“The Shakedown”

June 12, 2008

by Bob Carrillo (30 year veteran of the financial services industry with extensive hands on annuity experience)

I was recently made aware of the MSNBC Dateline piece lauding MN Attorney General Lori Swanson as a heroic public advocate. I missed the broadcast, as I suspect most conservatives did. Not surprisingly, Dateline isn't on my must see TV list. The Internet brought me up to speed. I was mortified by what Dateline presented.

So mortified that I called the Dateline executive producer David Corvo. I simply wanted to ask a few questions. He was 'busy'. Neither he nor any staffers have bothered to return my calls. Nor would they allow even as much as an e-mail address for Corvo or host Chris Hansen. This type of insulation is to keep information from getting out -- or is it to keep information from getting in??? Whatever the case, it is cowardly.

I've done this before and I will do it again. Let it be known that there is a standing invitation for the Dateline folks, (David Corvo, Chris Hansen, et al) AND I restate my invitation to Minnesota Attorney General Lori Swanson, her predecessor as MN AG, and FORMER INSURANCE COMMISSIONER, Mike Hatch. Let's create a LIVE, on camera, UNEDITED two hour town hall panel discussion in Minnesota relating to Swanson's blatant opportunistic shakedown of the insurance industry.

Nothing but a thorough examination and expose' relating to the behavior, conduct, and antics of the Minnesota Attorney General will satisfy her ethical responsibility to the public she serves. The MN AG office has been turned upside down over the course of the past 16 plus months, due to corruption, misconduct, and a behavior pattern at the helm, which might rival that of Captain Queege, in 'The Cain Mutiny'. Although Humphrey Bogart was brilliant as the remarkable mentally unstable Captain Queege of the USS Cain, in that wonderful Hollywood classic, this my friends is not movie. Lori Swanson and Mike Hatch are quite real. So too are the byproducts of the lawsuit rampage they conspired to foist upon the courts. And the obedient media stands by mute on a subject they could investigate if they were only willing to open their eyes. All Minnesotans--democrats, republicans and independents, expect more from their public servants.

If it is truth and accuracy that we are all after, let's give it a go, shall we?

Per the Dateline NBC broadcast (aired on Sunday, April 13, 2008) entitled 'Tricks of the trade', it is remarkably transparent that the producers appear to have no interest whatsoever in terms of understanding anything of substance relating to the financial services industry. They also appear to be void of any actual curiosity or contextual clue as to what these financial tools (they purport to examine on 'behalf of the consumer'), actually do -- or do not do -- or any meaningful hint as to their intended and or correct use as a financial tool or tools. Astonishing!

Apparently, Fed Chairman Ben Bernanke has not received the interoffice 'just go out there and sue somebody' memorandum from the office our Minnesota Attorney General Swanson, or, the NBC Dateline memo and story line content either. (FOX News.com) --'The chairman's financial disclosure form, released Tuesday, showed that Bernanke is a millionaire, with holdings last year in no-frills investments, including U.S. Treasury securities, mutual funds and ANNUITIES. ...'The Fed chief's largest assets last year were TWO ANNUITIES -- TIAA Traditional and CREF Stock Large Cap Blend, which were valued at between $500,000 to $1,000,000'.

Where's Paul Harvey, and 'The Rest of The Story' when you need him?

Additionally, broadcasting out-of-context and edited statements by 'agents', who might represent an infinitesimally small minority of the questionably competent, or ethically challenged amongst us as financial services industry professionals, as though this was a representative sampling of the financial services industry as a whole, is itself, misleading, unethical, irresponsible, and just plain wrong.

Using the carelessness of such a template, any financial institution -- including AG Lori Swanson's husband's employer, Ameriprise Financial -- or any savings & loan -- banking institution -- credit union -- mutual fund money manager -- insurance company -- etc., would be ripe for the picking and fail Swanson's test. 'Just go out and sue somebody'...anybody. ...Don't worry, they'll pay up just to make this thing go away -- The cost of fighting us (The Mn AG Office) will scare the hell out of them... 'Just go out and sue somebody'...The makings of a shakedown.

To be fair, bad apples are to be found within any industry or occupation. The financial services industry is no exception. Said differently, there are a very small number of incompetent and/or dishonest folks within any industry. Let's take the legal profession for example. Or perhaps in the office of a New York State Governor, a Detroit Mayor, a Louisiana Congressman (with 90,000 of cold cash in his freezer). Or perhaps even a Minnesota Attorney General for example... ...Even a tragedy TV NBC Dateline sensationalist, posing as a journalist. Whatever the sensationalistic angle, are these examples representative of the majority in those professions? Even Lori Swanson deserves more respect than that.

In light of the saga of Enron, I would submit that today there are perhaps fewer 'crooks' within the private sector than in the 'public sector'. There are folks in both sectors in desperate need of being thoroughly examined in terms of their professional, moral and ethical conduct. The kind of job you would rightly bestow on Minnesota's top cop. That is, of course, if her own glass house was somehow shatterproof.

This analysis might also include tragedy TV types. Journalistic posers, who might be reminded from time to time that the listener and or viewer deserves the truth -- complete truth -- and not the sound bite detritus produced by the twisted tabloid 'inquirer' types, and under the header of 'Professional Responsibility'. What a joke! Yet the stupidocracy eats it up.

Please pardon me if I do not accept lessons in acceptable moral, ethical, and responsible legal conduct from the likes of political opportunist and attorney general, Lori Swanson -- or a reality/tragedy NBC TV hack like Chris Hansen. Although different in agenda, they both have a clear and self-serving objective here -- neither appear to be the least bit interested in truly solving any consumer problem whatsoever. For their own reasons, both Swanson-Hatch and Hansen want to simplistically point to your discontent with life today -- find someone or some thing to blame for it -- and trade on that perception for votes and ratings.

Hot off the MoneyNews.com press -- 'Consumer Confidence Lowest Since 1982', according to the Rueters/University of Michigan Surveys of Consumers. Gosh -- I wonder why...

Remember the good old days, when we actually had some respect for broadcasters and journalists, governors and mayors, ...even an attorney general.

ON THE HOME FRONT

Lori is not at all camera-shy. Multiple contrived 'hit & run' press conferences since she took office in January of 2007, prove otherwise. Since Swanson assumed the 'responsibility' as the top cop (Officer of the Court) for the the State of Minnesota, she has eschewed direct negotiation with her prey in exchange for headlines. The Dateline piece does not disappoint in that regard.

The language reflected in the cookie cutter serial law suits against multiple financial institutions since January of 2007 (with more than a dozen more allegedly staged to follow), is unquestionably irresponsible, if not a clear violation of the lawyers code of ethical, legal, and professional responsibility -- let alone as the Minnesota Attorney General, if we are to believe the Minnesota Assistant Attorney General Amy Lawler letter(s) and attachments.

Much of the substance -- or lack thereof, relating to Swanson's serial financial service company law suits should be challenged. Allegations of divisive, improper, unethical, and potentially illegal conduct engaged in by the Minnesota AG's office merit the most intensive scrutiny. If not by the law then certainly by the taxpayers. Allegations levied BY A QUALIFIED INSIDER -- and to an obvious purpose with regard to specific documented action. Actions apparently SPECIFICALLY DIRECTED by AG Lori Swanson. (editor's note: I'll publish Assistant Attorney General Amy Lawler's memorandum separately for your reference, how no media source has bother to do this to date is evermore troubling).

The complaints against Swanson arose from a fellow member of the bar, a lifelong democrat and active member of the DFL. Her March 14 2008 letter, attachments, and 20 page memorandum represent the kind of courage we should applaud. Page 11 is most damning of Swanson's leadership. Ms. Lawler has risked her law license to 'blow the whistle', relating to this unsavory AG office sanctioned behavior and improper conduct. The kind of courage and integrity exhibited by Lawler is what we should expect form an Attorney General.

If only half of the allegations brought forth by attorney Amy Lawler are accurate, MN AG Swanson should resign immediately. Investigative action should be taken immediately, with Swanson's licence to practice law in the State of Minnesota in the balance. But I suspect that won't be the approach of the media, the bar, or any elected official. Neither our leaders nor our courts possess the character to stand tall against the antics of Hatch and Swanson. Where have all the vertebrates gone?

Essentially, we have stumbled across an enormous scandal -- a cover-up relating to this matter, which has been ignored by many within Minnesota State government, as well as many within the Minnesota AG's office, including Minnesota House of Representatives Rules Committee Chair. ( MN State Rep. Tony Sertich, who has personally and repeatedly blocked an investigation voted on unanimously twice by the MN House during the 2007 legislative session)

Subject: alleged ongoing illegal activity, coerced professional misconduct on the part of the Minnesota Attorney General Lori Swanson toward other AG office attorneys, in order to manufacture multiple and 'puffed up' arguably frivolous law suits (see page 11 Lawler letter & attachments) -- and potential complicity with her predecessor and (allegedly former) boss. Mike made the rules as Insurance Commissioner. The association between hatch and Swanson is very close, so much so that some refer to them collectively as "Swatch". If completely true, the Lawler allegations and conclusions appear to rise to the level of an historic, multifaceted, and multi-layered scandal & cover-up of ongoing legal professional misconduct.

At Issue: 'The Lori & Mike Show' (aka Swatch)want to be in the Minnesota Governor's Mansion. It is as simple as that. And as is true of so many on 'the left' today, it always boils down to what is good for 'them' -- while claiming all the while that they are the defenders of the downtrodden -- defenders of 'the people'. The defenders of justice. Sadly, it would appear that 'the end justifies the means' philosophy of professional conduct is what they actually enjoy.

Ask The American Equity Investment Life Insurance Company. After almost 10 months of fighting the good fight, this company was forced into making an economic decision. 'Settle' for paying, what does amount to legal extortion, in the form of $250,000 of the AG office legal fees -- and nothing more...or a million dollars to fight on. No fine for wrong doing. No penalty for violations of any sort. Only the cost and fees generated by the Office of the Minnesota Attorney General to 'just go out and sue somebody'. That's a shakedown folks. Nothing less.

Their offense: They were on the list -- and it is reported that the list is very long. Nice scam -- but is it legal? Is it ethical? Is it solid professional conduct and standards for Minnesota lawyers? Especially for the top lawyer in the State. You decide...

In my opinion, these sound bite opportunists have intentionally prostituted themselves to an obvious agenda. They could not tell you the difference between a variable annuity -- a fixed annuity -- indexed annuity -- an immediate annuity -- a private annuity -- a charitable gift annuity -- a group annuity -- defined benefit pension plan, with underlying 'annuity settlement options' -- etc. Nor do they have any understanding of their proper usage, and or why they have performed so well for literally millions of Minnesotans, and Ameriacans around the country, when appropriate -- and for seniors especially. Nor do they particularly care...

...As any wealth accumulation vehicle -- an income distribution vehicle -- a tax deferred savings vehicle -- etc. Not a clue! What's worse, is that they are completely unwilling to debate the real issues relating to the larger picture here. The Dateline stonewalling is a perfect example of their hit and run approach to the subject-- and refusal to openly talk about the subject beyond their 'if it bleeds, it leads' story line. The same may be said of the Lori Swanson-Hatch regime.

Also, please keep in mind that this is the same reality TV/quasi-journalist, Chris Hansen, who has spent the last several years of his reality TV career, luring/ entrapping male-only perverts into the homes of adolescent girls -- on camera, in order for Mr. Hansen & company to spring into action, and sensationalize and 'commercialize' the sickest and most twisted side of what our society has become.

Our MN Attorney General is involved in this scandal up to her neck. The controversy is substantial albeit largely unreported by local media. An administrative investigation of her office is underway relating to very serious charges, directly connected to this entire matter, by Legislative Auditor Jim Nobles. Politically motivated & potentially illegal activity on the part of an Attorney General requires more than just symbolic review by an entity lacking the teeth to mete out any justice. Over 50 attorneys have left her office. While the Twin City media remains remarkably incurious relating to these matters, I remain hopeful that others will step forward and be counted.

Please contact your legislators, local and national media outlets. Express your concerns. Remember, we get the government & judiciary we deserve. Being optimistic about Minnesotans, I hope to see a full and fair airing of all the details surrounding our Attorney General. Minnesotans deserve much better than what we have gotten thus far.

Good Luck to us all.

Sincerely,

Robert Carrillo "

Robert Carrillo

Almost a 30 veteran of the financial services industry, as an independent financial professional.

Two adult children / Kristen --age 30 / Joseph -- age 23.

Founder: Financial Independents of Minnesota, Inc / October 1978

Primary Practice: Estate conservation / generational wealth transfer / mitigation of tax & risk / post retirement strategic planning / Charitable Planned Giving, etc.

Licensed to practice, along with qualified team members (attorneys, accountants, etc.) in 17 states.

Served for an aggregate of 10 years as a volunteer member of multiple Minnesota State-wide Task Force, and DHS Advisory Committee Activities, including A Minnesota Supreme Court Task Force for 18 months.

Hosted a local (Minneapolis / St. Paul) weekly radio interactive talk show, entitled: "Common Sense Over The Back Fence" / State and national topics covered / for 7 years.  Interviewed national and local politicians, authors, etc.

Hosted a local (Minneapolis / St. Paul) cable television program, entitled: "You've Got To Be Kidding" / for 3 years.

Author of numerous articles relating to public service matters of the day from a "watchdog" citizens point of view.

Author of multiple articles relating to the Minnesota Attorney General Scandal and antics (serial cookie cutter, "deep pocket" financial institution lawsuits), published since April 2007 in the Wright County Newsletter & Blog ( www.wrightrepublican.blogspot.com<font face="Arial, Helvetica" size="2">)

First Article: (April 30, 2007) "AG Scandal 2.0 - Insiders Point of View" -- Second article: (Feb 15, 2008) "The Lori & Mike Show" (all past articles are available per archives)

Robert A. (Bob) Carrillo
[email protected]
o- 952-545-1300
c- 612-250-0874