Isaac Toussie
Encyclopedia
Isaac Robert Toussie is a Brooklyn, New York real estate developer
convicted of fraudulently obtaining mortgages from the Department of Housing and Urban Development
. On December 23, 2008, Toussie was granted a pardon
by President George W. Bush
; however, this pardon was revoked the following day, amid controversy over its apparent impropriety.
Toussie pleaded guilty on May 24, 2001 to the false statement charge. He subsequently pleaded guilty on December 10, 2002 to the mail fraud charge. In July 2003, Toussie was sentenced to five months of incarceration, followed by three years of probation, and on September 22, 2003, he was fined $10,000.
Isaac Toussie and his father are among the co-defendants in an ongoing class action
suit, filed in 2001 by 400 mostly-minority families who claim they were sold shoddily-constructed properties at inflated prices, and told that property taxes would be reduced or deferred. Homeowners paid between US$
160,000 and $200,000 for the Suffolk County
and Staten Island
homes. The suit is the largest ever real estate discrimination suit in New York State.
Toussie placed advertisements in New York City newspapers, offering affordable housing and easy financing, even to individuals with poor credit. The suit claims that these ads included fake endorsements from black celebrities, including Whoopi Goldberg
and Maya Angelou
. Investigators discovered that Toussie had worked with various real estate attorneys, mortgage bankers and home appraisers to get mortgages for hundreds of low-income home-buyers who wouldn't otherwise qualify, and then sell those same people low-quality, overpriced houses that they couldn't afford.
that Toussie's father, Robert Toussie, had given $28,500 to the Republican Party
and $2,300 to the presidential campaign of U.S. Senator John McCain
. White House
press secretary Dana Perino
stated that the pardon would be reviewed, in light of the new information. A White House press release read, in part:
The action by Mr. Bush to revoke the pardon is considered unprecedented, and it is unclear that the president has the power to withdraw a pardon. However, the Justice Department
has stated that the pardon was never official, having never been delivered to the person who requested it, and that Toussie would have no legal ground on which to challenge the withdrawal. It appears that the pardon would have made it possible for Toussie to re-enter the real estate business in New York
state, which he would not be able to do as a felon.
The pardon was also unusual in that it violated a Justice Department guideline stipulating that convicted criminals not be considered for pardons less than five years after the completion of their sentences. The president is not legally bound by the Justice Department guideline. Toussie's legal representation apparently bypassed normal procedure, and appealed directly to the administration, rather than going through the Justice Department. Toussie's lawyer, Bernard Berenson, was formerly part of the Office of the White House Counsel. White House Counsel
Fred Fielding
approved the application for the pardon.
On December 27, the Daily News published a photograph of the elder Toussie shaking hands with President Bush, posed in front of an American flag.
Real estate development
Real estate development, or Property Development, is a multifaceted business, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of improved land or parcels to others...
convicted of fraudulently obtaining mortgages from the Department of Housing and Urban Development
United States Department of Housing and Urban Development
The United States Department of Housing and Urban Development, also known as HUD, is a Cabinet department in the Executive branch of the United States federal government...
. On December 23, 2008, Toussie was granted a pardon
Pardon
Clemency means the forgiveness of a crime or the cancellation of the penalty associated with it. It is a general concept that encompasses several related procedures: pardoning, commutation, remission and reprieves...
by President George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
; however, this pardon was revoked the following day, amid controversy over its apparent impropriety.
Crimes and conviction
Toussie entered the real estate business with his father, Robert Toussie, in 1993. In 1999, Isaac Toussie was charged with making false statements to the Department of Housing and Urban Development in obtaining mortgages, and with mail fraud, stemming from a letter he sent to Suffolk County officials which overstated the value of a property the county would later buy from Toussie's father.Toussie pleaded guilty on May 24, 2001 to the false statement charge. He subsequently pleaded guilty on December 10, 2002 to the mail fraud charge. In July 2003, Toussie was sentenced to five months of incarceration, followed by three years of probation, and on September 22, 2003, he was fined $10,000.
Isaac Toussie and his father are among the co-defendants in an ongoing class action
Class action
In law, a class action, a class suit, or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued...
suit, filed in 2001 by 400 mostly-minority families who claim they were sold shoddily-constructed properties at inflated prices, and told that property taxes would be reduced or deferred. Homeowners paid between US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
160,000 and $200,000 for the Suffolk County
Suffolk County, New York
Suffolk County is a county located in the U.S. state of New York on the eastern portion of Long Island. As of the 2010 census, the population was 1,493,350. It was named for the county of Suffolk in England, from which its earliest settlers came...
and Staten Island
Staten Island
Staten Island is a borough of New York City, New York, United States, located in the southwest part of the city. Staten Island is separated from New Jersey by the Arthur Kill and the Kill Van Kull, and from the rest of New York by New York Bay...
homes. The suit is the largest ever real estate discrimination suit in New York State.
Toussie placed advertisements in New York City newspapers, offering affordable housing and easy financing, even to individuals with poor credit. The suit claims that these ads included fake endorsements from black celebrities, including Whoopi Goldberg
Whoopi Goldberg
Whoopi Goldberg is an American comedian, actress, singer-songwriter, political activist, author and talk show host.Goldberg made her film debut in The Color Purple playing Celie, a mistreated black woman in the Deep South. She received a nomination for the Academy Award for Best Actress and won...
and Maya Angelou
Maya Angelou
Maya Angelou is an American author and poet who has been called "America's most visible black female autobiographer" by scholar Joanne M. Braxton. She is best known for her series of six autobiographical volumes, which focus on her childhood and early adult experiences. The first and most highly...
. Investigators discovered that Toussie had worked with various real estate attorneys, mortgage bankers and home appraisers to get mortgages for hundreds of low-income home-buyers who wouldn't otherwise qualify, and then sell those same people low-quality, overpriced houses that they couldn't afford.
Pardon
On December 23, 2008, President Bush granted a pardon to Toussie, angering people who felt Toussie had defrauded them. However, the pardon was withdrawn the next day, following a report by the New York Daily NewsNew York Daily News
The Daily News of New York City is the fourth most widely circulated daily newspaper in the United States with a daily circulation of 605,677, as of November 1, 2011....
that Toussie's father, Robert Toussie, had given $28,500 to the Republican Party
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
and $2,300 to the presidential campaign of U.S. Senator John McCain
John McCain
John Sidney McCain III is the senior United States Senator from Arizona. He was the Republican nominee for president in the 2008 United States election....
. White House
Executive Office of the President of the United States
The Executive Office of the President consists of the immediate staff of the President of the United States, as well as multiple levels of support staff reporting to the President. The EOP is headed by the White House Chief of Staff, currently William M. Daley...
press secretary Dana Perino
Dana Perino
Dana Maria Perino is an American political commentator for Fox News. She served as the White House Press Secretary for President George W. Bush from September 14, 2007 to January 20, 2009...
stated that the pardon would be reviewed, in light of the new information. A White House press release read, in part:
The action by Mr. Bush to revoke the pardon is considered unprecedented, and it is unclear that the president has the power to withdraw a pardon. However, the Justice Department
United States Department of Justice
The United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated...
has stated that the pardon was never official, having never been delivered to the person who requested it, and that Toussie would have no legal ground on which to challenge the withdrawal. It appears that the pardon would have made it possible for Toussie to re-enter the real estate business in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
state, which he would not be able to do as a felon.
The pardon was also unusual in that it violated a Justice Department guideline stipulating that convicted criminals not be considered for pardons less than five years after the completion of their sentences. The president is not legally bound by the Justice Department guideline. Toussie's legal representation apparently bypassed normal procedure, and appealed directly to the administration, rather than going through the Justice Department. Toussie's lawyer, Bernard Berenson, was formerly part of the Office of the White House Counsel. White House Counsel
White House Counsel
The White House Counsel is a staff appointee of the President of the United States.-Role:The Counsel's role is to advise the President on all legal issues concerning the President and the White House...
Fred Fielding
Fred F. Fielding
Fred Fisher Fielding is an American lawyer, and held the office of White House Counsel for US Presidents Ronald Reagan and George W. Bush.-Personal life:Fielding was born in Philadelphia and raised in Mechanicsville, Pennsylvania...
approved the application for the pardon.
On December 27, the Daily News published a photograph of the elder Toussie shaking hands with President Bush, posed in front of an American flag.