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Suit with Mandarich? Interesting read...


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The apple doesn't fall far from the tree...

Christopher Mandarich is a partner at Mandarich Law Group, LLP out of Denver and his father is David Mandarich, the one that the below article is about. I am unable to post the link.

David Mandarich

David Mandarich is MDC Holdings' highest paid executive, even though he's titularly second in command.to Larry Mizel. MDC, an interstate operator with numerous subsidiaries, is headquartered in Denver, and has quite a history, and David Mandarich has been in the thick of it. Mandarich's son, Christopher, graduated from Whittier College and played Poets Lacrosse, that refuge from soccer and rugby for upper middle class kids, whose players then bring out the worst in one another, from Whittier to Duke. The Whittier College LAX team has a house and ranks with Whittier's Societies as an epicenter of misconduct. Of course, when the kid is now making an annual salary of $300,000 with a $500,00 bonus, and several thousand company shares thrown in, and while Larry Mizel's wife receives $120,000 for consulting, there's pressure to conform to the way things are, which, unfortunately, is really bad.

MDC builds homes through its Richmond American Homes division, a major builder, but that's not all MDC engages in. The only way for a company like MDC to double its value in a single year is to increase the value of its assets. Since the Reagan administration ended effective regulation of banking and business in general, we've been hit by a relentless series of scams that finally threaten not to rob one grandmother or another of a decent retirement but to impoverish us all. MDC has taken full advantage of deregulation, and the substantial contributions, most critics call them bribes, to politicians, including prosecutors and judges, that are made by the MDC group make denial of MDC wrongdoing unbelievable.

MDC increased the value of its assets, dramatically in the span of a single year, in part by transferring properties, each time increasing their value on paper, which also made bad loans look good on paper, and these transfers involved the use of illegal phony buyers. Developers taking over Savings & Loans and milking them through inflated values and bad loans, is now referred to as the Savings & Loan Scandal, which disappeared hundreds of billions of dollars that had been that of investors, many retirees, and taxpayers through federal deposit insurance pay outs. Operating largely without constraint in the deregulated economy, bankers felt they could also act without restraint since most consequences for their failures or scams were insured by federal deposit insurance. After deregulation set the stage for junk bonds and money market funds to take the profit out of traditional banking, the game would change, but let's take this one step at a time...

Edited by thismomhashadenough
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David Mandarich, MDC, real estate deals violate federal Securities law, SEC acts Links Neil Bush To Securities Law Case - NYTimes.com (see the actual article for the link included -- can't post them yet :(!

MDC was deeply involved with Silverado Savings & Loan, also based in Denver, whose ultimate failure cost investors and taxpayers a still undetermined amount in losses, most conservatively 2 billion but most likely tens of billions all told. But even the closing of S & Ls like Silverado and Lincoln Savings & Loan didn't stop these incorrigible scammers, as Rodney Stitch notes in his book, 'DEFRAUDING AMERICA':

"The fraud by the Denver group inflicted billions of dollars in direct losses upon the American people. But it didn't end there. The same Denver group and others who brought about the collapse of the savings and loan industry by their corrupt activities, used their Washington influence to buy back properties and other assets from the Resolution Trust Corporation at ten and twenty cents on the dollar. They made money bringing down the savings and loans and made money buying the assets back.

As for MDC housing product, it's clearly oriented to builder profit without too much concern for consumers, who see themselves as home buyers, which is bound to put the two at odds:

Still, inevitably we would prefer to think, the odds catch up with the crook. But we learn, each at our own pace, that the crook being caught up with is just the beginning of a new series of contests...

Rodney Stitch explains that, "David Mandarich was indicted for illegal contributions, of which Michael Norton, U. S. Attorney General in Denver, was the major recipient." (whittiergate Note: David Mandarich's son Christopher is already a donor to the California Bar Foundation, a favorite charity of the California legal community.) Since Norton had received the money, Stitch continues, "he had to stand aside and have Marvin Collins, U. S. Attorney from Texas, act as a special prosecutor (directed by Norton) to prosecute the case. Mandarich took the fall for the many other big names (whittiergate Note: Big names including Neil Bush...), but was protected by U. S. Attorney Collins, who deliberately presented a weak case to the jury."

I edited the article slightyly but you can find the article in its entirety at: www (dot) whittiergate (dot) com/infamous.htm#mandarich

Edited by thismomhashadenough
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