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Blacks, Latinos More Vulnerable to Consumer Fraud

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African Americans and Hispanics continue to be victimized by consumer scams at li slier rates than white Americans but are more reluctant to report their experiences, according to the Federal Trade Commission (FTC) officials lathered in Milwaukee. Wis.

“African Americans are almost twice as likely to be victims of consumer fraud as whites.” said Todd Kossow, FTC’s Midwest Regional Director, noting that Hispanics also are victimized “at a significantly higher rate than whites.”

He listed debt-related scams hat hold out the hope of avoiding foreclosure, paying down student loans, and credit card debt among the leading monetary enticements that lure poor, low-income, or otherwise financially marginal individuals to grasp at the false promises of solvency and freedom from creditors.

Kossow led off a discussion on consumer fraud with other FTC officials and an all-star panel of experts drawn from federal agencies, including 1RS Criminal Investigations, the U.S. Attorney’s Office Elder Justice Initiative. U.S. Postal Inspector Service, and the Federal Deposit Insurance Corporation.

They were joined by a representative from Wisconsin’s Department of Transportation’s auto division, other state and Milwaukee city agencies, including the Milwaukee Public School District, as well as local participants from consumer advocacy organizations like the AARP. and the Better Business Bureau. Media also attended the event, held at Milwaukee’s Washington Park Branch Library.

Sandy Close, founder of Ethnic Media Services, termed the symposium “a convening of fraud busters in order to create a community of informed advocates. Local media are vital to this effort.” EMS. a San Francisco organization that serves ethnic media, has cohosted similar events with the Federal Trade Commission for over three years in cities across the country. The magnitude of the crisis is pervasive and daunting.

Kossow said the latest data show that 11 percent of America’s adult population, or approximately 25.6 million people. were victims of scams in one year alone. Though reporting can be done anonymously, African Americans and His- panics have been less likely to report fraud, making it more difficult for enforcement officials to alert consumers to the latest scams. That underreporting prompted an FTC report.

In Milwaukee, and throughout the country, imposter scams comprise the greatest number of consumer fraud events: “any scam where someone pretends to be who they are not in order to get your money.” Kossow explained.

These scams are often initiated over the phone by an individual who claims to be an 1RS agent, or is calling from the Social Security Administration, from a well-known institutional authority or reputable corporation. Also proliferating are technical support scams, where the caller convinces a consumer that a computer or a piece of equipment needs a patch or adjustment of some kind.

Aside from fraudulent schemes that can potentially affect any consumer, there are scams rooted in bitter legacies of discrimination, for example, when banks, through redlining, declined to offer mortgages to African Americans seeking to live in certain neighborhoods or zip codes.

Insurance companies likewise shirked legal obligations behind the veneer of prudently avoiding doing business with “high-risk individuals,” the not so discreet tenu for people of predominantly non-European descent, or. who. if then insured. were charged exorbitant rates.

Jessica Roulette, an attorney at Legal Action of Wisconsin, and a native of Milwaukee, spoke to the ramifications of this history’. “Scammers prey on the effects of structural racism. the fact that minorities have been excluded from our banking system: excluded from home ownership.” She cited the 2008 financial crisis as but one fairly recent example of how financially unsophisticated. low-income consumers, were steered into burdensome mortgages designed to fail.

She outlined how structural inequities have affected minority and poor communities in her city and continue to impede home ownership, the primary means of the transfer of intergenerational wealth in America.

Immigrants also, especially those who have functioned outside the traditional banking system, are vulnerable to these types of scams. Without community members sharing their knowledge and gaining an understanding of their rights, simply put. Roulette said, “it’s easy to be deceived.”

Khalil Abdullah, Ethnic Media Services

Khalil Abdullah, Ethnic Media Services

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Rest in Peace: A.M.E. Pastor and L.A Civil Rights Icon Cecil “Chip” Murray Passes

The Rev. Dr. Cecil L. “Chip” Murray, former pastor of First African Methodist Episcopal Church (FAME) in Los Angeles, died of natural causes April 6 at his Windsor Hills Home. He was 94. “Today, we lost a giant. Reverend Dr. Cecil Murray dedicated his life to service, community, and putting God first in all things. I had the absolute honor of working with him, worshiping with him, and seeking his counsel,” said Los Angeles Mayor Karen Bass of the dynamic religious leader whose ministry inspired and attracted millionaires as well as former gang bangers and people dealing with substance use disorder (SUD).

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The Rev. Dr. Cecil L. “Chip” Murray, former pastor of First African Methodist Episcopal Church (FAME) in Los Angeles, died of natural causes April 6 at his Windsor Hills Home. He was 94.

“Today, we lost a giant. Reverend Dr. Cecil Murray dedicated his life to service, community, and putting God first in all things. I had the absolute honor of working with him, worshiping with him, and seeking his counsel,” said Los Angeles Mayor Karen Bass of the dynamic religious leader whose ministry inspired and attracted millionaires as well as former gang bangers and people dealing with substance use disorder (SUD).

Murray oversaw the growth of FAME’s congregation from 250 members to 18,000.

“My heart is with the First AME congregation and community today as we reflect on a legacy that changed this city forever,” Bass continued.

Murray served as Senior Minister at FAME, the oldest Black congregation in the city, for 27 years. During that time, various dignitaries visited and he built strong relationships with political and civic leaders in the city and across the state, as well as a number of Hollywood figures. Several national political leaders also visited with Murray and his congregation at FAME, including Presidents George W. Bush and Bill Clinton.

Murray, a Florida native and U.S. Air Force vet, attended Florida A&M University, where he majored in history, worked on the school newspaper and pledged Alpha Phi Alpha Fraternity.  He later attended Claremont School of Theology in Los Angeles County, where he earned his doctorate in Divinity.

Murray is survived by his son Drew. His wife Bernadine, who was a committed member of the A.M.E. church and the daughter of his childhood pastor, died in 2013.

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Court Throws Out Law That Allowed Californians to Build Duplexes, Triplexes and RDUs on Their Properties

Charter cities in California won a lawsuit last week against the state that declared Senate Bill (SB) 9, a pro-housing bill, unconstitutional. Passed in 2021, SB 9 is also known as the California Housing Opportunity and More Efficiency Act (HOME). That law permits up to four residential units — counting individual units of duplexes, triplexes and residential dwelling units (RDUs) – to be built on properties in neighborhoods that were previously zoned for only single-family homes.

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Charter cities in California won a lawsuit last week against the state that declared Senate Bill (SB) 9, a pro-housing bill, unconstitutional.

Passed in 2021, SB 9 is also known as the California Housing Opportunity and More Efficiency Act (HOME). That law permits up to four residential units — counting individual units of duplexes, triplexes and residential dwelling units (RDUs) – to be built on properties in neighborhoods that were previously zoned for only single-family homes.

A Los Angeles Superior Court Judge ruled in favor of the cities, pointing out that SB 9 discredited charter cities that were granted jurisdiction to create new governance systems and enact policy reforms. The court ruling affects 121 charter cities that have local constitutions.

Attorney Pam Lee represented five Southern California cities in the lawsuit against the state and Attorney General Rob Bonta.

“This is a monumental victory for all charter cities in California,” Lee said.

However, general law cities are excluded from the court ruling as state housing laws still apply in residential areas.

Attorney General Bonta and his team are working to review the decision and consider all options that will protect SB 9 as a state law. Bonta said the law has helped provide affordable housing for residents in California.

“Our statewide housing shortage and affordability crisis requires collaboration, innovation, and a good faith effort by local governments to increase the housing supply,” Bonta said.

“SB9 is an important tool in this effort, and we’re going to make sure homeowners have the opportunity to utilize it,” he said.

Charter cities remain adamant that the state should refrain from making land-use decisions on their behalf. In the lawsuit, city representatives argued that SB 9 eliminates local authority to create single-family zoning districts and approve housing developments.

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Funds for Down Payments and Credit Repair Given to Black First Time Homebuyers

The California Civil Rights Department (CRD) won a $10,000 fair housing settlement last November against a property management company, CIM Group LP, a global real estate company headquartered in Los Angeles, and property owner, RACR Sora, LLC, for implementing a blanket ban on renting to tenants with criminal histories at Sora Apartments in Inglewood. Three months earlier, the department, which enforces California’s civil rights laws, won another $20,000 civil rights settlement against a Lemon Grove property manager, who had targeted a Black tenant with a series of racist actions and threats of violence.

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By McKenzie Jackson, California Black Media

The California Civil Rights Department (CRD) won a $10,000 fair housing settlement last November against a property management company, CIM Group LP, a global real estate company headquartered in Los Angeles, and property owner, RACR Sora, LLC, for implementing a blanket ban on renting to tenants with criminal histories at Sora Apartments in Inglewood.

Three months earlier, the department, which enforces California’s civil rights laws, won another $20,000 civil rights settlement against a Lemon Grove property manager, who had targeted a Black tenant with a series of racist actions and threats of violence.

CRD Director Kevin Kish said the department investigates cases of apparent racial bias in housing and sometimes more subtle acts of prejudice like nuisance-free or crime-free housing policies or holding tenants to different standards based on their race.

Kish said, “People will get evicted if they call the police. This can negatively impact victims of domestic violence. We also see these no-crime ordinances, or no-crime policies, used in racially discriminatory ways. If there is some kind of incident, and the police are called and it involves a Black family, then they get evicted, but other folks aren’t necessarily evicted.”

On April 11,1968, a week after Rev. Dr. Martin Luther King, Jr. was assassinated, President Lydon B. Johnson signed the Fair Housing Act, which prohibits discrimination in the sale, rental, and financing of housing based on race, color, religion, and nationality.

Kish noted that William Byron Rumford, the first Black California State Assemblymember, who represented Berkley and Oakland, spearheaded the passing of the Rumford Act in 1963. That law sought to end discriminatory housing practices in the Golden State, five years before the Fair Housing Act became law.
Real estate agent and housing advocate Ashley Garner is the director of the CLTRE Keeper Home Ownership program. That organization gave 25 Black, indigenous, and people of color $17,500 each in down payment and credit repair support to purchase a home in Oak Park, a traditionally Black neighborhood in Sacramento, last fall. CLTRE obtained a $500,000 grant from the city of Sacramento to award the funds to the residents after they completed an eight-week homeownership program.

In 2021, the California Housing Finance Agency (CalHFA) noted that around four in 10 Black California families owned homes, which trails that of White, Asian-American and Latinos.
According to Forbes, the median price for a home in California is over $500,000, which is double the cost of a home in the rest of the country.

Black lawmakers recently introduced their Reparations Priority Bill Package that includes support for Black first-time homebuyers, homeowners’ mortgage assistance and property tax relief for neighborhoods restricted by historic redlining.

California Housing Finance Agency (CalHFA) spokesperson Eric Johnson said CalHFA helps prospective low-income and moderate-income Californians purchase homes by offering down payment and closing cost aid. “There are lots of people who have steady jobs, good credit scores, constant income, but they haven’t been able to save up the money that traditional banks need or want to see for a down payment,” Johnson stated. “We help those folks out. We give a loan for the down payment to get them over that hurdle.”
CRD and the Department of Real Estate hosted “Fair Housing Protections for People with Criminal Histories” Zoom call on April 10.

On April 25, CRD will also hold Zoom seminars focused on advocating for fair housing for people with disabilities.

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