A group of states is suing the Security Exchanges Commission (SEC), claiming the commission is overstepping its authority in regulating digital assets like cryptocurrencies — arguing that the SEC’s actions stifle state-level innovation and impose federal control without congressional approval.
Eighteen state attorneys general have joined the lawsuit, one of which is Texas Attorney General Ken Paxton, in addition to DeFi Education Fund, a nonpartisan research and advocacy group.
Along with naming the SEC directly in the complaint, it also lists SEC Chair Gary Gensler, among other officials.
The states want the court to stop the SEC from enforcing regulations and allow them to manage digital assets with their own laws.
“The SEC’s sweeping assertion of regulatory jurisdiction is untenable,” the suit states. “The digital assets implicated here are just that — assets, not investment contracts covered by federal securities laws.”
“They do not entail any traditional investment relationship, in which the investor invests capital and the promoter assumes an ongoing obligation to use that capital in a common enterprise to generate returns that the investor will share.”
The lawsuit goes on to explain that the laws defining what counts as an “investment contract” were written in a clear way, and past U.S. Supreme Court decisions support this definition. Because of this, the complaint asserts, the SEC does not have broad authority to regulate all digital asset transactions as if they were securities. The argument is that the SEC is overreaching beyond what these laws and past rulings allow.
The complaint, filed in Kentucky district court, is asking the court to declare that digital asset transactions are not considered securities if they don’t involve a promise to manage assets for profit. They also want the court to stop the SEC from forcing digital asset platforms to register as securities-related businesses if they don’t meet those conditions. Additionally, the states claim the SEC broke rules by not following proper procedures.
Snip.
While on the campaign trail, President-elect Donald Trump vowed to protect the blockchain industry, making a bevy of promises to crypto enthusiasts.
Trump took the stage at the Libertarian National Convention back in May, where he promised to stop “Joe Biden’s crusade to crush crypto.” In July he said he would “fire Gary Gensler” on day one of his new administration.
“No longer will your government sit by and watch as Bitcoin jobs and businesses flee to other countries, because America’s laws are too unclear and too tough and too angry and too stiff,” Trump said while delivering the keynote address at a Bitcoin conference. “We will keep each and every Bitcoin job in the United States of America, that’s what we’re going to be doing.”
Texas has become a major center of the crypto and Bitcoin industry in America. Sen. Ted Cruz (R-TX) is a vocal advocate for the emerging finance sector, and Gov. Greg Abbott signaled he will continue to be friendly to the crypto community, describing himself as a “crypto law proposal supporter.”
There’s a long-running debate about just what the hell cryptocurrencies are under federal law. Unlike other securities (say, a stock or bond), a unit of cryptocurrency is not a token that represents a tangible legal entity in the real world. It’s not a currency as traditionally understood, as it is not backed by specie or the power and authority of a government. It’s not a commodity, because what commodity can be moved across the world at the speed of light?
If it doesn’t actually fit the profile of anything that legislation has specified that the government regulates, then maybe, as Paxton et al assert, then the federal government shouldn’t regulate it. That would seem to be the proper constitutional interpretation under the Tenth Amendment.
While I’m still skeptical of the long-term usefulness of cryptocurrency (though with Bitcoin hovering around $90,000, I sure wish I had mined some back when it was easier to do), the Trump Administration is filled with very smart people who believe in Bitcoin and other cryptocurrencies. History teaches us that it’s best to let new technologies shake out without government interference, so let’s hope Paxton and company’s lawsuit succeeds.
More than 200 people have been confirmed dead as a result of Hurricane Helene, and that total is expected to rise as search-and-rescue crews reach more remote communities. Roads have been destroyed, many towns are still without power, and people are beginning to run out of food as trucks cannot get in to provide aid.
Amid all of this, Homeland Security Secretary Alejandro Mayorkas, the architect of the migrant invasion, warns that the Federal Emergency Management Agency is running out of money to aid hurricane victims. Meanwhile, thanks to the migrant crisis his catch-and-release policies created, FEMA has spent over $1 billion feeding, housing, and transporting illegal immigrants across the United States in just the last two years.
Before he was elected, President Joe Biden said of migrants wanting to enter the U.S. illegally, “We could afford to take in a heartbeat another 2 million.” Thanks to Biden’s subsequent policies, all supported by Vice President Kamala Harris, including the end of former President Donald Trump’s “Remain in Mexico” program, the temporary suspension of all deportations, and the creation of the CBP One app parole program and the Cubans, Haitians, Nicaraguans, and Venezuelans parole program, the number of illegal immigrants allowed into the U.S. by Biden has been closer to 4 million.
Unfortunately for communities across the U.S., the ability of this country to take in millions of illegal immigrants has not been as smooth as Biden predicted. Cities, many of them controlled by Democrats, have been begging the federal government for assistance in housing, clothing, feeding, education, and providing healthcare for the flood of migrants who are straining budgets in their communities.
In response, the Biden administration has spent tens of billions of dollars helping to ease the pain caused by their illegal migrant invasion. Local governments are required to provide education to all children, regardless of legal status, and the Department of Education helps local governments pay to educate these children. Hospitals must provide emergency care to all patients, even illegal immigrants without health insurance, and so the Department of Health and Human Services helps local hospitals stay afloat by reimbursing them through Medicaid.
And the Department of Homeland Security helps provide food, housing, and transportation to illegal immigrants through FEMA’s Emergency Food and Shelter Program and Shelter and Services Program Awards program. When the influx of migrants was bankrupting cities across the country this past winter, Democratic mayors traveled to the White House to beg Biden for more FEMA money to help their communities “meet the growing needs of these individuals.”
And the White House gave them the FEMA money they wanted. In just the last two years alone, the Biden administration has spent over $1 billion in FEMA funds giving local communities the resources needed to deal with the migrant crisis that the Biden administration created.
if Joe Biden had said he wanted to let 4 million illegal aliens into the country, and subsidize their food and clothing, do you think he would have been “elected” in 2020?
CBS lies, altering interview of Kamala Harris on Israel:
Here are the two different 60 Minutes edits layered on top of each other in full. You will hear where Whitaker's questions line up, and the different edited answers from Harris.
SC 1842 (bottom) is what aired on Monday night. SC 1843.5 (top) is what the Face the Nation X account… pic.twitter.com/FEuQp2o0kn
Beyond the word salad that people pointed out, CBS and 60 Minutes edited out everything she says about providing aide to Israel in order to defend itself from attacks.
Now when you contrast that with the fallout from the Coates interview, this all stinks. This is a CBS agenda…
On September 30th, anti-Israel author Ta-Nehisi Coates sat down for what turned out to be a spirited six-and-a-half-minute interview on CBS Mornings, during which co-anchor Tony Dokoupil challenged some of the claims made in Coates’ new book, “The Message.”
The book contains several essays about some of Coates’ travels, with the longest one being about his trip “to Palestine.” It was claims made in that essay that Dokoupil zeroed in on for closer examination during their exchange:
“I have to say, when I read the book, I imagine if I took your name out of it, took away the awards, the acclaim, took the cover off the book, publishing house goes away, the content of that section would not be out of place in the backpack of an extremist,” Dokoupil said.
“So then I found myself wondering, why does Ta’Nehisi Coates, who I’ve known for a long time, read his work for a long time, very talented, smart guy, leave out so much? Why leave out that Israel is surrounded by countries that want to eliminate it? Why leave out that Israel deals with terror groups that want to eliminate it? Why not detail anything of the first and the second Intifada, the café bombings, the bus bombings, the little kids blown to bits. Is it because you just don’t believe that Israel in any condition has a right to exist?” the CBS anchor continued.
Perhaps because Coates’ word is viewed as sacrosanct by woke leftists in the media, academia, and beyond despite his deeply flawed logic on issues like reparations, eruptions began almost immediately in the CBS newsroom, with tensions boiling over a week later during an editorial call:
During its editorial meeting on Monday at 9 a.m.—the morning of October 7—the network’s top brass all but apologized for the interview to staff, saying that it did not meet the company’s “editorial standards.” After being introduced by Wendy McMahon, the head of CBS News, Adrienne Roark, who is in charge of news gathering at the network, began her remarks by saying covering a story like October 7 “requires empathy, respect, and a commitment to truth.”
After quoting extensively from the CBS News handbook, she said, “We will still ask tough questions. We will still hold people accountable. But we will do so objectively, which means checking our biases and opinions at the door…”
Presumably, the “bias” accusations stem from the fact that, according to the New York Post, Dokoupil is “a convert to Judaism whose ex-wife lives in Israel along with their two children.”
“During its editorial meeting on Monday at 9 a.m.—the morning of October 7—the network’s top brass all but apologized for the interview to staff, saying that it did not meet the company’s ‘editorial standards.’”
Though Shalt Not Question the Holy Social justice.
A US judge has sentenced a disgraced Black Lives Matter leader to federal prison after he was convicted at trial in April on wire fraud and money laundering charges. Sir Maejor Page, 35, of Toledo, Ohio, who uses the alias Tyree Conyers-Page, was found guilty of running a “fake charity scheme” for personal profit, defrauding donors of more than $450,000 they had given to his nonprofit Black Lives Matter of Greater Atlanta.
US District Court Judge Jeffrey Helmick of the Northern District of Ohio sentenced Page on Thursday to 42 months in federal prison. He was also ordered to pay a $400 special assessment fee, according to a press release from the Department of Justice.
Prosecutors accused Page of defrauding 18,000 donors who collectively gave hundreds of thousands of dollars to his fraudulent charity, Black Lives Matter of Greater Atlanta. Page took the donations and used them for his own personal benefit. He purchased entertainment, hotel rooms, clothing, firearms, and a property in Ohio that he intended to use as his personal residence, court documents showed.
Page continued to collect donations for his “social justice” charity through its Facebook page after the organization’s tax-exempt status was revoked for failing to submit IRS Form 990 for three consecutive years. He consistently shared content on Facebook relating to social justice and racial issues in order to establish the legitimacy of his nonprofit organization, despite the fact this it was no longer tax-exempt. The convicted fraudster used Facebook to communicate privately with donors, to which he falsely claimed that their contributions would be allocated to “fight for George Floyd” and the “movement.”
In a recent podcast interview, the political analyst who first predicted that Joe Biden would withdraw from the presidential race revealed that private polling he has seen appears to suggest that Vice President Kamala Harris (D-Calif.) is in serious trouble ahead of the November election.
According to Breitbart, Newsmax commentator and former political director for ABC News Mark Halperin gave his analysis on The Morning Meeting with Sean Spicer and Dan Turrentine. Halperin said that internal polling could see Harris lose all but one of the seven swing states in this election, as her current lead in the national popular vote is not enough to win the electoral college against former President Donald Trump.
“So the new New York Times poll shows her up three nationally,” Halperin explained. “We all know that three is like the bubble point, right? If she’s up three, she’s got a chance to win the Electoral College, but they’d rather be at four, and they don’t want to be at two. So three is right at the bubble. I’m not saying this Times poll’s right. But it’s in line with international polls.”
“We all know from our contacts in both campaigns that Pennsylvania is tough for her right now. And without Pennsylvania, there are paths, but there aren’t many. There’s no path without Wisconsin,” Halperin continued. “So you see here, Tammy Baldwin’s Senate campaign poll shows Harris down three in Wisconsin. We all said yesterday, Wisconsin and Michigan are looking worse for Harris than before.”
Wisconsin Senator Tammy Baldwin’s (D-Wisc.) campaign had previously shared internal polling with both the Wall Street Journal and Axios, showing Harris losing to Trump in the state and Baldwin herself with a mere 2-point lead over her Republican challenger, Eric Hovde (R-Wisc.).
Such results in private polls align with the trend reflected in public polls, with pollsters such as Quinnipiac University and Emerson College showing President Trump gaining momentum in most of the swing states, now either leading Harris or tied in enough states to win the electoral college.
“I just saw some new private polling today that’s very robust private polling. She’s in a lot of trouble,” said Halperin. “The conversation I’m having with Trump people and Democrats with data are extremely bullish on Trump’s chances in the last 48 hours, extremely bullish. You think of the seven battleground states; which ones is Harris in danger of losing? I would say Pennsylvania, Michigan, Wisconsin, Arizona, North Carolina and Georgia. I’m not saying she’ll lose all six, but she’s in danger.”
If Harris were to lose these six states but hold the seventh swing state, Nevada, then the result would be an exact repeat of the 2016 election, with President Trump winning 306 electoral votes to Harris’ 232.
“Law enforcement has arrested Estefania Primera, an illegal alien from Venezuela, following reports that she was the ring leader for a gang’s sex trafficking operation in El Paso. Primera was named by a sex trafficking victim as the leader of a Tren de Aragua sex trafficking ring.”
People have been asking about the Texas temporary ID ruling in other threads, and now we have an update.
Secretary of State Asks Attorney General to Rule on ‘Limited Term’ Driver’s Licenses as Voter ID. Paxton received a request from Secretary of State Nelson to rule on the validity of “limited term” driver’s licenses as voter ID.
Texas Secretary of State (SOS) Jane Nelson issued an advisory on Tuesday that describes “limited term” driver’s licenses as an acceptable form of voter ID, though recommending other forms of photo identification if possible.
While the Texas Election Code does not specifically designate “limited term” ID cards as a permissible form of voter ID, it does describe “a personal identification card issued by the Texas Department of Public Safety” (TxDPS) as an approved form of identification.
As Nelson’s advisory acknowledges, TxDPS distributes “temporary term” driver’s licenses to noncitizens, provided they are an individual with lawful temporary status in the U.S.
The SOS’s guidance concedes that if an individual is registered to vote and presents a “limited term” driver’s license or ID card, they may receive a ballot after being fully informed by the election judge or clerk of the “eligibility requirements” necessary to vote in Texas.
The issue cited by the SOS is that while the limited term ID denotes noncitizen status at one point, it doesn’t mean that the individual has not since been naturalized. Transportation Code also includes the limited term ID as a valid form of identification, creating a small window for a potentially legitimate use of the document to vote.
Additionally, if an individual presents a “limited term” ID card but is not registered to vote, they may receive a provisional ballot after election officials fully evaluate what their lack of registration and unique form of identification suggests.
Nelson recommended using language such as, “The limited-term driver’s license/identification card you presented suggests that you are not a United States citizen. Your name does not appear on the list of registered voters. Per the Texas Election Code, to be eligible to vote in the State of Texas, you must be a qualified voter of this state,” when explaining the situation to the unregistered voter and prior to distributing a provisional ballot.
Nelson requested on October 9 that Texas Attorney General Ken Paxton rule on whether a limited term driver’s license that “generates questions of voter eligibility” is a valid form of voter ID and if an election official must present a ballot to an individual who only provides such ID in person. The request is for a non-binding opinion by the Office of the Attorney General.
Nelson also asked Paxton how ballot workers ought to treat mail-in ballots that only list an ID number or driver’s license card that is “limited term,” in regards both to “counting” the vote and for investigating “instances of fraud.”
So Paxton will be able to nip this potential avenue of voting fraud in the bud.
“A former Democrat member of the Texas Senate is throwing his support behind a Republican candidate for the seat he once held. Former State Sen. Eddie Lucio Jr. of Brownsville announced his endorsement of Adam Hinojosa in the race against freshman Democrat State Sen. Morgan LaMantia, pointing to their shared pro-life values as a key reason.”
“The most fun I had going to see the new Joker movie was in the car ride and from it, because I was listening to Warhammer 40K lore on the Horus Heresy. And just listening to that was better than seeing Joker Folie a Deux.”
Finally, a non-insulting use for AI? They’re going to use AI to create dubs of original Japanese anime in voices that sound like the original Japanese voice actors. This would be a big improvement on a lot of the early crappy dubs, but I can’t imagine American voice actors being thrilled at losing those gigs…
“Electric vehicle (EV) manufacturer Fisker Inc. is under investigation by the U.S. Securities and Exchange Commission (SEC) and faces formal objections from the U.S. Department of Justice (DOJ) over its Chapter 11 bankruptcy proceedings. The company filed for bankruptcy earlier this year after halting production in March…The DOJ contends in filings that Fisker’s proposed $750,000 cap on recall expenses in its bankruptcy plan is insufficient to cover both parts and labor costs required for vehicle repairs.”
Also: “New York-based company called American Lease was less deterred by this warning and in June agreed to purchase the remaining Fisker inventory—approximately 3,300 cars for a total of $46.3 million dollars. By October, American Lease had paid Fisker $42.5 million and had taken delivery of about 1,100 Oceans. That was the plan until the end of last week, at least. Last Friday evening, Fisker informed American Lease that the Oceans ‘cannot, as a technical matter, be ‘ported’ from the Fisker server to which the vehicles are currently linked to a distinct server owned and/or controlled by’ American Lease.” (Hat tip: Stephen Green at Instapundit.)
Also from Instapundit: Fisker left their California headquarters trashed when they vacated.
The issue originated in one of the Kia web portals used by dealerships. Long story short and a hefty bit of API abuse later, [Sam] Curry and his band of far-more-capable Kia Boyz managed to register a fake dealer account to get a valid access token, which they were then able to use to call any backend dealer API command they wanted.
“From the victim’s side, there was no notification that their vehicle had been accessed nor their access permissions modified,” Curry noted in his writeup. “An attacker could resolve someone’s license plate, enter their VIN through the API, then track them passively and send active commands like unlock, start, or honk.”
Bungled. “A founding member of the experimental rock band Mr. Bungle was found guilty Friday of first-degree murder in the killing of his girlfriend after prosecutors in California found an audio file the victim recorded on her phone as she fought for her life. A jury in Santa Cruz deliberated for a day before finding Theobald ‘Theo’ Lengyel guilty of first-degree murder in the killing of his girlfriend Alice “Alyx” Kamakaokalani Herrmann on the night of Dec. 4, 2023, inside her Capitola home.” (Hat tip: Dwight.)
The pianist cashed his ticket and drove an exhausting 500 miles to the concert venue on the only night he could play, only to find a broken, out-of-tune piano. The restaurant couldn’t get his order right before he had to leave to perform. He refused to play multiple times before finally relenting and, still in pain from the drive, improvised the best-selling solo piano album of all time.
A new stock exchange headquartered in Dallas will launch next year aimed at competing with New York City’s exchanges, whose rules and regulations some companies have found onerous.
TXSE Group Inc. is founded and operated by James Lee, who says the company has already raised $120 million for the project — the largest backers of which are BlackRock and Citadel Securities.
BlackRock is a surprising name to be investing in a major initiative in Texas. After all, BlackRock’s previous headlines have been about various Texas retirement funds divesting from BlackRock over the company’s leftwing “Environmental Social Governance (ESG)” investing policies and their hostility to the oil and gas industry. Indeed, BlackRock CEO Larry Fink was a poster boy for ESG, but seems to have had at least a partial change of heart over ESG, saying he’s “ashamed” to use the term anymore, instead being less hostile to fossil fuels and supporting a strategy of “transition investing” in decarbonization technologies. (Maybe getting their stock downgraded over ESG had something to do with that.) Stefan Padfield says “Fink has apparently simply replaced ESG with ‘conscious capitalism,’ which suggests nothing much has really changed given that ‘ESG is conscientious capitalism in practice.’ He also notes that BlackRock’s stock price has under-performed the S&P 500 over the last 12 months.
The last time we looked into Citadel Securities was because they had apparently been caught with their hands in the GameStop naked shorts cookie jar at the same time they were telling trading platform (and investment recipient) Robinhood to stop allowing retail customers to buy GameStop.
The plan was first reported by the Wall Street Journal. TXSE Group intends to register with the Securities and Exchange Commission (SEC) later this year. It will operate virtually but also eventually establish a physical presence in Dallas.
“Changes in equities trading markets are driving more volume to exchanges and more choices for issuers and sponsors,” Lee said in a press release.
“TXSE will ultimately create more competition around quote activity, liquidity and transparency, resulting in more consistent and reliable markets that benefit investors, global issuers and liquidity providers alike.”
Lee added, “Texas and the other states in the southeast quadrant have become economic powerhouses. Combined with the demand we are seeing from investors and corporations for expanded alternatives to trade and list equities, this is an opportune time to build a major, national stock exchange in Texas.”
TXSE sees Nasdaq’s and NYSE’s approaches to compliance and non-financial regulations, such as diversity targets, as heavy-handed and onerous.
“BlackRock is proud to be a founding investor in the Texas Stock Exchange to increase liquidity and improve market efficiency for BlackRock’s clients and other investors in the U.S. capital markets,” BlackRock Vice Chairman Mark McCombe told The Texan in a statement.
“TXSE is well positioned to capitalize on the Texas economy and strength of the state’s business environment. We look forward to engaging with the other investors on the benefits of the TXSE’s unique value proposition.”
This follows other similarly aimed projects that BlackRock and others have partaken in over the last decade — a list that includes things like Members Exchange, RFQ Hub, and Luminex Trading. Given the state’s growth and regulatory posture, those backing this new project see a unique investment opportunity.
This states the obvious: Texas has a pro-business, pro-growth regulatory environment, while New York (city and state) has a hostile, anti-growth regulatory environment.
No points for guessing which political parties control which state.
Not mentioned, but a distinct possibility, is that many big business owners see the Trump kangaroo court conviction as a potential threat to themselves. If Democrats are willing to use a weaponized judiciary to go after their political enemies, the law be damned, then who might be next? A presence in New York, even only a listing on the New York stock exchange, may now be perceived as a much bigger potential liability than it was. With companies moving their physical presence from failing blue states like New York and California to Texas, it make a great deal of sense to do the same in as many legal venues as possible.
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…
Democrats being soft on criminals, pedophiles and common sense highlights this week’s LinkSwarm.
Man, there sure seems to be a lot of funny number counting going on in Philadelphia.
Regular readers are well aware that back in July, Zero Hedge first (long before it became a running theme among so-called “macro experts”) pointed out that a gaping 1+ million job differential had opened up between the closely-watched and market-impacting, if easily gamed and manipulated, Establishment Survey and the far more accurate if volatile, Household Survey – the two core components of the monthly non-farm payrolls report.
We first described this divergence in early July, when looking at the June payrolls data, we found that the gap between the Housing and Establishment Surveys had blown out to 1.5 million starting in March when “something snapped.” We described this in “Something Snaps In The US Labor Market: Full, Part-Time Workers Plunge As Multiple Jobholders Soar.”
Since then the difference only got worse, and culminated earlier this month when the gap between the Establishment and Household surveys for the November dataset nearly doubled to a whopping 2.7 million jobs, a bifurcation which we described in “Something Is Rigged: Unexplained, Record 2.7 Million Jobs Gap Emerges In Broken Payrolls Report.”
Snip.
We bring all this up again because late on Dec 13, the Philadelphia Fed published something shocking: as part of the regional Fed’s quarterly reassessment of payrolls in the form of an “early benchmark revision of state payroll employment”, the Philly Fed confirmed what we have been saying since July, namely that US payrolls are overstated by at least 1.1 million, and likely much more!
And the correction came after the midterms! What are the odds?
The Royal Bahamas Police Force took the failed financial tech entrepreneur into custody after the U.S. filed criminal charges against him, according to a press statement. FTX, which Bankman-Fried founded, imploded in November, costing investors millions of dollars in losses. The fallen businessman has been accused of misusing customer funds deposited with FTX to artificially prop up another one of his enterprises: a crypto hedge fund, Alameda Research, which he operated simultaneously while seemingly evading financial ethics scrutiny.
Speaking of abusing children: “Former CNN Producer Pleads Guilty In Pedo Scandal. Former CNN producer John Griffin, who worked ‘shoulder to shoulder’ with Chris Cuomo, pleaded guilty on Monday in federal court to using interstate commerce to entice and coerce a 9-year-old girl to engage in sexual activity as his Vermont ski house. This is a different CNN pedophile than Jake Tapper’s former producer, Rick Saleeby, who resigned after it emerged that he solicited sexually explicit photos of an underage girl.”
The mother of an 11-year-old rape victim is suing a George-Soros backed prosecutor in Virginia who let the boy’s rapist walk free, alleging the prosecutor’s actions violated the minor’s civil rights and made him fear for his physical safety.
Amber Reel in November filed the federal lawsuit on behalf of her son after Fairfax County commonwealth’s attorney Steve Descano (D.) let the rapist walk. Court filings show Descano was months late in sharing necessary evidence before a September trial, dooming the case and forcing his office to enter into a lesser plea deal with the rapist the same month. Ronnie Reel, who was released on time served, had faced life in prison for forcibly sodomizing the minor. Reel is the victim’s uncle.
This is the second high-profile case in the last month where the Soros prosecutor freed a dangerous offender. In December, Descano struck a plea deal that would clear the record of a man who fired his gun into a crowded Virginia bar. Soros donated more than half a million dollars to Descano’s 2019 campaign.
A grand jury had already indicted Reel in February for sodomy and aggravated sexual battery, and the case was set for trial in September. But Descano’s office didn’t share evidence with the public defender before trial, bungling Reel’s prosecution with its “woefully, woefully missed” deadlines. The case’s presiding judge said Descano’s office did a “disservice to the victim” and was “very concerning to the court.”
Because he dodged a felony sex crime conviction, Reel won’t have to register as a sex offender and won’t be barred from holding jobs in schools or other places that would put him near children. The victim and his mother in their suit say Descano’s “deliberate indifference represents egregious conduct that is shocking to the conscience.”
Speaking of pedophile friendly Democrats: “During the hearing before the House Oversight and Reform Committee, California [Democratic] Rep. Katie Porter asserted that the phrase “groomer” is a “lie” used to maliciously discriminate against LGBTQ+ people and make them appear to be a “threat.” “You know, this allegation of ‘groomer’ and ‘pedophile,’ it is alleging that a person is criminal somehow and engaged in criminal acts merely because of their gender identity, their sexual orientation, their gender identity.” Yes, if your “gender identity” is “I like to have sex with children,” then yes, you’re a pedophile, and if you tell elementary school children what sort of sex you have, then yes, you’re a groomer.
Former state Sen. Kirk Watson (D-Austin) will be the next mayor of Austin about two decades after he left that same office in the early aughts.
He defeated state Rep. Celia Israel (D-Austin) by a slim margin after finishing second in the general election. He’ll serve as mayor for the next two years before having to seek re-election in 2024 due to redistricting.
Watson lost Travis County, the city’s largest portion, by 17 votes while winning Williamson county by 881 and Hays County by 22. During the general and runoff races, he outspent Israel by a wide margin.
The two candidates sparred over housing and homeless policy during the general election and the runoff. About one-third of the voting population turned out to vote in the runoff versus the November 8 general.
Watson will take over for Mayor Steve Adler after his self-described “disruptive” tenure marked by a lingering homelessness problem, public fallout and a declining relationship with the police department, and a cumbersome and increasingly costly light rail transit project.
The United States has always had kind of a friends and family plan that it sells military gear to, but it has always reserved the very top top top stuff for itself and the Brits. Well, in this calendar year we have already seen the first two exceptions to that policy being made. The United States is sending air-launch cruise missiles and nuclear-powered submarines to the Australians. And now we’re giving Tomahawks to the Japanese, giving both of these countries the ability to independently destroy China’s economic links to the wider world without any additional help from the United States. And this sudden proliferation of countries that can now bring China to their knees independently, this is arguably the biggest strategic development of the Year, even more so than the Ukraine war, because it takes what has become the world’s second largest economy and puts it completely at the mercy of the domestic politics of a third party, and now a fourth party.
Oberlin College finally pays their judgment to Gibson’s Bakery. “The $25 million verdict plus interest and attorney’s fees resulted in an almost $32 million judgment, with interest running at about $4000 per day since June 2019. In all, over $36 million was owed.” Cudos to William A. Jacobson at Legal Insurrection for his thorough, ongoing coverage of this story from beginning to end.
F-35B fighter crashes in the Metroplex. Fortunately the pilot safely ejected, and it appears that the airplane (which was undergoing testing for Lockheed) looks recoverable. To my untrained eye it looks like a stuck throttle.
American Civics 101 teaches us that there are three branches of the American government: Executive, Legislative and Judicial. However, that clean, elegant division started to go awry in the early 20th century (some would place the problems even earlier) with the creation of the Federal Reserve and the vast expansion of the administrative state under the New Deal.
One blow to that traditional tripartite division of federal powers was the creation of administrative courts for independent agencies. Yesterday, the Fifth Circuit Court of Appeals (which includes Texas) ruled such courts were unconstitutional.
The Securities and Exchange Commission’s in-house judges violate the U.S. Constitution by denying fraud defendants their right to a jury trial and acting without necessary guidance from Congress, the 5th U.S. Circuit Court of Appeals ruled on Wednesday.
The court ruled 2-1 in favor of hedge fund manager George Jarkesy Jr and investment advisor Patriot28 LLC, overturning an SEC administrative law judge’s determination that they committed securities fraud.
A spokesperson for the SEC and counsel for the petitioners did not immediately respond to a request for comment on Wednesday.
The Dodd-Frank Act, which Congress passed after the 2008 financial crisis, expanded the SEC’s ability to seek penalties in its administrative proceedings.
In the ruling Wednesday, the majority said that because seeking penalties is akin to debt collection, which is a private right, the defendants were entitled to a jury trial.
The SEC had argued that it was acting to protect investors and enforce public rights found in the securities laws.
The majority also found that SEC judges, known as administrative law judges, lack authority under the Constitution because Congress did not provide guidance on when the SEC should bring cases in-house instead of in a court.
U.S. Circuit Court Jennifer Walker Elrod, joined by Circuit Court Judge Andrew Oldham, penned the majority opinion.
This is a long overdue trimming of the unelected administrative state and a restoration of the division of responsibilities between the three branches that forms part of the Constitution’s vital system of checks and balances. However, given the potentially far-reaching effects of the decision, expect first an en banc hearing of the Fifth Circuit, and then an appeal to the Supreme Court.
The big scandal in the Hunter Biden Laptop story isn’t Hunter’s deplorable actions, it’s Joe Biden’s corruption.
Investigative reporter Peter Schweizer reiterated what he’s said about Hunter being close to criminal indictment. He said The New York Times “got a lot of cooperation from Team Biden” before they ran the story on Hunter that included their admission that the laptop was, indeed, real. He says Biden’s team was “trying to position themselves.” Of course, this case isn’t really about Hunter but the President of the United States, and a criminal indictment would open up “that whole can of worms” concerning dad’s connections to dirty money and the associated tax issues and huge national security concerns.
Snip.
George Soros, probably the most influential man in Ukraine, is a big part of this story, too. He gave $1 million to the humorously named Democratic Integrity Project, headed by Daniel J. Jones, a former FBI analyst and staffer for California Sen. Dianne Feinstein. Jones had started the nonprofit (seems pretty profitable to me) after Glenn Simpson of Fusion GPS approached him with the idea of forming the organization. Then, after filling its coffers to the tune of $7 million, Jones turned around and wrote a check to Fusion GPS for $3.3 million. I am not making this up. The same players keep turning up again and again.
Fusion GPS’s task: to research how Russian intelligence operations were affecting elections around the world. And they brought in Hillary’s campaign chairman John Podesta to help. Still not making it up, my friends. This was after Podesta’s and the DNC’s emails had been purloined (the narrative became that they were hacked by Russia) and published by WikiLeaks, to the DNC’s embarrassment.
(Incidentally, John’s lobbyist brother Tony was under investigation at that time for “cashing in” in Ukraine. He was paid $1.2 million to promote a plan conceived, ironically, by Manfort and Gates.)
Then there’s the story you know, the investigation of Burisma by prosecutor Viktor Shokin until then-Vice President Biden got him fired by threatening to withhold a $1 billion loan guarantee. By now everyone has seen the video of Biden bragging about it before a live audience — without mentioning Hunter was on the Burisma board.
There’s much more, involving Soros and an investigation by Shokin’s replacement into a Soros-funded organization, the ironically named Anti-Corruption Action Center (AntAC). This was when the new U.S. Ambassador to Ukraine Marie Yovanovitch (remember her from Trump’s impeachment?) gave the prosecutor a list of people not to prosecute, including a founder of AntAC. Second-in-command George Kent had already tried to discourage the prosecutor from investigating. According to reporter John Solomon, their message to Ukrainian officials was this: “Don’t target AntAC in the middle of an American presidential election in which Soros was backing Hillary Clinton to succeed another Soros favorite, Barack Obama.”
There are others in Ukraine tied to both the Russia hoax and Trump’s impeachment. California Rep. Adam Schiff, running the impeachment, trotted out our diplomatic “experts” from Ukraine to talk about Trump and his “impeachable” phone call to President Zelenskyy. Those were Americans, our diplomatic corps, who’d been telling Ukrainian prosecutors who they could and could not prosecute and treating a Soros-funded organization like some sort of sacred cow. Soros supported Hillary and was Trump’s political enemy. He funded an organization conceived by Glenn Simpson. Something smells like bad borscht.
Questions asked: “Did The New York Times Admit Joe Biden Is Corrupt So Democrats Can Get Rid Of Him?” (Hat tip: Director Blue.)
Will Rogers once famously said he did not belong to an organised political party because he was a Democrat. Yet today the traditional factiousness of the Democratic coalition has been engulfed by an almost Stalinist attitude that brooks no dissent on its most treasured policies – even though these do not resonate well with the bulk of the electorate.
To recover, Democrats need to find a way back to their historic base of working-class and minority voters, who now seem to be heading to the GOP. Franklin D Roosevelt’s alliance between big cities, small towns, labour unions and farmers was often awkward, but it still achieved remarkable success in restoring US confidence and winning the war. In contrast, President Biden’s boneheaded embrace of a progressive agenda that is widely detested across most of the population may prove to be one of the greatest political blunders of recent American history.
Given the probability of a significant loss in this November’s Midterms, we should expect – and hope for – a full-scale brawl over the party’s trajectory. There needs to be something equivalent to the New Democrats who, under Bill Clinton, revived the party after the devastating defeats of George McGovern and Michael Dukakis in the 1970s and 80s by moving the party to the centre and connecting it to the country’s diverse regions. ‘Too many Americans’, wrote New Democrats Bill Galston and Elaine Kamarck in 1989, ‘have come to see the party as inattentive to their economic interests, indifferent if not hostile to their moral sentiments, and ineffective in defence of their national security’.
Snip.
The economic metrics are awful. Despite nominal GDP gains and higher wages, inflation, largely driven by energy prices, has been particularly cruel to minority and working-class voters. Overall, when asked if they are better off now than a year ago, twice as many Americans said ‘worse’ than better in a recent poll.
The cave-in to the greens has increased the Democrats’ economic vulnerability, particularly in the wake of Russian aggression and the continued role of China as the world’s dominant greenhouse-gas emitter. The well-funded American environmental elite lack the grudging sense of realism of their German counterparts, who have been forced to reconsider some of their energy policies in light of the invasion. But in resource-rich America, the green grandees still oppose boosting fossil-fuel energy supplies, despite 80 per cent of voters, and an equal percentage of Democrats, favouring the use of both fossil fuels and renewables. Public support for Net Zero / the Green New Deal hovers around 20 per cent.
Essentially the Democrats’ Net Zero obsession could result in a political disaster. In February, according to Gallup, only two per cent of voters named climate or the environment as their biggest concern, one-fifth the number who named inflation and barely one-tenth the number who cited poor government leadership. Relentless climate scaremongering has not moved the needle among voters. ‘Climate catastrophism’, notes political strategist Ruy Teixeira, is a political ‘loser’, particularly among working-class voters of all races.
Cultural issues represent another fault line between the bulk of the electorate and the tin-eared elites of the party. Democrats’ have embraced what former Bill Clinton strategist James Carville scathingly labels ‘the politics of the faculty lounge’, such as support for the increasingly discredited Black Lives Matter movement and its calls to ‘defund the police’. This idea may be beloved at places like Harvard, but among the less elevated mortals it is widely unpopular, even among minorities, including two of the nation’s Democratic African-American mayors, Houston mayor Sylvester Turner and New York City’s Eric Adams.
Voters view crime as the second-most pressing issue, after the economy and inflation. Here again the survey results are equally distressing for the progressive agenda. Voters, according to one recent survey, blame the Democrats for the current crime wave by a margin of two to one. Moderate Democrats, like retiring Florida congresswoman Stephanie Murphy, herself a refugee from Vietnam, found her support for legislation that would penalise undocumented criminals got her labeled as ‘anti-immigrant’ by the party’s dominant progressive mob.
“Hispanic Texans Overwhelmingly Believe There Is a Border Crisis and Support Security Measures.” “Almost three-quarters of respondents agreed that there is a crisis at the U.S. border with Mexico with only 23 percent disagreeing with that characterization.”
Turns out even Democratic primary voters don’t think you should be talking to kindergartners about sex:
“U.S. Rep. Filemon Vela will resign early from Congress. The South Texas Democrat announced last year that he wouldn’t seek reelection. He’s leaving early to take a job at a law firm.” Yeah, people don’t leave the United States Congress early for a law firm job. There’s something else going on there. (Hat tip: Push Junction, who noted Republicans have a good chance to flip the seat.)
“Hidalgo Staff Allegedly Plotted to Steer $11 Million Contract, ‘Slam the Door’ on Competing Bid, per Warrants. A grand jury investigation found probable cause of tampering with governmental documents and misuse of official information related to a contract awarded to a woman with ties to local and national Democrats.” My working theory is that whenever you see something like this going on, kickbacks, graft and illegal donations to hard left groups and individuals are all but a certainty.
Also: “Hidalgo Says Communications About $11 Million Vaccine Outreach Contract Were Private, Taken Out of Context.” When you’re talking about a public official discussing a public contract using taxpayer money with her public staff, also paid using taxpayer money, there is no such thing as “private.”
Nicholas Moran cautions to avoid drawing too many conclusions from the limited video information coming out of the Russo-Ukranian War. “That tanks unsupported by the other arms are easy prey is tanking 101, and what we are seeing in Ukraine isn’t revolutionary, it’s exactly what you would expect to happen if you send vehicles in unsupported into areas infested with infantry and not denied to enemy air.” Also: We’re only seeing the Ukrainian side because they’re the ones uploading cell phone footage, and an important reminder that an anti-tank hit is not an anti-tank kill. (Previously.)
Borepatch is not impressed with the level of security in the latest online voting scheme.
Heh:
I was robbed at a gas station in NJ last night. After my hands stopped trembling..I managed to call the cops and they were quick to respond and calmed me down….. My money is gone.. the police asked me if I knew who did it..I said yes.. it was pump number 9…
This seems disturbing: “Seven hospitalized ‘including four juveniles’ in mass fentanyl poisoning after deadly drug is released through air vents.” This was in Ohio. So add “aerosolized Fentanyl” to the list of things to worry about…
“United Airlines Rolls Back Vaccine Requirements for Employees. United Airlines announced that it would be changing its policy and that unvaccinated workers would be allowed to return to their normal positions by March 28.” Personally, I’d try to get them to pay through the nose for my return…
Another week, another high-profile staffer quitting Kamala Harris’ office. “On Monday, in the wake of Vice President Kamala Harris’ disastrous visit to Poland, it was reported that her National Security Adviser Nancy McEldowney, will become the latest staffer to leave Harris’ office.”
“Investors at BuzzFeed are reportedly pressuring CEO Jonah Peretti to close down its entire money-losing news operation as senior journalists announced their resignations on Tuesday.” See, the problem here is that they used “Buzzfeed,” “journalists” and “news” all in the same sentence…
Speaking of failing leftwing outlets, the Texas Observer is circling the drain.
In September, the Observer’s editorial staff comprised 13 journalists. As of this month, after a rash of resignations — and one firing — only four of them remain. The five-person business team dwindled to zero in February. This mass exodus, former staffers said, can be traced to a series of board decisions — from the handling of a complaint by former Editor-in-Chief Tristan Ahtone, which led to his resignation; to promising Executive Editor Megan Kimble the top job in the interim, only to pass her over for an outside hire; to unilaterally halting publication of the magazine just days before it went to print.
Read on for the blow-by-blow, but evidently the staff got too uppity for the board of directors and we’re shown the door, with some side orders of “diversity” and “a web-first publication.” I would say this was all good schadenfreude, but I doubt I’ve even thought of the Observer since George W. Bush was governor…
Louis Rossmann finds the same problems plaguing New York City also plague D.C., namely high retail vacancies and general disorder. “It’s literally like somebody just picked up all the problems of New York City, control-C, and control-V them somewhere else.”
Speaking of New York City, Democratic Mayor Eric Adams wants you to know that athletes and actors are simply better than you common peasants, so vaccine mandates don’t apply to them. “The exemption for athletes and entertainers comes ahead of the upcoming baseball season, opening the field for unvaccinated Mets and Yankees to play home games too. Roughly two-thirds of Yankees players and at least ten Mets remain unvaccinated and will now be able to participate, Jon Heyman of the MLB Network noted.” Plus Kyrie Irving on the Brooklyn Nets.
A number of lawsuits related to local or federal overreach in Texas are working their way through the court system. Here’s a quick roundup of developments in a few notable cases.
Paxton has also joined a Texas Public Policy Foundation lawsuit against the City of Austin over their new short-term rental ordinance. “The Ordinance raises significant constitutional questions, because it functionally ousts homeowners and investors from real property without just compensation.”
Paxton also joined another TPPF lawsuit against the City of Brownsville over their $1 fee on plastic checkout bags, calling it an illegal sales tax, as bags are not taxable under state law.
Texas Attorney General Ken Paxton won a sweeping victory in court Friday when Federal District Judge Amos L. Mazzant III dismissed a fraud case the Securities and Exchange Commission had brought against him.
Mazzant, who was appointed to the federal bench by President Barack Obama, found that even if all the facts the SEC alleged were true, they didn’t amount to any violation of securities law by Paxton.
The SEC had dogpiled on Paxton after Collin County special prosecutors got a local grand jury to indict Paxton under state securities law in August 2015.
Now the question is whether Collin County will drop its own case against Paxton, and end payment of high dollar special prosecutor fees, now that the SEC has dropped the case.
Also note that Texas is still a co-plaintiff in State of West Virginia, et al. v. EPA, over the Obama Administration’s “Clean Power Plan,” which the Supreme Court ordered stayed February of last year.
