Tag Archives: 15Year

Donald Trump’s company to be sentenced for 15-year tax fraud

NEW YORK, Jan 13 (Reuters) – Donald Trump on Friday will learn how the company that bears the former U.S. president’s name will be punished after being found guilty of scheming to defraud tax authorities for 15 years.

A New York state judge will impose the sentence after jurors in Manhattan found two Trump Organization affiliates guilty of 17 criminal charges last month.

The sentencing comes three days after Justice Juan Merchan of the Manhattan criminal court ordered Allen Weisselberg, who worked for Trump’s family for a half-century and was the company’s former chief financial officer, to jail for five months after he testified as the prosecution’s star witness.

Trump’s company faces only a maximum $1.6 million penalty, but has said it plans to appeal. No one else was charged or faces jail time in the case.

Manhattan District Attorney Alvin Bragg’s office, which brought the case, is still conducting a criminal probe into Trump’s business practices.

Bill Black, a professor at the University of Missouri-Kansas City School of Law specializing in white-collar crime, called the expected penalty a “rounding error” that offers “zero deterrence” to others, including Trump.

“This is a farce,” he said. “No one will stop committing these kinds of crimes because of this sentence.”

The case has long been a thorn in the side of the Republican former president, who calls it part of a witch hunt by Democrats who dislike him and his politics.

Trump also faces a $250 million civil lawsuit by state Attorney General Letitia James accusing him and his adult children Donald Trump Jr., Ivanka Trump and Eric Trump of inflating his net worth and the value of his company’s assets to save money on loans and insurance.

Bragg and James are Democrats, as is Bragg’s predecessor Cyrus Vance, who brought the criminal case. Trump is seeking the presidency in 2024, after losing his re-election bid in 2020.

At a four-week trial, prosecutors offered evidence that Trump’s company covered personal expenses such as rent and car leases for executives without reporting them as income, and pretended that Christmas bonuses were non-employee compensation.

Trump himself signed bonus checks, prosecutors said, as well as the lease on Weisselberg’s luxury Manhattan apartment and private school tuition for the CFO’s grandchildren.

“The whole narrative that Donald Trump was blissfully ignorant is just not real,” Assistant District Attorney Joshua Steinglass told jurors in his closing argument.

Weisselberg’s testimony helped convict the company, though he said Trump was not part of the fraud scheme. He also refused to help Bragg in his broader investigation into Trump.

The Trump Organization had put Weisselberg on paid leave until they severed ties this week. His lawyer said the split, announced on Tuesday, was amicable.

Weisselberg, 75, is serving his sentence in New York City’s notorious Rikers Island jail.

State law limits the penalties that Justice Merchan can impose on Trump’s company. A corporation can be fined up to $250,000 for each tax-related count and $10,000 for each non-tax count.

Trump faces several other legal woes, including probes related to the Jan. 6, 2021, attack on the U.S. Capitol, his retention of classified documents after leaving the White House, and efforts to overturn his 2020 election loss in Georgia.

Reporting by Karen Freifeld and Jonathan Stempel; editing by Jonathan Oatis

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Mortgage bankers expect rates to drop to 5.4% in 2023. What will home prices do?

NASHVILLE, Tenn. — High mortgage rates and recession fears are hurting home prices, so expect growth to be flat this year, one expert says.

“Our forecast is for home-price growth moderation to continue,” Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association, said Sunday during the organization’s annual conference in Nashville, Tenn.

Home prices have already begun moderating. According to Case-Shiller, home prices fell month-over-month from June to July for the first time in 20 years. The latest numbers, which will be for August, will be reported on Tuesday morning.

With a recession likely in the cards, on top of mortgage rates near or above 7%, “we’ve already seen a pretty dramatic pullback in housing demand,” Kan said.

Also see: Mortgage industry group predicts recession next year, expects mortgage rates to come back down from 7%

The 30-year fixed rate averaged 6.94% last week as compared to 3.85% a year ago. The MBA is also expecting rates to come down to 5.4% by the end of next year.

So expect national home-price growth to “flatten out” in 2023 and 2024, he said. This might be a “silver lining” for some, Kan added, as it brings home prices back to more “reasonable levels.”

A flattening of home-price growth should allow households to catch up, in terms of wages and savings, to afford homes that are presently too expensive.

But he also warned that some markets may actually see home prices drop. We’re already seeing home values fall in some markets, from pandemic boomtowns like Austin and Phoenix to well-known expensive ones the San Francisco Bay Area.

Still, even with price drops, don’t expect a surge of inventory as people sit on their ultra-low mortgage rates that they will likely not enjoy again in the near future.

According to June data from the Federal Housing Finance Agency, nearly a quarter of homeowners have mortgage rates of less than or equal to 3%. And the vast majority of owners — 93% — have rates less than 6%.

On top of that, supply is likely to be tight too.

Sellers are said to be “striking” and not selling their homes as they see others forced to cut list prices to woo buyers. Builders are also getting spooked, signaling intent to slow new construction.

Nonetheless, demand for housing should recover eventually, given that there are a lot of people who will soon be in need of a home that they own.

MBA’s Kan estimated that there are 50 million people in the 28-to-38 age demographic, of which some — or many — are likely to become potential homeowners in the future.

For those under 35, the homeownership rate is only 39%, Kan said, while that share increases for people aged 35 to 44, to 61%.

So as people age, “we’re fairly confident if we stick to these trends, you will see a very supportive demographic driver of housing demand for a good number of years,” Kan said.

Got thoughts on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at aarthi@marketwatch.com

Read original article here

Guy Reffitt sentencing: U.S. seeks 15-year sentence, citing terrorism

Comment

The first U.S. Capitol riot defendant convicted at trial faces sentencing Monday with prosecutors asking a judge for a 15-year-prison term, by far the longest sentence sought to date in a case related to the Jan. 6, 2021, attack on Congress.

The request for Guy Reffitt, a recruiter for the extremist Three Percenters movement who led a mob at the Capitol, is roughly one-third longer than the nine to 11 years recommended under advisory federal guidelines. Prosecutors say the stiff punishment is warranted, following up for the first time on threats to request an enhanced terrorism sentencing penalty for defendants who reject plea deals.

Reffitt was convicted March 8 of five felony offenses, including obstruction of Congress as it met to certify the 2020 election result, interfering with police and carrying a firearm to a riot, and threatening his teenage son, who turned him in to the FBI.

The defense for Reffitt, a 49-year-old former oil industry rig manager, asked for a below-guidelines sentence of two years in prison. Attorney F. Clinton Broden said in a filing that his client committed no violence and has no criminal history, yet prosecutors are seeking far more time for him than for defendants who have pleaded guilty to assaulting police.

Citing terrorism, U.S. seeks 15-year prison sentence in Jan. 6 case

“It makes a mockery of the criminal justice system, the Sixth Amendment right to trial, and the victims assaulted by [others] to argue that Mr. Reffitt should be given a sentence greater than (let alone three times greater than) a defendant who assaulted police officers on at least two separate occasions, spent three hours on the Capitol grounds and who has a past history of violence,” Broden wrote.

But Assistant U.S. Attorneys Jeffrey Nestler and Risa Berkower said Reffitt’s case is exceptional.

Reffitt “played a central role” at the head of a vigilante mob that challenged and overran police at a key choke point, a stairway leading up from the Lower West Terrace, before the initial breach of windows near the Capitol’s Senate Wing Doors at 2:13 p.m., prosecutors said. After the riot, Reffitt warned his son and 16-year-old daughter that “if you turn me in, you’re a traitor, and traitors get shot,” his son testified at the trial.

Conventional sentencing rules are of “inadequate scope” to account for the range of Reffitt’s obstruction, witness tampering and weapon offenses, prosecutors wrote in a 58-page sentencing memo.

“Reffitt sought not just to stop Congress, but also to physically attack, remove, and replace the legislators who were serving in Congress,” prosecutors wrote.

They called his conduct “a quintessential example of an intent to both influence and retaliate against government conduct through intimidation or coercion” and said it reflected the statutory definition of terrorist violence that is subject to harsher punishment.

Reffitt recorded himself at a rally led by President Donald Trump at the Ellipse saying he was ready to drag lawmakers including House Speaker Nancy A. Pelosi (D-Calif.), and Senate Majority Leader Mitch McConnell (R-Kent.) “out kicking and screaming,” with “her [Pelosi’s] head hitting every step on the way down.”

A jury found that Reffitt traveled to D.C. from his home in Wylie, Tex., with an AR-style rifle and semiautomatic .40-caliber handgun and repeatedly stated his intention to come armed with a handgun and plastic handcuffs to drag lawmakers out of the building. After returning home from Washington, he threatened his children to ensure they did not to turn him in to authorities.

The request by the U.S. attorney’s office in D.C., which is overseeing prosecutions of roughly 840 Capitol siege defendants federally charged so far, is not binding on U.S. District Judge Dabney L. Friedrich, who has gone below prosecutors’ recommendation in 22 of 24 Jan. 6 sentencings to date.

The longest sentence in a Jan. 6 case so far is 63 months, given to a Florida man who pleaded guilty to attacking police with a fire extinguisher and wooden plank and a D.C. man who assaulted three officers and shattered a riot shield with a pole.

By comparison, Friedrich has sentenced only three defendants who have pleaded guilty to felonies so far, the longest to 27 months in prison, also for attacking police.

Nevertheless, prosecutors may be hoping to send a clear signal to the roughly 330 defendants still awaiting trial on felony charges and who may still be considering whether to accept a plea deal or gamble before a jury. About 70 people have pleaded guilty, and nine, including Reffitt, have been convicted at trial.

Rage met by revulsion — first Jan. 6 trial shows family, nation torn by Trump

Reffitt left home at 15, moved in with his older sister and began working as a KFC dishwasher after enduring years of physical abuse from his father, Broden wrote in his client’s defense. After becoming a father himself, Broden said, Reffitt was devoted to his children and to creating safe spaces for others.

Reffitt, his attorney said, was a self-made man who took his family abroad while he worked in places including Malaysia in charge of operations worth tens of millions of dollars, but was financially and emotionally devastated after a downturn in the oil and gas industry. He lost his job in November 2019, only a few months before the pandemic swept the United States.

Reffitt’s daughters noticed that “his mental health was declining” over that period, Broden wrote. Reffitt fell “down the rabbit hole of political news and online banter,” wrote one of his daughters, and he fell under the sway of Donald Trump “constantly feeding polarizing racial thought.”

“I could really see how my father[’]s ego and personality fell to his knees when President Trump spoke, you could tell he listened to Trump’s words as if he was really truly speaking to him,” one of Reffitt’s daughters said.

Letters from nine friends and relatives provided to the court by Reffitt’s defense “describe a depressed man who believed he was unable to adequately provide for his family (his life’s mission), and a man who felt cast aside and marginalized,” Broden wrote.

Reffitt started a security business and joined the Three Percenters in Texas. The right-wing anti-government group is named after the myth that only 3 percent of colonists fought in the American Revolution against the British.

In a letter to the judge, Reffitt outlined a string of family traumas since 2020 including medical and mental health emergencies and pleaded for leniency for the sake of his family.

“My regrets for what has happened is insurmountable. There’s not a day go by that I don’t regret how much this has affected [my wife and children],” Reffitt wrote. “Yes, what is happening to my family is all my fault, I would like to fix it, please. … I simply ask for a chance to prove myself again.”

Read original article here

U.S. Existing-Home Sales Reached a 15-Year High of 6.1 Million Last Year

U.S. home sales surged to a 15-year high in 2021, powered by low borrowing rates and an intense buyer demand that are expected to keep the market hot during the first months of 2022.

But the recent rapid rise in interest rates has some housing economists forecasting that the market frenzy will subside in the second half of the year.

Existing-home sales rose 8.5% from a year earlier to 6.12 million, the National Association of Realtors said Thursday. Home prices grew at a record pace across the country last year.

Homes also sold also faster than ever. Many went under contract within a week of going on the market, compelling buyers to make snap decisions about one of their biggest life purchases.

Low mortgage rates in 2021 increased housing demand from all types of buyers, including first-time homeowners, luxury vacation-home buyers and investors. Many households saved more money during the pandemic and benefited from a rising stock market. Employees who could work remotely were willing to live farther from their offices. A large generation of millennials is entering their early and mid-30s, which are common home-buying years.

All these factors point to strong momentum going into 2022, housing economists say.

“I think this first quarter is going to be exceptionally frenzied in the housing market,” said Jeff Tucker, senior economist at

Zillow Group Inc.

With limited inventory for sale and borrowing rates going up, he added, “I think a lot of buyers are feeling a sense of urgency.”

Shevene Cole sold her townhouse and bought a single-family home near Denver last year. ‘Because of my budget, it was extremely competitive,’ she said.



Photo:

Shevene Cole

Shevene Cole, who decided last year to move to a single-family home near Denver, was one of those buyers. “I knew rates were going up, so I had to move fast,” she said.

She wanted a three-bedroom, two-bathroom home with a two-car garage for under $450,000. “Because of my budget, it was extremely competitive,” she said. Ms. Cole sold her nearby townhouse in November for $323,000, and bought a house last month for $442,000. “I just got really lucky,” she said. “It’s worth it, at the end.”

SHARE YOUR THOUGHTS

Have you bought or sold a home recently? What is the real-estate market like in your area? Join the conversation below.

Many would-be buyers have given up for now because they are frustrated with the shortage of homes for sale. “The lack of inventory is hindering some of the sales activity,” said

Lawrence Yun,

NAR’s chief economist.

Some homeowners have been reluctant to sell because they fear having trouble finding a new home due to the lack of supply, real-estate agents say. A number of baby boomers are also choosing to delay retirement or age in place. Homeowners who refinanced at ultralow rates might also be reluctant to move if mortgage rates rise.

U.S. home prices hit an all-time high in 2021, but those increases are expected to slow in 2022 thanks to a number of economic factors. Here’s what’s driving the housing market and what that could mean for prospective buyers and sellers. Photo: George Frey/Bloomberg News

“It just doesn’t make sense for everybody to sell right now, even though home prices are so high,” said

Daryl Fairweather,

chief economist at Redfin Corp.

As the supply of homes for sale fell to a record low, existing-home sales declined 4.6% in December from the prior month to a seasonally adjusted annual rate of 6.18 million, NAR said.

Home shoppers who were frustrated by the market last year could return in 2022, say real-estate agents.

“There were a lot of people that renewed leases over the summer because they weren’t finding anything and getting really discouraged,” said Gene Montemore of Launch Real Estate in Scottsdale, Ariz. “I think the spring is going to get busy again.”

But rising rates could deter potential buyers, especially since existing home prices are already near records. The median existing-home price in 2021 rose to a record $346,900, up 16.9% from 2020, NAR said.

The average rate on a 30-year fixed-rate mortgage was 3.56% as of Thursday, said mortgage finance giant

Freddie Mac,

the highest level since March 2020.

Alison and Matt Mirandi bought their first home in December after months of searching.



Photo:

Carly Tyukody

Matt and Alison Mirandi got a taste of the hyper-competitive market when they started house hunting in January 2021 in New Jersey. Many homes for sale were on main roads, which the Mirandis wanted to avoid. They waited in lines of 200 people to view houses, Mr. Mirandi said.

“There’s such a dearth of starter homes, and the run-up on those prices is so obscene from what it was a couple years ago,” Mr. Mirandi said. “We were so dejected.”

They eventually succeeded, buying a four-bedroom house in Ramsey in December for $750,000, though it was more of a fixer-upper than they had hoped for.

There were 910,000 homes for sale at the end of December, the lowest level on record since NAR began tracking total existing-home inventory in 1999. At the current sales pace, there was a 1.8-month supply of homes on the market at the end of December, also a record low.

The number of homes currently under construction is at a multiyear high. As more homes are completed this year, that could help ease the supply shortage and make existing homeowners more willing to sell. But builders have been delayed by labor shortages and supply-chain issues

News

Corp, owner of The Wall Street Journal, also operates Realtor.com under license from NAR.

Write to Nicole Friedman at nicole.friedman@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Read original article here

The Ultimate News Site