Jack Kemp Blackmailed
In the summer of 1989, I was serving as Assistant Secretary of Housing at the
Department of Housing and Urban Development (HUD) in the first Bush Administration.
The Secretary of Housing was Jack Kemp, formerly a Congressman from Buffalo. One of
Kemp’s assistants approached me after a meeting, and told me that Kemp needed me to
arrange for project-based certificates (subsidy) to be sent to a local housing agency in
New York City, New York HDC.
I explained to the assistant that such an action would be in violation of the competitive
process we had publicly committed to as a result of scandals related to steering of such
subsidy during the Reagan Administration. In addition, because our project-based subsidy
appropriation was spent, I was told that such an action would also be illegal, a violation
of the Anti-Deficiency Act. I agreed to have my staff research the matter to see if we
could find a legal avenue to achieve the same result.
A day or so later, the Secretary called me to his office. He was insistent that I send the
certificates to New York HDC. I explained to him that this was an illegal award, a
violation of the Anti-Deficiency Act. He said he did not care, to do it anyway.
The only way I can describe his demeanor was that of terror. It was almost as if his fear
had replaced all ambition, judgment, discernment. I concluded that someone was
After communicating my request for research to my staff, one of my deputies pulled me
aside and said that folks who worked on Kemp’s campaign staff who he absolutely
trusted had confided in him that Kemp’s sexual activities were far worse than merely bi-
sexual rumors and to be very careful. I assumed that he was referring to pedophilia.
I then went to Chicago for a meeting with one of our regional headquarters. I got a call
from one of my deputies. Several of my deputies and staff had been required to help
someone in Kemp’s office arrange a funding commitment. That person then confirmed
the subsidy awards by phone with New York HCD. My staff informed me that the funds
were for one of Andrew Cuomo‘s projects in New York. I called the General Counsel’s
office and was able to persuade them to reverse the action.
Thus ended my first experience in government with the long-standing and close
connection between sex and mortgage fraud.
Inspired by the unanswered questions surrounding Governor Spitzer’s resignation, I will
be making a series of posts on this topic and how they relate to addressing the mortgage
fraud draining our retirement savings and communities.
Solari Report Blog Commentaries - Catherine Austin Fitts
Former U.S. Assistant Secretary of Housing/Federal Housing Commissioner
From The Solari Report: http://solari.com/blog/its-hard-out-here-for-a-pimp/#comments