  • In sum, we think Block has misled investors on key metrics, and embraced predatory offerings and compliance worst-practices in order to fuel growth and profit from facilitation of fraud against consumers and the government.
  • We also believe Jack Dorsey has built an empire—and amassed a $5 billion personal fortune—professing to care deeply about the demographics he is taking advantage of. With Dorsey and top executives already having sold over $1 billion in equity on Block’s meteoric pandemic run higher, they have ensured they will be fine, regardless of the outcome for everyone else.
  • That’s just the high level summary. There’s a whole lot more detail in the report.

    I have never once used Cash App. I have an ancient Square Reader floating around in a bag somewhere, but I never actually ran any transactions on it. I do have PayPal, because I pretty much have to in order to buy or sell on eBay (though I’ve gotten to the point I do almost no selling there). I don’t even use Apple Pay, despite having a MacBook Pro and iPhone.

    Speaking of fees, here Louis Rossmann rants about how Square refuses to return fees for refunds:

    Anyway, if you’re using Square or CashApp, maybe it’s a good time to look into alternatives…

    LinkSwarm for March 3, 2023

    Friday, March 3rd, 2023

    In addition to getting over a cold, I spent most of the non-work day trying to assemble a pressure washer so I could attach a water-jetting attachment so I can clean out a blocked exterior line so I can run my dishwasher without it overflowing my sink.

    The result of all this labor is that I still need to call a plumber. So enjoy yet another abbreviated LinkSwarm.

  • Hmmmmmm! “Hunter Biden Business Partner Flips, Now ‘Cooperating’ With GOP Investigators.”

    Eric Schwerin, a close business associate of Hunter Biden who also dealt with Joe Biden’s business and tax affairs, is now working with House GOP investigators looking into Biden family dealings – particularly in Ukraine and China, where the family collected millions of dollars, Just the News reports.

    Eric Schwerin, a close business associate of Hunter Biden who also dealt with Joe Biden’s business and tax affairs, is now working with House GOP investigators looking into Biden family dealings – particularly in Ukraine and China, where the family collected millions of dollars, Just the News reports.

    “He is cooperating with us,” House Oversight and Accountability Committee Chairman James Comer (R-KY) told the outlet.

    “His attorneys and my counsel are communicating on a regular basis. Now, I feel confident that he’s going to work with us, and provide us with the information that we have requested,” Comer continued. “I think that Schwerwin is going to be a very valuable witness for us in this investigation.”

    Of note, Schwerin, the former president of Hunter Biden’s now-dissolved investment firm Rosemont Seneca Partners, visited the White House at least 19 times from 2009 to 2015, according to White House visitor log records reviewed by The Epoch Times and first reported by the New York Post.

  • Chicago’s massively incompetent Democratic mayor Lori Lightfoot defeated for reelection.
  • “Lori Lightfoot Blames Election Loss On ‘Tricksy Hobbitses.’
  • The Democratic Party’s war on natural gas continues apace. (Hat tip: Director Blue.)
  • Patrick L. Wojahn, the Democratic mayor of College Park, MD, resigns over child porn charges. Name that party: His political affiliation only shows up in the 19th paragraph of the piece. (Hat tip: Dwight.)
  • “Russia’s Latest Advance on Vuhledar Fails After 12 Seconds.”
  • Fruit and vegetable shortage hits the UK.
  • Illnesses to Democratic senators Dianne Feinstein and John Fetterman mean that Democrats have temporarily lost their senate majority. That will teach you to rely to Octagenerians and visibly impaired stroke victims to carry your water. (Hat tip: Stephen Green at Instapundit.)
  • Pakistan swears it won’t default on it’s debt.

  • SUV struck by lasers. And by lasers, I mean a minigun. Watch the video.
  • Cuba facing shortages of just about everything. Communism will do that for you. (Hat Tip: The Other McCain.)
  • Fully automated, 100 ton, container-moving robots.
  • Baltimore police chase ends in building collapse.
  • “Rockets owner Tilman Fertitta submits $5.5 billion bid for NFL’s Commanders.” He should move them to Austin and change the name back to the Redskins, just to spite them.
  • Breakfast Bitch convicted of interstate wire fraud.
  • Did MacKay get Tulipmania wrong? It turns out he was also an enthusiast for the far more destructive “Railway Bubbles” that struck England in the 19th century.
  • Man, the pollen in Texas is just brutal this time of year. (Hat tip: Ace of Spades HQ.
  • God Confirms Heaven Will Have A Buc-ee’s.
  • LinkSwarm for February 17, 2023

    Friday, February 17th, 2023

    Bit of a mini-LinkSwarm this time around, as this was a week that I almost caught up on stuff delayed by the ice storm.
    
    

  • Bidenomics: “Core CPI Rises 32nd Straight Month, Headline Inflation Hotter Than Expected.”
  • “Biden’s job growth is mostly immigrants working for low wages.” Also this: “The Department of Homeland Security has been issuing an unknown number of two-year work permits to illegal immigrants, which will keep them in the workforce suppressing wages and fanning the flames of discontent amongst Americans unable to find jobs until the next presidential election.” What the hell?
  • Auto repos hit new records.
  • California’s income tax revenues decline by 50%. Tax it, and they will leave. (Hat tip: Stephen Green at Instapundit.)
  • Disinformation Inc: State Department bankrolls group secretly blacklisting conservative media.”

    The Department of State has funded a deep-pocketed “disinformation” tracking group that is secretly blacklisting and trying to defund conservative media, likely costing the news organizations vital advertising dollars, the Washington Examiner can confirm.

    The Global Disinformation Index, a British organization with two affiliated U.S. nonprofit groups, is feeding blacklists to ad companies with the intent of defunding and shutting down websites peddling alleged “disinformation,” the Washington Examiner reported . This same “disinformation” group has received $330,000 from two State Department-backed entities linked to the highest levels of government, raising concerns from First Amendment lawyers and members of Congress.

    “Any outfit like that engaged in censorship shouldn’t have any contact with the government because they’re tainted by association with a group that is doing something fundamentally against American values,” Jeffrey Clark, ex-acting head of the Justice Department’s Civil Division, told the Washington Examiner. “The government or any private entity shouldn’t be involved with this entity that’s engaged in conduct that is either legally questionable or at least morally questionable.”

    GDI compiles a “dynamic exclusion list” that it feeds to corporate entities, such as the Microsoft -owned advertising company Xandr, emails show. Xandr and other companies are, in turn, declining to place ads on websites that GDI flags as peddling disinformation.

    The Washington Examiner revealed on Thursday that it is on this exclusion list. The list includes at least 2,000 websites and has “had a significant impact on the advertising revenue that has gone to those sites,” said GDI’s CEO Clare Melford on a March 2022 podcast.

    GDI has identified that the 10 “riskiest” news outlets for disinformation are the American Spectator, Newsmax, the Federalist, the American Conservative, One America News, the Blaze, the Daily Wire, RealClearPolitics, Reason, and the New York Post.

  • Huge earthquake rocks Syria and Turkey. That was less than a week ago and already it’s pretty much out of the news…
  • Another huge story that the news media has done it’s best to ignore: a toxic derailment in East Palestine, Ohio. The blew it up to prevent a BLEVE and ended up releasing Phosgene gas. That’s carrying your World War I reenactment too far.
  • 90-year California Democratic Senator old Dianne Feinstein to retire after 2024. But…
  • A few hour later she was evidently unaware she had retired. Increasingly, “crazy” or “senile” seem to be the two most common flavors of the Democratic Party…
  • Texas Governor Greg Abbott announces legislative priorities for the current session.
    1. Cutting Property Taxes
    2. End COVID Restrictions
    3. Education Freedom (School Choice)
    4. School Safety
    5. Ending Revolving-door Bail
    6. Doing More to Secure the Border
    7. Addressing the Fentanyl Crisis

    We’ll see if he follows through.

  • Followup: Transient encampment moved away from Headpsace Salon so they can go destroy someone else’s quality of life instead. (Previously.) (Hat tip: Dwight.)
  • Dumbass reaches for off-duty cop’s gun, with the expected results. (Hat tip: Dwight.)
  • Inside China’s livestreamer girl factories.
  • Updated contact information for the Austin City Council.
  • Not a Babylon Bee headline: “Catalytic converter stolen from Oscar Mayer Wienermobile in Las Vegas.”
  • I chuckled.
  • Biden Taken To Coroner For Annual Physical.