ABUSE OF POWER – MI ATTORNEY GENERAL
I have posted this on my Blog because I want potential clients who look at my Securities License under Broker-Check to be able to read the Abuse of Power – Michigan Attorney General that happened to John Denes and not just the Libelous & Defamatory Fake News from the Michigan Attorney General’s Office posted on my Securities License which shows – John Denes the applicant “willfully violated the Act within the past 10 years, and engaged in dishonest and unethical practices within the last 10 years, which supports the denial of his registration application under the above-cited provisions of the Michigan Uniform Securities Act.” This posting is completely false! Read on and you will see why it’s false!
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 their questions were Bull.
From that point, Michigan Attorney General Office and Bill Schuette and his Assistant Attorney General Matt Payok began their Vendetta with their Abuse of Power began 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. Matt Payok & Bill Schuette never told me this was a Formal Hearing and that I would need counsel? I went into the first hearing without an Attorney and the results was tragic against me. The website clearly stated that it was for informational purposes only and was not a solicitation to buy or sell securities and that did not matter to them. They found Mr. Denes Guilty of violating Michigan securities laws, but I never sold any Securities, never received any commissions for the sale of Securities, or never solicited any institutional investors via email or the phone??? All of these are criteria needed for a violation of Securities Laws. So how can I be Guilty of Violating MI Securities Laws if there was never any business conducted??? They fined me $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 Deny John Denes his license & asked Mr. Denes “Is there something else in life you can do for a living”? This Unprofessional Rude statement took Mr. Denes by surprise and he responded with a sharp “No is there something else in life you can do”? This comment was a warning to John Denes that he was going to put me out of business.
Michigan’s Attorney General Office Abuse of Power with Matt Payok and Bill Schuette again took REO Capital and Mr. Denes to court indicating he was going to deny John Denes his Michigan securities license. John Hubbard 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 Matt Payok could limit the license of Mr. Denes and REO Capital. It was clear at that point that the Michigan Attorney General had every intention to putting John Denes out of business. Mr. Denes was in tears explaining to the court that denying his state license would be devastating to his 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 or any where else, knowing that eventually his denial would put John Denes out of business.
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??? Michigan Attorney General Matt Payok’s Vendetta was still in play. Again my firm had to get another attorney costing Mr. Denes another $10,000. Mr. Denes Attorney asked Matt Payok “What does a California company doing business with an Ohio company has to do with violating Michigan Securities Laws?” Matt Payok gave some lame answer like “Well John Denes had previously applied for a License in Michigan?” After that case was settled in which there was no admission that Mr. Denes violated Michigan Securities Laws, the assistant Attorney General Matthew Payok made a call to FINRA the financial regulatory body and breached our Final Consent Judgement made by telling FINRA False Defamatory statements about Mr. Denes such as Mr. Denes again violated Michigan Securities Laws and John Denes 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 attorney Matt Payok did nothing wrong? What a surprise? It’s like having the fox watch the hen house. What a joke!
Now the State of Michigan has denied Mr. Denes his state license to sell securities in Michigan, FINRA has disqualified 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 and into retirement! Now, Mr. Denes can only consult and advise REO Capital. Mr. Denes at age 60 has had his career forced into retirement until he hires an Attorney to Expunge this False information on his Securities License! This all stems from Michigan Assistant Attorney General Matt Payok and Bill Schuette Michigan Attorney General, determined to teach John Denes a lesson over a website! The Michigan 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. They have violated John Denes civil rights to earn a living through intimidation and abuse of power!
Now at age 60 Mr. Denes will retire from his company he started in 2010 and seeks Counsel again to expunge the mess that the Michigan Attorney General Office left behind! They posted the denial of John’s securities license on his CRD with the Federal government knowing that this would prompt a disqualification of his license with the governing body FINRA. This disqualification has also led to an investigation by FINRA against John Denes which has found No wrong doing, but FINRA has Disqualified Mr. Denes and pulled his Securities License. Bill Schuette and the Attorney General’s office knew exactly what they were doing against John Denes but they were determined to play out their Vendetta!!! Now in order to get my License back with FINRA John Denes will have to hire another Attorney for $100,000 that specializes in expungements of stockbrokers negative comments on the CRD or Central Registration Deposit with FINRA. This experience has been devastating for John Denes. It would seem that Michigan’s Attorney General and his assist Attorney General would go after people who committed a real crime, such as the Flint Water Crisis case which poisoned thousands of people in Flint Michigan. Bill Schuette & Matt Payok ignored complaints on this Flint Water Crisis which was poising people and to date no one has been charged with a crime or been fined in this severe case which involves thousands of people living in the city of Flint Michigan! Bill Schuette and Matt Payok – Michigan Attorney General’s office found time to fine Mr. Denes $22,000 for violating MI Securities Laws with no explanation of what statue was violated. Bill Schuette and Matt Payok can pick on the small business owner and ignore the real criminals! This is the classic definition of a real Bully.
Now two years later in 2020 the new Attorney General has taken over and is now going after Mr. Denes’s Broker Dealer fining the Brokerage Firm $10,000 plus Banning the Brokerage firm from doing any business in the State of Michigan simply because the Brokerage firm represents REO Capital to this day. Even though the employees of REO Capital are correctly licensed with FINRA and the State of California.
Now with my License being Statutory Disqualified with FINRA and not Licensed with any State not able to generate any revenues from REO Capital LLC, Mr. Denes over the next 10 years stands to possibly lose out on over $51 Million dollars in Fees that he would have made if the State of Michigan had not denied his Securities License!!! It seems like a good basis for a $51 Million Defamation Lawsuit to me???
Mr. Denes, discovered “Bill Schuette has a bad habit of using his public office to further his own political and financial interests. Progress Michigan an organization for Michigan residents, has a lawsuit that seeks to shine a light into Bill 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.
Finally, the interesting thing is that there are several cases of Hedge Fund managers such as billionaire Leon Cooperman of Omega Advisors managing $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 SEC 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 career! Mr. Cooperman was not suspended from his Hedge fund for any period or did not lose his license to buy and sell securities! This sends a wrong message to Financial & Brokerage community employing thousands of Stockbrokers registered with FINRA that if your extremely wealthy and have committed a major crime there is a different set of rules for you!
I have posted this on my Blog because I want potential clients who look at my Securities License to be able to read the real story on what happened to John Denes not just what the Michigan Attorney General’s false version which only shows a one sided Libelous wording they used to describe the incident, which is simply Bull!!!
Feel free to contact John Denes at https://www.reocapitalllc.com to learn more!