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December 08, 2009

Quick! Securitize that inmate

Here's a money making idea the bottom-line geniuses at Goldman Sachs might want to consider. Let's let federal inmate John Antonio Casillas explain:

"Every court judgment is a lien, both Civil and Criminal. Criminal Judgment and Chattel Morgage (sic) are  packaged as Mortgaged backed securities and sold under Fannie Mae and Ginny Mae to investors, these judgments are sold to pay the interest on the Mortgages backed securities already sold."

Which makes about as much sense as a credit default swap.

Mr. Casillas, in fact, believes this securitizing of inmates is already taking place. As the 64-year-old inmate put it: "Fact is, that the “UNITED STATES CORPORATION” has created commercial paper for each inmate in prison and put a price on him hypothecate that price many times." So, naturally, he wanted more information about this operation and filed Freedom of Information Act requests with the Justice Department.

The Justice Department looked around and found nothing. Which is just what you'd expect them to say!

But in a ruling Tuesday, U.S. District Judge Richard W. Roberts declared that the Justice Department's FOIA search was reasonable, and he consequently dismissed Mr. Casillas's lawsuit.

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mike

"Suits & Sentences" is a legal affairs blog written by Michael Doyle, a reporter for McClatchy's Washington Bureau. He was a Knight Journalism Fellow at Yale Law School, where he earned a Master of Studies in Law; he also earned a Masters in Government from The Johns Hopkins University with a thesis on the Freedom of Information Act. He teaches journalism as an adjunct instructor at The George Washington University's School of Media and Public Affairs.

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