LAST UPDATED 08/15/19
ALL LEGAL DOCUMENTS PERTAINING FOR THIS CASE ARE ON PUBLIC RECORD AT THE BOSTON FEDERAL COURT HOUSE AND THE INTERNET WORLD WIDE.
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Alphonse Mourad has sought help and pleaded his case to President Bush and the U.S. Department of Justice. Unfortunately, they failed to investigate and dismissed the fraud and perjury that has taken place at the hands of the partnership of the various governmental entities, Beacon Residential Properties, and Trustee Stephen S. Gray, in association with various corrupt State and Federal Judges.
125 West Street
Hyde Park, MA 02136
Refer to Docket Record CA: 96-10123
February 5, 2004
President George W. Bush
The White House
1600 Pennsylvania Avenue, NW
Washington, D.C. 20001
Dear Mr. President:
I am writing to you as the Chief Executive Officer of the United States of America to seek your assistance in resolving a politically charged dispute here in Boston that involves a number of corrupt federal representatives affiliated with the U.S. Bankruptcy Court. I am writing to you to seek help in the hopes that you can order the appropriate investigations of the parties involved in the matters discussed in this letter. As the attached documents demonstrate, I have exhausted all other avenues in my attempt to seek justice in the matters I discuss in this letter and am now seeking your intervention.
Several federal agencies and servants of the federal government have systematically crafted a vehicle for extorting federal funds from honest business owners trapped in the on-going corruption of the United States Bankruptcy Court. Once a place for refuge and reorganization, the Bankruptcy Court has become a trap where the most valuable assets are fraudulently devalued, court appointed trustees charge prohibitive fees, appeals are won and remanded but bankruptcy judges don't set trials, and the internal Revenue Service charges the president of a Sub-Chapter S corporation several hundred thousand dollar in taxes on profits that the Trustee made. While such a claim may sound somewhat incredulous, I can assure you that every claim I am about to make is fully supported by substantial documentation and court records. For the last several years I thought I was alone in this struggle and then I read an article in last weeks Wall Street Journal which speaks of other businessmen who have been stripped of their assets and years of hard work - all because of the corruption and greed that has permeated the bankruptcy court. I filed Chapter 11 in the U.S. Bankruptcy Court in January of 1996 and entered into a court appointed trusteeship in April of 1996. Since then I have been engaged in numerous legal battles that involve a federal court appointed trustee, a federal bankruptcy judge and the Internal Revenue Service.
The following letter will provide you with both a background history of my struggle with local, state and federal agencies over my former land and housing holdings and will also outline what my current struggles as a post-bankruptcy entity are. It is my sincere hope that you will be able to direct the appropriate federal agencies to investigate the multitude of wrong doings in this case and bring justice to those who have pillaged millions of dollars in federal funds and remain unpunished.
In 1980, I purchased a Section Eight low-income housing apartment complex in the Lower Roxbury section of Boston from the United States Department of Housing and Urban Development (HUD). The 276-unit apartment complex was in terrible physical condition. The property management company had failed to maintain basic tenant records as well as ensure that all tenants had income certifications to qualify them for rental assistance under the Section 8 program. For its part, HUD had failed to oversee the proper payment of real estate taxes for a number of years prior to my assumption of ownership.
Over the next ten years, I devoted every working day to trying to bring this development into compliance with both local and federal regulations. I had hoped to eventually sell the property to the existing tenants as a limited equity cooperative and moving on to another business. The property, which sits on 6 acres in an area that was once undesirable, is now considered by developers such as Beacon Residential to be ripe for development. Major universities, which are in close proximity to the property, were expanding, inviting in their wake the commercial development of Lower Roxbury as well as the gentrification of its housing stock, much of which was considered substandard. What this meant was that my property was in the direct path of the development desires of major real property companies, institutions, universities and the City of Boston itself. As a result the changing climate, my property became increasingly valuable, and at the same time, increasingly subject to the attempted control of the Boston Redevelopment Authority (BRA).
Mr. President, my problems with the City of Boston began in 1986 when the Democratic Mayor of Boston, Ray Flynn, and the BRA decided that the apartment complex should be taken over by the city, brought under the control of the BRA, the buildings demolished and the land subdivided and sold to private bidders, all of whom would have been significant contributors to the Democratic Party. That is the way deals are cut in Boston, if you are not at the table when the initial decision is made you are out of luck. The bid process, or a request for proposals, is merely to project an aura of legitimacy over a corrupt process and prevent the city from being sued.
Since we were under a HUD contract, and HUD had approved my management's performance for every year of my ownership, an alternative means of depriving me of my property had to be developed since the city did not want to purchase the property but instead wanted to acquire the property for nothing. The Mayor and the BRA met with the State Attorney General, who was also a Democrat, and decided to file two simultaneous lawsuits against us for failure to maintain the property even after we had made million of dollars in repairs and maintenance services. Both the Commonwealth and the BRA law suits sought to have the apartment complex put in an immediate receivership, and denying us due process by taking away all our rights as an owners and managers of the property.
The lawsuits were filed about a month before an election where the Attorney General was seeking to be returned to office. For several weeks cannon fodder to his campaign as he attempted to demonstrate to the public that he was on the side of safe, decent and affordable housing, the very concepts I had championed since we bought the property. The Attorney General's mud slinging resulted in my daily evisceration by the local newspapers and an invasion of the apartment complex by TV reporters, who were always met by representatives of the Mayor's Office.
Fortunately, I was able to obtain the services of a lawyer who was able to block the receivership application. For the next six years, however, I was engaged in endless litigation against the Commonwealth, the City, and the BRA. This litigation has cost me almost $1 million dollars in attorney fees, and has achieved its intended purpose of draining me of cash and resources. Building inspectors were unleashed upon the property unprecedented night and day inspections. The BRA even went so far as to place one of their agent's into the complex as a tenant provocateur, reminiscent of the tactics of the Bolsheviks. This tenant stirred up his neighbors and would call the building inspectors and the Boston Police for what he perceived to be the slightest building code or security flaw. Eventually, he was evicted when we discovered that he was receiving payments from the BRA, and had lied on his housing application, and was not income eligible according to HUD guidelines.
The litigation continued on for years. The Commonwealth, the City and the BRA maintained their legal antagonism, but did not openly pursue a legal solution, having apparently lost interest once the election was over. I filed counterclaims and independent actions to try to bring some kind of closure, but could not get any case set for a hearing before the Democratic appointed judges. Dozens of times, parts of the case were set for trial or hearing, and the files would disappear, or the judge would transfer the case, or something else would happen in the court system to prevent things from coming to a conclusion. I was trapped. HUD would not reimburse me for litigation expenses, my debts were mounting, and I could not sell or refinance the property because of the litigation.
Since the protracted legal battles could not be resolved in their favor, the BRA contacted another developer in Boston, from whom I had borrowed money from years ago. They made a deal with him that if he forced me into bankruptcy by foreclosing on the outstanding notes, that they would give him the rights, and a free hand to develop certain properties that he was interested in, none of which included my property. He did what they wanted him to do, and I was suddenly in Bankruptcy Court. Immediately, all the parties I had been fighting against for years to save my property requested that the judge appoint a trustee, and within days, I was no longer in control, and I could do nothing to protect my interests. I had no income, no way to pay for lawyers, and my health was failing.
I finally managed to hire a firm in Boston to represent me at the bankruptcy. Because they failed to file the necessary papers to permit my personal appearance, I had no standing, and could not appear in the Bankruptcy proceeding. Later, I found out that they had represented the Trustee in some other matters, and had never voluntarily disclosed this to me or to the Bankruptcy Court.
Meanwhile, the Trustee was operating the apartment complex and drawing down a large salary. The Trustee, having had a real taste of operating a property in a restricted income environment, made a side deal with a management company in Boston to take over the complex, and submitted this deal to the Bankruptcy Court as a plan to terminate the bankruptcy. I tried to intervene, but could not because of my lack of standing. Eventually, the property was sold, and everything that I had worked for over all those years, and paid millions to defend, was taken away from me.
The following year, the IRS started to come after me for payment of taxes on the profits from the sale of the property. The profits had all gone to the Trustee and eventually to the creditors of the apartment complex, and I did not receive anything. Although a Subchapter-S corporation held the apartment complex, the IRS has been after me personally to pay a deficiency in excess of $200,000, while denying me the low-income credits that I had earned over the previous ten years.
After the bankruptcy was over, I filed an action for negligence against the Trustee and my former lawyers in the federal court. The Bankruptcy judge dismissed the case, and I took an appeal. The Court of Appeals reversed and reinstated the matter. This was two years ago, and despite all my efforts, I have never been able to get this matter to trial.
Mr. President, even though Massachusetts now has a Republican governor, I feel, based on my experiences that the corruption of the Democratic Party machine in Boston has reached into every corner of government. I sent copies of some of my documents to the FBI office in Boston, and while they were sympathetic, they have done nothing to investigate the Trustee's Office, and the connection between the Bankruptcy Court, the Trustee's Office, and the attorneys who represented me. I have done everything I possibly can to protect my property rights and the name of my family, and now I have nowhere to turn to correct this injustice. At one time, the Bankruptcy judge held me in contempt for continuing to appear on my own behalf, and threatened me with prison if I continued to press my claims in her court. Do I have to go to prison in order to obtain justice in this country?
I was born in Lebanon, Mr. President, and saw it as a great day when I obtained my United States citizenship. But now, I am not so sure. I cannot bring my case to trial, I cannot obtain even a hearing in the courts, and I cannot recover the millions that are rightfully mine from the sale of my property. I am asking you, as the President of the United States, to request that the Inspector General's Office and the FBI undertake an investigation of my case, and to help me get to the bottom of this corrupt Democratic regime in Boston.
Thank you very much for listening to me, and for your attention to this letter.
Former President of V & M Management
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