I call Bullshit #202

Posted March 9th, 2008 by Joe Kaiser

Ah, yes, I believe so, I'd have to look up the . . . ugh, look up the details, but some restitution was made available.

Dear Rob,

An amazing letter turned up in yesterday’s mail. Interestingly enough, it came directly from your office.


Three whole pages responsive to my request?

Forgive me for being so blunt here, Rob, but you have some explaining to do. And, I’m sure we’d all love to hear it.

Restitute This

Do you remember our conversation on KVI radio about restitution in this case and what you said about it?

If not, perhaps this will refresh your memory . . .


And, um, so, we were able to, you know, provide some help to the people who’d been, ugh, scammed. Although, as is typical, people rarely were able to recover . . . fully recover everything they lost because of the, ugh, illegal activity of the people we go after.— Attorney General Robert M. McKenna
KVI 570 Radio, “The Legal Guys” talkshow

I then asked, “has anybody been restituted or been repaid,” and you said . . .

Ah, yes, I believe so, I’d have to look up the . . . ugh, look up the details, but some restitution was made available.— Attorney General Robert M. McKenna

Rob, none of what you’ve said is true, and as mentioned on the radio, I’m getting really tired of it.

Restitute This

Here is a link to the full-size image of the letter I received from your office’s Assistant Director of Public Records, Kathy Bodnar.

She’s responded to my request for copies of all claims made for restitution in this case, copies of all restitution checks paid out, and copies of all records documenting the effort your office made to advise my “victims” of their restitution funds.

Included with the letter were exactly three pages, the sum total of all public records responsive to my request. Yes, three, each a separate claim for the restitution money.

Only three?

Only three.

Now, here’s a quote from the press release posted on your site:

The money will be used to provide refunds to consumers who would have received proceeds from the sales of their homes or land had the defendants not diverted the proceeds for their own use. Based on current information, more than 100 consumers may be entitled to receive restitution. — March 14, 2007 Press Release
Office of the Washington State AG

More than 100?

What happened to them?


Three claimants out of “more than 100″ victims, oddly enough, isn’t the remarkable part. What is remarkable is confirming your office cannot produce a single document showing it made any effort to let people know these funds were available to claim.

No, not even one scrap of paper.

Thanks for the “help,” Rob

In that radio interview you said . . .

We were able to, you know, provide some help to the people who’d been, ugh, scammed.

Provide some help?


You gave them NO HELP. None. And the sad fact is you didn’t even try.

Not a single former customer of mine knew these funds existed and, of course, your office had no intention of telling them.

You provided some help?


Readers may wonder what’s the big deal and why victims can’t submit claims today. It’s simple. The consent decree my former partners signed includes the following language . . .

4.4 Any consumer restitution funds remaining undistributed two hundred seventy days (270) following entry of this Consent Decree shall be paid to the Attorney General to be applied first to any unrecovered costs and reasonable attorney fees . . .— Consent Decree
State of Washington v. Fiscal Dynamics, et al

And, since “costs and reasonable attorney fees” in this matter far exceed the $310k my former partners paid your office, it’s now clear your office’s intent all along was to keep this money and never pay out a nickel.

The money will be used to provide refunds . . .

Good one, Rob.

Nothing paid

Here’s reality . . .

(1) As of this date ZERO restitution claims have been paid, and

(2) All the restitution money (with the possible exception of the three claims) was or will be diverted to your office, and

(3) I’m willing to bet you’ll fight the three who did submit claims so you can keep it all.

real helped

And the three claims your office did receive?

I put together each of them by contacting a few former customers and letting them know. Had I not, absolutely no claims would have been made.

More than 100 consumers may be entitled to receive restitution . . .

Not if you can help it.

Your staff hounded my former customers when you needed their help, and your investigators called repeatedly to get copies of our documents or to ask them to join in this action against me.

But to drop them a note or give them a call to let them know about the nearly one-third of a million dollars in restitution money available to claim?

Not gonna happen.

Mums the word

Your office policy, apparently, is to do nothing that jeopardizes restitution funds going unclaimed and being diverted back to you, including telling so-called victims they have funds available to claim.

Not hearing from your office about their restitution money didn’t happen by accident. It was all part of the scheme.

And yes, that makes it a racket and yes, at least in the Office of the Washington State Attorney General, it’s clear the fix is in.

Sound familiar?

It’s beyond pathetic, Rob, and you’d better believe I so call Bullshit.

In the arena,

Joe Kaiser

2 Responses to: “I call Bullshit #202”

  1. anemonehead responds:
    Posted: March 10th, 2008 at 6:10 am

    One would think the US Attorney’s office or the FBI would be happy to hear about the “alleged” racketeering conduct of the Attorney General of Washington.

    When is Rob up for re-election, November? I can see the headlines now in late October, “Attorney General Rob McKenna Under Investigation for Racketeering”. Now that would be interesting.

  2. Davido responds:
    Posted: April 1st, 2008 at 6:36 am

    Dear Joe,

    Thanks again for this wonderfully educational blog. It sure is good to get your side of the story. You are doing a good thing here. Very best to you.


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