Abuse of Discretion & Power by Michigan Attorney General

It all started in October 2014 when Michigan Attorney General Bill Schuette began asking John Denes of REO Capital some questions regarding its website. Mr. Denes responded out of confusion with a reply letting the Attorney General office know that the questions were Bull.

From that point, Michigan Attorney General Bill Schuette and his Assistant Attorney General Matt Payok began their Vendetta against Mr. Denes. They took Mr. Denes to court saying that the website was a solicitation to buy securities without a state license. Mr. Denes was in the process of getting Licensed with a Broker Dealer, FINRA, & the State of Michigan. The website clearly stated that the website was for informational purposes only and was not a solicitation to buy or sell securities. They found Mr. Denes Guilty of violating Michigan securities laws and fined him $10,000 and Mr. Denes had to get an attorney which ended up costing him another $10,000. In the court hearing Matt Payok the assist AG let Mr. Denes know that his intention which was to put John Denes out of business by asking Mr. Denes “Is there something else in life you can do for a living”? This Unprofessional Statement took Mr. Denes by surprise and he responded with a sharp “No is there something else in life you can do”?

Michigan’s assistant AG Matt Payok again took REO Capital and Mr. Denes to court indicating he was going to deny John Denes his Michigan securities license. The attorney representing Mr. Denes & REO Capital told the court that he has been a securities lawyer for the past 30 years and submitted cases far worse than this one and the State of Michigan has approved other licenses? The attorney went on to tell the court that the assist attorney general is using “Abuse of Discretion” and could limit the license of Mr. Denes and REO Capital. Mr. Denes was in tears explaining to the court that denying his state license would be devastating to his family and career. Matt Payok had no empathy for Mr. Denes. Mr. Payok was focused on his Vendetta to make sure Mr. Denes could not practice in Michigan.

In 2017 Michigan’s assistant attorney general again got involved with Mr. Denes and a client which was an Ohio company and REO Capital is a California company stating that Mr. Denes somehow violated Michigan Securities Laws again, fining Mr. Denes again for $2000??? Again the firm had to get another attorney costing Mr. Denes another $10,000. After that case was settled the assistant Attorney General Matthew Payok in Michigan made a call to FINRA the financial regulatory body and breached our legal agreement we made by telling them Libelous, & Defamatory statements such as Mr. Denes again violated securities laws and should not be licensed in any state or with the federal government! Matthew Payok was investigated by the Michigan Bar Association for his Unethical actions during this recent case with Mr. Denes and of course the State of Michigan Grievance Committee which is run by lawyers found that Matt Payok did nothing wrong? It’s like having the Rooster watch the hen house! What a joke.

Now because the State of Michigan has denied Mr. Denes his state license to sell securities in Michigan, FINRA is also going to deny Mr. Denes his license on the Federal level. Thus forcing Mr. Denes out of the Securities Business in which he was involved with for over 25 years! Now, Mr. Denes can only consult and advise REO Capital and Private Equity & Venture Capital firms.
Mr. Denes at age 60 has had his career forced into retirement! This all stems from Michigan Assistant Attorney General Matt Payok and Bill Schuette Michigan Attorney General, having a Vendetta against Mr. Denes over a website??? Also, The Attorney General was determined to put him out of business all because he told the Attorney General his questions were Bull. It all seems rather Ludacris. What is more Ludacris is that John Denes has ended up spending over $47,000 to defend himself from the attacks of Bill Schuette and Matt Payok of the Michigan Attorney General’s Office!

Now at age 60 Mr. Denes will sell his company he started in 2010 to new President of REO Capital. This experience has been devastating for him. It would seem that Michigan’s Attorney General and his assist Attorney General would have bigger fish to fry, such as the Flint Water Crisis case. Bill Schuette ignored complaints on this Flint Water Crisis and to date no one has been charged or been fined in this severe case which involves thousands of people living in the city of Flint Michigan! Yet Bill Schuette – Michigan Attorney General’s office found time to Abuse their Power and Abuse their Discretion to make sure Mr. Denes would be forced out of business! Mr. Denes, discovered “Bill Schuette has a bad habit of using his public office to further his own political and financial interests. Progress Michigan has a lawsuit that seeks to shine a light into Schuette’s shady behavior because the public has a right to know,” said Lonnie Scott, executive director of Progress Michigan. Michigan Attorney General Bill Schuette has quietly made multimillion-dollar real estate transactions involving oceanfront property in the U.S. Virgin Islands while in office and used six state employees to complete four separate transactions between February 2013 and January 2017, documents that Crain Business News obtained.

The interesting thing is that there are cases of Hedge Fund managers such as billionaire Leon Cooperman of Omega Advisors managing almost $10 billion in client assets who in 2017 was caught violating federal securities laws of “Insider Trading” a serious offense of which Martha Stewart went to jail for and the Securities & Exchange Commission along with FINRA settled the case for a fine of $4.95 million and allowed Mr. Cooperman to keep his Securities License and his Hedge Fund and continue his life and his career! Mr. Cooperman was not suspended from his Hedge fund for any period or did not lose his license to buy and sell securities! So this sends a confusing message to Brokerage community employing thousands of brokers registered with FINRA and the SEC!

Posted in Blog, News, Press Release and tagged , , , , .