Government bureaucrats are stealing homes from American families and getting away with it.
They ignore judges, violate the Constitution, and pocket the profits.
And a family's home was seized by a Michigan county for this sickening reason.
County Ignored Court Ruling and Confiscated Family Home
Scott Pung received a school tax exemption in 1994 for his three-bedroom home in Union Township, Michigan.
When he died in 2004, state law said the exemption continued as long as family members lived there.
Scott's son still lived in the home.
Isabella County tax assessor Patricia DePriest decided to retroactively deny the exemption anyway.
Mike Pung, Scott's uncle and estate administrator, objected.
"I explained to her about the law," Mike told Pacific Legal Foundation.
"It didn't make any difference."
He took the case to the Michigan Tax Tribunal and won.
Patricia DePriest's response: "I don't care what he says."
A government bureaucrat openly defied a judge's order.
Isabella County Destroyed $118,000 in Family Equity Over Taxes Never Owed
Isabella County confiscated the home anyway.
They claimed the family owed $1,600 in school taxes they were legally exempt from paying.
The county auctioned the $200,000 home for only $76,000 and kept every penny.
After the family sued, the county grudgingly returned about $73,000.
That's a $127,000 loss for a tax bill that never existed.
But here's what really happened: Isabella County needed money for their budget and they found an easy target.
Counties across Michigan have been using tax foreclosures as a cash machine for years.
They seize homes, auction them for whatever they can get, and pocket the difference.
It's legalized theft with a judge's stamp.
Supreme Court Will Decide If Government Must Pay Fair Market Value
The Pung family is asking the Supreme Court to step in.
Pacific Legal Foundation filed Pung v. Isabella County, which the Court will hear this term.
The question: When government seizes property, does it owe fair market value or just whatever lowball auction price it arranges?
Isabella County assessed the home at $194,400 for tax purposes.
They auctioned it for $76,000 and claimed that's all they owed.
A speculator flipped it for $195,000, proving the county's "auction" was a sham.
Attorney Philip Ellison represents the Pung estate.
"The government already knows what the fair market value is — they calculate it every year for tax purposes," Ellison told journalist Dave Bondy.
"If they're going to take someone's property, they can't take the whole pie."
This Scam Has Been Running in Michigan for Decades
Wayne County foreclosed on more than 26,000 properties in 2014 alone.
Oakland County used windfall profits to plug budget holes and fund pet projects.
In 2020, Michigan's Supreme Court ruled in Rafaeli v. Oakland County that keeping surplus proceeds violates the state constitution.
Oakland County settled for $38 million to compensate victims.
But counties found a loophole: conduct lowball auctions, then claim they only owe whatever the rigged sale brings in.
The U.S. Supreme Court unanimously ruled in 2023's Tyler v. Hennepin County that keeping surplus proceeds violates the Fifth Amendment.
Chief Justice John Roberts wrote: "The taxpayer must render unto Caesar what is Caesar's, but no more."
Counties responded by rigging auctions instead of just keeping obvious surpluses.
Same theft, different paperwork.
Tens of Thousands of Families Lost Everything to Government Theft
This case affects tens of thousands of Michigan residents and potentially more nationwide.
"This is happening all throughout the country," Ellison said.
"Imagine what's going on in Michigan multiplied by 50 states."
Most victims don't know their rights.
"Most of the folks I've talked to, they fell on hard times, had medical emergencies, or simply didn't know what was happening," Ellison explained.
Think about what Isabella County did here.
The Pung family paid their property taxes and legally qualified for the exemption.
A judge ruled in their favor.
County bureaucrats confiscated the home anyway over $1,600 the family never owed.
One government employee decided she knew better than a judge and destroyed $118,000 in family equity.
That's not how America is supposed to work.
If the Supreme Court rules for the Pungs, counties nationwide will have to pay fair market value when they seize property.
Not whatever rigged auction price they arrange with their speculator buddies.
Families who lost homes may be entitled to compensation for stolen equity.
"You have to pay unto Caesar what is Caesar's — but no more," Ellison said, quoting Chief Justice Roberts.
"For too long, Caesar has been taking far more than he's entitled to."
The Supreme Court will hear oral arguments this year.
Every American who owns property should be paying attention.
Because if Isabella County can do this to the Pungs, your local government can do it to you.
Sources:
- Bob Unruh, "The Facts Should Shock the Country: Government Auctions Home Over Taxes That Were Not Due," WND News Center, February 11, 2026.
- Philip Ellison, quoted in Dave Bondy, "Exclusive: U.S. Supreme Court to Hear Michigan Property Tax Foreclosure Case," Dave Bondy Substack, October 5, 2025.
- Lauren Gibbons, "After government sold their home, Michiganders take fight to Supreme Court," Bridge Michigan, December 15, 2025.
- Tyler v. Hennepin County, 598 U.S. 631 (2023).
- Rafaeli v. Oakland County, 505 Mich. 429 (2020).
