The Office of the Inspector General of the Securities and Exchange Commission not long ago submitted a semi-annual report to Congress. There are two items in the report of interest to those of us who have argued that the SEC has turned a blind eye towards, or even assisted, unscrupulous hedge funds that make their fortunes destroying public companies for profit.
The first item reads as follow:
“The OIG has opened an investigation into complaints from an investor alleging that the SEC failed to investigate instances of market manipulation and other misconduct in connection with the review, and eventual non-approval, of a developmental drug. The investor also has alleged that the SEC failed to investigate a recent bear raid on the stock of the company that developed the drug, causing a severe plunge in the stock price. The OIG has reviewed several hundred pages of documents, including numerous emails and attachments provided by the complainant. The OIG expects to complete its investigation and issue a report of investigation in the next reporting period.”
I have confirmed that this is a reference to the bear raid on Dendreon, described in considerable detail by Deep Capture. There is plenty of evidence — including, perhaps, those documents and emails referred to by the OIG — pointing to miscreancy in this case. Indeed, it is one of the more despicable cases of market manipulation on record – and many cancer patients were deprived of potentially life-extending treatment as a result. We look forward to reading the OIG’s report – it should be a doozy.
The second item of interest in the OIG report is this:
“The OIG continued its investigation of an allegation that SEC staff engaged in retaliation against a company after it publicly complained about naked short selling in the company’s stock. During this reporting period, the OIG took the sworn testimony of the staff attorney who worked on the matter and reviewed numerous relevant documents. The OIG has completed its investigative work and plans to issue its report of investigation prior to the end of the next semiannual reporting period.”
It has long been a contention of Deep Capture that the SEC has not just ignored allegations of naked short selling, but has gone after companies that complain about it, often at the behest of the short sellers themselves. This report, too, should be interesting, to say the least.
It wasn’t so long ago that people who did battle against abusive short selling and captured government officials were labeled as conspiracy theorists. Now, thanks to SEC Inspector General David Kotz and a few other honest people in government – people like Senator Ted Kaufman – we might finally see some light shed on some of the shenanigans that have made America look an awful lot like a third world basket case.
Yes, there are hedge funds that do bad things.
Yes, there are government officials who help them.
It’s an ugly reality, and the OIG is to be commended for treating serious allegations as they should be treated – i.e. seriously.
Great work Mark. I have submitted a FOIA request on Item #2 and will hopefully have a better answer for you within the next 30 – 60 days of what was found.
patch do you think #2 is usxp?
it kinda sounds like it to me.
shawn
Shawn,
#2 is probably Jag Media.
Judd, I believe it is Jag Media based on a 2 Hour deposition I had with the OIG in June 2008 and based on the communication I had with Kotz last night. I will be able to verify that on receipt of the report but the context of our communication implies it was relative to my complaint.
thank you judd and patch.
Gee what a shocker. The same SEC that went after Gary Aguirre? The same SEC that ignored Markopolos? the same regulator that missed Madoff entirely? The same one that jailed Martha for one stock trade, but told investors for years that naked shorting was a myth? The same SEC that grandfathered fails in Reg SHO and eliminated the uptick rule just in time for the markets to collapse? The same SEC that holds roundtable meetings about naked short selling but never invites the CEO of a victimized company?
Nawwwwww- can’t be…
former SEC director of market regulation, and Commissioner, Annette Nazareth, stated in a NY Times interview that naked shorting was no more than the cry from investors who wanted their “stocks to go up.”
Yep, Clear. That would be the same SEC that ignores Harry Markopoulous, but salivates over dribble from Sam Antar.
Think anything’s dirty at the SEC? Maybe just a little?
we are going to need More rope to hang them all
It gets worse…
As part of the report, Mr. Kotz said his office has concluded its well-publicized investigation into whether the S.E.C.’s enforcement director, Linda Chatman Thomsen, inappropriately provided inside information to her former boss, Stephen Cutler, now the general counsel of JPMorgan Chase, amid the bank’s negotiations to buy Bear Stearns in March 2008.
http://dealbook.blogs.nytimes.com/2009/12/01/sec-watchdog-outlines-internal-investigations/
Thank you, Mark Mitchell, David Kotz, and Senator Kaufman!
Now they are starting to get it that Joe sixpack is understnding, that he and his family are being robbed and are mad as hell and not going to take it anymore!!
Arming Goldman With Pistols Against Public: Alice Schroeder
Commentary by Alice Schroeder
Dec. 1 (Bloomberg) — “I just wrote my first reference for a gun permit,” said a friend, who told me of swearing to the good character of a Goldman Sachs Group Inc. banker who applied to the local police for a permit to buy a pistol. The banker had told this friend of mine that senior Goldman people have loaded up on firearms and are now equipped to defend themselves if there is a populist uprising against the bank.
I called Goldman Sachs spokesman Lucas van Praag to ask whether it’s true that Goldman partners feel they need handguns to protect themselves from the angry proletariat. He didn’t call me back. The New York Police Department has told me that “as a preliminary matter” it believes some of the bankers I inquired about do have pistol permits. The NYPD also said it will be a while before it can name names.
While we wait, Goldman has wrapped itself in the flag of Warren Buffett, with whom it will jointly donate $500 million, part of an effort to burnish its image — and gain new Goldman clients. Goldman Sachs Chief Executive Officer Lloyd Blankfein also reversed himself after having previously called Goldman’s greed “God’s work” and apologized earlier this month for having participated in things that were “clearly wrong.”
Has it really come to this? Imagine what emotions must be billowing through the halls of Goldman Sachs to provoke the firm into an apology. Talk that Goldman bankers might have armed themselves in self-defense would sound ludicrous, were it not so apt a metaphor for the way that the most successful people on Wall Street have become a target for public rage.
Pistol Ready
http://www.bloomberg.com/apps/news?pid=20601039&sid=ahD2WoDAL9h0
Sorry, my previous post was a tad off topic.
Mark,
There are some who say that the naked shorting of stocks is smaller than that of naked shorting of bonds… When I first heard of this I could only guess at the problems that it would cause. Between these and the CDS bets that were bound to be profitable, it was like watching a trainwreck as it happened. Fitts said that in 1999 HUD issued paper worth 59 billion in bonds that had no assets behind them. Not only were the assets for the bonds that were sold inflated, there were those worth nothing. Sorting this out would put some people in jail. This is like hiding the photos of torture. If it became common knowledge that counterfeit bonds were being sold, there would be some serious repercussions.. Maybe this is why they don’t want to audit the Fed. Instead of sorting out the mess, the Fed has bought the toxic paper and the taxpayper is on the hook for the bad mortgages at FRE and FNM as well as covering the bets at AIG. The dirt has been swept under the rug, but it is still there.
Had the SEC done its job 5 years ago, we might have had a chance, but instead they let it happen and a lot of innocent people are suffering for what they refused to do.
A RICO case is called for here.
MNKD stock under similar bear pressure.
and SIRI (check out siriusbuzz.com’s latest on this issue)
Former SEC Commissioner Annette L. Nazareth’s comments about Naked Counterfeit Shorting is not a surprise. She is a merely a defense lawyer for her Wall Street fraternity brothers, and for her support for Naked Counterfeit Selling as a SEC Commissioner.
She does not want to acknowledge she was wrong about her support for Naked Counterfeit Selling by her fraternity brothers. So she is left with blaming long stock market investors instead of the criminal activities of Wall Street Counterfeit Machine and the criminal activities of the SEC in condoning Counterfeiting on Wall Street by calling it “Liquidity”.
Here is the first part of here SEC Biography:
“SEC Biography:
Commissioner Annette L. Nazareth
Annette L. Nazareth was appointed by President George W. Bush to the Securities and Exchange Commission and sworn in on August 4, 2005.
Prior to being appointed a Commissioner, Ms. Nazareth served as the Commission’s Director of the Division of Market Regulation, a position she held from March 1999 until August 2005. As Director, Ms. Nazareth had primary responsibility for the supervision and regulation of the U.S. securities markets, principally through the regulation of brokers and dealers, exchanges, clearing agencies, transfer agents and securities information processors. Significant initiatives adopted by the Commission during her tenure include: execution quality disclosure rules, implementation of equities decimal pricing, short sale reforms, implementation of a voluntary regime for consolidated supervision of broker-dealer holding companies and modernization of the national market system rules. She joined the Commission staff in 1998 as Senior Counsel to Chairman Arthur Levitt and served briefly as the Interim Director of the Division of Investment Management….”
( http://www.sec.gov/about/commissioner/nazareth.htm )
“Ms Nazareth joined the SEC from Wall Street, where she was a lawyer at Salomon Smith Barney. She was recruited to the office of then-SEC chairman Arthur Levitt as legal counsel, becoming head of the SEC’s division of market regulation in 1999.”
( http://www.evri.com/media/article?article_index=7&entity_uri=%2Fperson%2Fannette-nazareth-0x971b3&page=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2Fd41c7ae6-c839-11dc-94a6-0000779fd2ac.html&title=Nazareth+to+step+down+from+SEC )
Former SEC Commissioner Annette L. Nazareth was a Wall Street insider, acted as a Wall Street insider during here term as an SEC Commissioner and continues to act as a Wall Street insider.
She and Alan Greenspan share the same philosophy…
—( Fraud committed by Wall Streeters and Banksters does NOT need to be regulated.
With this guiding principle guiding her, one can only expect former SEC Commissioner Annette L. Nazareth to continue to make nonsensical statements as…
—- naked [COUNTERFEIT] shorting was no more than the cry from investors who wanted their “stocks to go up.”
Annette L. Nazareth, here are some questions for you:
— How Much Money are You Making Today as a Defense Lawyer for Wall Streeters?
— AND How Much Money would You Make Today if you revealed the Truth about the Wall Street Counterfeit Machine? Which you Helped created and protect as a SEC Commissioner?
Here is another connection of Annette Nazareth to Alan Greenspan’s principle — Fraud committed by Wall Streeters and Banksters does NOT need to be regulated. —…
“Currently
Nazareth is currently a partner at Davis Polk & Wardwell’s Financial Institutions Group. The firm offers her as an expert on complex regulatory matters and transactions.[5]
She is married to Roger W. Ferguson, Jr., former vice chairman of the Board of Governors of the Federal Reserve and current President and CEO of TIAA-CREF. They have two children.”
( http://en.wikipedia.org/wiki/Annette_Nazareth )
Annette Nazareth is married to Roger W. Ferguson, Jr…..
—-( former vice chairman of the Board of Governors of the Federal Reserve.
So Alan Greenspan and her husband Roger Ferguson, Jr. both worked for the Federal Reserve!!!
Nazareth is also an Appointed Director at MFA The powerful Hedge Fund Lobby. http://www.managedfunds.org/board-of-directors.asp
Thanks for the additional information about Ms. Annette Nazareth.
So Alan Greenspan and Ms. Annette Nazareth have another thing in common:
—-( Alan Greenspan and Ms. Annette Nazareth Both work for Hedge Funds …..)—
This new information completes the typical Wall Streeter CIRCLE:
Wall Streeter > goes to SEC > back as Wall Streeter….
Ms. Annette Nazareth is indeed a Defense Lawyer for the Wall Street Counterfeit Machine!
You think the pressure maybe on for the SEC to do their jobs or is this just another fakeout? Also did the SEC ever tell us who made the 270million on the Bear Stearns put with 1.7 mill? They said they would!!
BUSINESS DECEMBER 2, 2009 SEC Steps Up Insider-Trading Probes
Article Comments (4) more in Business »
BY KARA SCANNELL AND JENNY STRASBURG
The Securities and Exchange Commission has sent at least three dozen subpoenas to hedge funds and brokerages within the past month in an expanding sweep of potential insider-trading violations, according to people familiar with the matter.
At least some of the inquiries are focused on potential information leaks around health-care mergers of the past three years, these people said. Some retail-industry deals also are a subject of the SEC inquiries, these people said, including Sears Holdings Corp.’s aborted pursuit of home-furnishings retailer Restoration Hardware in 2007.
Some of the subpoenas also focus on investment bankers, including the role of Goldman …
http://online.wsj.com/article/SB10001424052748704107104574569974247977670.html?mod=WSJ_hpp_MIDDLETopStories
Instead of harassing OSTK and its auditors/management you would think that the SEC would do its job by checking thses guys book out. Like this “Credible reporter” did!!!
Worse Than Enron?
by Nomi Prins
Info RSS Nomi Prins is author of It Takes a Pillage: Behind the Bonuses, Bailouts, and Backroom Deals from Washington to Wall Street (Wiley, September, 2009). Before becoming a journalist, she worked on Wall Street as a managing director at Goldman Sachs, and running the international analytics group at Bear Stearns in London.
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Thanks for recommending The Daily Beast!
X Close Michael Nagle / Getty Images Wall Street’s big banks are playing dangerous new accounting games—and this time taxpayers are on the hook for hundreds of billions. Nomi Prins uncovers a scandal in the making.
Enron was the financial scandal that kicked off the decade: a giant energy trading company that appeared to be doing brilliantly—until we finally noticed that it wasn’t. It’s largely been forgotten given the wreckage that followed, and that’s too bad: we may be repeating those mistakes, on a far larger scale.
Specifically, as the largest Wall Street banks return to profitability—in some cases, breaking records—they say everything is rosy. They’re lining up to pay back their TARP money and asking Washington to back off. But why are they doing so well? Remember that Enron got away with their illegalities so long because their financials were so complicated that not even the analysts paid to monitor the Houston-based trading giant could cogently explain how they were making so much money.
The nation’s biggest banks, plumped up on government capital and risk-infused trading profits, have been moving stuff around their balance sheets like a multi-billion dollar musical chairs game.
After two weeks sifting through over one thousand pages of SEC filings for the largest banks, I have the same concerns. While Washington ponders what to do, or not do, about reforming Wall Street, the nation’s biggest banks, plumped up on government capital and risk-infused trading profits, have been moving stuff around their balance sheets like a multi-billion dollar musical chairs game.
I was trying to answer the simple question that you’d think regulators should want to know: how much of each bank’s revenue is derived from trading (taking risk) vs. other businesses? And how can you compare it across the industry—so you can contain all that systemic risk? Only, there’s no uniformity across books. And, given the complexity of these mega-merged firms, those questions aren’t easy to answer…..
http://www.thedailybeast.com/blogs-and-stories/2009-12-01/worse-than-enron/full
The SEC still showing that they OWN the justice system…
Update on Aguirre vs. SEC
December 02, 2009
Gary Aguirre versus the SEC: The beat goes on
The extraordinary battle pitting attorney Gary Aguirre against his former employers at the Securities and Exchange Commission roils on.
How roiled is it? Let’s put it this way. U.S. District Judge Ellen Segal Huvelle, in a new decision issued Wednesday, starts off by referring to the “tortured backdrop to this bitter dispute.” For the fuller story, see, for instance, this earlier, 231-page report by the SEC’s Office of Inspector General.
In super-duper brief, Mr. Aguirre had claimed he was fired after he wanted to investigate Morgan Stanley CEO John Mack. In Hollywood-speak, it’s a story with Oliver Stone written all over it.
Now, Mr. Aguirre is suing the SEC on a variety of claims, including damage to his reputation and failure to release records under the Freedom of Information Act.
In part, Judge Huvelle on Wednesday put off to another day Aguirre’s request for a name-clearing hearing. First, she said, an ongoing proceeding before the Merit Systems Protection Board should conclude. As she states, the “case before the MSPB may provide him with the required opportunity to refute defendant’s charges and to clear his name.” The judge did, though, reject out of hand Aguirre’s request for damages based on his firing.
Posted by Mike Doyle at 11:06 AM | Permalink
The only way the SEC can be a viable regulator is by making every SEC employee sign an agreement that when they leave the SEC they cannot work for any company or instiution directly or indirectly connected to Wall Street for a period of 10 years.
The pressure is being kept on..
Sen. Kaufman To Hold Hearing On Role Of Financial Fraud In Current Financial Crisis
Kaufman is hoping to examine the current state of prosecuting those responsible for items such as Mortgage and Securities Fraud and why so few criminal cases have been brought up on issues such as market manipulation and insider trading. Hearing to be held next Wednesday No link yet.
Article from Bethany McLean:
http://www.vanityfair.com/business/features/2010/01/goldman-sachs-200101?currentPage=1
I wonder if she has any dignity at all? Everybody in the know on the street laughs at this article.
Look at her comment in parentheses:
“This gets to the heart of the complaints about Goldman by others on Wall Street, which are often quite bitter. When Blankfein speaks of being “so close to clients that you can see the pattern better than anyone else,” some worry that this means his firm is using client information in ways that aren’t necessarily in the clients’ best interests (though few in the business think Goldman would cross the line into illegality).”
Correction to of of my previous posts…
Re: Update on Aguirre vs. SEC/ update on the update
From the story’s author, Mike Doyle….
UPDATED 2030, 12/02: THIS FROM GARY AGUIRRE:
“Your story was a little off. There was no claim for damages under Due Process clause, only a claim for a hearing, which the court upheld. She merely found that the facts stated that hearing should have occurred after, not before, firing.
Only claim for damages—under the Privacy Act—was upheld.
I suggested that these the case be deferred until MSPB ruling.”
Just so nobody forgets. The news HAS BEEN out there.
http://maxkeiser.com/2009/10/14/video-matt-taibbi-on-naked-short-selling/
More Aguirre coverage
Ex-SEC Investigator Can Pursue Records on Firing
By AVERY FELLOW
(CN) – A federal judge in Washington, D.C., allowed a former SEC investigator to pursue records related to his 2005 firing, which he says stemmed from his claim that agency investigators gave “preferential treatment” to “Wall Street’s elite.”
Gary Aguirre claimed he was fired after he began looking into suspicious trading activity at Pequot Capital Management that pointed to Morgan Stanley CEO John Mack. Aguirre accused Mack of tipping off Pequot’s founder about GE Capital’s $5.3 billion acquisition of Heller Financial, from which the Pequot head benefitted $18 million.
Aguirre said the SEC turned around and told the press that he stole SEC records and broke into its email. The agency allegedly displayed a photo of Aguirre at its Washington, D.C., headquarters, which Aguirre described as a “wanted picture at a post office.”
U.S. District Judge Ellen Segal Huvelle tossed Aguirre’s due process claim, because he was fired during the probationary period in his first year on the job.
But she stayed his claims for damage to his reputation, ruling that Aguirre could secure a “name-clearing hearing” with the SEC pending resolution of his wrongful termination claim with the U.S. Merit Systems Protection Board.
Huvelle stayed Aguirre’s Privacy Act claim for damages for the same reason, and said he was entitled to view any documents “to the extent that these records are ‘about’ plaintiff.”
The SEC has allegedly ignored Aguirre’s records requests since May 2008.
http://www.courthousenews.com/2009/12/03/Ex-SEC_Investigator_Can_Pursue_Records_on_Firing.htm
“Illicit Political Finance and State Capture”. International Institute for Democracy and Electoral Assistance, 2009. (pdf)
http://www.idea.int/resources/analysis/upload/IDEA_Inlaga_low.pdf
My bet is that this guy made the 1.7 put on Bear Stearns and made 270 million in 9 days.
Paulson May Have Made $45.3 Million on Detour Gold (Update1) Share Business ExchangeTwitterFacebook| Email | Print | A A A
By Saijel Kishan
Dec. 3 (Bloomberg) — Hedge-fund billionaire John Paulson may have made about C$47.9 million ($45.3 million) in less than five weeks from his stake in Detour Gold Corp., his latest reported investment in a gold company.
Paulson & Co., based in New York, held 10.3 million shares of Toronto-based Detour as of Oct. 31, according to a Nov. 10 regulatory filing. Of the 10.3 million shares, 8.45 million were issued in an October share sale. The stock has gained C$4.65, or 35 percent, since Oct. 31 to C$18 a share today in Toronto.
Paulson, who manages about $30 billion, has been buying stakes in gold companies as bullion climbed 38 percent this year to a record $1,227.50 an ounce today. In March, Paulson became the largest holder of Johannesburg-based AngloGold Ashanti Ltd., and he held 12 a percent stake at the end of the third quarter, according to a regulatory filing. The hedge-fund firm also owns shares in Kinross Gold Corp. and Gold Fields Ltd.
Paulson told investors in a quarterly letter last month that shares of Toronto-based Gabriel Resources Ltd. may rise more than threefold if the company succeeds in opening a gold mine in Romania.
“We believe all the stocks have upside potential in a flat gold price environment, but would rise even more in a higher price environment,” Paulson said in the letter.
Paulson plans to start a gold fund next month that will invest in mining companies and bullion-related derivatives, according to a person familiar with the plan. He will invest as much as $250 million of his own money in the fund.
Armel Leslie, a spokesman for Paulson, declined to comment.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ajab_txy3yJM&pos=4
Investigation is not PARD !!!
Time to disband the SEC and get the FBI/CIA to work.
We’re talking national security issues now.
FOR IMMEDIATE RELEASE
Of interest to senators, members of congress, financial journalists, and securities attorneys, all of whom investigate and expose both the ineptness and the corruptness of the Securities and Exchange Commission
THE CMKX SHAREHOLDERS COALITION FOR JUSTICE ANNOUNCES PLANS TO COMMENCE LEGAL ACTION AGAINST THE SECURITIES AND EXCHANGE COMMISSION
CMKM Shareholders Urge Shareholders of Other Companies to Commence Similar Actions
LAS VEGAS, Nv. — Nov. 6, 2009 — The CMKX Shareholders Coalition for Justice (COALITION) announces plans to file legal action against the Securities and Exchange Commission (SEC) for the ineptness of the SEC in the SEC’s handling of the pump and dump scam (scam) of the previous CMKM Diamond Inc., (CMKM) management and for the corruptness of the SEC in the SEC’s handling of the illegal naked short selling (NSS) of CMKM’s stock, both of which cause Civil Action No. 2:08-cv-0437, 4-7-08, United States District Court, District of Nevada, and Grand Jury Superseding Indictment 2-09-CR-00132-RLH-RJJ, 5-27-09, United States District Court, District of Nevada, to be incomplete, inaccurate, and inadequate; furthermore, the FOIA Division of the SEC covers up the ineptness and corruptness of the Enforcement Division of the SEC by unjustly denying FOIA Requests submitted by CMKM shareholders.
The ineptness of the SEC in the scam is evidenced by, but not limited to, the failure of the SEC to follow up on the suspicious activities of a CMKM insider; the failure of the SEC to adequately investigate CMKM’s numerous suspicious Southern Nevada business transactions with Silver State Bank; the failure of the SEC to investigate CMKM’s twentyfold increase in volume in the sale of its stock; the failure of the SEC to investigate the persistent reports of CMKM’s suspicious activities.
The failure of the SEC to protect CMKM shareholders, which includes the COALITION, from the scam mirrors the failure of the SEC to protect Madoff investors from Madoff’s Ponzi scam.
The corruptness of the SEC in the NSS is evidenced by, but not limited to, the possibility that the SEC allowed two broker dealer customers of Jefferies and Company to illegally naked short 111 billion shares of CMKM stock; the possibility that the SEC allowed one of its higher-ups to influence the CMKM Task Force to disband before the NSS of CMKM’s stock could be proven; the possibility that the SEC disregarded and suppressed the analysis of a naked short expert and the evidence of a NOBO list; the failure of the SEC to account for 362 billion unregistered/restricted shares in civil action against the pump and dumper scammers because it could not account for those 362 billion CMKM shares without implicating the larger securities firms such as Knight Trading Group, Ameritrade, E-Trade, and Jeffries and Company; the failure of the SEC to include D. Roger Glenn in its civil complaint because he was employed with the Enforcement Division of the SEC in the early 1980s; the failure of the SEC to include Silver State Bank in its civil complaint because Andrew McCain, the son of John McCain, senator/presidential candidate, was on the Board of Directors of Silver State Bank.
The failure of the SEC to protect CMKM shareholders, which includes the COALITION, from the NSS mirrors the failure of the SEC to protect numerous investors from similar NSS.
The COALITION mails a letter on 10-26-09 to the honorable Judge Larry Hicks, the judge in Civil Action No. 2:08-cv-0437, 4-7-08, United States District Court, District of Nevada, and respectfully submits that said civil action could be incomplete, inaccurate, and inadequate as delineated by the linked PAPER below.
Furthermore, the COALITION respectfully requests that Judge Larry Hicks enters said PAPER as a COURT DOCUMENT in said civil action and designate the COALITION as an INTERESTED PARTY in said civil action.
http://www.cmkx.info/evidence. pdf
As Matt Taibbi so aptly points out in his Rolling Stone 10-15-09 article/expose’ entitled, “Wall Street’s Naked Swindle,” “…the federal government’s cop on the financial beat has barely lifted a finger…”
For more information about the damaging effects of illegal naked short selling, please review this segment from Bloomberg:
http://video.google.com/ videoplay?docid= 4490541725797746038#
The COALITION demands an independent special prosecutor to investigate the above mentioned ineptness and corruptness of the SEC in general and each and every perpetrator in particular.
Furthermore, the COALITION demands that the SEC in general
and each and every perpetrator in particular be held accountable for any and all malfeasance.
And last but not least, the COALITION demands its just compensation.
Back on topic… This is a step in the right direction.(Retrieved from investorsvillage)
Steven A. Cohen And His 12.9 Billion SAC Capital Advisors Could Be Next
Court documents and interviews with many industry sources say FBI agent Kang may be focusing on Steve Cohen.
http://news.yahoo.com/s/nm/20091204/bs_nm/us_hedgefunds_sac_1
evidence showing the sec is complicit in the fraud, and has aided and abetted the counterfeiting of trillions of dollars. They are also complicit in the cover-up of this massive rico fraud which will be shown in the supreme court of british columbia in a case already filed against the sec for aiding and abetting the mass counterfeiting of the stock market:
http://cmkx.info/evidence.pdf
Patrick warned these guys that guns and badges will come knocking on their doors years ago, I guess their hubris got in the way. Read this expert of the above article.
The Galleon investigation has potentially produced a new lead for Kang to pursue against SAC, one of the world’s largest and most successful hedge funds. A cooperating witness, Richard Choo-Beng Lee, is expected to provide prosecutors with alleged evidence of insider trading he may have committed between 1999 and 2009 — a period that includes a five-year stint at SAC, according to the court documents.
For years, Cohen’s aggressive, quick-paced trading style and high double-digit returns have earned him both admiration and envy in investing circles.
SAC’s flagship onshore fund, S.A.C. Capital Management, L.P., which was launched in 1992, has returned 30 percent net per annum through October 31, 2009, according to marketing material.
“Everyone wants to knock down Steve Cohen, but he is not a multi-billionaire for nothing. They are having a fantastic year,” said Bradley Alford, founder of Alpha Capital Management, which invests with Cohen.
But will Kang & Co. spoil the party?
Hey, you think Maybe the SEC will investigate SAC now? LOL!!!!
Probably not, they are too busy working with Slime err Sam going after Overstock.. much bigger fish you know!! If this was’nt so sad it would be hilarious!!!
DENIAL by the SEC:
http://finance.yahoo.com/news/State-regulator-Jury-still-apf-928864189.html?x=0&sec=topStories&pos=6&asset=&ccode=
Does anyone remember the Uptick Rule????????
State regulator: Jury still out on SEC post-Madoff
SEC moving on cases but agency culture may not change post-Madoff, top state regulator says
By Marcy Gordon, AP Business Writer
On 1:52 pm EST, Friday December 4, 2009
Buzz up! 0 Print
WASHINGTON (AP) — The Securities and Exchange Commission culture that allowed the Madoff fraud scandal to go undetected for nearly two decades may not change and the agency isn’t doing enough to support investor protection proposals in Congress, according to a top state regulator.
Denise Voigt Crawford, president of the North American Securities Administrators Association, blasted the SEC for what she said has been too-weak support for provisions in financial overhaul legislation aimed at bolstering investor protection.
“The SEC has not come out as strongly or as clearly or as honestly as it should” to support the proposals, Crawford said at a news conference Friday. The state regulators’ group wants to see, for example, strong legislative language putting stockbrokers providing investment advice under the same stricter standards of conduct as investment advisers.
Crawford, who also is Texas’ securities commissioner, said the sweeping overhaul of financial regulations now before Congress is a great opportunity for change, “like a hundred-year flood.”
“Investors really are outraged” in the wake of the financial crisis and the Madoff affair, she told reporters.
Revelations a year ago of the SEC’s failure to uncover Bernard Madoff’s massive Ponzi scheme despite numerous red flags rocked the agency and brought a shake-up of high-level officials. The SEC inspector general has detailed how the agency bungled five examinations of Madoff’s brokerage business between June 1992 and last December, when the prominent money manager confessed to his sons.
Madoff pleaded guilty in March and is serving a 150-year sentence in federal prison in North Carolina.
SEC officials say they have made major changes at the agency in the aftermath of the scandal.
Crawford acknowledged that the SEC has brought “a flurry of cases” over the past year and said agency officials understand the depth of changes that have to be made. However, she said, “I think the jury is still out on whether the culture at the SEC is going to change.”
Many of the enforcement attorneys and examiners “are looking for a job on Wall Street” after they leave the agency and less inclined to take a tough stance in cases involving potential future employers, Crawford said. “It’s going to take people who are different,” she said.
SEC spokesman John Nester called Crawford’s comments “uninformed.”
“The change at the SEC has been dramatic,” he said in a statement. “We have brought on new senior management, seen significant increases in the numbers of investigations and penalties, pursued important investor-focused rulemaking and reformed our internal operations.”
Regarding its stance on the legislative proposals, Nester said the SEC is “working closely with Congress and the administration to bring about much needed reforms.”
“In fact, the Investor Protection Act has many of the legislative changes we proposed earlier this year. These are all signs of a revitalized and re-energized agency,” he said. “We are aware of no basis for (Crawford’s) comments.”
State regulators have at times accused the SEC in recent years of lagging in crackdowns against fraud, sometimes initiated by state authorities. A bitter public dispute erupted in 2004 between then-New York Attorney General Eliot Spitzer and SEC officials over pursuit of abuses in the mutual fund industry.
When I buy a computer component, such as, a USB modem for less than $50, it has a serial number on it. When I buy computer software, I have to enter a type of serial number called a KEY number. When I buy a computer, it has a serial number on it. Some request registration and other mandate registration.
Computer hardware and software companies place serial numbers on their products for many reasons – one of which is to help PREVENT COUNTERFEITING – to prevent someone else from selling their valuable software without receiving financial recompense.
When I buy a 100 share of stock on Wall Street worth thousands of dollars and pay 100% of the stock’s value plus a commission, I receive NO Serial Numbers.
WHY does Wall Street NOT SUPPLY Traceable SERIAL NUMBERS to buyers of stock shares?
… because the Wall Street Counterfeit Machine would be shut down or at least severely hampered, and traceable serial numbers would allow corporations and shareholders to tract down Wall Street Counterfeiters for criminal prosecution.
To use Wall Streeters’ vocabulary to explain the lack of Serial Numbers on ALL Shares bought on Wall Street —
…the “Liquidity” of a Wall Streeter’s bank account would be severely hampered by serial numbers on stock shares, and the “Efficiency” at which money flows into their bank accounts would be greatly diminished.
To protect Corporations and their shareholders, Wall Street needs to operate like software companies that sell valuable software…
Every share of stock sold on Wall Street Must have a Serial Number attached to it, and every time a share is bought or sold it MUST be recorded in a database, which every corporation has real time access to.
And every share that is NOT DELIVERED on time will be immediately FLAGGED in the database along with the name of the broker dealer that failed to delivered, which will immediately lose the right to sell that corporation’s security. The corporation will have the right to PULL the broker/dealers license to sell their securities, and to potentially bring criminal counterfeiting charges.
Every share of every corporation MUST be recorded in real time in a database for each corporation to access and view in real time.
Just as Microsoft and other software companies demand registration and a key number entry for every single piece of software they sell to prevent counterfeiting, so on Wall Street every share of every publicly traded company MUST be marked with a key number / serial number and registered in a database in real time.
I Stand all we have to do is stop investing our money and they will eventually wake up!!
I was going through some papers the other day and found a copy of a letter from the Governor of Utah, asking that the Securities Regulators immediately restore the uptick rule, and require a pre-locate and hard borrow….The letter was dated 2006. Imagine – TWO YEARS BEFORE BEAR’S COLLAPSE – TWO YEAR’S BEFORE LEHMAN’S COLLAPSE, and our government’s regulators forced the abandonment of these changes, changes that could have spared us SOME of the anguish we have been experiencing.
I only wish that the unemployed and homeless in our land could have a face to face with these pieces of filth….
Something is very wrong here.. I think the biggest news in the last 6 months or so came out today about Steve Cohen and SAC and not one post about it..other than mine. WOW!!! I would have thought poster would have been jumping for joy, I know I am!!
I just took this from the OSTK board of Investorsvillage. This is just to precious!!! The best agency money can buy!!
Oops, they missed it again…..
Oops, they missed it again: SEC had chance to nab Rajaratnam in 1998
Peter Cohan
Dec 4th 2009 at 10:30AM
The Wall Street Journal has done a public service by getting its hands on court records in the case of Galleon Holdings founder Raj Rajaratnam, who is currently walking around on $100 million bail. He’s no Bernie Madoff, who stole $60 billion from his investors in a Ponzi scheme. Rajaratnam allegedly paid for inside information and traded on it — a far more subtle form of stealing.
But in the cases of both Madoff and Rajaratnam, the Securities and Exchange Commission knew about their alleged nefarious acts for at least a decade before charging them. Bruce Watson posted on Madoff’s long history of evading the SEC’s weak efforts to stop him. And the Journal’s reporting on how Intel (INTC) caught its employee, Roomy Khan, calling and faxing sales reports into Rajaratnam is revealing.
Going back to 1996, Intel claims it suspected that an Intel insider was leaking sales data to Rajaratnam. One reason is that in 1997, an anonymous source said that Khan told another Intel employee that she had access to important data on chip sales, and “that if you sell this information, you can get real money for it.”
So Intel began analyzing who was calling Rajaratnam and discovered that Khan enjoyed calling and faxing him. Then Intel installed a camera to film her at the fax machine — catching her on March 6,1998, faxing first quarter 1998 chip pricing and volume statistics to Rajaratnam.
Those statistics take much of the guess work out of forecasting quarterly sales because all you have to do is multiply the price and quantity figures to get a precise calculation of the sales numbers. Trading on that information becomes quite simple — if analysts expect sales to top your number, you short the stock, and if they expect sales below your number, you buy.
For some reason, that film was not enough evidence to arrest Rajaratnam. The Journal reported that in 2002, government prosecutors wrote: “After an exhaustive analysis of the labyrinth of accounts associated with Galleon, however, the SEC/FBI has not been able to show that any Galleon trade resulted from Rajaratnam’s possession of the information stolen for him by Kahn [sic] from Intel.”
The good news is that in exchange for a light sentence — Khan spent six months in home detention — she agreed to record conversations with Rajaratnam which appear to have contributed sufficient evidence to indict him.
This situation raises many questions: Why was it so difficult for the SEC to bring Rajaratnam to justice after obtaining that videotape? How much did Rajaratnam’s alleged insider trading cost investors? Who else beside Rajaratnam has been trading on insider information? What kind of punishment for Rajaratnam and what sort of regulatory enforcement structure would it take to end insider trading for good?
I hope SEC Chairwoman Mary Schapiro has some good answers.
http://www.dailyfinance.com/2009/12/04/sec-had-chance-to-nab-rajaratnam-in-1998/
If you want to read about the relationship between cellar boxing and naked shorting by market makers in the OTC/Pinksheet
http://www.stockmarketcats.com/f46/cellar-boxing-6903.html
excerpted from: Army Of Avarice Plunders America Into Calamity That Did Not Have To Happen
Every legit competitive sport has rules of conduct governing how the game is to be played, all conceived to maintain the fairness, honesty and integrity of the process. Umpires, referees, linesmen, field judges and alike don’t hesitate to impose sanctions the moment they spot an infraction. Break a rule, you’re penalized, benched, fined, out of the game, out of the sport, maybe even for good. Congress and the media repeatedly tell us the American public would tolerate no less, even though the overwhelming majority of sports fans have nothing more than a mere rooting interest in the outcome; no “skin” as it were, in the game– except gamblers, who have all the more reason to want it to be on the level, unless they’ve already fixed it.
How bizarre then, that on Wall Street, repository of the hopes, dreams and what’s left of the hard earned cash and retirement savings of American investors, the most basic of rules enacted to protect the fairness, honesty and integrity of the process are routinely ignored and dishonored….
Like it’s predecessor, the Obama administration has thus far assiduously avoided examination, pursuit or punishment of those most responsible for plunging us and the rest of the world into a financial calamity that did not have to happen— and from which many believe we will never recover. In fact, in the name of “avoiding” financial Armageddon, they’ve bent over backwards to provide cash and cover for, if not actively participate in, a thoroughly corrupt status quo that selectively eschews the rule of law to enable manipulation of a broad range of markets that hugely profit the most greedy and lawless among us– to the permanent detriment of everybody else. That might not be the intention at the very top, but the scoreboard still reads: Wall Street 10, Public minus 10 plus interest, payable forever….
Getting away with so many fraud-based practices for so long has emboldened the wrongdoers to almost obsessively believe they can get away with anything. Years of successfully bilking the public without fear of being caught or punished has imbued them with the kind of blinding arrogance that boldly shoves 3 pages at Congress and says with a straight face: Give us the dough ($700 billion)– ours to do with as we will, free from liability or accountability—or else. And now they’re being rewarded for it with the biggest profits and bonuses ever. Why?
Why were all the safeguards so intentionally set in place in 1933 and 1934 abandoned? Because those empowered to make and enforce our laws— sworn to be good stewards of the public interest— allowed themselves to be seduced and inducted to serve private interests, not the least of which their own, courtesy of campaign contributions, lobbyist largess, lucrative job prospects, and other co-optive emoluments known anywhere else in the world as bribes. When will we learn that it’s not about politics, ideology or principle? It’s about the money! But drop me a line the next time you hear any corporate or mainstream media pro daring to talk or write about it in those terms. Somehow, as obvious and pernicious a role as it plays in our political process, discussing venal motive is off limits, part of the pretense that our elected officials actually represent the best interests of the people who voted for them (as distinguished from those who bankroll them)….
Instead of facing reality now, telling the people the truth about what’s occurred, demanding accountability, enforcing the laws made to protect you and me, and taking steps to prevent wrongdoers from continuing to profit from their misdeeds (a classic principal of jurisprudence), our government, aided by a thoroughly captured, moribund mainstream media that’s forgotten how to speak truth to power, keeps trying to shove the dirt under the rug. Extend and pretend. They say one thing and do another, hide the truth, avoid transparency, and engage in even more lies and deceit. Do they not understand that the false expectations they are perpetuating will only evoke greater outrage as people more and more realize they have been played for suckers and left to founder in despair? And that none of this would have happened if the people in charge had upheld their oaths and acted to insure that “liberty and justice for all” were more than just words. read the full article at: http://calltoaccount.wordpress.com/
I propose Sheila Bair as a replacement for MarY “Wall Street” Shapiro, as the New Chairman of the SEC.
Here’s why..
http://www.bloomberg.com/apps/news?pid=20601109&sid=a7b1K3iCHAQ4&pos=14
THe SAC story has not hit , Yahoo, Reuters and The New York Post. It is noticeably still not YET reported on Bloomberg (Whose chief editor is Dan Callaruso (sp) coincidence I think not.
Judd, anther coincidence I guess!!LOL (He was 75 this time though)
The documents also say noted behavioral psychologist Ari Kiev, widely known to have been hired by Cohen to help motivate SAC’s traders, witnessed Tong’s strange attire. Kiev, 75, died last week.
Read more: http://www.nypost.com/p/news/business/steve_sac_of_shame_1oZcLt91JR1z7PTMx3pNDK#ixzz0YqeFNnT8
Hedgie John Paulson a CDS HERO! OMG a real hero. Hip, hip, Hooray!
December 6, 2009
OFF THE SHELF
Economy’s Loss Was One Man’s Gain
By DEVIN LEONARD
THERE has been no shortage of books about Wall Street leaders who made billions of dollars disappear in the financial crisis. But as the Wall Street Journal reporter Gregory Zuckerman writes in “The Greatest Trade Ever,” (Broadway Books, 295 pages) the financial crisis was a goldmine for a small group of investors. One of them, John Paulson, founder of Paulson & Company, a New York hedge fund, made $15 billion in 2007 by shorting the housing bubble.
How did he do it? His fund purchased insurance contracts — called credit default swaps — on securitized mortgage debt at the peak of the real estate boom. Their value soared when the subprime crisis arrived. Mr. Paulson personally took home $4 billion of his fund’s take.
Mr. Zuckerman argues that Mr. Paulson’s lucrative bets — it wasn’t a single trade — put him in the pantheon of legendary investors like Warren E. Buffett, George Soros and Bernard Baruch. “They also made him one of the richest people in the world, wealthier than Steven Spielberg, Mark Zuckerberg and David Rockefeller Sr.,” he writes.
Mr. Zuckerman is a first-rate reporter who is also able to explain the complexities of real estate finance in layman’s terms. At times, “The Greatest Trade Ever” (the subtitle is “The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History”) reads like a thriller.
But as you might have already discerned from the overly exuberant title, his book lacks perspective. Mr. Zuckerman depicts Mr. Paulson as a hero for seeing though “the hubris and failure of Wall Street and the financial sector.”
Mr. Paulson did indeed see through Wall Street hubris. But if you read this book closely, you realize he’s no hero.
The author clearly considers Mr. Paulson morally superior to the leaders of investment banks like Bear Stearns and Lehman Brothers and subprime mortgage lenders like Countrywide Financial and New Century, all of whom are vilified.
But is he really? It’s true that the bearish Mr. Paulson enriched his investors while his bullish counterparts helped bring about a global economic crisis that impoverished countless people. But he wouldn’t have made his billions if those players had acted more prudently.
According to Mr. Zuckerman, Mr. Paulson persuaded Goldman Sachs and Deutsche Bank to put together securitized collateralized debt obligations (known as C.D.O.’s), which were filled with nasty mortgages that he could then short.
Of course, nobody told the suckers — er, investors — who bought those C.D.O.’s that they were designed to help a man who wanted the most toxic mortgages imaginable so he could profit when they went sour. But Mr. Zuckerman doesn’t make much of this scandal — and it is a scandal — perhaps because he doesn’t want to taint his supposedly heroic central character.
This isn’t the only instance in which Mr. Zuckerman bends over backward to present Mr. Paulson in a favorable light. He goes to great lengths to depict him as a self-effacing regular guy who takes the bus and dresses unfashionably. In short, the author would like us to think that this hedge fund manager is very un-Wall Street.
Perhaps. But Mr. Zuckerman also explains that Mr. Paulson, who grew up in Queens, marched off to Wall Street for the same reason everybody else does: to make piles of money.
We learn in “The Greatest Trade Ever” that, in his 30s, Mr. Paulson had a loft in SoHo where he mingled with models, celebrities and other bankers. After turning 40, Mr. Zuckerman writes, Mr. Paulson married his attractive assistant. They settled down to raise their daughters in a $15 million, six-story mansion, complete with indoor pool, on the Upper East Side.
The former sybarite then became something of a prig, by Mr. Zuckerman’s account, scolding his friends for using foul language and his employees for eating pizza, which he considered unhealthy. That may not be typical Wall Street behavior. The rest of it sounds familiar, though.
Luckily for Mr. Zuckerman — and his readers — Mr. Paulson is not the only character in the book. There is also Paolo Pelligrini, a 50-year-old Italian analyst who is living in a one-bedroom rental in Westchester after washing out at the investment bank Lazard Frères and breaking up with his second wife, a wealthy New York socialite.
Mr. Paulson, an old Wall Street acquaintance, throws him a lifeline in the form of a job offer. Mr. Pelligrini reciprocates by throwing himself into his work and helps his boss create his winning strategy.
There is Mr. Paulson’s friend, Jeffery Green, a Los Angeles real estate investor who pals around with Mike Tyson and Paris Hilton. He falls out with Mr. Paulson after learning of his friend’s investment strategy and making his own bets again the boom.
Jeffery Libert, another old acquaintance, also decides to buy credit default swaps. But he is racked with guilt, Mr. Zuckerman writes, when he finds himself wishing for homeowners to default so he can make money. It’s a rare moment of introspection in “The Greatest Trade Ever.” For the most part, the people in Mr. Zuckerman’s book couldn’t be happier when the housing market collapses.
At the end of the book, Mr. Paulson has more money than he will ever be able to spend. He gives $15 million to the Center for Responsible Lending, a nonprofit that helps families facing foreclosure. That’s not much for a guy who made $4 billion in a single year.
Mr. Buffett and Mr. Soros have been more generous with their earnings. If Mr. Paulson wants to be remembered as a hero, he might want to do more for the people who are on the wrong side of his trades.
http://www.nytimes.com/2009/12/06/business/economy/06shelf.html?_r=1
Warren is out for the best return on his money. And saefty is a big factor. The size of what Hank Paulson proposes to buy on behalf of his countryman is of such size and scope, Warren could not afford.Plus by buying a piece of Goldman Sachs, he knows Sachs has some of the best analysts who will allow the company to participate in the evaluation and purchase of some of this as of now, out of favor paper. Sharks and gravedancers are lining up to evaluaute and purchase some great deals here 60% to 80% returns.Wikipedia, Hank Paulson, and read his full background. The Treasury is getting a great mind on the cheap.
John Paulson a hero, folks. Really….
December 6, 2009
OFF THE SHELF
Economy’s Loss Was One Man’s Gain
By DEVIN LEONARD
THERE has been no shortage of books about Wall Street leaders who made billions of dollars disappear in the financial crisis. But as the Wall Street Journal reporter Gregory Zuckerman writes in “The Greatest Trade Ever,” (Broadway Books, 295 pages) the financial crisis was a goldmine for a small group of investors. One of them, John Paulson, founder of Paulson & Company, a New York hedge fund, made $15 billion in 2007 by shorting the housing bubble.
How did he do it? His fund purchased insurance contracts — called credit default swaps — on securitized mortgage debt at the peak of the real estate boom. Their value soared when the subprime crisis arrived. Mr. Paulson personally took home $4 billion of his fund’s take.
Mr. Zuckerman argues that Mr. Paulson’s lucrative bets — it wasn’t a single trade — put him in the pantheon of legendary investors like Warren E. Buffett, George Soros and Bernard Baruch. “They also made him one of the richest people in the world, wealthier than Steven Spielberg, Mark Zuckerberg and David Rockefeller Sr.,” he writes.
Mr. Zuckerman is a first-rate reporter who is also able to explain the complexities of real estate finance in layman’s terms. At times, “The Greatest Trade Ever” (the subtitle is “The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History”) reads like a thriller.
But as you might have already discerned from the overly exuberant title, his book lacks perspective. Mr. Zuckerman depicts Mr. Paulson as a hero for seeing though “the hubris and failure of Wall Street and the financial sector.”
Mr. Paulson did indeed see through Wall Street hubris. But if you read this book closely, you realize he’s no hero.
The author clearly considers Mr. Paulson morally superior to the leaders of investment banks like Bear Stearns and Lehman Brothers and subprime mortgage lenders like Countrywide Financial and New Century, all of whom are vilified.
But is he really? It’s true that the bearish Mr. Paulson enriched his investors while his bullish counterparts helped bring about a global economic crisis that impoverished countless people. But he wouldn’t have made his billions if those players had acted more prudently.
According to Mr. Zuckerman, Mr. Paulson persuaded Goldman Sachs and Deutsche Bank to put together securitized collateralized debt obligations (known as C.D.O.’s), which were filled with nasty mortgages that he could then short.
Of course, nobody told the suckers — er, investors — who bought those C.D.O.’s that they were designed to help a man who wanted the most toxic mortgages imaginable so he could profit when they went sour. But Mr. Zuckerman doesn’t make much of this scandal — and it is a scandal — perhaps because he doesn’t want to taint his supposedly heroic central character.
This isn’t the only instance in which Mr. Zuckerman bends over backward to present Mr. Paulson in a favorable light. He goes to great lengths to depict him as a self-effacing regular guy who takes the bus and dresses unfashionably. In short, the author would like us to think that this hedge fund manager is very un-Wall Street.
Perhaps. But Mr. Zuckerman also explains that Mr. Paulson, who grew up in Queens, marched off to Wall Street for the same reason everybody else does: to make piles of money.
We learn in “The Greatest Trade Ever” that, in his 30s, Mr. Paulson had a loft in SoHo where he mingled with models, celebrities and other bankers. After turning 40, Mr. Zuckerman writes, Mr. Paulson married his attractive assistant. They settled down to raise their daughters in a $15 million, six-story mansion, complete with indoor pool, on the Upper East Side.
The former sybarite then became something of a prig, by Mr. Zuckerman’s account, scolding his friends for using foul language and his employees for eating pizza, which he considered unhealthy. That may not be typical Wall Street behavior. The rest of it sounds familiar, though.
Luckily for Mr. Zuckerman — and his readers — Mr. Paulson is not the only character in the book. There is also Paolo Pelligrini, a 50-year-old Italian analyst who is living in a one-bedroom rental in Westchester after washing out at the investment bank Lazard Frères and breaking up with his second wife, a wealthy New York socialite.
Mr. Paulson, an old Wall Street acquaintance, throws him a lifeline in the form of a job offer. Mr. Pelligrini reciprocates by throwing himself into his work and helps his boss create his winning strategy.
There is Mr. Paulson’s friend, Jeffery Green, a Los Angeles real estate investor who pals around with Mike Tyson and Paris Hilton. He falls out with Mr. Paulson after learning of his friend’s investment strategy and making his own bets again the boom.
Jeffery Libert, another old acquaintance, also decides to buy credit default swaps. But he is racked with guilt, Mr. Zuckerman writes, when he finds himself wishing for homeowners to default so he can make money. It’s a rare moment of introspection in “The Greatest Trade Ever.” For the most part, the people in Mr. Zuckerman’s book couldn’t be happier when the housing market collapses.
At the end of the book, Mr. Paulson has more money than he will ever be able to spend. He gives $15 million to the Center for Responsible Lending, a nonprofit that helps families facing foreclosure. That’s not much for a guy who made $4 billion in a single year.
Mr. Buffett and Mr. Soros have been more generous with their earnings. If Mr. Paulson wants to be remembered as a hero, he might want to do more for the people who are on the wrong side of his trades.
Sean and Jim,
I think the one aspect of abusive naked short selling that is the least appreciated by BOTH Wall Street and Main Street is the “treasonous” nature of these crimes. Here’s a blurb from my Book #9 of NSS crimes that got incorporated into a plea to the congressional overseers of our regulators and SROs.
U.S. CORPORATIONS SINGLED OUT
It is critical for you in Congress to appreciate the nearly treasonous nature of how our DTCC-administered clearance and settlement system has been “rigged” in favor of its abusive “co-owners/participants” that willfully refuse to deliver the securities that they sell. It is U.S. corporations that are SELECTIVELY targeted by the entire worldwide abusive short selling community as almost all other nations’ clearance and settlement systems closely adhere to the “delivery versus payment” or “DVP” standard recommended by IOSCO, The World Bank and the IMF.
With the “DVP” foundation the sellers of securities are appropriately banned from accessing the funds of the purchasers of securities UNTIL they deliver that which they sold. This is referred to as “withholding the mark” wherein “the mark” represents the funds of the investor purchasing the securities. To their credit the SEC recommended this fundamental policy in their preliminary drafts of Reg SHO but they later caved in to powerful industry lobbyists and their misrepresentations about enhanced “market and pricing efficiencies” and the critical need for the “injection of liquidity”.
The uncoupling of “delivery” and “payment” in a clearance and settlement system utilizing “central counterparties”, the “anonymous pooling” of shares held in a self-replenishing lending pool (the NSCC’s SBP)and allowing “legal ownership” to be transferred while shares are merely being “loaned” opens up opportunities beyond description for fraudulent behavior. The result has been the growth of an “industry within an industry” specializing in facilitating the transfer of wealth from Main Street to Wall Street.
Being forced to deliver that which one sold BEFORE being given access to the purchaser’s funds is not a difficult concept to comprehend until the beneficiaries of these thefts spend hundreds of millions of dollars on lobbyists introducing ethereal arguments related to the necessary “injecting” of all of this theoretically wonderful “liquidity” associated with a clearance and settlement system illegally converted to a foundation of mere “CVP”. The pairing up of a CVP-based clearance and settlement system with a no need to “withhold the mark” policy represents a cleverly designed engraved invitation for abuses.
Dr. DeCosta, more treason then just naked short selling involved. Deep into this the SEC, Mary Shapiro, and naked short selling are just a small portion of what is being done to all of us.It is long and Sean, before you go off because OB is tagged watch as all Political parties are involved.
http://www.youtube.com/watch?v=VebOTc-7shU
Let me add that if the link I just posted does not wake you up you deserve what you are going to get.
Ron doc, I “go off” because some posters here make it the current administrations’ fault as to all that this country has become. I wonder where all this freedom to speak was during the two previous terms of our former Presdient? That is all. I think they are all abunch of crooks but as long as ALL are labled the same “fairly” I have no problem. Were so screwed and they’re doing it right in front of our faces and there is simply nothing we can do about it, then and now!!!
By the way Ron, there was no volume on this video, strange.
Apologies for the double-posting. I’m not a spammer honestly!
Yes, Sean, Dr J, this is treason.
Time to stop deluding ourselves that the mafia-stepchild SEC is going to save our bacon or our grits.
Amazing how hedgies have more organizational allies than Tiger has mistresses.
I want the SEC/FINRA/FED/DTCC gone and the FBI/CIA off the leash.
And where, oh where, speaking of grits and table scraps, is the Uptick rule?
Where are the promised results Chrissy Cox told congress they’d be delighted to see in his dogged pursuit to get at absolutely nothing?
Whiskey, Tango Foxtrot is going on here. Or NOT going on here?
Here is a recent post about Selling NAKED PUT OPTIONS by Lee Lowell…
“Selling Naked Put Options: How to Get Paid to Buy Stocks
by Lee Lowell, Advisory Panelist
Stock and Commodity Analyst, Mt. Vernon Research
Friday, June 26, 2009: Issue #1027
Right now, bunches of savvy investors are getting paid cold, hard cash for nothing more than agreeing to buy stocks. Investors are giving them money to buy stock that they were looking to purchase anyway.
Sound crazy? Well it isn’t.
There’s an incredibly profitable, but little-known trading and investment strategy that you will come to love as much as I do because of all the “instant cash” it can generate for you.
In the lucrative world of options trading, this strategy is called “selling a naked put option.”
Sounds sexy, and to some it is, but really it’s an incredibly simple way to buy stock you want to purchase at a specific price – while having someone pay you to do it. It’s easy to do but there are a few things you need to know first…
Here’s how you can use this powerful options strategy to get paid for buying stocks….
…
In fact, since launching The Instant Money Trader service in November 2008, we’ve had a 100% win streak, meaning all the options have expired worthless, allowing us to bank all the money paid to us upfront from the option buyers.
And it couldn’t have been easier.
Good investing,
Lee Lowell
P.S. I know this might sound a bit overwhelming, so next week I’ll walk you through an example to see how simple this strategy really is. In the meantime, if you’d like to find out more on the put option selling, take a look at The Instant Money Trader.”
( http://www.investmentu.com/IUEL/2009/June/selling-naked-put-options.html )
This “Instant Money Trader” service is being marketed without using the word “Naked” at this link:
http://www.investmentu.com/investment-research/IMT/IMT1109.php?pub=IMT&code=MIMTKC02
This trading method only requires one to punch in a code.
I do not know the details of HOW Lee Lowell runs his service, but my impression is that he is using money from individuals to pool larger and larger amounts of money which he then uses to Sell NAKED Counterfeit PUT OPTIONS.
More time and energy is wasted on explaining why one didn’t do something correctly than just doing it. Days go by and months go by and as time passes we move to the same ol same ol as always. Before we know it there will be those who attempt to have us believe Dec 7th didn’t take place. So too were we attacked via financial terrorism and unfortunately there were many who participated it via ingorance, intenitional or other. Bottom line is less talk and simply fix it or expect to experience more of the same at some point.
And yes that includes treasonist acts. Unless one seriously believes taking down BSC in days was a fluke and then targetting finacial after finacial for months was coincedental.
Sean, I expect it to go off the net. I guess taking the audio away does that effectively.
It used to be if enough citizens shouted loud enough that leaders pulled back. It seems like now they are past worry about what people say or want, no matter how many hit the street. Next step is just shooting the protesters and I am afraid that is not far away.
In regards to the fate of the “uptick rule” it like so many other sources of investor protection was removed due to the “lag period” effect described below. The “high frequency” traders snuck in and before you know it took over dominance of our markets. They move too fast to be able to obey any “uptick rule”. Something had to give and once again it was investor protection needing to be thrown under the bus to accommodate Wall Street insiders. As per the pattern once again a new technical innovation designed by Wall Street increases the leverage of Wall Street over Main Street. IF ONLY THERE WERE A PATTERN!
THE ROLE OF TECHNICAL INNOVATIONS AND ASSOCIATED LAG PERIODS
All of the recent technical innovations on Wall Street give rise to a lag period during which the “securities cops” have no idea how to recognize and address abuses associated with these innovations. Wall Street will posit that these new innovations are necessary to implement in order to keep our markets “efficient” and a step ahead of those in other countries. By the time the SEC and the SROs climb the learning curve associated with these new innovations the associated frauds are well-established and the criminals have devised and implemented efficient cover up methodologies. Nowhere is this more obvious than in the abusive legal short selling and abusive naked short selling sectors which now find themselves in the midst of one of these cover up phases.
THE ROLE OF TECHNOLOGICAL INNOVATIONS IN THE THEORETICAL NEED TO ELIMINATE VARIOUS “INVESTOR PROTECTION” REGULATIONS
They say that pattern recognition skills are important to develop. Have you recognized the pattern that involves almost all of these new technological innovations on Wall Street somehow (not so mysteriously) increasing the leverage of Wall Street insiders over Main Street investors? They do so by not quite fitting into our current regulatory structure which results not in the refusal to implement the technological innovation by the SEC but in the need to remove certain “investor protection” regulations to accommodate the new innovation. Once again the sales pitch usually includes the need to keep a step ahead of other countries’ market structures to remain a financial super power. We would like for you in Congress to appreciate the fact that many of these theoretically necessary reductions in investor protection may have been made by design.
Do you remember all of those risk-mitigating opportunities associated with the implementation of “credit default swaps” (“CDSs”)? Who would have thought that selling insurance without the need to set aside reserves should somebody file an insurance claim might present a bit of an issue? How about when the ECNs came onto the scene and for “technical” reasons they had to be abstained from needing to comply with the “uptick rule” in effect at the time? Who would have thought that abusive short sellers would simply route their naked short sale orders through ECNs?
How about recently when “high frequency” traders came onto the scene and now dominate our markets? That’s the purported reason why the 75-year old “uptick rule” needed to be totally done away with since high frequency trading all of a sudden “accidentally” comprises over half of all trades. OOPS, couldn’t have seen that one coming!
All of a sudden operating in secretive “dark pools” somehow adds to market efficiency? Don’t people with something to hide typically want to operate in the dark? “I’m not responsible for the abusive naked short selling I’ve been doing; it’s the algorithm that did it! I had no idea that those paying my firm for “sponsored access” were misbehaving; shame on them!”
Sorry Ron it was something wrong with my sound card. It is fixed now I will watch again. Thank.(Me and my conspiracy theories I sound like Herb Greenburg)LOL!!
Hmm. Mark Cuban may probe SEC for misconduct as judge dismisses SEC lawsuit.
http://www.bloomberg.com/apps/news?pid=20601110&sid=aLf0c02DPsYc
You just can’t make this stuff up!! This is what I have been waiting for..only a matter of time before they start going after each other. Greed is good!!LOL!!!
Lawsuits
Icahn Blasts Goldman In Short Sale Suit
Nathan Vardi, 12.08.09, 06:00 AM EST
Billionaire investor claims investment bank wronged him in short sale gone awry.
Carl Icahn’s High River Limited Partnership has struck back at Goldman Sachs Group, saying a lending unit of the investment bank owes High River $30.8 million in a short sale that has turned contentious.
The short sale involved $140 million face amount of Delphi ( DPHI.PK – news – people ) bank debt that Goldman Sachs ( GS – news – people ) in July agreed to purchase for $53.2 million, or 38 cents per dollar. In a counterclaim filed in New York state court, High River takes the position that the bank debt now has a value of $22.4 million, or 16 cents on the dollar, and that Goldman Sachs owes High River the difference between $53.2 million and $22.4 million.
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In a short sale, an investor will sell a security they do not own believing the price of the security will fall and the security can be bought later at a lower price to make a profit. If the price of the security increases, the investor gets stuck with a loss.
But this was no ordinary short sale. It involved debtor-in-possession loans made to auto parts maker Delphi, a company that in October emerged from four years of bankruptcy-court protection. In addition, Icahn did not borrow the debt he was selling and was never in possession of it. Further complicating the deal: Goldman Sachs and Icahn disagree materially about how much the bank debt turned out to be worth and when their transactions were required to close.
In its original complaint, filed in October, Goldman Sachs Lending Partners claimed Icahn got caught shorting the Delphi bank debt. In the lawsuit, first reported by Forbes, Goldman Sachs said “the market price of the bank debt increased after High River entered into the contracts, and High River is now trying to walk away from its obligations.”
The original trading agreements were signed just before lenders providing Delphi’s bankruptcy financing, like Elliott Management and Silver Point Capital, won court approval at the end of July to purchase the assets of Delphi. Goldman Sachs contends that when it tried to close its transaction to purchase the bank debt with High River in early September, Icahn’s lawyer said that High River was not in a position to…
Read the rest of the story in link below
http://www.forbes.com/2009/12/07/icahn-goldman-lawsuit-business-wall-street-goldman.html?feed=rss_popstories
Nice world where you can either evade responsibility altogether or buy indulgences from the SEC:
http://www.mondaq.com/unitedstates/article.asp?articleid=90638
Not sure if I got this right by Ghandi, but here goes “First they fight you, then they ridicule you then you win”.
Copper River, Overstock Close To Settling Dispute -Sources
Copper River, Overstock Close To Settling Dispute -Sources 12/08 03:48 PM
Overstock.com Inc. (OSTK:$14.64,00$-0.38,00-2.53%) and arch-nemesis Copper River Partners are close to settling a four-year long dispute, according to people familiar with the matter.
Utah-based Overstock and Copper River have been battling since the online retailer sued the hedge fund (then known as Rocker Partners) and research firm Gradient Analytics in California state court in 2005.
The company accused Rocker, which was short Overstock, and Gradient, which published research critical of the company, of colluding to denigrate Overstock for profit. A trial is scheduled for February 2010.
Gradient and Copper have denied any wrongdoing, claiming that Overstock Chief Executive Patrick Byrne, an unabashed critic of short sellers, was attempting to silence critics.
When asked about the new settlement with Copper, Byrne said he would call back, then hung up.
Byrne told investors in 2005 that he believed “Overstock has been damaged …in the high hundreds of millions of dollars, perhaps more.”
Overstock settled its dispute with Gradient in 2008. Details of this settlement weren’t made public, but people familiar with the matter said that the research firm, running out of cash to fund its legal defense, settled for a relatively small sum.
In a carefully worded statement, Gradient said at the time it regretted saying that Overstock’s accounting policies didn’t conform to generally accepted accounting principles and apologized for saying that some of Overstock’s directors weren’t so independent. But Gradient didn’t make any statement about Overstock’s claim that it let Copper River edit libelous reports while the fund positioned itself to profit from the expected drop in the company’s share price.
Copper River, of Larkspur, Calif., filed counterclaims in 2007, claiming Overstock and Byrne made false statements to boost the company’s stock price and launched a campaign to intimidate critics. The fund is seeking damages for false statements in connection with Overstock’s securities, stock price manipulation and unfair business practices.
The fund liquidated late last year after losing more than half of its value in the market downturn. Copper River had been a $1 billion fund that primarily took bets on the declining value of stock it deemed overpriced.
Fund manager Marc Cohodes might be keen to end the legal tussle with Overstock to facilitate the launch of a new fund. Not long after Overstock filed its suit, the Securities and Exchange commission began an investigation into Gradient.
In November 2005, U.S. securities regulators subpoenaed information from Gradient and some of its employees and clients.
In February 2006, the SEC also subpoenaed this columnist and others, requesting information in connection with its investigation into Gradient. Dow Jones & Co., publisher of The Wall Street Journal and Dow Jones Newswires, objected to the subpoenas, which were put on hold. The SEC later announced new guidelines for requesting information from journalists. Dow Jones is owned by News Corp. (NWSA:$12.295,0$0.035,00.29%) .
In 2007, the SEC terminated its probe of Gradient without recommending an enforcement action. In 2008, the SEC also closed an investigation into Overstock’s accounting policies without recommending an enforcement action.
In September, Overstock announced that the SEC is investigating several restatements of its financial statements in 2006 and 2008 and other matters. Last month, the company fired its accountants over a disagreement on how to book revenue. Nasdaq recently put Overstock on notice that the filing of an unreviewed quarterly report violated its listing requirements. Overstock has until Jan. 18 to provide Nasdaq with a plan to regain compliance.
Subject: BMY Failed to Obtain 90% of MEDX Shares????
Here is an example of HOW WALL STREET FIRMS, the SEC’s Fraternity brothers, can manipulate a tender offer to increase the value of their stock shares in the tendering company.
On or about July 28, 2009, BMY and MEDX Board of Directors agreed to a merger where BMY would buy all outstanding shares of MEDX for cash.
During the Tender Offer Period, someone continued to COUNTERFEIT MEDX shares as in indicated by the Fail to Deliver data from the SEC. (See: http://www.failstodeliver.com ):
SETTLEMENT__CUSIP_SYMBOL__QUANTITY__DESCRIP___PRICE
_DATE_____________________(FAILS)
—————————————————-
20090723__583916101_MEDX__703_____MEDAREX_INC_8.40
20090727__583916101_MEDX__739_____MEDAREX_INC_15.90
20090728__583916101_MEDX__71854___MEDAREX_INC_15.89
20090729__583916101_MEDX__2000____MEDAREX_INC_15.90
20090730__583916101_MEDX__44135___MEDAREX_INC_15.91
20090731__583916101_MEDX__10928___MEDAREX_INC_15.91
20090803__583916101_MEDX__1622____MEDAREX_INC_15.87
20090805__583916101_MEDX__237250__MEDAREX_INC_15.88
20090806__583916101_MEDX__50______MEDAREX_INC_15.84
20090810__583916101_MEDX__240_____MEDAREX_INC_15.87
20090817__583916101_MEDX__21900___MEDAREX_INC_15.93
20090818__583916101_MEDX__400_____MEDAREX_INC_15.94
20090819__583916101_MEDX__300_____MEDAREX_INC_15.95
20090824__583916101_MEDX__2207____MEDAREX_INC_15.96
20090825__583916101_MEDX__100_____MEDAREX_INC_15.92
20090826__583916101_MEDX__262203__MEDAREX_INC_15.93
20090827__583916101_MEDX__748535__MEDAREX_INC_15.96
20090828__583916101_MEDX__764248__MEDAREX_INC_15.98
20090831__583916101_MEDX__565266__MEDAREX_INC_15.97
20090901__583916101_MEDX__72539___MEDAREX_INC_16.00
20090902__583916101_MEDX__164286__MEDAREX_INC_16.02
20090903__583916101_MEDX__428326__MEDAREX_INC_16.02
20090904__583916101_MEDX__1431546_MEDAREX_INC_16.02
_________________________ ———
_________________________ 4,401,609
BMY successfully bought MEDX via the NJ short merger method that did Not require a MEDX stockholders’ meeting by receiving 90.7% of the outstanding shares (128,918,402 = Shares outstanding per MEDX). (Thanks to Yahoo.com, the complete history of MEDX has been deleted from the Internet ).
For BMY to acquire MEDX without a shareholder meeting, it had to receive 90% of the outstanding shares of MEDX through its tender offer, which it barely made with 90.7%, or by ONLY 0.7% or 0.8%.
(0.7% = 902,429 MEDX shares //AND// 0.8% = 1,031,347 MEDX shares).
The SEC has so many “Fails to Deliver (FTDs)” loopholes for their Wall Street Fraternity Brothers, I have no idea what the exact number of MEDX FTDs remained at the end of its corporate life. The SEC allows its Wall Streeter friends to hide FTDs outside the official reporting system, so I have to conclude that the numbers above are part of the SEC’s “illusion of enforcement,” and that the actual FTD number is much larger.
Nevertheless, let us assume the final number of FTDs on the final day of trading is the official number of MEDX FTDs remaining – 1,431,546 Shares of MEDX.
( 1,431,546 / 128,918,402 ) x 100 = 1.11% of MEDX Shares Outstanding
If one subtracts 1.11% from 90.7%, we get
———->>> 90.7% – 1.11% = 89.59% <<<——
If one subtracts the COUNTERFEIT SHARES CREATED (1.11%) on the Last Day of Trading, one would have to conclude that BMY FAILED to obtain the required 90% needed under New Jersey Law to acquire MEDX outright without a MEDX shareholders meeting (90.7% – 1.11% = 89.59%).
If my calculations are correct, the BMY or MEDX Board of Directors needs to call a MEDX shareholders meeting to approve the merger.
Does anyone know if the SEC allows its fraternity brothers to COUNTERFEIT shares of stock with impunity to manipulate mergers?
Since I have NOT heard the SEC publicly speak about the fraudulent Counterfeit aspects of the BMY tender offer for MEDX shares, I have to conclude that the SEC DOES allow its fraternity brothers to Counterfeit share of publicly traded companies during tender offers with impunity.
I just reposted the message above about MEDX merger with BMY, because it was deleted for some reason – maybe by accident.
What happened with MEDX is another clear example of Wall Streeters Manipulating the U.S. Stock Market to create more LIQUIDITY to their bank accounts.
For example, if a large Wall Street company had a very large position in Bristol-Myers Squibb Co. (BMY), and saw that BMY’s acquisition of MEDX would add value to BMY, then a Wall Street firm could access the Wall Street Counterfeit Machine to guarantee the BMY merger by making sure the tender offer reached 90%.
The Counterfeiting of 1,431,546 share of MEDX shares on the last day of trading added 1.11% to the 90.7% total.
In writing this, I just realized that I do not have the time line to indicate what day BMY declared its 90.7%. If BMY declared its 90.7% before the last day of trading, then the details of my point here are not valid.
Nevertheless, the general point, I think, is still valid, because Wall Streeters are allowed by the SEC to access to the Wall Street Counterfeit Machine to manipulate the stock market to increase the LIQUIDITY of their bank accounts.
BMY’s press release dated Sept 1st 2009 states that its 90.7% figure was obtained at midnight (New York City time) on August 31, 2009 – 4 or 5 trading days before the final trading day:
http://www.businesswire.com/portal/site/bms/?ndmViewId=news_view&newsId=20090901006647&newsLang=en
On August 31st, the SEC data indicates that 565,266 shares of MEDX were classed as Fails to Deliver (FTDs), which equals 0.44% of the outstanding shares of MEDX. The day before, there were 764,248 FTDs or 0.59% of the outstanding shares.
I also noted in the press release that BMY added its 2,879,223 (2.23%)of MEDX shares to obtain the declared 90.7% total. So the SEC allows acquiring companies to vote the shares they had acquired from a previous drug development agreement.
My QUESTION Is —-
WHY was BMY allowed to add its MEDX shares to the total, since by law they were NOT allowed to purchase any shares in the open market during the tender period?
BOTTOM LINE…
My reference above to the total number of counterfeit shares (FTDs) on the last day of trading is not valid, since the 90.7% was declared days before.
Since the SEC allows Wall Streeters to Counterfeit stock shares outside the official tracking system, we Non-Wall-Streeters are NOT ALLOWED to KNOW the total number of Counterfeit Shares created by the Wall Street Counterfeit Machine.
The SEC has created the whole SHO regulations to merely give the APPEARANCE OF Enforcement to us Non-Wall-Streeters so their fraternity brothers can increase the Liquidity of their bank accounts.
Sean, sounds like asshole Antar is a Copper mouthpiece, no?
“….generally accepted accounting principles and apologized for saying that some of Overstock’s directors weren’t so independent”
Boy, some of this verbiage is verrrry familiar.
I looked at the time-line more closely and noted the following…
))- MONDAY August 31, 2009 is the last day of the BMY tender offer for MEDX shares.
—-( The DELIVERY DATE for all shares sold on this Monday is three days later — Thursday September 3, 2009 (FTDs = 428,326 = .33%)
))- TUESDAY September 1, 2009, BMY releases its press release about having obtained 90.7% of MEDX shares via its tender offering at midnight (New York City time) on MONDAY August 31, 2009 (the day before):
—–( http://www.businesswire.com/portal/site/bms/?ndmViewId=news_view&newsId=20090901006647&newsLang=en
))- TUESDAY September 1, 2009 is the last trading day for MEDX
—-( The DELIVERY DATE for all shares sold on this Tuesday is three days later — Friday September 4, 2009 (FTDs = 1,431,546 = 1.11%)
NOTE: Friday September 4, 2009 is the LAST entry in SEC’s FTD data for MEDX, since this is the delivery date for all shares traded on the LAST TRADING DAY, Tuesday Sept 1st.
The FTD data during the tender offering period shows that some Wall Street Insiders (the only ones who can) started accessing the Wall Street Counterfeit Machine in earnest three days before August 26
20090826__583916101_MEDX__262203__MEDAREX_INC_15.93
20090827__583916101_MEDX__748535__MEDAREX_INC_15.96
20090828__583916101_MEDX__764248__MEDAREX_INC_15.98
20090831__583916101_MEDX__565266__MEDAREX_INC_15.97
20090901__583916101_MEDX__72539___MEDAREX_INC_16.00
20090902__583916101_MEDX__164286__MEDAREX_INC_16.02
20090903__583916101_MEDX__428326__MEDAREX_INC_16.02
20090904__583916101_MEDX__1431546_MEDAREX_INC_16.02
QUESTION 1……
Why would Wall Street insiders start Counterfeiting MEDX shares three days before August 26th? A mere 7 trading days before the expiration of the tender offering for MEDX shares?
The only explanation that makes sense to me is that BMY’s acquistion team suspected it would come up short of 90% on Monday August 31st. So Wall Street Insiders, such as, the BMY and MEDX Investment Bankers could have been contacted and told to start Counterfeiting MEDX shares so they could obtain the additional YES VOTES they needed to reach the required 90% for a short merger procedure that does not requires a MEDX stockholders meeting.
QUESTION 2……
Why would any Wall Street insider(s) Counterfeit approximately 1 MILLION more shares of MEDX on TUESDAY September 1st when supposedly BMY had already obtained 90.7% of MEDX shares the day before – Monday August 31st, 2009?
This is an interesting Mystery….. since there is no reason to continue counterfeiting MEDX shares after the additional YES VOTES (tendered shares) had already been obtained.
I suspect the ANSWER to this apparent mystery is that Wall Street Insiders are allowed to restart the 3 day delivery clock via regulatory loopholes the SEC conveniently fails to reveal to us NON-Wall-Streeters… but which Dr. Jim DeCosta has spoken about many times in http://www.DeepCapture.com .
So the FTD Total on Friday September 4, 2009 of FTDs = 1,431,546 = 1.11% of outstanding shares (the FINAL FTD entry of MEDX), may very well be the actual TOTAL NUMBER of FTDs that existed on Monday August 31…. Which allowed BMY to claim that it had reached the 90% total it needed for a quick merger.
Observation #1……
COST OF 1,431,546 COUNTERFEIT SHARES of MEDX @ $16.00/share is about $23 MILLION DOLLARS.
Observation #2……
Goldman Sachs would receive a bonus from MEDX of 1% of the deal if the merger succeeded, which it did….
““Medarex has agreed to pay Goldman Sachs a transaction fee of approximately $21 million, all of which is payable only upon consummation of the Contemplated Transactions.””
Observation #3……
1,431,546 COUNTERFEIT SHARES of MEDX = $23 MILLION DOLLARS
Goldman Sachs Bonus = $21 MILLION
Observation #4……
Goldman Sachs, as a Wall Street Insider, has full access to the Wall Street Counterfeit Machine. Additionally, BMY investment banker also has full access to the Wall Street Counterfeit Machine.
MY CONCLUSION…..
My conclusion is that BMY was able to reach the desired 90% number ONLY BECAUSE Wall Streeters accessed the Wall Street Counterfeit Machine to create the additional needed YES VOTES (tendered shares).
..And that the 1,431,546 COUNTERFEIT SHARES of MEDX is part of the 90.7% number BMY claimed even though it appears to be the total one day after the expiration of the tender offer.
Fraudulent Voting Practices On Wall Street…
In the upper right hand part of http://www.DeepCapture.com under ” 5.The Corporate Democracy Hoax” is a link to a Bloomsburg report about the normal fraudulent voting practices on Wall Street (thank you Patrick for the link), and of course Insider Wall Streeters are in charge of this whole fraudulent process:
Corporate Voting Charade….
http://www.rgm.com/articles/FalseProxies.pdf
Here is one quote from this report:
“If political elections were run like corporate votes, people would be allowed to cast as many ballots as they could, as long as the total didn’t exceed the number of registered voters, Lambiase says. “It’s an affront to the public trust,” he says.”
=======================
In the case of MEDX…
– The SEC releases its Fail To Deliver Totals (FTDs) once very two weeks, which in the MEDX example meant that BMY was able to acquire MEDX BEFORE the FTDs for MEDX were known to by the public, BEFORE the existence of the COUNTERFEIT MEDX shares were released to the public.
– The New Jersey Short Form Merger laws assumes there is NO such thing as Fraudulent Voting on Wall Street, as BMY was allowed to buy all outstanding shares of MEDX on Tuesday, September 1, the very day it announced it had acquired 90.7% of MEDX shares via its tender offer, many days before the MEDX FTDs were released to the public.
– The BMY acquisition company had a real-time count from minute to minute of the total number of MEDX shares it had received and how many more it needed for 90%. And they called every stockholder to find out if they would tender. From these two things, they could project how many more shares they needed.
– Goldman Sachs had full knowledge of and access to the WALL STREET COUNTERFEIT MACHINE.
– So seven days before the close of the BMY tender offer for MEDX shares as can be seen in the SEC FTD data, the WALL STREET COUNTERFEIT MACHINE was turned on by Wall Street Insiders to guarantee that BMY would acquire 90% of the MEDX shares.
– And so it was done…
…- MEDX was acquired by BMY without a shareholder meeting vote by MEDX shareholders.
Thank you from all the little fish’s. What is the second thing we should know? I think it should be the rules of the game have no rules! Goldman also has many friends, like Knight Capital… OTC’s most powerful Market Maker. President of Knight Capital is also the CEO of Scottrade…. is that legal? What about when Scottraid halts the buying of some stocks, then turns around and lends those same shares to NITE/ Knight Capital to Short Naked…..is that legal? Another market maker ABLE/ NATIXIS BLEICHROEDER LLC trades with Goldman Sachs Executions. So let me tell you about my favorite stock that all of themm are trying to get a piece of, in this new market of Medical Marijuana. The most undervalued and most shorted stock on the market -HESG, Health Sciences Group Inc. I’m an investors at .0001, Scottrade halted the buying of this stock, when the CEO Tom Gaffney retired 2 Billion shares of this stock. NITE has traded over 20 Billion shares of this stock in Nov. & Dec. …YTD combined total shares traded of HESG is 36 BIllion shares from a stock that has 2.2 Billion shares Outstanding and 3 Billion shares Authorized with a current price per share of .0006…Hmmmmm sounds fishy to me how about you? But back to my point…Is it legal for Scottrade to halt the buying of certain stocks, while lending those same shares to NITE. For shorting and diluting the share holders with phantom shares? In hopes of buying those shares back at a cheaper price before they Fail To Deliver. What Are The Rules To This Game?
L’ensemble de ces post sont effectivement instructifs
Je suis tombé sur votre site par mégarde puis je ne le
regrette pas !
Bon, je n’ai point fini de regarder par contre je reviens dans la journée
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