Monday, December 19, 2022

Digital PEU George Santos Going to Congress

Congressman elect George Santos is a former digital private equity underwriter (PEU) with Harbor City Capital.  In April 2021 the SEC charged Harbor City Capital and CEO JP Maroney with running a ponzi scheme.

Santos is under scrutiny for items on his resume that haven't stood up to the most basic confirmation.  His undergraduate college has no record of his graduation and several Wall Street firms could not confirm his employment claims.  

Politicians Red and Blue love PEU and increasingly, more are one.  Why do the greed and leverage boys need direct access to lawmakers?  

For the first six months of the year, our real estate strategies appreciated 9% to 10% versus a 20% decline in the REIT index, equaling an outperformance of roughly 3,000 basis points. I don't know many asset classes that perform -- outperform indexes by 3,000 basis points.--Blackstone founder Stephen Schwarzman

To rewrite the rules supporting their false claims of asset values. 

Update 12-26-22:  Who better to support false PEU asset values than a Congressman elect with a completely fabricated personal history.  He called it "resume embellishment" but it might as well be "political puffery."  Will the Insane Red Team seat this fraudster?  Of course they will. 

Senior House Republicans were apparently aware of the inaccuracies and embellishments in the Rep.-elect’s resume, and the topic became a “running joke,” multiple insiders close to House GOP leadership told The Post over the weekend.

“As far as questions about George in general, that was always something that was brought up whenever we talked about this race,” said one senior GOP leadership aide. “It was a running joke at a certain point. This is the second time he’s run and these issues we assumed would be worked out by the voters.

 This is grotesque, just like the PEU greed that pervades our hallowed halls of government.

Update 12-29-22:  The Daily Beast reported:

Santos, who in 2020 reported holding no assets and a salary of $55,000 from a vice president position at a financial company called LinkBridge, appears to have suddenly come into substantial wealth, claiming a net worth of as much as $11.5 million on his 2022 financial disclosure. Almost all of it came through the newly formed Devolder Organization, which the 34-year-old says paid him between $1 million and $5 million in dividends along with another $750,000 in salary.

That money, it turns out, came from some wealthy sources who also had financial stakes in Santos’ political bid.

The Daily Beast has confirmed four Devolder Organization clients: the New York-based Tantillo Auto Group, two organizations tied to the influential Ruiz family in south Florida, and another firm associated with Long Island insurance magnate James C. Metzger. Santos acknowledged all four of these clients on Wednesday.

Update 12-30-22:  DailyNews suggests Santos needs a good lawyer on speed dial:

Santos appears to have swiftly built personal wealth despite a history of debt and financial troubles.

Update 1-1-23:  Rep. Kevin Brady (Red Team- TX) said:

Santos could be forgiven by the GOP for owning up to the false statements and that it wasn’t up to the party to punish Santos.

The party is complicit in perpetrating the fraud.  It's up to the Red Team to admit their creation and sponsorship of a political fraud.  

Update 1-2-23:  The fraud is going to Congress. 

Update 1-4-23:  Politico reported last week:’s been crickets. The NYT and CNN this week reached out to leadership offices and the NRCC for comment. There were no responses.

Santos had a lonely day in a crowded House chamber yesterday. 

His new office was once occupied by N.Y. Rep. Chris Collins who was convicted of insider trading in early 2020.   A Trump pardon got Collins out of jail.  A House staffer called the situation like "being in a cartoon." 

Update 1-5-23:  Even Santos housing picture is unclear.  Is the new Congressman elect a millionaire or a deadbeat renter?  I hope he actually lives in his House District.

New York Rep-elect George Santos reportedly does not appear to have an office or staff in his district.

Update 1-8-23:  Santos is a fraud and worked for a ponzi scheme.  He's the perfect elected official to reveal our ethically broken Congress.  Institutional Risk Analyst reported:

The question is how state and federal regulators, as well as elected officials in both political parties, did not see that the entire construct of crypto currency was at best a form of money laundering and at worse outright fraud.

Update 1-12-23:  Rep. George Santos may not be a real PEU after all.   Ethically he smells horribly but he may just be PEU wannabee.  He did make it into the realm where connected people push copious amounts of cash around to one another.

Update 1-14-22:  Video shows George Santos introducing himself as Anthony Devolder in 2019.  Santos is reflective of societal ills.  One columnist attributed his rise to a lack of local investigative reporting.  Another said:

(Santos) lies are the product of a political system that incentivizes dishonesty, punishes sincerity and is rife with opportunities for petty crooks. In that sense, Santos is the politician that we deserve.

I would offer Santos is there to serve the PEU class.  Politicians Red and Blue love PEU and increasingly, more are one.  Fraudster Santos is there to save PEU preferred "carried interest" taxation, get a regulatory format in place for crypto and steer Uncle Sam's wallet to the greed and leverage boys, as well as his personal pocketbook.