Catherine Austin Fitts on Federal fraud in the US.

The cleaning lady of Federal funds: Federal lies and fraud in the US.

Feb 04, 2023

Catherine Austin Fitts is an American investment banker who was formerly the managing director of Dillon, Read and Co, and served as United States Assistant Secretary of Housing and Urban Development for Housing during the Presidency of George H.W.Bush. Fitts has been called the cleaning lady of Federal funds, and has exposed fraud and mismanagement of federal funds since the start of her career in government in 1988, when she served with the George HW Bush government.

In 1982, while at Dillon, Read and Co, Catherine Austin Fitts organised a municipal bond sale to raise money to revitalise the New York subway system and raised several billion dollars. In 1986, she became the first woman to be promoted to managing direction of Dillon, Read and Co in its 156 year history.

In 1988, Fitts worked on the George HW Bush campaign and was appointed Assistant Secretary of Housing and Urban Development (HUD).

While at HUD, by putting in place a crude cash-flow map, she discovered that HUD’s business had been distorted by widespread fraud involving federal funding, in the same places and with the same people as the Savings and Loan scandal that was then coming to light.

Sha said about this time, “In Washington, everyone was talking about the S&L and HUD scandals as if they were separate, but it was clear that place-based financial data would have told us what had happened, who had profited, and how to prevent it from happening again. It also became apparent that our investments in communities conflicted with the other federal, state, and local investments in that place.”

After only 18 months on the job she was forced out of HUD in 1990, after a report that she had had a disagreement with the Secretary of Housing and Urban Development, Jack Kemp, and was told the day after she left that her system of place-based financial accounting and statements had also been shut down.

She subsequently founded an employee-owned brokerage house, Hamilton Securities. Hamilton Security won a contract to manage the $500 billion investment portfolio of Housing and Urban Development (HUD). Seeing the potential of the internet, Fitt introduced bidding software connected to the HUD database and held competitive auctions of HUD defaulted mortgages, and auctioned family-held mortgages in the Southeast US, and managed to earn $950 million from the auctions, which was $600 million more than HUD was budgeting for. Again, she was too successful, for while her sales helped taxpayers avoid $2 billion in defaulted mortgage sales, her competitive auctions hurt the big players, who had been relying on being able to move in and buy the properties for less than they were worth. So, HUD canceled Hamilton's contract and the loan auction program whilst continuing to use the new profit-loss assumptions in order to gain credit; as Fitt said, “cooked books.”

Hamilton’s software for tracking Federal Money was called “Community Wizard.” In 1996 Fitts became the target of smear campaigns, harassment, covert operations and lies, culminating in Department of Justice agents storming into her offices and destroying everything, including her computer databases. She suspects that her “Community Wizard” database may have shown that some U.S.-guaranteed mortgage securities were fraudulently issued and were draining HUD's reserves.

Even though Hamilton saved HUD over $2 billion of defaulted mortgage sales, HUD refused to pay Hamilton over $2.5 million worth of outstanding invoices. Then, in 1997 John Ervin, a HUD contract servicer, brought a whistleblower suit against Fitts that accused her of committing fraud against HUD to the tune of $3.8 million; a qui tam lawsuit according to Federal Law should be resolved within sixty days; the HUD Inspector General kept on requesting extensions and the corrupt federal judge kept giving them - the case lasted for five years before a different federal judge in 2002 found there was no case against Fitts.

Following this, she founded Solaris, an organisation dedicated to helping small communities become financially independent.

In 2015 she began consolidating her research into Federal Spending and discovered that between 1998-2015 that $2.5 trillion dollars had gone missing from Federal funds. An academic economist named Mark Skidmore heard about this and got involved in the audit.

Skidmore got involved last spring when he heard Catherine Austin Fitts, former assistant secretary of Housing and Urban Development, refer to a report which indicated the Army had $6.5 trillion in unsupported adjustments, or spending, in fiscal 2015. Given the Army’s $122 billion budget, that meant unsupported adjustments were 54 times spending authorized by Congress. Typically, such adjustments in public budgets are only a small fraction of authorized spending.

Skidmore thought Fitts had made a mistake. “Maybe she meant $6.5 billion and not $6.5 trillion,” he said. “So I found the report myself and sure enough it was $6.5 trillion.”

Skidmore and Fitts agreed to work together to investigate the issue further. Over the summer, two Michigan State University graduate students searched government websites, especially the website of the Office of Inspector General, looking for similar documents dating to 1998. They found documents indicating a total $21 trillion in undocumented adjustments over the 1998-2015 period. (The original government documents and a report describing the issue can be found here.)

Skidmore and Fitts’ report sparked a Department of Defense audit.

Because of her qualifications and experience in finance and government, Fitts is a highly credible commentator on the government and financial aspect of the lockdowns. In 2015 she realised that the misspending of government funds had effectively wiped out the US retirement funds, and she said they’re going to have to make a whole lot of people die.

Fitts says the Covid lockdowns were preplanned as a method of controlling the financial problems of the US by transferring wealth from small businesses to the Central Banks, and that the money being pumped into the green agenda is a gigantic scam.

“If you look at the money being pumped out… on climate change, on green energy, environment and all theses and all these different new sort of scams, it depends on how they inject money. It’s either a major correction or it could turn into a bear. There is no way to tell because it is purely political.”

She says without any hyperbolae that the Central Bank Digital Currencies, the five minute cities, and the WEF/elite “let them eat bugs” plans are a financial Coup d’état being orchestrated in order to enslave and control the population.

She says the solution is to use cash, and to form local communities in which we trade under the radar, so to speak, without the digital monitoring.