Tag: RICO

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Kiva: Micro-financing isn’t micro-investing.

I’ve been wanting to write this article for awhile, but I couldn’t find a tie in to San Francisco. Well, I finally did and here goes. Kiva is a San Francisco company that has shown ads around the country that have former President Bill Clinton telling you how you can invest only $25 and get back at least a 95% return on your investment. This sounds all good and well until you start to think about it. What they’re saying is that if you give them $25 you’ll get back at least 95% of that, not 100% of that, but 95% of that. This is like saying give me $25 and I can guarantee a return on your money of at least $23.75. That’s not $23.75 over the $25, but basically give us $25 and we can guarantee you a pay back of $23.75.

Something wrong with the math here? You bet. It gets even better. Your $25 goes in with about 40 other people’s $25 that go to a foreign bank that will lend a needy individual the $1000 that helps them get out of poverty. Sounds great! Wait, there’s something they aren’t telling you…

The banks that give the money to the individuals [in my case Rosa in Peru] charge them between 17% and 25% interest on that loan. These banks give them money that they have guaranteed from people like you and me and then charge the people in third world countries anywhere from $170-$250 on top of the $1000 they received to get that money. After three months I got back my entire $25 from Rosa in Peru who needed help with her garment start up. The problem I see is that these foreign banks are getting a guarantee of the money they put up out front without any risk of losing any money, only the risk of losing interest on the money they’ve given.

To me this is predatory racketeering of needy people in third world countries. I would much rather give the $25 directly and get no return than to further the coffers of a foreign bank who is preying upon the people it is trying to serve. They can’t come up with a single argument that could justify what they are doing, but they’ve got a great green looking website with images of poor foreigners who are looking for money, but it is really the banks in these countries that are looking for the money even more.

People who come from poor nations need help, hell, even people in the US who don’t have money need help, but to charge them such a high interest rate that people who had more money and didn’t need to borrow in the first place would be charged a lesser rate doesn’t seem right. Kiva.org is pitching micro-financing as if it were micro-investing. You’ll never get back more than you put in, but you have a good chance of getting back everything you put in at least.

I can understand that banks can’t take a high risk on giving a loan to people who don’t have much chance of paying it back, but to make it sound all sweet and lovely by taking money from Americans and giving it to poor people who need it at not lose of ROI for the bank is just a swindle scheme by these foreign banks. In looking through the listing of people who are asking for money, I didn’t see a single bank that was on US soil, they were all banks in the foreign countries who were doing the lending. Were there any US people asking for money through Kiva.org? Nope, not one, yet we have people here who could use money, but I believe we understand that banks offering a sweet deal here must have some catch to it.

If you want to support needy people in other countries, please do not do business with Kiva.org which is a non-profit that is for profit for foreign banks.

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A lawyer walks into a store with a disabled person, repeatedly!

Heeeere's Tommy!

This is a story that I read about yesterday. Actually it’s about several stories I read about yesterday concerning a lawyer named Thomas Frankovich, he works for the rights of the disabled. Normally that is something to feel good about, but this time it’s not. Several businesses in the Sunset and Mission District have been sued by Mr. Frankovich with the assistance of a disabled man named Craig Yates. How they do it appears to look more like an organized crime shake down maneuver than a cry for help for the disabled. Mr. Frankovich’s offices I have just learned are located at the top of 19 steps with no elevator access, hence Mr. Frankovich’s law offices are non-ADA compliant.

Now let me set the record straight that my mother was disabled. She had had four hip replacements and was morbidly obese so getting up and down the stairs was something she stopped doing during the last year of her life and prior to that it would take her about ten minutes to navigate down our thirteen stairs. While she could walk it could be barely considered walking and caused her great pain. When she would go out she would have to ride in a wheelchair that she herself couldn’t even maneuver. Now, here’s how Mr. Frankovich works.

Mr. Yates [sometimes accompanied by Mr. Frankovich] travel to a local business and test to see whether or not Mr. Yates can get into the building usually a restaurant to eat and use the facilities. If Mr. Yates could not he would write a letter to the business telling them they were non-complient with the ADA act. He would visit the business a few weeks later and if no changes had been made he would send a second letter then visit again in a few weeks. If he still had trouble there would be a third letter which included a summons to court from Mr. Frankovich.

Over the past three years six business in the Sunset alone have been targeted. Three have settled out of court, two are in mediation and one of the business has shut its doors for good. From the research I’ve done it appears that the out of court settlements have yielded Mr. Yates and Frankovich money in the tens of thousands of dollars from each settlement. These six law suits are not the only ones though. The grand total comes to over 30 law suits by Mr. Yates and Frankovich over the past three years. If you run the numbers in your head you can easily see how on a 50/50 split that each one of them would be sitting on a seven figure income per year. What’s more is that settlement funds are not taxable, so Mr. Yates after deducting his expenses from paying off Mr. Frankovich is in a pretty good place for a disabled man.

I should note that not all cases have been won by Mr. Frankovich. As I previously mentioned, one of the businesses has shut its doors as have also a few in the Mission District. Mr. Frankovich has also received three disciplinary actions over the last three years on ethics violations according to information obtained from the State Bar Association. What makes this story even more compelling is that prior to this Mr. Frankovich had levied over 100 law suits for non-ADA compliance in the Los Angeles area with a Mr. Jarek Molski using the same tactics.

[mappress mapid=”28″]I have tried to find pictures of Mr. Frankovich and Mr. Yates so that any business owners who visit my site can see what they look like so they would know to close down their businesses if they see them coming to avoid their racketeering-like ways, but unfortunately I couldn’t find a picture of them anywhere and I’m quite good with search engines. So far all I could find was Mr. Frankovich’s website at http://www.disabilitieslaw.com/. From my years of work as a graphic designer it is of my opinion that this was a very quickly put up website with a cartoonish picture of a man in a cowboy hat with a phone to his ear riding in a tank  labeled “access blaster” and a couple of disabled people in wheelchairs on either side with a throng of others walking behind the tank.

There is also another picture to the right that says, “One for all, all for one. The power of a class action lawsuit” yet so far Mr. Frankovich’s name only comes up associated with non-ADA compliance cases among two individuals. I haven’t seen anything about Mr. Yates or Mr. Molski saying that they are fighting for the disabled. It appears that they are both lining their own coffers with the money of small businesses.

San Francisco is an old city trying to keep its feel for the days of old somewhat. Landlords who purchase buildings built in the 20’s through 40’s LONG before there was the American’s with Disabilities Act usually don’t have the money to put into making their businesses ADA compliant or simply leave it to the people who rent from them to make the changes, but the majority of these businesses do everything they can to help out the disabled. I remember a business owner of a small coffee shop helping me bring the coffee and pastries I purchased out to my car because my mother didn’t want to get out of the car because it would be too painful for her. I’m am all in favor of assisting people with disabilities because I know what it’s like, but these two people insult the disabled by their practices and I feel it should stop now. Destroying local small businesses to line your own pockets is a crime in my humble opinion and I urge all you who read this to contact your local Supervisors and Mayor Ed Lee to help bring this to an end.