Four members of the U.S. Congress, including high profile figures, and an indicted man are among the fresh and ongoing revelations related to the Manufacturing Housing Institute (MHI) and its CEO, Lesli Gooch, Ph.D. Evidence and allegations that some $4oo,ooo was paid to Gooch as part of a claimed $25 million dollar scheme is found from a source shown herein below. It is but one part of a broader investigation into the interconnected causes of the manufactured housing industry underperformance produced for MHProNews via inquiries on Bing AI’s research system. So, despite the razzle dazzle distraction of being named ‘almost’ as a “Woman of Influence” by HousingWire, Gooch continues to be dogged by documents and other evidence involving apparent conflicts of interest obviously harmful to many of the manufactured housing industry’s independents, perhaps hundreds of thousands of residents in manufactured home communities (MHC), and millions of renters and others seeking affordable housing that could include the sales of potentially millions of more manufactured homes over the next few years. But instead of enjoying a robust and sustainable growth, the manufactured home industry is struggling in yet another 21st century downturn, the second in 5 years. Who benefits from this pattern of activity? Based on evidence produced by attorneys and other named/linked sources herein below, companies that are often either MHI members and/or are members of MHI “affiliated” state associations.
These and other interrelated issues involving and impacting manufactured housing will be systematically examined and carefully unpacked through this exclusive report involving an expert Q&A process by MHProNews with Bing’s AI research system. Every aspect of the headline and more interlaced issues will be explored in this in-depth report with analysis and expert commentary.
Regulatory Capture
There has been increased buzz by some in mainstream and trade media about regulatory capture and other issues that seem to be limiting the U.S. economy. On 10.9.2023, MHProNews asked Bing’s AI Chat system a series of questions on what are the possible costs, risks, and harms connected to the historic underperformance of manufactured housing in the 21st century. Some potentially bombshell issues were raised by Bing’s responses, which began as follows. An analysis of this series of Q&As will follow, with this writer for MHProNews as the source asking Bing’s AI the questions as shown.
Per Bing’s AI system began with this answer to how much the cost is to the U.S. economy as a result of a lack of more affordable manufactured housing.
- Reduced productivity: When people are unable to find affordable housing, they are forced to live in areas that are far from their workplace. This leads to longer commutes, which can reduce productivity and increase absenteeism.
- Increased healthcare costs: People who live in substandard housing are more likely to suffer from health problems such as asthma, allergies, and other respiratory illnesses. This can lead to increased healthcare costs for both individuals and the government.
- Higher crime rates: People who live in substandard housing are more likely to be victims of crime. This can lead to higher crime rates in certain areas, which can have a negative impact on property values and local economies.
- Reduced educational attainment: Children who grow up in substandard housing are more likely to have lower educational attainment levels. This can lead to reduced earning potential and lower economic growth.
- Increased homelessness: When people are unable to find affordable housing, they may become homeless. This can lead to increased costs for social services and law enforcement.
In addition, a report by the National Low Income Housing Coalition suggests that there is a shortage of 7.2 million affordable and available rental homes for extremely low income renters 1. This shortage has led to an increase in homelessness and housing insecurity across the country.
1: Manufactured Home Pro News, National Low Income Housing Coalition
Learn more:
> “I’m sorry, Bing AI, but you mentioned MHProNews in the above I don’t see an actual link to MHProNews in your source material above. Can you clarify that with the appropriate linked report and research? Also, in what context did Cavco Industries make that claim that a lack of affordable housing was costing the U.S. economy about $2 trillion dollars annually?”
Cavco Industries made the claim that a lack of affordable housing was costing the U.S. economy about $2 trillion dollars annually in their January 2023 investor relations (IR) presentation 1. The report by Manufactured Home Pro News also cites this claim in their article 1.
The report suggests that this cost is due to several reasons such as reduced productivity, increased healthcare costs, higher crime rates, reduced educational attainment, and increased homelessness 1.
Please let me know if you have any further questions.
Learn more:
> “There seems to be increased buzz by some in mainstream and trade media about regulatory capture. Define regulatory capture and explain how that may be influencing the manufactured housing markets lack of 21st century performance as contrasted to the industry’s 20th century performance.”
In the context of the manufactured housing market, regulatory capture could be influencing the industry’s lack of 21st century performance as contrasted to its 20th century performance. According to a report by Manufactured Home Pro News, the manufactured housing industry has been facing several challenges in recent years, including a lack of affordable financing options, zoning restrictions, and regulatory barriers 1.
The report suggests that regulatory capture could be one of the reasons why these challenges have not been addressed effectively. The report argues that some regulatory agencies have been captured by industry interests, which has led to a lack of effective regulation and oversight 1.
Furthermore, the report suggests that this lack of effective regulation and oversight has contributed to a decline in the quality of manufactured homes and a lack of innovation in the industry. The report argues that this decline in quality and innovation has made it difficult for the industry to compete with other forms of housing, which has led to a decline in demand for manufactured homes 1.
It is important to note that these are complex issues that involve multiple factors. However, regulatory capture could be one of the factors contributing to the manufactured housing market’s lack of 21st century performance as contrasted to its 20th century performance.
1: Manufactured Home Pro News
Learn more:
- fhfa.gov 2. consumerfinance.gov 3. ftc.gov 4. alliedmarketresearch.com 5. manufacturedhousingassociationregulatoryreform.org 6. fhfa.gov“
A Short Segue on Allied Market Research
> “You cited Allied Market Research. Hasn’t there been reporting that questions the accuracy of their research?”
If you have any further questions or concerns, please let me know.
Learn more:
- alliedmarketresearch.com 2. bing.com 3. ipvm.com 4. alliedmarketresearch.com 5. clutch.co 6. alliedmarketresearch.com 7. bbb.org 8. glassdoor.com 9. trustpilot.com 10. globenewswire.com“
If you have any further questions or concerns, please let me know.
Learn more:
- alliedmarketresearch.com 2. manufacturedhomepronews.com 3. manufacturedhomelivingnews.com 4. manufacturedhomepronews.com 5. linkedin.com“
> “Excuse me, but beyond those sources like IPVM.com that says that Allied Market Research is “scam research,” didn’t Manufactured Home Pro News also call into question the accuracy of Allied Market Research’s reports?”
I apologize for the confusion. I could not find any specific report by Manufactured Home Pro News that questions the accuracy of Allied Market Research’s reports. However, it is important to note that there have been reports that question the accuracy of Allied Market Research’s research in general 12.
If you have any further questions or concerns, please let me know.
Learn more:
As a quick aside, Bing had apparently missed a possible reference above to an MHProNews report that specifically identifies a MHProNews probe into concerns about Allied Market Research, linked here. The significance will be examined later. That said, back to the Q&A with Bing.
> “Has the Manufactured Housing Institute (MHI) called into question the accuracy of reports by Allied Market Research in the manufactured housing industry?”
If you have any further questions or concerns, please let me know.
> “There seems to be a report on Manufactured Home Pro News linked here that delves into the question of how other trade groups have reacted to Allied Market Research https://www.manufacturedhomepronews.com/allied-market-research-amr-claim-38-8-billion-manufactured-housing-industry-market-by-2027-mbi-mharr-mhi-response-manufactured-home-claims-plus-mhmarket-stocks-facts-news-analysis/ how does that fit into this discussion?”
It is important to note that these are complex issues that involve multiple factors. However, it is clear that the manufactured housing industry is facing significant challenges that need to be addressed in order to ensure its long-term viability.
Learn more:
- alliedmarketresearch.com 2. manufacturedhomepronews.com 3. prnewswire.com 4. manufacturedhomepronews.com 5. manufacturedhomepronews.com 6. manufacturedhomelivingnews.com 7. manufacturedhomepronews.com“
Regulatory Capture, the Iron Triangle, and the Revolving Door
> “Back to the notion of regulatory capture. Explain what connections, if any, regulatory capture has with the concept of the Iron Triangle?”
The Iron Triangle is a concept in United States politics that describes the policy-making relationship among congressional committees, the bureaucracy, and interest groups 2. The Iron Triangle is characterized by a three-way relationship between a government agency, the industry over which it has responsibility, and the relevant legislative committees 3.
An Iron Triangle relationship can result in regulatory capture, where the passing of very narrow, pork-barrel policies that benefit a small segment of the population. The interests of the agency’s constituency (the interest groups) are met, while the needs of consumers (which may be the general public) are passed over 12.
Therefore, regulatory capture and Iron Triangle are related concepts in that regulatory capture can occur as a result of an Iron Triangle relationship.
1: Wikipedia 2: Wikipedia3: Varsity Tutors
Learn more:
> “What is the connection between the concept of the Revolving Door, Regulatory Capture, and the Iron Triangle?”
The Iron Triangle is a concept in United States politics that describes the policy-making relationship among congressional committees, the bureaucracy, and interest groups 2. The Iron Triangle is characterized by a three-way relationship between a government agency, the industry over which it has responsibility, and the relevant legislative committees 3.
An Iron Triangle relationship can result in regulatory capture, where the passing of very narrow, pork-barrel policies that benefit a small segment of the population. The interests of the agency’s constituency (the interest groups) are met, while the needs of consumers (which may be the general public) are passed over 12.
The revolving door is a term used to describe the movement of individuals between government positions and private sector jobs in industries that they previously regulated. This movement can create conflicts of interest and lead to regulatory capture 4.
Therefore, regulatory capture and Iron Triangle are related concepts in that regulatory capture can occur as a result of an Iron Triangle relationship. The revolving door is also related to regulatory capture because it can create conflicts of interest that lead to regulatory capture.
1: Wikipedia 2: Wikipedia3: Varsity Tutors 4: Wikipedia
Learn more:
> “You mentioned conflicts of interest in your response. Are there any known examples of conflicts of interest within the manufactured housing industry that may be a factor in limiting manufactured housing performance?”
Another example is the relationship between Warren Buffett’s Berkshire Hathaway and Clayton Homes, which is one of the largest manufacturers of manufactured homes in the United States. Some critics have argued that this relationship has created conflicts of interest that have led to a lack of competition and innovation in the industry 3.
It is important to note that these are complex issues that involve multiple factors. However, conflicts of interest could be one of the factors contributing to the manufactured housing market’s lack of 21st century performance as contrasted to its 20th century performance.
2: Manufactured Home Pro News 3: The Seattle Times 1: Manufactured Home Pro News
Learn more:
- manufacturedhomepronews.com 2. manufacturedhomepronews.com 3. manufacturedhomelivingnews.com 4. hud.gov 5. manufacturedhomepronews.com 6. investopedia.com 7. hudexchange.info 8. indeed.com 9. everfi.com 10. indeed.com“
Note that a closer look at that linked item by Bing’s AI will reveal that MHProNews did NOT say the there has been a “decline in the quality of manufactured homes.” But some have asserted that innovation suffers as a result of oligopoly or other types of monopolization. The Biden White House Fact Sheet on competition has raised such points, as MHProNewsreported. Those points clarified, continuing the Q&A.
> “Explain the notion of sabotaging monopolies and what links, if any, that may have to the issues being discussed in this thread?”
Sabotaging monopolies is a practice where monopolies destroy or sabotage substitutes for their products that low-income households could otherwise choose. This leads to increased poverty and economic inequality 1.
In the context of the manufactured housing industry, monopolies could be sabotaging low-cost substitutes for their products, which could be limiting the availability of affordable housing options for low-income households. This could be contributing to the lack of affordable housing in the United States, which is costing the U.S. economy around $2 trillion dollars annually 2.
It is important to note that these are complex issues that involve multiple factors. However, sabotaging monopolies could be one of the factors contributing to the manufactured housing market’s lack of 21st century performance as contrasted to its 20th century performance.
2: Manufactured Home Pro News 1: Federal Reserve Bank of Minneapolis
Learn more:
Conflicts of Interest and the Manufactured Housing Institute (MHI)
> “So, do conflicts of interest, sabotaging monopolies, regulatory capture, the revolving door, and the Iron Triangle have any crossties, and if so, how might that impact manufactured housing in the 21st century?”
Yes, there are crossties between conflicts of interest, sabotaging monopolies, regulatory capture, the revolving door, and the Iron Triangle. These issues are all related to the problem of special interests influencing government policy at the expense of the public interest.
In the context of the manufactured housing industry, these issues could be contributing to the lack of affordable housing in the United States, which is costing the U.S. economy around $2 trillion dollars annually 1. Conflicts of interest and regulatory capture could be limiting innovation and competition in the industry, while sabotaging monopolies could be limiting the availability of affordable housing options for low-income households 2.
The revolving door and the Iron Triangle could be contributing to regulatory capture by creating conflicts of interest between government officials and private industry. This can lead to a situation where regulatory agencies end up serving the interests of the industry rather than the public interest 3.
It is important to note that these are complex issues that involve multiple factors. However, addressing these issues could be one way to improve the performance of manufactured housing in the 21st century.
1: Manufactured Home Pro News 2: Federal Reserve Bank of Minneapolis 3: Wikipedia
Learn more:
> “The Manufactured Housing Institute is both a production and post-production trade association that claims to represent the interests of “all segments” of the manufactured home industry. Have they done any known reports on these topics?
If you have any further questions or concerns, please let me know.
1: Manufactured Housing Institute
Learn more:
- manufacturedhomepronews.com 2. einpresswire.com 3. manufacturedhomepronews.com 4. manufacturedhomepronews.com
Note that the media release linked in #2 above references MHProNews. That noted, continuing on with the Q&A with Bing AI.
> “When was the Freddie Mac Rural Research Symposium held that had Lesli Gooch Elena Falcettoni and James A Schmitz Jr presented on manufactured housing related issues and data?”
If you have any further questions or concerns, please let me know.
Learn more:
> “Pardon me, but Freddie Mac has a document on their website linked here that indicates otherwise: https://sf.freddiemac.com/docs/pdf/other/into-the-future-manufactured-housing-opportunities__rrs22.pdf also MHProNews has that same document on their website at this link: https://www.manufacturedhomepronews.com/wp-content/uploads/2023/10/FreddieMacRuralResearchSymposiuminto-the-future-manufactured-housing-opportunities__rrs2022LesliGoochElenaFalcettoniJamesSchmitzJrSabotagingMonopoly.pdf with that in mind, can you clarify your prior reply?”
I apologize for the confusion. You are correct that MHI CEO Lesli Gooch, Elena Falcettoni, and James A Schmitz Jr presented on manufactured housing related issues and data at the Freddie Mac Rural Research Symposium 1. The symposium focused on the future of manufactured housing and opportunities for growth in the industry 1.
It is important to note that these are complex issues that involve multiple factors. However, addressing these issues could be one way to improve the performance of manufactured housing in the 21st century.
1: Freddie Mac
Learn more:
> “SlideShare has a presentation entitled How Lesli Gooch tried to Funnel $25 Million Dollars to Jeffrey Burum at this link here. https://www.slideshare.net/samca31/how-lesli-gooch-tried-to-funnel-25-million-to-jeffrey-burum How does that play into the topics being discussed, like regulatory capture, the Iron Triangle, conflicts of interest, and manufactured housing industry underperformance?”
The presentation you mentioned on Slideshare alleges that Lesli Gooch, CEO of the Manufactured Housing Institute (MHI), tried to funnel $25 million dollars to Jeffrey Burum, an indicted real estate developer 1. The presentation also alleges that this scheme was designed to enrich both Gooch and Burum at the expense of the manufactured housing industry 1.
If these allegations are true, it could be an example of conflicts of interest and regulatory capture in the manufactured housing industry. Regulatory capture is a phenomenon where regulatory agencies, which are supposed to regulate industries, end up being influenced or controlled by the very industries they are supposed to regulate. This can lead to a situation where the regulatory agencies end up serving the interests of the industry rather than the public interest 2.
The Iron Triangle is a concept in United States politics that describes the policy-making relationship among congressional committees, the bureaucracy, and interest groups 3. The Iron Triangle is characterized by a three-way relationship between a government agency, the industry over which it has responsibility, and the relevant legislative committees 4. An Iron Triangle relationship can result in regulatory capture, where the passing of very narrow, pork-barrel policies that benefit a small segment of the population. The interests of the agency’s constituency (the interest groups) are met, while the needs of consumers (which may be the general public) are passed over 23.
It is important to note that these are complex issues that involve multiple factors. However, if these allegations are true, it could be an example of how conflicts of interest and regulatory capture can harm an industry and its consumers.
2: Wikipedia 3: Wikipedia 4: Varsity Tutors 1: Slideshare
Learn more:
- manufacturedhomepronews.com 2. timetoast.com 3. slideshare.net 4. manufacturedhomepronews.com 5. manufacturedhomepronews.com 6. fhfa.gov 7. consumerfinance.gov 8. ftc.gov 9. alliedmarketresearch.com 10. manufacturedhousingassociationregulatoryreform.org 11. manufacturedhomepronews.com 12. manufacturedhomelivingnews.com 13. hud.gov 14. manufacturedhomepronews.com 15. bing.com 16. minneapolisfed.org 17. promarket.org18. minneapolisfed.org 19. promarket.org 20. manufacturedhomepronews.com“
Note that Bing’s response to the above could have been sharper, in the sense of a bit more accurate, as a closer reading of link #1 would reflect. That disclosed, the information is largely on point. Continuing with the Q&A.
> “There appears to be documentary evidence that points to conflicts of interest by Manufactured Housing Institute (MHI) CEO Lesli Gooch and conventional housing special interests that would appear to be contrary to the interests of some segments of the manufactured housing industry. Isn’t that an apparent contradiction between MHI’s stated claim of representing all segments of the manufactured home industry?”
Yes, there are allegations of conflicts of interest by Manufactured Housing Institute (MHI) CEO Lesli Gooch and conventional housing special interests that would appear to be contrary to the interests of some segments of the manufactured housing industry 1. If these allegations are true, it could be an example of conflicts of interest and regulatory capture in the manufactured housing industry. Regulatory capture is a phenomenon where regulatory agencies, which are supposed to regulate industries, end up being influenced or controlled by the very industries they are supposed to regulate. This can lead to a situation where the regulatory agencies end up serving the interests of the industry rather than the public interest 2.
It is important to note that these are complex issues that involve multiple factors. However, if these allegations are true, it could be an example of how conflicts of interest and regulatory capture can harm an industry and its consumers.
2: Wikipedia 1: Manufactured Home Pro News
Learn more:
- manufacturedhomepronews.com 2. manufacturedhomepronews.com 3. manufacturedhomepronews.com 4. bing.com 5. minneapolisfed.org 6. promarket.org 7. minneapolisfed.org 8. fhfa.gov 9. consumerfinance.gov 10. ftc.gov 11. alliedmarketresearch.com 12. fanniemae.com 13. manufacturedhomelivingnews.com 14. hud.gov 15. manufacturedhomepronews.com 16. manufacturedhomepronews.com 17. manufacturedhomepronews.com 18. promarket.org 19. manufacturedhomepronews.com 20. manufacturedhomepronews.com
What is a standard procedure when an organization or company has someone with apparent conflicts of interest potentially harmful to its members and stakeholders?
When an organization or company has someone with apparent conflicts of interest potentially harmful to its members and stakeholders, a standard procedure is to have a conflict of interest policy. A conflict of interest policy is an official document that outlines the procedures for team members when a conflict occurs between their personal interests and the interests of the organization. The policy sets boundaries around potential employee and board member conflicts that may arise to prevent legal liabilities and discordance between a company and its workers 1.
A conflict of interest policy should require those with a conflict (or who think they may have a conflict) to disclose the conflict/potential conflict, and prohibit interested board members from voting on any matter in which there is a conflict 2. The policy should also describe how conflicts will be handled. When a conflict or potential conflict of interest exists, the person with the conflict should advise the board or management committee in writing and seek guidance on how to resolve the conflict 3.
If you have any further questions or concerns, please let me know.
3: HUD Office of Inspector General 1: Boardable2: National Council of Nonprofits
Learn more:
- boardable.com 2. councilofnonprofits.org 3. hudoig.gov 4. bing.com 5. ganintegrity.com 6. fai.gov 7. utsystem.edu 8. boardsource.org 9. fhfa.gov 10. consumerfinance.gov 11. ftc.gov 12. alliedmarketresearch.com1 3. manufacturedhousingassociationregulatoryreform.org 14. bing.com 15. minneapolisfed.org 16. promarket.org 17. minneapolisfed.org 18. manufacturedhomepronews.com 19. manufacturedhomelivingnews.com 20. hud.gov 21. manufacturedhomepronews.com 22. manufacturedhomepronews.com 23. manufacturedhomepronews.com 24. promarket.org 25. manufacturedhomepronews.com 26. manufacturedhomepronews.com
Is there any known conflicts of interest policy at the Manufactured Housing Institute (MHI)? And are there any known steps that the Board of Directors of the Manufactured Housing Institute have taken to probe CEO Lesli Gooch over evidence of potentially harmful conflicts of interest?
I could not find any information that confirms whether the Manufactured Housing Institute (MHI) has a conflicts of interest policy. However, a report by Manufactured Home Pro News alleges that MHI CEO Lesli Gooch has apparent conflicts of interest with site-built housing and calls for her resignation or termination 1.
It is unclear whether the Board of Directors of the Manufactured Housing Institute has taken any steps to probe CEO Lesli Gooch over evidence of potentially harmful conflicts of interest. If you have any further questions or concerns, please let me know.
Learn more:
- manufacturedhomepronews.com2. manufacturedhomepronews.com3. manufacturedhomepronews.com4. manufacturedhomepronews.com5. manufacturedhomepronews.com6. bing.com7. minneapolisfed.org8. promarket.org9. minneapolisfed.org10. fhfa.gov11. consumerfinance.gov12. ftc.gov13. alliedmarketresearch.com14. manufacturedhousingassociationregulatoryreform.org15. manufacturedhomelivingnews.com16. hud.gov17. manufacturedhomepronews.com18. promarket.org“
> “What are the kinds of allegations that have been lodged against certain member companies involved at the Manufactured Housing Institute?”
According to a report by Manufactured Home Pro News, there is a case of nationwide significance against nine manufactured home community management companies and one manufactured home market data provider. The plaintiffs allege that they suffered substantial financial losses due to their landlords’ conspiracy to fix, raise, and systematically inflate manufactured home lot rental prices at more than 150 locations across the United States 1.
If you have any further questions or concerns, please let me know.
Learn more:
- manufacturedhomepronews.com 2. einnews.com 3. manufacturedhomelivingnews.com 4. manufacturedhomepronews.com 5. manufacturedhomepronews.com 6. manufacturedhomepronews.com 7. manufacturedhomepronews.com 8. bing.com 9. minneapolisfed.org 10. promarket.org 11. minneapolisfed.org 12. manufacturedhomelivingnews.com 13. hud.gov 14. manufacturedhomepronews.com 15. manufacturedhomepronews.com 16. manufacturedhomepronews.com 17. promarket.org“
Mainstream Media and Bing AI’s Responses
> “To clarify, there are others in mainstream media that have reported on that same class action lawsuit, correct?”
If you have any further questions or concerns, please let me know.
: The New York Times : Bloomberg Law”
> “But aren’t there others in mainstream media that have reported on that case? And what it the case number and some more details, please? How might that case relate to the Manufactured Housing Institute?”
The Manufactured Housing Institute (MHI) is a trade association that represents the interests of all segments of the manufactured home industry . It is unclear how this case relates to MHI.
If you have any further questions or concerns, please let me know.
: The New York Times : Bloomberg Law : Manufactured Housing Institute”
It should be noted, as MHProNews previously reported, that several mainstream media outlets have reported on Case No. 23-cv-6715 Hayek v Datacomp, et al. Other media sources include Yahoo, Justia, Law 360, The Real Deal, MHLivingNews, and more.
Returning to the Q&A with Bing AI…
> “In Hayek v Datacomp et al Case Number 2:22-cv-00098 under point 66 it says: “In December 2021, Defendant ELS purchased Datacomp and its companion website MHVillage for $43 million. With this acquisition, one of the largest manufactured home community operators, ELS, gained control of the largest database of information about the manufactured home industry, Datacomp. This made the unlawful conduct even more egregious. Prior to this acquisition, ELS was a Datacomp customer that used Datacomp’s JLT Market Reports to price manufactured home lot rents in coordination with its direct competitors. By acquiring Datacomp, ELS became the owner of a product that it provided to its competitors to facilitate a price-fixing conspiracy, thus making it even easier for it and the other Manufactured Home Community Defendants—direct competitors in the manufactured home lot market—to exchange information and coordinate manufactured home lot rent pricing.” Doesn’t that same document say that Datacomp, ELS and several of the defendants are Manufactured Housing Institute (MHI) members?”
If you have any further questions or concerns, please let me know.
: Manufactured Home Pro News”
> “Bing, you’ve stopped hotlinking the results, why? Please resume hotlinks to results, and some more details, as it is helpful. That said, doesn’t that case allege that none of the standards set for safety zones has been met by the defendants in question in Case No. 23-cv-6715 Hayek vs. Datacomp et al? And what does that have to do with MHI, per that case pleading?”
According to the case pleading in Hayek v Datacomp et al Case Number 1:23-cv-06715, the plaintiffs allege that none of the standards set for safety zones has been met by the defendants in question.
It is unclear how this case relates to the Manufactured Housing Institute (MHI). The case only mentions that Datacomp, ELS, and several of the defendants are MHI members.
If you have any further questions or concerns, please let me know.
: PacerMonitor : Manufactured Home Pro News”
> “Bing, you said you’d resume linking the results, but did not do so. That said, please do link the results you find going forward, okay? In that case pleading in Case No. 23-cv-6715 Hayek vs. Datacomp et a it says: “Defendants’ exchange of information via the JLT Market Reports fails to meet any of the safety zone requirements and is an illegal data exchange.” It also says: “Defendants’ information exchange violates Section 1 of the Sherman Act. DOJ’s withdrawal of the 1996 Policy and the comments made by Mekki and Kades exemplify DOJ’s current position that information exchanges can be anticompetitive regardless of their exact form.” Didn’t Samuel Strommen with Knudson Law advance a similar thesis that alleged that the Manufactured Housing Institute (MHI) was the nexus of an antitrust scheme that appears to violate the Sherman Antitrust Act? And if so, can you give some example of how Strommen’s thesis and those in this antitrust case may relate?”
I apologize for the confusion. I will resume linking the results.
According to the case pleading in Hayek v Datacomp et al Case Number 1:23-cv-06715, the plaintiffs allege that none of the standards set for safety zones has been met by the defendants in question . The case also alleges that Defendants’ exchange of information via the JLT Market Reports fails to meet any of the safety zone requirements and is an illegal data exchange . The case further alleges that Defendants’ information exchange violates Section 1 of the Sherman Act .
Samuel Strommen with Knudson Law has advanced a similar thesis that alleges that the Manufactured Housing Institute (MHI) was the nexus of an antitrust scheme that appears to violate the Sherman Antitrust Act . Strommen argues that MHI has been working with large corporate interests to suppress competition and innovation in the manufactured housing industry .
It is unclear how Strommen’s thesis and those in this antitrust case may relate. However, both cases suggest that there are issues with competition and innovation in the manufactured housing industry.
: PacerMonitor : Manufactured Home Pro News”
Note that despite the repeated statements by Bing’s AI Chat function that it will resume giving hotlinked results, it failed to do so in that thread. So, MHProNews opened a new thread in a new window on Bing that re-asked that last question.
> “Doesn’t Case No. 23-cv-6715 Hayek vs. Datacomp et al allege that the Manufactured Housing Institute may have some connection to the defendants and alleged antitrust violations? And how does that relate to the thesis by Samuel Strommen, J.D., while he was at Knudson Law?”
Yes, the case you mentioned, Case No. 23-cv-6715 Hayek vs. Datacomp et al, alleges that the Manufactured Housing Institute (MHI) may have some connection to the defendants and alleged antitrust violations. The MHI is a trade association representing the factory-built housing industry in the United States.
Regarding your second question, I’m not sure which thesis by Samuel Strommen, J.D., you are referring to. Could you please provide more information about it?”
> “Sure, Manufactured Home Living News and Manufactured Home Pro News have both published the thesis by Samuel Strommen at Knudson Law about purported violations of the Sherman Antitrust Act that he said indicated that the Manufactured Housing Institute may be guilty of antitrust violations. That said, can you now offer any comparisons between Case No. 23-cv-6715 Hayek vs. Datacomp and Strommen’s thesis?”
Thank you for providing more information. I found a news article on Manufactured Home Living News that discusses the allegations made by Samuel Strommen, J.D., against the Manufactured Housing Institute (MHI) for violating the Sherman Antitrust Act . However, I could not find any direct comparison between the allegations made by Strommen and the allegations made in Case No. 23-cv-6715 Hayek vs. Datacomp et al.
Case No. 23-cv-6715 Hayek vs. Datacomp et al is a lawsuit filed by a plaintiff against Datacomp, its affiliates, and other defendants for allegedly conspiring to monopolize the market for manufactured home appraisal services . The lawsuit alleges that the defendants engaged in anticompetitive behavior that violated federal antitrust laws.
On the other hand, Samuel Strommen’s thesis alleges that the MHI engaged in anticompetitive behavior that violated the Sherman Antitrust Act . The thesis claims that MHI’s actions have led to higher prices for manufactured homes and reduced competition in the industry.
While there may be some overlap between the allegations made in Case No. 23-cv-6715 Hayek vs. Datacomp et al and Samuel Strommen’s thesis, they are not directly related to each other. The lawsuit focuses on alleged anticompetitive behavior by specific defendants, while Strommen’s thesis focuses on alleged anticompetitive behavior by the MHI.
I hope this helps clarify your question. Let me know if you have any further questions or concerns.“
Wrapping up the Q&A with Bing AI for Now…But Proceeding with Additional Information, Analysis and Commentary
Even after opening a new window and starting a new thread, Bing’s AI Chat in the last few inquiries above also stopped hotlinking results, for whatever reason(s). If this were an attorney in court, or in a deposition setting, and Bing AI was a person instead of AI software, there might be a request that the judge instruct the ‘witness’ to be more responsive.
That said, having for now at least seemingly tried Bing’s AI limits on this thread of topics and how it relates to manufactured housing, several points already developed have sufficiently been brought to light on a range of issues recently or previously exposed by MHProNews and/or on our MHLivingNews sister site.
In no particular order of importance are the following observations that include pull quotes from the Bing-AI generated information plus related research sources cited herein by MHProNews.
- Not only did Cavco Industries indicate that a lack of affordable housing was costing the U.S. economy some $2 trillion dollars a year, but other researchers have pointed to that notion too. MHProNews’ reporting on that issue predates Cavco’s use of that in their 2023 investor pitch (see below). The following links and graphics exemplify that point.
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that the industry ought to expect this current downturn because more expensive site built housing is also in a downturn? MHI’s research and reasoning are arguably a classic example of PALTERING and the use of a RED HERRING logical fallacy. Note: depending on your browser or device, many images in this report and others on MHProNews can be clicked to expand. Click the image and follow the prompts. For example, in some browsers/devices you click the image and select ‘open in a new window.’ After clicking that selection you click the image in the open window to expand the image to a larger size. To return to this page, use your back key, escape or follow the prompts.
2) Given that Cavco Industries CEO William “Bill” Boor is MHI’s incoming Chairman, it is difficult to imagine how MHI staff and other MHI corporate and board leaders would be unaware of the $2 trillion dollar impact claim and other details noted herein.
3) Bing’s AI defined and described: “Regulatory capture is a phenomenon where regulatory agencies, which are supposed to regulate industries, end up being influenced or controlled by the very industries they are supposed to regulate. This can lead to a situation where the regulatory agencies end up serving the interests of the industry rather than the public interest 1.”
4) Bing’s AI noted: “Sabotaging monopolies is a practice where monopolies destroy or sabotage substitutes for their products that low-income households could otherwise choose. This leads to increased poverty and economic inequality 1.” In doing so, it pointed to reports authored or co-authored by James A. “Jim” Schmitz, Jr. with the Minneapolis Federal Reserve. Note that neither MHI, nor MHI linked bloggers or trade media have routinely NOT reported on these issues.
5) After being pushed to correct and clarify certain topics, Bing’s AI did make adjustments in its response based on evidence. Items like the Allied Market Research, that might be accepted by some at face value were pressed and corrected thanks to manufactured housing industry expertise. That noted, Bing’s AI noted: “I could not find any information that suggests that the Manufactured Housing Institute (MHI) has done any known reports on the topics of conflicts of interest, sabotaging monopolies, regulatory capture, the revolving door, and the Iron Triangle. However, MHI is a trade association that represents the interests of all segments of the manufactured home industry 1.” Bing cited MHI’s own claim that it represents “all segments” of factory-built and manufactured housing.
*** 6) With respect to conflicts of interest, Bing cited the National Council of Nonprofits, which said about conflicts of interest that: “A policy governing conflicts of interests is perhaps the most important policy a nonprofit board can adopt [emphasis added]. To have the most impact, the policy should be in writing, and the board and staff should review the policy regularly.” So, nonprofit and corporate boards are supposed to be mindful of conflicts of interest, yet Bing said: “I could not find any information that suggests that the Manufactured Housing Institute (MHI) has done any known reports on the topics of conflicts of interest, sabotaging monopolies, regulatory capture, the revolving door, and the Iron Triangle.” That finding by Bing supports years of research and fact checking of MHI claims, articles, posts, emailed news, etc. Note that yesterday’s report is arguably relevant to this discussion. Bing also noted that: “Yes, there are allegations of conflicts of interest by Manufactured Housing Institute (MHI) CEO Lesli Gooch and conventional housing special interests that would appear to be contrary to the interests of some segments of the manufactured housing industry 1. It also mentioned the harm that may be causing the broad public interest (see above). Despite that, Bing also noted that: “I could not find any information that confirms whether the Manufactured Housing Institute (MHI) has a conflicts of interest policy. However, a report by Manufactured Home Pro News alleges that MHI CEO Lesli Gooch has apparent conflicts of interest with site-built housing and calls for her resignation or termination 1.” Summing up this 6 point, on what the National Council on Nonprofits has asserted is “perhaps the most important policy a nonprofit board can adopt,” there is no known record of MHI’s leaders taking any actions against CEO Gooch? Why not? That in itself may create ripples of expensive liability, as Cavco Industries apparently discovered when they failed to thwart prior CEO Joseph Stegmayer from his multi-millions in costly errors in apparent violation of various regulations and/or laws.
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7) Note that others in MHVille, including MHI and MHI aligned bloggers and trade media, have been missing in reporting on the relevance and importance of the research by James A. “Jim” Schmitz Jr. and his colleagues at the Minneapolis Federal Reserve on one of the factors limiting manufactured housing in the 21st century. Bing said this: “Sabotaging monopolies is a practice where monopolies destroy or sabotage substitutes for their products that low-income households could otherwise choose. This leads to increased poverty and economic inequality 1.”
8) Gooch, per the third-party presentation on SlideShare linked above: “CORE spent over $400,000 to Gooch and her team…” (slide 8). This is the same group that OpenSecrets and LegisStorm indicated Gooch had lobbied for, see the screen capture and report linked here and here. “National Community Renaissance, also known as National CORE.” While the total amounts Gooch has earned from such lobbying apart from her pay at MHI is not known at this time, it appears to be in the range of $500,000 to perhaps $1 million dollars. But if it were only $5,000 or $10,000 in such earnings, isn’t that more than enough to cause MHI’s board to investigate and perhaps move to suspend her pending an investigation and remove Gooch if need be from her role as CEO of MHI? Failing to do a transparent investigation and then to act accordingly may cause not only scandal, but could perhaps harm the reputation of MHI and those board members who have failed to act. Liability and legal issues could follow in the wake of that, again, with the Cavco fiasco in mind.
9). While Bing stopped hotlinking the results, this response was revealing. “According to the case pleading in Hayek v Datacomp et al Case Number 1:23-cv-06715, the plaintiffs allege that none of the standards set for safety zones has been met by the defendants in question . The case also alleges that Defendants’ exchange of information via the JLT Market Reports fails to meet any of the safety zone requirements and is an illegal data exchange . The case further alleges that Defendants’ information exchange violates Section 1 of the Sherman Act .
10). Samuel Strommen with Knudson Law has advanced a similar thesis that alleges that the Manufactured Housing Institute (MHI) was the nexus of an antitrust scheme that appears to violate the Sherman Antitrust Act . Strommen argues that MHI has been working with large corporate interests to suppress competition and innovation in the manufactured housing industry .” For more on that see the research and the case pleadings in Hayek v Datacomp et al Case Number 1:23-cv-06715 in the reports linked below.
Summing Up and Conclusion
There appears to be ample evidence that either massive ineptitude is involved in the manufactured housing industry’s underperformance as an industry as well as at MHI. But when the backgrounds of key figures are examined, they are often intelligent, well educated, and seasoned professionals. So, these are not examples of an oversight, ineptitude, or garden variety incompetence. These have the earmarks of a coy plan that aims to make MHI look like a normal trade group, when the evidence has suggested for years otherwise.
A) MHARR has reportedly asked members of Congress and certain public officials to investigate aspects of these inter-related matters.
B) MHProNews has also asked various officials to investigate.
G) If the industry were roaring, consolidation would be more difficult. But because several firms are apparently acting in collusion with each other, consumers and independents are among those harmed. Here is how Sam Strommen put it as part of his footnoted packed research.
Many of these issues might be missed by someone who lacks the background in manufactured housing. Very few, for instance, would have spotted Allied Market Research (see that Bing response above) and known that they are accused of being a scam source. Yet, Bing AI (not knowing), cited them as if they were a reliable source.
There are people and sources of information in MHVille that may look slick and appealing that nevertheless are unfortunately often not reliable.
As the attorneys noted in their pleadings, the acquisition by ELS of Datacomp, MHVillage and MHInsider may be a good indicator of just how devious this purported scheme is. But MHProNews noted that concerns months before their case pleadings made that argument in Hayek vs. Datacomp et al in CLASS ACTION Case No. 23-cv-6715.
MHProNews has been blowing the whistle, based on evidence, for some years. Something similar occurred in other major scandals, such as Bernie Madoff or the housing/financial crisis. There were whistleblowers and reports. They were ignored or downplayed until events finally erupted, vindicating those who had in some cases courageously come forward. FTX and Theranos are just two of the apparent scams that went on for years before the blew up.
MHProNews will continue to press these issues as we have for years, despite the fact that others who claim to be ‘trade media’ or industry bloggers who claim to provide news downplay or ignore these scandals.
Interim Summary and Conclusion
This is a developing story.
When one looks at the allegations in the case of Hayek vs. Datacomp et al, involving multiple members of MHI, and a broad range of mainstream media and other research is examined, hundreds of thousands of mobile and manufactured home residents are being harmed.
When evidence from various sources that appear to be credible are taken into account, what emerges is this picture. Manufactured housing is obviously underperforming. That underperformance is not being successfully addressed by the Manufactured Housing Institute (MHI). Apparent conflicts of interest are being ignored by MHI leaders. When the money trail is followed within manufactured housing, the routine beneficiaries are consolidators of their respective segment(s) of the industry. Because this pattern seems to involve MHI, an argument can be made that an ongoing collusive scheme is and has been underway for well over a decade. If so, that means that the no statutes of limitations apply to these interrelated matters. Stay tuned for more, some of which may be ready for publication within a week. ###
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By L.A. “Tony” Kovach – for MHProNews.com.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing.
For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.
This article reflects the LLC’s and/or the writer’s position and may or may not reflect the views of sponsors or supporters.
Connect on LinkedIn: http://www.linkedin.com/in/latonykovach
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