Abuse of 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 their questions were confusing.

From that point, Michigan Attorney General 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 should get Counsel? The website clearly stated that it 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 even though I never sold any Securities, never received any commissions, or never solicited any institutions via email or the phone??? 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 put John Denes out of business by asking 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"?

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. 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. 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 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??? Matt Payok’s Vendetta was still in play. Again the 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 we made by telling FINRA Libelous, & Defamatory statements about Mr. Denes such as Mr. Denes again violated Michigan Securities aws 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.

The interesting thing is that there are several 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! But yet FINRA wants to deny me my license because of the State of Michigan’s Vendetta? So this sends a confusing message to Brokerage community employing thousands of brokers registered with FINRA and the SEC is that if your extremely wealthy and have committed a major crime there is a different set of rules for you versus the average broker!

For more information about John Denes - Ceo for Reo Capital, Llc visit www.reocapitalllc.com