May 17, 2005

Chief Executive Officer

New South Federal Savings Bank

2198 Columbiana Rd

Birmingham AL 35216

Mr. Robert Couch:

If you are quoted correctly in "Thrift targets mortgage product to undocumented Hispanics" (Business Journal, Birmingham edition, May 9), and the article is accurate in other details, the New South Federal Savings Bank of Birmingham is offering home mortgage loans under a program called Casa Mia to foreign nationals illegally residing in the United States, i.e., to illegal aliens.

According to the article, you report "there are few, if any, mortgage lenders that cater to tax-paying immigrants who lack proper documentation." However, you should be aware that the reason there are so few lenders is probably because making such loans to illegal aliens is a felony.

It is very likely a court would find the issuance of a mortgage under your new program to be a criminal violation of 8 U.S.C. 1324 (Bringing in and Harboring Certain Aliens), which makes it a felony to encourage[1] an alien to reside in the United States knowing that such residence is in violation of law. §1324(a)(1)(A)(iii) It is hard to imagine any court taking seriously a claim that helping an illegal alien buy a house situated inside the United States isn't knowingly encouraging the illegal alien to reside illegally in the United States.

Congress also made it a felony for anyone who "knowing or in reckless disregard of the fact that an alien has come to, entered, or remains in the United States in violation of law, ...harbors...such alien in any place, including any building...," (A)(iv)

Also committing a felony is anyone who "engages in any conspiracy to commit any of the preceding acts," (v)(I) or, who "aids or abets the commission of any of the preceding acts." (v)(II)

Because subsection (c) of Section 1324 explicitly grants authority "to make any arrests for a violation of any provision" of the section to, among others, any officer "whose duty it is to enforce criminal laws," we are notifying, simultaneously with this notice, those law enforcement agencies whose jurisdictional authority extends to them the right and the duty to make, immediately upon knowledge of the issuance of a mortgage as described above, all appropriate warrants for the arrests of all appropriate New South personnel.

While the language of the statute is straightforward enough, you should also know

1. that the U.S. Court of Appeals for the Eleventh Circuit has held that the law is to be broadly construed as to the persons subject to criminal liability. U.S. v Zheng, No. 01-15551 (11th Cir. Sept, 2002)

2. a person convicted of a violation as described in subparagraphs (a)(1)(A)(iii) and (iv), if done for the purpose of "commercial advantage," shall be fined under Title 18, imprisoned not more than 10 years, or both, "for each alien in respect to whom such a violation occurs."

3. Section 1324 (b) allows for civil forfeiture.

The officers and directors of the New South Federal Savings Bank of Birmingham, and others who may be liable, should also know that Congress has included criminal violations of this section within the predicate acts sufficient to trigger a civil suit under the nation's racketeering laws, and that, therefore, if any person, who can demonstrate injury to his business or property as a direct result of your mortgage program for illegal aliens, seeks our assistance, Friends of Immigration Law Enforcement will endeavor to see a civil damages suit filed against the bank and all others who may be liable under the Racketeering Influenced and Corrupt Organizations Act.

Sincerely,

Craig Nelsen, Executive Director

Friends of Immigration Law Enforcement

310 6^th St S.E. 2^nd Flr

Washington, DC 20003