Complaint to Consumer Financial Protection Bureau

Note: if you are a lawyer who knows how to file a lawsuit in a court of lawyer and would be open to providing guidance on the process, email me at zachtravismoore@gmail.com.

The following is in response to letter received from Alliant Credit Union on June 3, 2024 providing notice of breach of contract for failure to make timely payments required under said Deed of Trust and the Evidence of Debt secured thereby. The response is to inform the Consumer Financial Protection Bureau that Alliant breached their contract in the way they made the loan.

COMPLAINT ID

240603-14706738

Subject: Complaint Against Alliant Credit Union for Breach of Contract and Securities Fraud

To Whom It May Concern,

I am writing to file a formal complaint against Alliant Credit Union (ACU) regarding their actions, which I believe constitute a breach of contract and securities fraud. My name is Zachary Travis Moore, and I am a customer of ACU. The property in question is located at (redacted) . I entered into a mortgage contract with ACU on December 10, 2021 for an original amount of $805,500. 

On May 28, 2024, ACU contented that I am in breach of contract for failure to make payments pursuant to the terms of my promissory note.  I contend that ACU breached our contract on December 10, 2021 by engaging in securities fraud. At the time of the contract's execution, I contend that ACU fabricated bank credit by means of a journal entry onto their books while representing that they were loaning me money from an existing pool of capital. This action constitutes a failure to provide proper consideration, a fundamental requirement for any lawful contract. Therefore, for the same reason ACU feels justified to exercise their contractual rights in response to my failure to make regular payments, I feel justified in rejecting ACUs right to enforce the terms of my promissory note and to repossess title to the aforementioned property in response to their failure to provide me with an asset from their balance sheet. 

One objection to this claim is that I was able to purchase a house with this money so that means ACU did uphold their obligation. My response to this is that the act of purchase does not answer the question of whether the money lent was fabricated by journal entry or lent from an existing pool of capital. If it was fabricated, then what the bank actually provided me with was counterfeit money similar to a car dealership selling a car title without a car to deliver. 

It is fraud for any business to fabricate assets on its balance sheet. While many companies have been able to get away with this for a time such as Enron, Worldcom, Bernie Madoff, and FTX, investigation proves that the companies success was a deceptive paper fabrication. I request that  the Consumer Finance Protection Bureau petition ACU to present evidence that the bank credit loaned to me came from an existing pool of capital. If this evidence cannot be provided, I request that the contract between myself and ACU be considered broken by ACU and ACUs practice of lending be investigated similar to the investigations of Enron, Worldcom, Bernie Madoff, and FTX. 

I acknowledge that this complaint may seem unusual; however, it is grounded in the recognition of suspicious activities that often underpin cases of fraud. If ACU can assert that I am in breach of my contract for failing to uphold the terms of my promissory note, then I maintain that, by the same standard, they are in breach for fabricating bank credit without adequate backing.

I urge the Consumer Financial Protection Bureau to investigate this matter thoroughly and take appropriate action to ensure accountability and justice.

Sincerely,

Zachary Travis Moore

Response Regarding Fair Resolution for Complaint Against Alliant Credit Union

To Whom it May Concern,

Thank you for considering my complaint against Alliant Credit Union (ACU) and for giving me the opportunity to propose a fair resolution.

Given the circumstances outlined in my complaint, I believe a fair resolution would involve the following:

1. Verification of the Loan Origin:

   - I request that ACU provide evidence demonstrating that the loan in question was created from existing capital, as per the requirements of consideration in all loan origination contracts.

   - If ACU is unable to provide satisfactory evidence of the loan's origin from existing capital, I propose that the contract between myself and ACU be terminated.

2. Termination of Contract and Refund:

   - In the event that ACU fails to provide evidence of the loan's origin from existing capital, I request the termination of the contract between myself and ACU.

   - Any payments made on the mortgage should be promptly returned to the Original Grantors, along with the clear title to the property in question.

I believe these actions would serve to rectify the situation and uphold the principles of fairness and integrity in contractual agreements.

Thank you for your attention to this matter. I look forward to a swift resolution.

Sincerely,

Zachary Travis Moore

Zachtravismoore@gmail.com

Alliant’s Response to My Complaint

June 6, 2024

RE: CFPB Complaint ID 240603-14706738

Dear Zachary Moore,

Thank you for the opportunity to address your concerns. We are happy to research

and respond to your complaint dated 6/3/2024.

Your complaint holds no merit and is unsupported by any statute, rule, or regulation.

Alliant will not comply with your requests.

If you have any questions regarding your mortgage, please call 866-341-1017.

Sincerely,

Alliant Credit Union

My Response to Alliant’s Response

This is to be expected from Alliant but their response is not well received. I simply asked them to provide evidence that loans are made from existing capital and not out of thin air by fabricated ledger entries. Since they would not provide such evidence, one must assume that none can be produced and Alliant, in coordination with the Federal Reserve Banking System, are defrauding their customers. Since Alliant was unwilling to respond appropriately, I have emailed my Colorado state and federal representatives as well as the Securities and Exchange Commission. 

For a forensic analysis of bank accounting based on the two theories of loan creation, this scientific paper and explanation provide instructive context.

Academic Paper: Can banks individually create money out of nothing? — The theories and the empirical evidence (Richard Werner)

Video: Where does money come from? (John Titus)

Relevant screenshots from research paper below: 

Screenshot #1: What a bank balance sheet would look like if bank credit was being created by journal entry. 

Screenshot 2: What the balance sheet of a bank looks like if it is acting as an intermediary between depositors and loan recipients. Deposits are liabilities owed to the depositors. Capital are monies loaned to the banks or bank equity available for making loans. Loans are created from the capital available for lending owned by the bank. This is how a bank’s balance sheet is suppose to operate and the way it is generally believed to operate by bankers and the public. 

 

Screenshot 3: The bank’s actual balance sheet a month after the researcher took out a $200,000 loan. If the bank is legitimate, there won’t be any increase in the balance sheet as a result of the loan. Instead, assets / capital will decrease by $200,000 and loans will increase by $200,000, resulting in a perfectly balanced balance sheet. 

Screenshot 4: The bank’s actual balance sheet with all the noise filtered away revealing the smoking gun of credit creation by fabricated journal entry. The balance sheet value increased by the exact amount of loans created by the bank that month. This means this bank, and all banks are like this bank, are fabricating journal entries and profiting from misrepresenting assets. This kind of error in reporting in accounting is called fraud. When it is done with a security like money, it is called Securities Fraud, which is what Enron, Woldcom, Bernie Madoff, and FTX were prosecuted for. 

1969 Court Case: Daly v First National Bank