http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes-20110817

Is the SEC Covering Up Wall Street Crimes?

Matt Taibbi: A whistle blower says the agency has illegally destroyed thousands of documents, letting financial crooks off the hook.

By Matt TaibbiAugust 17, 2011 8:00 AM ET

Imagine a world in which a man who is repeatedly investigated for a string of serious crimes, but never prosecuted, has his slate wiped clean every time the cops fail to make a case. No more Lifetime channel specials where the murderer is unveiled after police stumble upon past intrigues in some old file – "Hey, chief, didja know this guy had two wives die falling down the stairs?" No more burglary sprees cracked when some sharp cop sees the same name pop up in one too many witness statements. This is a different world, one far friendlier to lawbreakers, where even the suspicion of wrongdoing gets wiped from the record.

That, it now appears, is exactly how the Securities and Exchange Commission has been treating the Wall Street criminals who cratered the global economy a few years back. For the past two decades, according to a whistle-blower at the SEC who recently came forward to Congress, the agency has been systematically destroying records of its preliminary investigations once they are closed. By whitewashing the files of some of the nation's worst financial criminals, the SEC has kept an entire generation of federal investigators in the dark about past inquiries into insider trading, fraud and market manipulation against companies like Goldman Sachs, Deutsche Bank and AIG. With a few strokes of the keyboard, the evidence gathered during thousands of investigations – "18,000 ... including Madoff," as one high-

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ranking SEC official put it during a panicked meeting about the destruction – has apparently disappeared forever into the wormhole of history.

Under a deal the SEC worked out with the National Archives and Records Administration, all of the agency's records – "including case files relating to preliminary investigations" – are supposed to be maintained for at least 25 years. But the SEC, using history-altering practices that for once actually deserve the overused and usually hysterical term "Orwellian," devised an elaborate and possibly illegal system under which staffers were directed to dispose of the documents from any preliminary inquiry that did not receive approval from senior staff to become a full-blown, formal investigation. Amazingly, the wholesale destruction of the cases – known as MUIs, or "Matters Under Inquiry" – was not something done on the sly, in secret. The enforcement division of the SEC even spelled out the procedure in writing, on the commission's internal website. "After you have closed a MUI that has not become an investigation," the site advised staffers, "you should dispose of any documents obtained in connection with the MUI."

Many of the destroyed files involved companies and individuals who would later play prominent roles in the economic meltdown of 2008. Two MUIs involving con artist Bernie Madoff vanished. So did a 2002 inquiry into financial fraud at Lehman Brothers, as well as a 2005 case of insider trading at the same soon-to-be-bankrupt bank. A 2009 preliminary investigation of insider trading by Goldman Sachs was deleted, along with records for at least three cases involving the infamous hedge fund SAC Capital.

The widespread destruction of records was brought to the attention of Congress in July, when an SEC attorney named Darcy Flynn decided to blow the whistle. According to Flynn, who was responsible for helping to manage the commission's records, the SEC has been destroying records of preliminary investigations since at least 1993. After he alerted NARA to the problem, Flynn reports, senior staff at the SEC scrambled to hide the commission's improprieties.

As a federally protected whistle-blower, Flynn is not permitted to speak to the press. But in evidence he presented to the SEC's inspector general and three congressional committees earlier this summer, the 13-year veteran of the agency paints a startling picture of a federal police force that has effectively been conquered by the financial criminals it is charged with investigating. In at least one case, according to Flynn, investigators at the SEC found their desire to bring a case against an influential bank thwarted by senior officials in the enforcement division – whose director turned around and accepted a lucrative job from the very same bank they had been prevented from investigating. In another case, the agency farmed out its inquiry to a private law firm – one hired by the company under investigation. The outside firm, unsurprisingly, concluded that no further investigation of its client was necessary. To complete the bureaucratic laundering process, Flynn says, the SEC dropped the case and destroyed the files.

Much has been made in recent months of the government's glaring failure to police Wall Street; to date, federal and state prosecutors have yet to put a single senior Wall Street executive behind bars for any of the many well-documented crimes related to the financial crisis. Indeed, Flynn's accusations dovetail with a recent series of damaging critiques of the SEC made by reporters, watchdog groups and members of Congress, all of which seem to indicate that top federal regulators spend more time lunching, schmoozing and job-interviewing with Wall Street crooks than they do catching them. As one former SEC staffer describes it, the agency is now filled with so many Wall

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Matt Taibbi is a contributing editor for Rolling Stone. He’s the author of five books, most recently The Great Derangement and Griftopia, and a winner of the National Magazine Award for commentary.

Street hotshots from oft-investigated banks that it has been "infected with the Goldman mindset from within."

The destruction of records by the SEC, as outlined by Flynn, is something far more than an administrative accident or bureaucratic fuck-up. It's a symptom of the agency's terminal brain damage. Somewhere along the line, those at the SEC responsible for policing America's banks fell and hit their head on a big pile of Wall Street's money – a blow from which the agency has never recovered. "From what I've seen, it looks as if the SEC might have sanctioned some level of case-related document destruction," says Sen. Chuck Grassley, the ranking Republican on the Senate Judiciary Committee, whose staff has interviewed Flynn. "It doesn't make sense that an agency responsible for investigations would want to get rid of potential evidence. If these charges are true, the agency needs to explain why it destroyed documents, how many documents it destroyed over what time frame and to what extent its actions were consistent with the law."

How did officials at the SEC wind up with a faithful veteran employee – a conservative, mid-level attorney described as a highly reluctant whistle-blower – spilling the agency's most sordid secrets to Congress? In a way, they asked for it.

On May 18th of this year, SEC enforcement director Robert Khuzami sent out a mass e-mail to the agency's staff with the subject line "Lawyers Behaving Badly." In it, Khuzami asked his subordinates to report any experiences they might have had where "the behavior of counsel representing clients in... investigations has been questionable."

Khuzami was asking staffers to recount any stories of outside counsel behaving unethically. But Flynn apparently thought his boss was looking for examples of lawyers "behaving badly" anywhere, including within the SEC. And he had a story to share he'd kept a lid on for years. "Mr. Khuzami may have gotten something more than he expected," Flynn's lawyer, a former SEC whistle-blower named Gary Aguirre, later explained to Congress.

Flynn responded to Khuzami with a letter laying out one such example of misbehaving lawyers within the SEC. It involved a case from very early in Flynn's career, back in 2000, when he was working with a group of investigators who thought they had a "slam-dunk" case against Deutsche Bank, the German financial giant. A few years earlier, Rolf Breuer, the bank's CEO, had given an interview to Der Spiegel in which he denied that Deutsche was involved in übernahmegespräche – takeover talks – to acquire a rival American firm, Bankers Trust. But the statement was apparently untrue – and it sent the stock of Bankers Trust tumbling, potentially lowering the price for the merger. Flynn and his fellow SEC investigators, suspecting that investors of Bankers Trust had been defrauded, opened a MUI on the case.

A Matter Under Inquiry is just a preliminary sort of look-see – a way for the SEC to check out the multitude of tips it gets about suspicious trades, shady stock scams and false disclosures, and to determine which of the accusations merit a formal investigation. At the MUI stage, an SEC investigator can conduct interviews or ask a bank to send in information voluntarily. Bumping a MUI up to a formal investigation is critical, because it enables investigators to pull out the full law-enforcement ass-kicking measures – subpoenas, depositions, everything short of hot pokers and waterboarding. In the Deutsche case, Flynn and other SEC investigators got past the MUI stage and used their powers to collect sworn testimony and documents indicating that plenty of übernahmegespräche indeed had been going on when Breuer spoke to Der Spiegel. Based on the evidence, they sent an "Action Memorandum" to senior SEC staff, formally recommending that the agency press forward and file suit against Deutsche.

Breuer responded to the threat as big banks like Deutsche often do: He hired a former SEC enforcement director to lobby the agency to back off. The ex-insider, Gary Lynch, launched a

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creative and inspired defense, producing a linguistic expert who argued that übernahmegespräche only means "advanced stage of discussions." Nevertheless, the request to proceed with the case was approved by several levels of the SEC's staff. All that was needed to move forward was a thumbs-up from the director of enforcement at the time, Richard Walker.

But then a curious thing happened. On July 10th, 2001, Flynn and the other investigators were informed that Walker was mysteriously recusing himself from the Deutsche case. Two weeks later, on July 23rd, the enforcement division sent a letter to Deutsche that read, "Inquiry in the above-captioned matter has been terminated." The bank was in the clear; the SEC was dropping its fraud investigation. In contradiction to the agency's usual practice, it provided no explanation for its decision to close the case.

On October 1st of that year, the mystery was solved: Dick Walker was named general counsel of Deutsche. Less than 10 weeks after the SEC shut down its investigation of the bank, the agency's director of enforcement was handed a cushy, high-priced job at Deutsche.

Deutsche's influence in the case didn't stop there. A few years later, in 2004, Walker hired none other than Robert Khuzami, a young federal prosecutor, to join him at Deutsche. The two would remain at the bank until February 2009, when Khuzami joined the SEC as Flynn's new boss in the enforcement division. When Flynn sent his letter to Khuzami complaining about misbehavior by Walker, he was calling out Khuzami's own mentor.

The circular nature of the case illustrates the revolving-door dynamic that has become pervasive at the SEC. A recent study by the Project on Government Oversight found that over the past five years, former SEC personnel filed 789 notices disclosing their intent to represent outside companies before the agency – sometimes within days of their having left the SEC. More than half of the disclosures came from the agency's enforcement division, who went to bat for the financial industry four times more often than ex-staffers from other wings of the SEC.

Even a cursory glance at a list of the agency's most recent enforcement directors makes it clear that the SEC's top policemen almost always wind up jumping straight to jobs representing the banks they were supposed to regulate. Lynch, who represented Deutsche in the Flynn case, served as the agency's enforcement chief from 1985 to 1989, before moving to the firm of Davis Polk, which boasts many top Wall Street clients. He was succeeded by William McLucas, who left the SEC in 1998 to work for WilmerHale, a Wall Street defense firm so notorious for snatching up top agency veterans that it is sometimes referred to as "SEC West." McLucas was followed by Dick Walker, who defected to Deutsche in 2001, and he was in turn followed by Stephen Cutler, who now serves as general counsel for JP Morgan Chase. Next came Linda Chatman Thomsen, who stepped down to join Davis Polk, only to be succeeded in 2009 by Khuzami, Walker's former protégé at Deutsche Bank.

This merry-go-round of current and former enforcement directors has repeatedly led to accusations of improprieties. In 2008, in a case cited by the SEC inspector general, Thomsen went out of her way to pass along valuable information to Cutler, the former enforcement director who had gone to work for JP Morgan. According to the inspector general, Thomsen signaled Cutler that the SEC was unlikely to take action that would hamper JP Morgan's move to buy up Bear Stearns. In another case, the inspector general found, an assistant director of enforcement was instrumental in slowing down an investigation into the $7 billion Ponzi scheme allegedly run by Texas con artist R. Allen Stanford – and then left the SEC to work for Stanford, despite explicitly being denied permission to do so by the agency's ethics office. "Every lawyer in Texas and beyond is going to get rich on this case, OK?" the official later explained. "I hated being on the sidelines."

Small wonder, then, that SEC staffers often have trouble getting their bosses to approve full-blown investigations against even the most blatant financial criminals. For a fledgling MUI to become a

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formal investigation, it has to make the treacherous leap from the lower rungs of career-level staffers like Flynn all the way up to the revolving-door level at the top, where senior management is composed largely of high-priced appointees from the private sector who have strong social and professional ties to the very banks they are charged with regulating. And if senior management didn't approve an investigation, the documents often wound up being destroyed – as Flynn would later discover.

After the Deutsche fiasco over Bankers Trust, Flynn continued to work at the SEC for four more years. He briefly left the agency to dabble in real estate, then returned in 2008 to serve as an attorney in the enforcement division. In January 2010, he accepted new responsibilities that included helping to manage the disposition of records for the division – and it was then he first became aware of the agency's possibly unlawful destruction of MUI records.

Flynn discovered a directive on the enforcement division's internal website ordering staff to destroy "any records obtained in connection" with closed MUIs. The directive appeared to violate federal law, which gives responsibility for maintaining and destroying all records to the National Archives and Records Administration. Over a decade earlier, in fact, the SEC had struck a deal with NARA stipulating that investigative records were to be maintained for 25 years – and that if any files were to be destroyed after that, the shredding was to be done by NARA, not the SEC.

But Flynn soon learned that the records for thousands of preliminary investigations no longer existed. In his letter to Congress, Flynn estimates that the practice of destroying MUIs had begun as early as 1993, and has resulted in at least 9,000 case files being destroyed. For all the thousands of tips that had come in to the SEC, and the thousands of interviews that had been conducted by the agency's staff, all that remained were a few perfunctory lines for each case. The mountains of evidence gathered were no longer in existence.

To read through the list of dead and buried cases that Flynn submitted to Congress is like looking through an infrared camera at a haunted house of the financial crisis, with the ghosts of missed prosecutions flashing back and forth across the screen. A snippet of the list:

PARTY MUI # OPENED/CLOSED ISSUEGoldman Sachs MLA-01909 6/99 - 4/00 Market ManipulationDeutsche Bank MHO-09356 11/01 - 7/02 Insider TradingDeutsche Bank MHO-09432 2/02 - 8/02 Market ManipulationLehman Brothers MNY-07013 3/02 - 7/02 Financial FraudGoldman Sachs MNY-08198 11/09 - 12/09 Insider Trading

One MUI – case MNY-08145 – involved allegations of insider trading at AIG on September 15th, 2008, right in the middle of the insurance giant's collapse. In that case, an AIG employee named Jacqueline Millan reported irregularities in the trading of AIG stock to her superiors, only to find herself fired. Incredibly, instead of looking into the matter itself, the SEC agreed to accept "an internal investigation by outside counsel or AIG." The last note in the file indicates that "the staff plans to speak with the outside attorneys on Monday, August 24th [2009], when they will share their findings with us." The fact that the SEC trusted AIG's lawyers to investigate the matter shows the basic bassackwardness of the agency's approach to these crash-era investigations. The SEC formally closed the case on October 1st, 2009.

The episode with AIG highlights yet another obstacle that MUIs experience on the road to becoming formal investigations. During the past decade, the SEC routinely began allowing financial firms to investigate themselves. Imagine the LAPD politely asking a gang of Crips and their

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lawyers to issue a report on whether or not a drive-by shooting by the Crips should be brought before a grand jury – that's basically how the SEC now handles many preliminary investigations against Wall Street targets.

The evolution toward this self-policing model began in 2001, when a shipping and food-service conglomerate called Seaboard aggressively investigated an isolated case of accounting fraud at one of its subsidiaries. Seaboard fired the guilty parties and made sweeping changes to its internal practices – and the SEC was so impressed that it instituted a new policy of giving "credit" to companies that police themselves. In practice, that means the agency simply steps aside and allows companies to slap themselves on the wrists. In the case against Seaboard, for instance, the SEC rewarded the firm by issuing no fines against it.

According to Lynn Turner, a former chief accountant at the SEC, the Seaboard case also prompted the SEC to begin permitting companies to hire their own counsel to conduct their own inquiries. At first, he says, the process worked fairly well. But then President Bush appointed the notoriously industry-friendly Christopher Cox to head up the SEC, and the "outside investigations" turned into whitewash jobs. "The investigations nowadays are probably not worth the money you spend on them," Turner says.

Harry Markopolos, a certified fraud examiner best known for sounding a famously unheeded warning about Bernie Madoff way back in 2000, says the SEC's practice of asking suspects to investigate themselves is absurd. In a serious investigation, he says, "the last person you want to trust is the person being accused or their lawyer." The practice helped Madoff escape for years. "The SEC took Bernie's word for everything," Markopolos says.

At the SEC, having realized that the agency was destroying documents, Flynn became concerned that he was overseeing an illegal policy. So in the summer of last year, he reached out to NARA, asking them for guidance on the issue.

That request sparked a worried response from Paul Wester, NARA's director of modern records. On July 29th, 2010, Wester sent a letter to Barry Walters, who oversees document requests for the SEC. "We recently learned from Darcy Flynn... that for the past 17 years the SEC has been destroying closed Matters Under Inquiry files," Wester wrote. "If you confirm that federal records have been destroyed improperly, please ensure that no further such disposals take place and provide us with a written report within 30 days."

Wester copied the letter to Adam Storch, a former Goldman Sachs executive who less than a year earlier had been appointed as managing executive of the SEC's enforcement division. Storch's appointment was not without controversy. "I'm not sure what's scarier," Daniel Indiviglio of The Atlantic observed, "that this guy worked at an investment bank that many believe has questionable ethics and too cozy a Washington connection, or that he's just 29." In any case, Storch reacted to the NARA letter the way the SEC often does – by circling the wagons and straining to find a way to blow off the problem without admitting anything.

Last August, as the clock wound down on NARA's 30-day deadline, Storch and two top SEC lawyers held a meeting with Flynn to discuss how to respond. Flynn's notes from the meeting, which he passed along to Congress, show the SEC staff wondering aloud if admitting the truth to NARA might be a bad idea, given the fact that there might be criminal liability.

"We could say that we do not believe there has been disposal inconsistent with the schedule," Flynn quotes Ken Hall, an assistant chief counsel for the SEC, as saying.

"There are implications to admit what was destroyed," Storch chimed in. It would be "not wise for me to take on the exposure voluntarily. If this leads to something, what rings in my ear is that Barry [Walters, the SEC documents officer] said: This is serious, could lead to criminal liability."

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When the subject of how many files were destroyed came up, Storch answered: "18,000 MUIs destroyed, including Madoff."

Four days later, the SEC responded to NARA with a hilariously convoluted nondenial denial. "The Division is not aware of any specific instances of the destruction of records from any other MUI," the letter states. "But we cannot say with certainty that no such documents have been destroyed over the past 17 years." The letter goes on to add that "the Division has taken steps... to ensure that no MUI records are destroyed while we review this issue."

Translation: Hey, maybe records were destroyed, maybe they weren't. But if we did destroy records, we promise not to do it again – for now.

The SEC's unwillingness to admit the extent of the wrong doing left Flynn in a precarious position. The agency has a remarkably bad record when it comes to dealing with whistle-blowers. Back in 2005, when Flynn's attorney, Gary Aguirre, tried to pursue an insider-trading case against Pequot Capital that involved John Mack, the future CEO of Morgan Stanley, he was fired by phone while on vacation. Two Senate committees later determined that Aguirre, who has since opened a private practice representing whistle-blowers, was dismissed improperly as part of a "process of reprisal" by the SEC. Two whistle-blowers in the Stanford case, Julie Preuitt and Joel Sauer, also experienced retaliation – including reprimands and demotions – after raising concerns about superficial investigations. "There's no mechanism to raise these issues at the SEC," says another former whistle-blower. Contacting the agency's inspector general, he adds, is considered "the nuclear option" – a move "well-known to be a career-killer."

In Flynn's case, both he and Aguirre tried to keep the matter in-house, appealing to SEC chairman Mary Schapiro with a promise not to go outside the agency if she would grant Flynn protection against reprisal. When no such offer was forthcoming, Flynn went to the agency's inspector general before sending a detailed letter about the wrongdoing to three congressional committees.

One of the offices Flynn contacted was that of Sen. Grassley, who was in the midst of his own battle with the SEC. Frustrated with the agency's failure to punish major players on Wall Street, the Iowa Republican had begun an investigation into how the SEC follows up on outside complaints. Specifically, he wrote a letter to FINRA, another regulatory agency, to ask how many complaints it had referred to the SEC about SAC Capital, the hedge fund run by reptilian billionaire short-seller Stevie Cohen.

SAC has long been accused of a variety of improprieties, from insider trading to harassment. But no charge in recent Wall Street history is crazier than an episode involving a SAC executive named Ping Jiang, who was accused in 2006 of enacting a torturous hazing program. According to a civil lawsuit that was later dropped, Jiang allegedly forced a new trader named Andrew Tong to take female hormones, come to work wearing a dress and lipstick, have "foreign objects" inserted in his rectum, and allow Jiang to urinate in his mouth. (I'm not making this up.)

Grassley learned that over the past decade, FINRA had referred 19 complaints about suspicious trades at SAC to federal regulators. Curious to see how many of those referrals had been looked into, Grassley wrote the SEC on May 24th, asking for evidence that the agency had properly investigated the cases.

Two weeks later, on June 9th, Khuzami sent Grassley a surprisingly brusque answer: "We generally do not comment on the status of investigations or related referrals, and, in turn, are not providing information concerning the specific FINRA referrals you identified." Translation: We're not giving you the records, so blow us.

Grassley later found out from FINRA that it had actually referred 65 cases about SAC to the SEC, making the lack of serious investigations even more inexplicable. Angered by Khuzami's response,

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he sent the SEC another letter on June 15th demanding an explanation, but no answer has been forthcoming.

In the interim, Grassley's office was contacted by Flynn, who explained that among the missing MUIs he had uncovered were at least three involving SAC – one in 2006, one in 2007 and one in 2010, involving charges of insider trading and currency manipulation. All three cases were closed by the SEC, and the records apparently destroyed.

On August 17th, Grassley sent a letter to the SEC about the Flynn allegations, demanding to know if it was indeed true that the SEC had destroyed records. He also asked if the agency's failure to produce evidence of investigations into SAC Capital were related to the missing MUIs.

The SEC's inspector general is investigating the destroyed MUIs and plans to issue a report. NARA is also seeking answers. "We've asked the SEC to look into the matter and we're awaiting their response," says Laurence Brewer, a records officer for NARA. For its part, the SEC is trying to explain away the illegality of its actions through a semantic trick. John Nester, the agency's spokesman, acknowledges that "documents related to MUIs" have been destroyed. "I don't have any reason to believe that it hasn't always been the policy," he says. But Nester suggests that such documents do not "meet the federal definition of a record," and therefore don't have to be preserved under federal law.

But even if SEC officials manage to dodge criminal charges, it won't change what happened: The nation's top financial police destroyed more than a decade's worth of intelligence they had gathered on some of Wall Street's most egregious offenders. "The SEC not keeping the MUIs – you can see why this would be bad," says Markopolos, the fraud examiner famous for breaking the Madoff case. "The reason you would want to keep them is to build a pattern. That way, if you get five MUIs over a period of 20 years on something similar involving the same company, you should be able to connect five dots and say, 'You know, I've had five MUIs – they're probably doing something. Let's go tear the place apart.'" Destroy the MUIs, and Wall Street banks can commit the exact same crime over and over, without anyone ever knowing.

Regulation isn't a panacea. The SEC could have placed federal agents on every corner of lower Manhattan throughout the past decade, and it might not have put a dent in the massive wave of corruption and fraud that left the economy in flames three years ago. And even if SEC staffers from top to bottom had been fully committed to rooting out financial corruption, the agency would still have been seriously hampered by a lack of resources that often forces it to abandon promising cases due to a shortage of manpower. "It's always a triage," is how one SEC veteran puts it. "And it's worse now."

But we're equally in the dark about another hypothetical. Forget about what might have been if the SEC had followed up in earnest on all of those lost MUIs. What if even a handful of them had turned into real cases? How many investors might have been saved from crushing losses if Lehman Brothers had been forced to reveal its shady accounting way back in 2002? Might the need for taxpayer bailouts have been lessened had fraud cases against Citigroup and Bank of America been pursued in 2005 and 2007? And would the U.S. government have doubled down on its bailout of AIG if it had known that some of the firm's executives were suspected of insider trading in September 2008?

It goes without saying that no ordinary law-enforcement agency would willingly destroy its own evidence. In fact, when it comes to garden-variety crooks, more and more police agencies are catching criminals with the aid of large and well-maintained databases. "Street-level law enforcement is increasingly data-driven," says Bill Laufer, a criminology professor at the University of Pennsylvania. "For a host of reasons, though, we are starved for good data on both white-collar and corporate crime. So the idea that we would take the little data we do have and shred it, without

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a legal requirement to do so, calls for a very creative explanation."

We'll never know what the impact of those destroyed cases might have been; we'll never know if those cases were closed for good reasons or bad. We'll never know exactly who got away with what, because federal regulators have weighted down a huge sack of Wall Street's dirty laundry and dumped it in a lake, never to be seen again.

Editor’s Note: The online version of this article has been amended from the print version to reflect that the SEC’s case against Deutsche Bank proceeded beyond a Matter of Inquiry to a full-blown investigation.

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• Jason Edward Prather 1 comment collapsed Collapse Expand

Only if the crimes were commited by Billy the CLinton ALmighty, the first black President according to Toni Morrison, Presidential Medal of Freedom Winner, you might know his guy named Bernie Madoff! The perfect patsy under Clinton! WHoa, sorry bad visual image! or Barack Obama Messiah's Owner George SOros, he sure payed enough money for him, (rotten rich where's his tax records!) they might cover up for him, beyond that I'm not sure!

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• Jaysel1 1 comment collapsed Collapse Expand

p { margin-bottom: 0.08in; }

Altamont Made off with Millions echoingBernie Madoff scheme

Mark Twain once said history doesn'trepeat itself, but it often rhymes. And the old bard, known to havebeen suckered by a few investment schemes in his lifetime, surelymust have been rolling in his grave learning that the balance sheetsof Madoff and Co. resembled fiction more than generally acceptingaccounting principles. Yet in a new leaf of financial history,Altamont Global Partners of Longwood Florida took poetic license when

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they devised a scheme of producing pleasing limericks reminiscentof Bernie Madoffs's quarterly statements.

According to an investigation conductedby the National Futures Association, a watchdog group overseeing futures dealers, AGP principals John Wilkins, Paul Rangal and PhilipeLeone, admitted to misaporopriation of investor funds by grantingeach other loans that totaled an excess of 3.5 million dollars. Inorder to make the short fall on the balance sheets they simply usedpoetic license and fabricated the quarterly and monthly reports tothe duped investors. Although most people have a hard time feelingsympathy for acredited investors worth $5,000,000 or more wholegitamtely qualify for hedge fund limited partnerships, this was notalways the case here since as many as a third of these investors didnot qualify as acredited investors, were encouraged to be vague onthe accredited invrestor certification allowing them to invest withas little as $25,000 with the Mckinley fund and $10,000 with theMatterhorn Fund which were eventually closed out to new invesotrs. In March 2012 around the start of the baseball season, the NFAauditors suspected something suspicious that resembled the outlandish1941 style baseball season batting averages with returns that did notquite resemble the modern steroid enhanced homerun statitistics ofBarry Bonds, Sammy Sosa and Mark McGuire that conjure up images ofBernie Madoff avoiding hostile bystanders witnessed by the paparazzion his way to his oppulent penthouse after his arrest. Unlike Damagiowho hit safely in 56 games and Ted Williams remarkable .406 battingaverage in that magical 1941 season, the returns were only slightlysuspicious because they almost never showed a losing month. In abrilliant move to boost credibility, Altamont's Matterhorn fundcreated in 2010, had been under performing the more volitile S&Pyet still had an attractive Sharpe ratio which is used in the hedgefund industry to indicate how a return of an asset compensates theinvestor for the risk taken, the higher the Sharpe ratio number thebetter. It was the statistically keen eye of Peter Comes ComplianceSupervisor on the case for the NFA, a rather obscure agency that is adivision of the government funded CFTA that noticed the abberationand commenced a rigorous audit that eventually unveiled the scheme.But where is the SEC in all this and how could this be allowed tooccur under their noses. Didn't the nose bleed they got from themishandling of the Madoff affair stiffen their resolve?

Despite the numerous suicides relatedto the Madoff scandal and the embarrassment to the SEC regarding theMadoff affair, the SEC once again have been duped and more shamefullyare looking the other way when it comes to criminally charging thesepool operators. According to Mrs. Katz of the SEC, the SEC does notconduct any criminal investigations on their cases. In fact it doesnot even appear that the SEC is conducting any investigation intothis recent scandal. As for the jurisdiction of the NFA according toPeter Comes, they do not conduct criminal investigations and theironly possible remedy is to ban Mssrs. Leone, Wilkins and Rangal

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from trading Futres again. So after admiting to falsfying monthlyand quarterly statements to make up for the fact that they didabsolutely no trading at all and/or had to cover up for massivelosses are free to drink Maritnis and watch the sunrise from theirmansions. Florida has gnerorous real estate protection laws thatprotect uncrupulous homeowners creditors. OJ Simpson and manycorrupt princpals of corporations Enron and Worldcom coincidently yshave a residence in Florida)while wanna be acredited investors havebeen robbed of their life savings and may possbly lose their homes.

John Lockman509 4931480

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• Kat Pacheco 1 comment collapsed Collapse Expand

hey Matt, in one of your 9/11 Truther hit pieces on your blog (Truthers Fight Back!) you noted that some of the conspiracy theorists speculated that WTC 7 was destroyed to cover-up evidence in ongoing SEC investigations. Doesn't sound so far fetched now, does it?

• A Like • Reply • 8 months ago • 0 Like • F

• George Buzzetti 1 comment collapsed Collapse Expand

What else is new. Read "Crossing the Rubicon" and "Hapsburgs to Hitler" and you will understand it all. Total corruption and the quest for a fascist world just for them at the expense of everyone else. That is why they are going for education. Just like McDonalds, get them when they are born.

The game is on. Will the public wake up in time? Maybe, if the occupy movement does not turn out to be astroturf. They cannot sit around like they are in Los Angeles without direction. I listened to them in L.A. vote to not have leadership. To not take a stand on Wall Street. To not use a bullhorn so all could hear in the noisy downtown environment. Not one person I talked with knew that the L.A. City Council had a resolution signed on by the mayor to let them stay there as long as it was peaceful. You can be peaceful and have real

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positions.

The Ron Paul people that we did not need a government all we needed were corporations. What? People are so lost in space and stupid that they vote for their own self destruction. Just like Heavens Gate when they thought they could go meet the space brothers at the comet with their Nike shoes on. WAKE UP.

• A Like • Reply • 8 months ago • 0 Like • F

• Daniel Owen 1 comment collapsed Collapse Expand

Let us not forget, it isn't just that the SEC wipes the slate clean, the SEC itself was wiped clean on 9-11-2001, when WTC 7 collapsed in comical fashion.

• A Like • Reply • 9 months ago • 0 Like • F

• Robert Henry Eller 2 comments collapsed Collapse Expand

Dear Dave LeFavre, and everyone else:

Please either read Ayn Rand yourselves, or stop buying into the often repeated and gross distortion that Rand's belief in and defense of capitalism included approval and encouragement of stealing.

Ayn Rand, whose books I have read, made very clear that any capitalist transaction was an honest exchange of real value. Stealing does not fit that definition.

The so-called, self-styled capitalists who tout Rand in defense of any and all actions, legal and otherwise, by the likes of AIG and Goldman Sachs, are either lying, deluded, or haven't read Rand either. Even someone who knew (in several senses) Rand, Alan Greenspan, deliberately or ignorantly distorted her beliefs about what capitalism is.

Rand would have absolutely been against the bank bailouts. She would also have fully supported prosecution for bankers who broke the rules and laws.

Rand's model of a capitalist was Steve Jobs, not Lloyd Blankfein or Richard Fuld.

The Wall Street bankers who have stolen and gotten away with it are as capitalist as George W. Bush, with the willful blood of tens of thousands of innocent people on his hands, is Christian.

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Ayn Rand could have been in Zuccotti Park. I wish she was. Rand would have (and did) articulated what the problem is far better than the Occupy Wall Street people have so far.

The problem is not capitalism. The problem is the distortion and abuse of capitalism.

Letting the banks fail would have been an ultimate act of capitalism.

We need more capitalism, not less. In the sense that Ayn Rand championed it.

Again, please read Ayn Rand, or Adam Smith, for that matter, to understand and appreciate what real capitalism is supposed to be, by the people who articulated and defended it.

Thank you. And thanks, Matt Taibbi, for being a real capitalist, delivering valuable facts and honest analysis in return for your pay.

Robert Henry EllerMilan, Italy

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• Judith Knaiz 1 comment collapsed Collapse Expand

When I opened my brokerage account Oct 2008 I bought 1,000 shares of Royal Bank of Scotland for $1.per share. Ten days later the company underwent a reverse split and 15 for 1 and I suddenly owned 50 shares. I tried to through my brokerage firm's operations department to find a publication of this split. I worked in finance and if a company splits say 1 becomes 2 they needs must publish their intention beforehand. No such requirement accompanys a reverse split.I follow the market on CNBC and this week Citibank known as Citigroup on the exchange went from $3 to $26 without comment. This price change reflects a reverse split. Citi did a reverse split a little while back and the stock slid back down. So they did it again? The SEC should look into this practice. I cannot believe such goings-on with the OWS protesters outside the window. Exemplary gangster behaviour. Matt Taibbai you are one of the few voices I trust in this world. jonicadet

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• Reginald Tinwirth 1 comment collapsed Collapse Expand

Breaking video on Wall Street SECrets

tinyurl.com/3gpvbbm

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• Dave LeFevre 2 comments collapsed Collapse Expand

Again, Rolling Stone and Matt are the only people doing real journalism about some of the most widespread outbreaks of white collar crime in history. I guess Ayn Rand felt that steeling was okay, too, as long as it suits your own best interests.

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• Kimberly Sherman Bailey 1 comment collapsed Collapse Expand

Dear LeFavre,I agree with Robert, try reading her books before you make statements about her beliefs.

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• Jens Lhrs 2 comments collapsed Collapse Expand

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Uinited States of Bananas!! A shame!! Greets from Germany!!

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• Doreen Young 1 comment collapsed Collapse Expand

I just realized I signed into Rolling Stone. I still have a few issues from the 70's! I am a techno newby! I'm on FB a lot, but they keep doing goofy stuff to shut us domestic terrorists up! The last 3 wks. has been HELL! My PC went down, I did a full restore, and had to call AT&T, Norton, and HP. Not ONE was in the US, my bank acct. has been jacked, and on that note, I'm so peed off @ these DC/Wall St. bottom feeders, I can't stand to see their faces, and definately am sick of reading what illegal BS comes out daily! Since I'm new, nice to be here, and off to see what my dear FB friends have posted. I really need a new/comfortable bed, so when I opened Overstock.com, typed in search for spondylosis, they put up an ad for Drs. treating this-) and ended up on here!!! Thank you so much! Off to tell everyone about a tech I got from the Phillipines, who agreed that Barry Boy shouldn't deny his ROOTS there either!! Btw, I only want to buy made in the USA!!!;-D

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• Joseph Walsh 1 comment collapsed Collapse Expand

I SAW AMERICA BEING ROBBED FOR 5 YEARS ON A DAILY BASIS BY FRONTRUNNING. WENT TO ARBITRATION WITH 8 FRONTRUNNING CASES AND TO PROTECT THE CRIMINALS THE OFFICIAL ARBITRATION TAPES WERE THROWN OUT. I HAVE HAD NO GOVERNMENT RESPONSE IN 13 YEARS. WROTE 18 LETTERS TO OBAMA AND TOLD HIM EVERY ENTITY OF GOVERNMENT WAS NOT RESPONDING TO ME. I GAVE HIM PHONE NUMBERS TO CALL TO VERIFY AND NOTHING HAPPENED MY REP JEFF MILLER HAS NOT RESPONDED TO ME IN 10 YEARS AND HE TOLD OTHER GOVERNMENT ENTITIES NOT TO RESPOND TO ME AND AT LEAST 8 HAVE NOT RESPONDED TO ME. NOW A COURAGEOUS SEC LAWYER CAME OUT AND SAID THE SEC THREW AWAY 9500 CASES. THE

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SEC AND DOJ HAVE NEVER RECENTLY CAUGHT A BIG MONEY CRIMINAL AND A FORMER NY STATE AG CAUGHT THE CRIMINALS ONE AFTER THE OTHER AND SAID IT WAS EASY. LISTEN TO MATT TAIBBI AND MICHAEL MOORE

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• Richard Perdomo 1 comment collapsed Collapse Expand

Yes they are! This is precisely where our capital response to the forces of market as the best economic option has a pitfall. Without check and balances instituted in our constitution to guarantee probity, the SEC created to be a check, is bribed as it is in our government legislators by the lobbyist. There is no incentive for an appointed SEC member to impede ill-gained wealth, when the beneficiaries of that wealth are willing to spread some of it on the SEC members. It is the same as the corporate lobbyist do to our senators and representatives to get favorable treatment. In Florida, for instance, FLP, the electrical energy producing giant, got the state government to fire two power regulators because they had unfavorable reviews of their acts. One of the unfavorable issue they wanted to expose was the fact that the president of a semi- monopolistic company as a power company makes $300,000 a month, and that the state with public monies paid one billion dollars just to study the feasibility of constructing nuclear power plants, something that they as a private company should cost on their own.The whole check and balance has been corrupted with Reagan and Bush economics. These are the new royalty!SEC appointees should be closely monitored as DEA agents are. A DEA agent living well beyond his means is immediately suspect of colluding with the drug lords. The SEC agency should have an Internal Affairs office as all police forces have, after all they are a police force, not an elite overseer not really expected to do nasty police work

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• Judy Hilton Coburn 1 comment collapsed Collapse Expand

matt, having worked for the large wire houses in the late 80's into the mid 90's, their regulation of the industry was simply lax. they'd send someone in at required times, make copies of what they needed and left. bare minimals and routine....their protocol was more than questionable and obviously not followed up. lame, at best.

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• Jennifer Felten Boyance 1 comment collapsed Collapse Expand

The fact that the SEC is trying to get out of this by stating that the MUIs are not "records" is bogus. The definition from NARA is here: Records or Federal records is defined in 44 U.S.C. 3301 as including ``all books, papers, maps, photographs, machine readable materials, or other documentary materials, regardless of physical form or characteristics, made or received by an agency of the United States Government under Federal law or in connection with the transaction of public business and preserved or appropriate for preservation by that agency or its legitimate successor as evidence of the organization, functions, policies, decisions, procedures, operations or other activities of the Government or because of the informational value of the data in them (44 U.S.C. 3301). So, I think this assertion is tenuous at best.

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• Herb Klinker 1 comment collapsed Collapse Expand

Lehman's (and Bear Stearn's) collapse could have been prevented had not Mr. Cox's SEC not rubber-stamped an industry proposal in 2004 that allowed the investment banks to determine their own acceptable degree of leverage, based on their own proprietary models .

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• Matt Lewis 1 comment collapsed Collapse Expand

The SEC is a wholy owned subsidiary of Govt-Sachs. These domestic terrorists on Wall st

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and Investment banks are about as Patriotic as Al Qeada. Only diference is that Goldman-sachs has done far, FAR more damage to America than those whackos and the gutter religion could hope to.

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• [deleted] 1 comment collapsed Collapse Expand

OMG..My best friend has just announced her wedding with a great man who is a cele+brity! They met-via { himillionaires^c o m }It is nice club for rich men or pretty girls mate. You do not need to be wealthy or famous, but you can meet your true love, it's worthy a try.

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• Suzannah Troy 1 comment collapsed Collapse Expand

Great article. Reads like fiction but it is the truth! I wrote a story 2003 called “chopping the street, one mega-million at a time” , starts with life after Sept. 11 in NYC but it is about a woman that takes over an international biker club and turns them into a global financial service firm on wheels. My point was that white collar crime is above the law and costs the tax payers a fortune whether they are caught and often they are not or prosecuted successfully or not. It is sad the Feds could not stop the crime and were not monitoring them with the measures the do with organized crime so does this make what you point out legalized organized crime? By the way, I submitted Chopping the Street to The New Yorker, Playboy, Esquire...they all past on the story but Fox has a hit tv show Sons of Anarchy. Ironic huh? Please google my name and CityTime SAIC also ECTP 911 Tech System and board of ed deals for the largest white collar crimes ever in NYC gov. history although sadly most New Yorkers don’t seem to know we have the largest theft and fraud of tax payer money EVER!!!! You can see YouTube footage of me standing with with Local 375 outside SAIC’s NYC offices asking for our tax payer money back! I say a billion x 3. I talk about RICO charges meaning x3. Like this Rolling Stone piece no arrests so far no RICO charges....

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• Jason McCants 1 comment collapsed Collapse Expand

Matt---

ALL foreclosures were/are illegal---loans weren't "loans"---no "mortgages"---just "manufactured default"---Wall StreetBanks/GSE's ponzi schemes have destroyed America---where is the JUSTICE??? :

“Fannie and Freddie—-GSEs—-could not just sell the Note- on performing loans—- this would be securities fraud to the GSE security investors. The Note (and it’s receivable stream) had to be falsely placed in default and charged-off in order to sell the “Note”—- but, when this happens the Note no longer exists—thus, all that is sold is collection rights to a once existing note.Security investors fund the BANK—not the borrowers—there is no direct relationship between security investors and borrowers. If banks are able to sell their income stream, that is an accounting transaction—it is not a “loan” to borrowers. This is why security investors are NEVER the creditor.Collection rights transfers are not funded by borrower transactions (ie fabricated refinance). Collection rights are transferred by assignment—not NOTES (which is why NOTES are fake). When some people here talk about Non-Deposit “trust” non-members—they are referring to derivative transactions—that “SWAP” out collection rights—although the credit enhancers pay cash for collection rights—they use insurance for the purchase of the rights. This is why the subprime was so profitable—the bank debt buyers put up no cash for transaction—but, were then able to profit by the “sale” of the receivable pass-throughs to security investors.. This is also why MBIA (insurance co.) legal action against BOA and others is hugely important."

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• [deleted] 1 comment collapsed Collapse Expand

i remember when storch was placed at the head of the sec by goldman. yea, look, i think 3 or 4 years into this, all of the people who have been reading zerohedge, naked capitalism, links from dollarcollapse, and a matt taibi and articles from all over the internet land of something trying to get at 'truth' ...the people who are interested in the truth, they know what is coming. what is coming is

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more crime, either due to the system accelerating its present path to avoid collapsing, or a different sort of anarchic crime , from the onset of a collapse.

we are at the beginning of the very steep part of a parabolic curve and you don't know when it's going to hit the asymptote.

matt, thank you for your reporting these last few years and good luck.

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• Guy Falkes 1 comment collapsed Collapse Expand

Very obvious the entire upper level of the SEC is entirely criminal in nature.There isn't a single excuse except 100% criminal intent.

The entire SEC agency should be closed immediately and every single trading house put under intense investigation with intent of closure the moment any wrong doing is found.

Time to weed out the parasites. Lets get the stomping boots on and kick some blood sucking squid butt.

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• Susan Singh 1 comment collapsed Collapse Expand

This article is what journalism should be doing, instead of focusing on two minute sound bites. Thank you for investing your energy and time into the SEC'S lack of oversight into the markets. There are so many so-called Americans that have used their darkest energies into cultivating avenues of corruption at every level of our society. They hide behind the identity facade of a so called job-title and yet they have harmed this culture in ways that most people cannot possibly imagine. They know who they are and I truly trust that the karmic force of truth will ferret out their crimes, all for the sake of money and power. There is no therapy or drug that will allow those who have corrupted the American peoples government to be free and happy. The only way one can be happy is by right work, right effort, and waking up each day with the intent of doing good and helping those around us by our sincere efforts. I am saddened that so many from my generation took the path of deception even after we learned from the pentagon papers that we needed to be stewards of our hard won freedoms and mindfully evolve in such a way that the world benefits morally and spiritually from our

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efforts. Matt, I have read much of your writing and am so grateful that someone instilled in you the wisdom of living in a principled way. You are a light in a steady stream of darkness in our capital city. I know from living here that the reason they destroyed what legally belonged in our national archives was an attempt to hide corruption so rotted and foul that they decided it belonged in a landfill. They know who they are and their protest is just another aspect of their corruption identity and drama. Good journalism may right now be our only hope for the restoration of sound government for the American people. Please keep up your investigative journalism, many thanks, Susan S.

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• Phil Ryan 1 comment collapsed Collapse Expand

Good work Matt - linked from POGO website - cheers

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• Laser Haas 1 comment collapsed Collapse Expand

That IS the question Harold Feinleib

How many MUI's became an investigation?Of the many prelim MUI's purportedly trashed - exactly how many were there?Madoff, Peters, Stanford, Rothstein, Discala, eToys, Bain, Sachs, JP Morgan;how many of these names were submitted and then dumped.Each particular case, how many times was Madoff trashed 1, 2 or 10 times?

You know we will not (if ever) - see the OIG report on this - for several years.

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• Charlie Dickens 1 comment collapsed Collapse Expand

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This is my surprised look… Oh please… There is so much corruption in our government that a blind man could find it. Matt did an excellent job explaining the background and the problem. Someone had to raise the red flag, again, and insist that there is an elephant in the room. How far would you go with this? After all, the entire system is based on corruption. How deep would you cut to remove the cancer without harming the patient? We are the target for the rich. They already have the poor; the middle class is next. Hello Feudal System. Rome is burning and we’re drinking beer and looking for the hotdogs.

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• Laser Haas 2 comments collapsed Collapse Expand

See Video of Matt Taibbi and Keith Olbermannplus other Goldman SAchs links and fraud details at

www. dailykos . com /story/ 2011/ 08/ 23/ 1009858/ -Matt-Taibbi-reporting-SEC-Cover-UPs-Goldman-Sachs-CEO-hires-Attorney?showAll=yes&via=blog_616405

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• Harold Feinleib 1 comment collapsed Collapse Expand

Does anyone know how many MUIs turned into full investigations?

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• Laser Haas 1 comment collapsed Collapse Expand

Congrats to Matt Taibbi and the temerity clan of inflexible fighters who refused to buy into the babbling bull s%#@ of Main stream media with the repetitive protection of Corrupt corporate America.

Today, Goldman Sachs's CEO had to hire a Criminal defense attorney.

Not just any ordinary attorney - but the one and the same that defended WorldCom CEO and TYCO CEO

Don't know if that really bodes well for Sachs's CEO..

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• Donna Bray 1 comment collapsed Collapse Expand

Dr. Evil DOES exist!! He disguises himself as the S.E.C.!!!!!

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• Michele Moore 2 comments collapsed Collapse Expand

EXCELLENT article! I retweeted it enthusiastically from @MicheleHappy1

Bank whistleblowers who try to report accounting improprieties to the SEC are routinely harassed and silenced. I know because it's happening to me.

I was hired by SunTrust Bank (Trust Company of Georgia at the time) for their first McKinsey Client Team. I was able to see the Bank's operations from a very privileged perspective.

Three Executive Vice Presidents were fired for accounting improprieties during a major SEC investigation, the EVP I reported to survived. After hearing a trusted work colleague was pushed to

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suicide by all the problems, I went to the SEC with major accounting irregularities that were not mentioned in the press.

Shortly thereafter a long string of thefts, threats, telephone and email hacking and disruptions, and a stalk and smear campaign that has spanned many years and CONTINUES TODAY intensified. Law enforcement laughs and looks the other way when whistleblowers are harassed and silenced.

Documentation is provided on my Reporting Wrongdoing web site - I'm being blocked from including specific links. Be sure to see the Stop Silencing and Attorney Needed pdf sheets.

If you have ever wondered why we don't hear more from bank whistleblowers given all the fraud in the banking and mortgage industries, my experiences explain how they are silenced.

Whistleblowing attorneys and non profit groups like GAP and POGO ONLY take False Claims Act cases involving fraud against the government. If your whistleblowing case does not fall within the narrow specialty of this law, they won't help you. Corporate whistleblowers are left with little help or legal support.

Reporting wrongdoing should NOT ruin your life. This needs to be a topic of another wonderful Rolling Stone expose.

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• Laser Haas 1 comment collapsed Collapse Expand

Correct Michele Moore - you nailed it.

The Whistle-blower groups in DC are no help to the masses.

Please email me the details of your case - we will gladly review the facts and publish what you wish, that is corroborated.

Hang in there, there are several of us here, who did lose everything for blowing the whistle and turning down career advances - refusing to become part of the schemes.

The inflexible sword of Truth is your best weapon.

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• Arthur Washburn 1 comment collapsed Collapse Expand

These guys drove country into ditch with the SEC covering their tracks.

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• Karen Lee Sands 1 comment collapsed Collapse Expand

This should be broadcast on CNN!!!! The world needs to listen!!!! Wake up people!!!!

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• Joel Reinstein 1 comment collapsed Collapse Expand

yall seen that internet-rage-face? the hideous bloodshot-eyes-crumply-chin face, looks like it was drawn in MSPaint? yeah.

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• Sue McCormack 1 comment collapsed Collapse Expand

YES! This is just the tip of the iceberg with compilicity abounding - the tentacles spread far and

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deep and it's not just limited to the SEC - Why are these criminal actions not on the front page of every major newspaper in the country? Of course we know why, since this is an extremely inconvenient truth! The Emperor's New Clothes - Well done Matt!

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• Thom Langley 1 comment collapsed Collapse Expand

Thanks Matt. Step lightly, & travel quietly.These are exceedingly dangerous animals whose noses you tweak. Truth to Power Bro'!

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• Laser Haas 2 comments collapsed Collapse Expand

R U 4 Real Walter?

4 profit to find fraud - we would all get rich - Quick!

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• Cynthia Brewer 1 comment collapsed Collapse Expand

THOSE RECORDS ARE FROM THE FRAUD FROM THE HUMAN GENOME PROJECT, WHERE PRIVATE INVESTORS PATENTED OUR DNA SO THEY CAN CLAIM TO OWN US

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SO THEY CAN TO BIOTECH AND PHARMACEUTICAL EXPERIMENTS ON US BY RIGHT OF OWNERSHIP. THEY CAN ALSO STEAL FROM US AND INCARCERATE US FOR THE SAME REASON AND WITHOUT ACCOUNTABILITY. THEY CLAIM THEY HOLD TITLE TO OUR BODIES FROM THAT DISASTER.CYNTHIA MARIE BREWER HUMAN 5001 TAXONOMY 9606 AND PRINCIPLE IN FACT OF BRE CELL, GENE AND CLONE LINES - TAKEN WITHOUT DISCLOSURE OR CONSENT

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• Walter Cruttenden 4 comments collapsed Collapse Expand

Obviously the SEC isn't the swiftest organization; they failed to recognize the Enron and Madoff frauds even after numerous early complaints and allegations. But the issue is not government collusion or corruption. They simply don't have the skills that exist in the private sector. The best solution would be to shut down the SEC and allow the private sector to set up organizations that make a profit for ferreting out fraud. A little less government reliance and more independent thinking on the part of the individual wouldn't hurt either.

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• David Michael Quinones 1 comment collapsed Collapse Expand

Actually, Walter is right. I work in the intersection of public and private sector fraud detection and asset recovery, and the government agencies silo their investigators -- not the investment people; the ones who should be chasing the crooked investment people -- to a degree that their skills sets are limited. It isn't a big government-small government political issue, it's simply a fact. The best anti-fraud work is done by boutique firms in New York and the Caribbean who you've never heard of, and the IRS Criminal Investigation unit. Current incarnations of the SEC and FBI leave something to be desired.

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• 11 months ago • in reply to Walter Cruttenden • 0 Like • F

• Thom Langley 1 comment collapsed Collapse Expand

I've heard of delusions, but this one ranks among the greatest I've ever seen!

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• Patt Reid 1 comment collapsed Collapse Expand

@Walter Cruttenden: are you serious? Do you have a straight face now? You're blaming the SEC because they are a government agency and therefore 'not too swift'? The private sector is doing the crimes and have bought off the SEC, yet you say, "They (SEC) simply don't have the skills that exist in the private sector." Uh, yeah, they're not as good at covering their tracks. Is the SEC failing? Yes, but that's because we value greed and money over honesty and integrity; that's capitalism at work. These people who "simply don't have the skills that exist in the private sector" are being hired by the private sector as a reward for their cover-ups. Did you even read the article or are you so anti-government that you are blinded to the sins of the capitalist abusers? That's like blaming your mother who is unable to stop your father from beating you. It's alright that the beatings continue, but not alright if preventing them fails.

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• Meister Omega 1 comment collapsed Collapse Expand

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Occupation?

Stand-up Philosopher

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• Laser Haas 1 comment collapsed Collapse Expand

Eliot Bernstein put this up on my FaceBook page

"We the people are the rightful master of both congress and the courts - not to overthrow the Constitution, but to overthrow the men who pervert the Constitution." - Abraham Lincoln

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• Maria Marsala 1 comment collapsed Collapse Expand

Type your comment here.

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• Linda Joy Adams 2 comments collapsed Collapse Expand

Type your comment here.

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• Reply

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• Laser Haas 1 comment collapsed Collapse Expand

What, silence - no words, just a hat tip that you were here!

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• Maria Marsala 3 comments collapsed Collapse Expand

Well, if all the information in this article is true, the SEC is actually hurting the people they should be protecting a) the investors b) the financial professionals who follow the rules.

And why do they exist?

• Patt Reid 1 comment collapsed Collapse Expand

Marsha, we have a culture in this country of "greed is good". They (SEC) exist because capitalists cannot/will not police themselves. There is too much money and too much power at the top. Unless and until we change the culture of our country, to "what serves the country and the people of the country is what is good for the country", we can expect more of the same. It's great to blame the SEC for acting like capitalists if it deflects us from looking to closely at what the bankers and corporatists are doing to the country. Perhaps there is something wrong with a system that looks the other way when corporations abuse the people of the country.

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• Laser Haas 1 comment collapsed Collapse Expand

Unfortunately Maria Marsala,

you can say the same thing of many in the Dept of Justice, US Trustee's office, OIG, Public Integrity Section (remember the prosecutor who (purportedly) committed suicide in the Ted Stevens case).

They know they can get away with it, because we granted them the power and the money, the steal, brown bag around, along with promises of better career pathways, helps them promote tyranny, cronyism and corruption - without restraint.

Especially Judges........

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• Laser Haas 1 comment collapsed Collapse Expand

Toby

I am losing websites on a daily basis. www . ACT4Justice . com and hundreds of others. My enemies defrauded some big people of hundreds of millions. They funded a grass roots campaign. We even went to MN with ACT4 T-Shirts en mass (ACT4 means American Citizens Together 4 Justice). The MN Dist and BK courts already had made up their minds before the hearing transpired and approved the fact that NO ONE could sue those who plead guilty or did not get charged. Even though there is a MVRA Mandatory Victims Restitution Act the MN Federal Judge (Kishel) said he would rule that it did not apply.

Can you imagine the backlash, if the judge had said that Ron Goldman could not sue OJ?

Those dollars were coming through a law firm to pay for the web sites.They realized the better we did in grass roots, the less they could fleece the funds in legal fees.So they deliberately crucified us on many fronts and then I made a mistake which allowed them to justify their bad faith.

Willing to work with anyone, on any case or website, to stop injustice.It is a noble battle, to be an amoeba, on the sandal of David, fighting a horde of Goliath's.But it ain't fun!

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• Toby Seiler 2 comments collapsed Collapse Expand

Laser, How about creating a website named "that-ruling-says-what?.com" for posting pleadings and rulings. They are public documents.

My case record is complete. Fraud was requested for judicial notice in the 2003 Complaint and every pleading therafter. It was "certified" in 2008 and I attacked it collaterally with a RICO suit, which was dismissed with prejudice, although the attorney admitted to the judge that he defrauded the trial court. Thus I have exhausted all avenues in state court, and extortion, under color of law is well documented. The thief is living in my stolen modular home.

I can purchase the CD, including the full appendix which has all 1460 pages. The most important is the original Complaint, then the trial court ruling and appeals court ruling. Fraud, misrepresentation of when lawful process began, is obvious.

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• Lidia Swiatkowski 1 comment collapsed Collapse Expand

We are going through the same wall having 3 appeals at the same time. Every judge hits the wall of Citibank corrupt machine. As a single individual it is impossible to have anybody to listen. the story ends with court clerks making decision for the judges. I wonder what they are promised? Judicial position or the legal post at Citibank. I think OWS is doing wonderful thing. they will be the force to reckon with in the elections to come and they know it. What goes on beyond the Wall that Street is separated from? I think something that 99% will not like it.

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• Nancy Dadkhah-Zaitooni 2 comments collapsed Collapse Expand

Just look at what Obama is getting by with on a daily basis...'nuff said!

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• Patt Reid 1 comment collapsed Collapse Expand

Oh, goody, another Obama-basher who has nothing worthwhile to contribute to the conversation. How unique. No solutions, no facts. Just hate and blame. It must suck to be you.

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• Nancy Dadkhah-Zaitooni 2 comments collapsed Collapse Expand

Look at what Obama is getting by with on a daily basis...'nuff said!

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• Thom Langley 1 comment collapsed Collapse Expand

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What, in the name of all that is schizoid and irrelevant, is that supposed to mean?

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• 11 months ago • in reply to Nancy Dadkhah-Zaitooni • 0 Like • F

• Delia Lopez ForCongress 3 comments collapsed Collapse Expand

Thomas Jefferson stated that the two enemies of the people were criminals and government. Government corruption is rampant across this nation. We created this government to secure our rights, we have allowed it to become an overbearing monster from whom we must get permission to catch a fish! The Constitution was written to restrain the power of government TO PROTECT THE RIGHTS OF THE PEOPLE! Until Americans begin working together to shrink government and get it back under our control, which was what the tea parties were about when they started. They were 41% democrat and 49% republican and protesting Bush wars and the bailouts. Koch brothers jumped in with money later and our complicit media has distorted the message. Which is get the government off our backs and out of our lives, cut spending and stop policing the world. Did you read about the tea party protests of GE paying no taxes and getting 3.2 billion in tax dollars? Did you read about the tea party protests of SWAT raids on raw milk farmers and consumers? Of course not, it does not fit their agenda. Wake up we must unite and work together to stop the government and politically connected scam of robbing the people and destroying our nation.

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• 11 months ago • 0 Like • F

• Thom Langley 1 comment collapsed Collapse Expand

Unity? When TSHTF, only one organizations allegiance will matter, the SU armed forces. If they follow the orders of the oligarchs, we're all doomed. If they, on the other hand, protect the citizens from the corrupted police forces, we may stand a chance of getting out of this thing relatively unscathed.

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• 11 months ago • in reply to Delia Lopez ForCongress • 0 Like • F

• Laser Haas 1 comment collapsed Collapse Expand

You are correct Delia; unity is the key.Most don't care about the direct harm of others, including corruption like Toby has experienced. Because they cannot see the forest from the trees.

Change only comes through united efforts demanding what is right.

UNITY is the key....

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• 11 months ago • in reply to Delia Lopez ForCongress • 0 Like • F

• Toby Seiler 2 comments collapsed Collapse Expand

Something else that you might want to consider are elected legislators and executives that are lawyers by trade. In elected positions, where lawyers are put into office, they have a conflict with being a "check" upon the judicial branch. Few if any legislators who are attorneys, will speak out against judicial wrongdoing. They have a prior bar commitment to maintain a "hands off" approach to judge wrongdoing, else they will face retaliation, swift and severe.

The second group of legislators are non attorneys. They fear retaliation also, but do not have the bar commitment.

Thus each lawyer elected to a legislative or executive position, assures that a "check" on the power of the judicial branch is meaningless. Now the 80% case that are "tort" are simply a fraud game, selling rulings with no fear of discipline or a check on abuse.

Then we have the non

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• Laser Haas 1 comment collapsed Collapse Expand

R U aware, that attorneys at law give up their right to free speech, once they receive their BAR card? They cannot speak out against the system - even in times of cronyism & corruption, lest they lose their BAR license. Ask Mark Adams Esquire or Mary Alice Gwynn in Florida - or Jack Thompson.

You can see the real way the DOJ works, in the case of In re Convertino. US Attorney Rick Convertino criticized AG Ashcroft's handling of terrorist issues. He was then prosecuted by US Attorney Craig Morford, who had also prosecuted James Traficant. In the Traficant case, JT believed in the system and represented himself - paid a heavy price for his naivete. Morford deported Okolo to make sure the vindication evidence did not make it into court and Morford terrorized Rick Detore who went on C-SPAN and told Congress that he was forced by Craig Morford to perjure himself.In the Convertino case, he was the Michigan US Attorney who had successfully prosecuted the 1st two terrorist after 911. To assure the case of punishing Convertino, Special Prosecutor Morford had the court Release the 2 terrorists. Spending millions and millions of dollars in a 2 week trial - it took the jury less than 8 hours to vindicate Convertino on a plethera of charges.

What no one else tells you about - is Mo Hurley. Craig Morford was nominated to be the Deputy Director - No 2 - under US Attorney General Gonzales. Through Mo Hurley sending out, over and over, the facts to Congressman, Senators and noted scholars - Craig Morford left the Dept of Justice - and could NOT get a lucrative job in a law firm.

The Truth and temerity are the best weapons of the American citizenry. They are able to get away with it, because the citizenry does not care enough what happens to each other - until it is too late.

For once they find themselves in the position of you or I - then no one else cares about them.

Sam Adams and Einstein said the same thing;We are not in trouble because of the evil men may do against good people.RatherOur trouble is the evil that transpires, while good people do nothing about it!

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• 11 months ago • in reply to Toby Seiler • 0 Like • F

• Toby Seiler 2 comments collapsed Collapse Expand

My property, a modular home, was stolen from a storage business July 15, 2003 and the prosecutor, two attorneys and three judges assisted the thief to extort the title, "certified 2008". They

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manufactured a cover up scheme over a moth after the theft was reported.

The Chief Judge of the Court of Appeals assisted them by misrepresenting when legal process began, so the "burden of proof" is misrepresented to be a month after the theft. The panel "affirmed", saying my arguement that the burden of proof is when the act happened, July 15, not over a month later in August, "is not cogent".

Transfer was denied and known fraud, judicially noticed manufactured evidence.... prevaied upon appeal. The chief judge violated 18 USC 1017 and 1018, when he "certified" known (requested for judicial notice 11 times) fraud... so the thief could retain the stolen property and not be held accountable.

Burton simply traded (quid pro quo) antique tractors to the storage business owner to convert my property. The unlawful act was completed when my property was removed from the storage business and delivered to 600 North.

Discipline commission dismissed without investigation. Theft pays if your friends are controllng court while you defraud it.

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• Laser Haas 1 comment collapsed Collapse Expand

Toby;

It sounds like you found a group doing "The" most common crime against the American people - a "Color of Law" civil rights violation. Crimes statute of limitations are usually 5 years from the date of the discovery of the crime being committed.

Unfortunately, when the "Fix" is in, the courts will utilize anything they can to permit their "good ole boys" network to prevail. As reported below, the Chief Justice said 34 acts (CONFESSED mind you) - of false affidavits was Not Perjury.When we appealed such in a timely manner, we found out that the Senior Justice of the 3rd Cir was Stapleton, who also was a partner with MNAT law firm.We asked the question if Stapleton justice was related to Stapleton Region 3 US Trustee and never got an answer, TownHall pulled down the public blog and Kelly B Stapleton resigned from being a US Trustee.

The 3rd Cir stipulated that the Federal Rules of Appellate Procedure (FRAP) - did not apply to us. If the FRAP Rules do not apply, then the 3rd Cir had no legal right to address the issue. Nor do you need to get me started about the fact that District Ct and Circuit Court Judges are nominated by the President - But Bankruptcy Judges are Hand-Picked by the Circuit Court.

How can any court avoid a conflict of interest, when they are ruling on their own, hand-picked parties?

Be that as it may, we still have hope. The Truth remains as our inflexible weapon, against tyranny,

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cronyism and corruption. If you would like to give me the details of your story, I would gladly research the facts and publish it - as a 3rd party asking why & how they can get away with this in America.laser AT petters-fraud dot Com

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• 11 months ago • in reply to Toby Seiler • 0 Like • F

• Laser Haas 1 comment collapsed Collapse Expand

If they can do all this in public - in the open

do you have any idea how much they are getting away with because they know you don't careas it is not your money they are directly stealing

OR IS IT!?!?!?!?!

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• 11 months ago • 0 Like • F

• Laser Haas 2 comments collapsed Collapse Expand

OH Yeah, By the Way

Remember who got your $700 Billion dollar bailout

GMAC and Chrysler

Guess who owns them at that time

CERBERUS

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• 11 months ago

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• Patt Reid 1 comment collapsed Collapse Expand

Are you confusing the bailout with the stimulus?

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• 11 months ago • in reply to Laser Haas • 0 Like • F

• Laser Haas 1 comment collapsed Collapse Expand

Oh yeah

Harold Bonacquist ofTraub Bonacquist & Fox

was listed by the NY Supreme Courtas to be contacted by calling the US Embassy or Consulate General in the Philippinesto make an appointment with Harold Bonacquist in Istanbul

Who is he working there and why does one need to call the Philippines firstWellMr. Bonacquist works with Dan Quayle

Dan Quayle is the spokesperson for Cerberus

What does Cerberus translate into from the Greek

The Guardians of the Gates of Hell

Where Dan Quayle, John Snow work, Rumsfeld is a clientandCerberus partner Ezra Merkin owns Gabriel Fundthatwas the Feeder Fund to MadoffNOT PROSECUTED

Wonder Why!

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• 11 months ago • 0 Like • F

• Laser Haas 1 comment collapsed Collapse Expand

Now, if you think these crimes are only related to the Toy Industry - thing Again.

Paul Traub, having an Illegal keep the keys to the stolen goods card

became partners with Marc Dreier, who is now doing 20 years in prison

became partners with Tom Pettersnow doing 50 years

worked both sides of OKUN 1031 Tax GroupTraub for OKUN 1031his partner Michael Fox of Traub Bonacquist & Foxwent to Olshan Fromme and worked for the Creditors/Trustee of 1031 Tax Group

OKUN is now doing 100 years

Traub was also involved in AdelphiaEnronK martLevitzStage Stores

and MNAT (Goldman Sachs secret attorney) nominted Paul Traub to prosecute Goldman SAchsThe SEC said that is not a crime

But Paul Traub and Barry Gold also worked for Goldman SachsIn re Cosmetics Plus NY SD Bankruptcya case they never mentioned - when they were disclosing (purportedly) everything

Traub handled the NY Sup Ct case of eToys suing Goldman Sachscase # 601805/2002eToys was suing Goldman Sachs because Sachs took eToys publicwhere the company was paid $16.50and Goldman Sachs was to only get $1.50 commissionbut the stock went above $78 where did the rest of the money go

We have no ideaRemember, MNAT, while LYING about not being connected to Goldman Sachshad the Court grant permission to DESTROY Books n Records

as for the NY Supreme Ct case

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wellthat entire caseis Under SEAL

Paul Traub's other partner, Harold Bonacquist was listed on the NY Supreme Ct

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• 11 months ago • 0 Like • F

• Laser Haas 1 comment collapsed Collapse Expand

We reported all this, including the fact that the Removed Region 3 Trustee, Roberta DeAngelis, was (secretly) made the General Counsel of the US Trustee's office in Washington DC.

Therefore she was put in charge of investigating herself.

All this was given to the Dept of Justice Public Corruption Unit in Los Angeles(after all, California is the home office of the eToys BK, even today)

That US Attorney, decided to help the SEC and Dept of Justice - Obstructing Justice againHe walked into a weekly staff meeting, yelled at everyone in the roomand then he Shut down the Public Corruption Task Force

Not only did he do that publicly, the Los Angeles Times reportedthat he actually Threatened career Asst US Attorney's to keep their mouths shut or ELSE!

articles. latimes . com/ 2008/ mar/ 20/l ocal/ me-shakeup20

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• 11 months ago • 0 Like • F

• Laser Haas 1 comment collapsed Collapse Expand

Problem is, we informed the Delaware US Attorney ourselves

But they had their own conflict of interest

Refusing to investigate or prosecute MNAT, Traub, Gold, Wells Fargo and/ or Bain, KB Romney, the DE US Attorney failed to tell us 1 thing

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He was a partner of the MNAT law firm in 2001the very year the crimes began

www. justice . gov/ archive/ olp/ colmconnollyresume. ht

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• 11 months ago • 0 Like • F

• Laser Haas 1 comment collapsed Collapse Expand

Delaware Chief Justice Walrath says she does NOT have to refer the matter to the US Trustee's office, because admitting to 34 false affidavits and the scheme to put Barry Gold in secretly - was Not Perjury.

Martha did one verbal lie to an officer, to save herself a loss - and went to jail for 6 months

These attorneys lied, knowing not to do so, to harm their clients, for the benefit of their SECRET clients, after Direct instruction by the Police against doing soLying for 4 years, with more than 34 false affidavitsand the Judge said it was NOT perjury, therefore she refused to refer the matter to the US Attorney

See pages 51 thru 53 of the OPINION

petters-fraud .com /MFW_Opinion_Oct4_2005_granting_TBF_immunity . pdf

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• Laser Haas 1 comment collapsed Collapse Expand

Then, another visiting justice (Randolph Baxter from OHIO) is handed my claim.

Seems even Judge Walrath was not willing to go as far as to crucify me totally.

Judge Baxter had a whole bunch of facts from my side - without holding an evidentiary hearing.

It is called Ex Parte

Did it without me and designed an A to Z list of why I should not be paid and expunged us under Rule 41(b) - With Prejudice

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At least someone admits there is prejudice

He did this illegal dealing on August 25, 2005afterThreatening me that if I reported any more on the crimeshe would sanction me

Paul Traub's partner Susan Balaschak had told me, through an email from my own attorney in mid 2004, that if I did NOT stop from investigating their fraud and back off

I would not get paid, my career would suffer and they would come after me in other ways

Randolph Baxter made sure that such Intimidation of Victim/ Witness (18 USC 1512 1513) was carried out

We filed an timely appeal in September andJudge Walrath headed off our appeal with an OPINION of Oct 4, 2005granting DEpt of Justice Immunity to Paul Traub

Problem is = a bankruptcy judge and Trial attorney for US Trustee's has NO legal rights to handle criminal issues. The Bankruptcy court realm, judges and US Trustee's are CIVIL ONLY employees.

That is why we have 18 USC 3057(a) and 28 USC 586(a)(3)(F)Ordering, by Congressional Law, that a Judge and US Trustee - MUST - Notify & Refer all criminal matters by law violations of an attorney or judge to the US Attorney's office

0 new comment was just posted. Show

• Laser Haas 1 comment collapsed Collapse Expand

So Chief Justice Mary F Walrath(MFW) in charge of eToys = hands off my company claim to be paid. After all, we had a federal judges signed contracteToys, before we came on board - had signed an order to pay all of the employeesDOUBLE their pay

That's right folks, while in Bankruptcy, they felt they could fleece everyone so much, the court approved Doubling of everyone's pay check.

We removed more than 1000 employees and replaced them with 20 of our own6 required by contractwith the court's promise we would be reimbursedyou are going to sell all the assets for $3 to $5.4 millionwe get you back nearly $50 million

Our reward

LISTEN to this carefully

MNAT was approved to submit our paperwork to the court

So MNAT told they court- that we WAIVED our rights to be paid

Yep, you are reading correctly.

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Be a whistle-blower, turn down an $800,000 bribeandthose who confessed to more than 34 acts of Perjurycan falsify a document, put your name on itand call it a WAIVERwe waived all the money we owed our lenders and ourselvesand graciously gave it away to the crooks

Right

W R O N G

the court did NOT read the document. If you are going to forge a document and call it a waiver, is should at least not say

That all CLI can receive is success fees.

Items 10 and 11 specifically state we can be paid - so how can something that says you can be paid - be a WAIVER

Must be that twilight zone, time warp thingy...

petters-fraud.com/ Haas_Affidavit_816. pdf

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• Laser Haas 1 comment collapsed Collapse Expand

What we found really funny, is that the visiting Judge (Sullivan, Donald) who was presiding that day. Heard my motion on the fraud and told the US Trustee to let me speak.While I was speaking to the Court, I was amazedthe Judge's Order approving of expunging the evidencePopped up on the docket - while I was speaking to the Judge

Time warps - ain't they so cool!

• A Like • Reply • 11 months ago • 0 Like • F

•

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Laser Haas 1 comment collapsed Collapse Expand

Then, in the Kay Bee Toys case, we reported the crime there and how ludicrous it is that Capone should be prosecuted by Frank Nitti.

Dept of Justice and SEC crime of Obstruction No 2 documented in the physical = online - court docket records

Mark Kenney petitions for the Court to STrike & Expunge the evidence, including an Affidavit by the Chairman of the Creditors Committee.

petters-fraud.com/KenneyKB_Obs... . pdf

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• Laser Haas 1 comment collapsed Collapse Expand

Sorry about the double posting

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• Laser Haas 1 comment collapsed Collapse Expand

So, as anyone can guess, we were mad that DOJ Deputy Director Lawrence Friedman words and promises seemed to now go out the window.

I don't care if a judge wants to go softly on Traub, Gold and MNATbut you CAN NOT allow the thieves, caught red-handed robbing a bankto keep the keys to the vault and bank branch they are fleecingwhile the Police become depublictious and willfully blind!

Alerted by the obvious ruse, that there was even more dirt they did not want me to find, I decided to digg deep what other "not compel to disclose" items were hidden.

We found 10o crimes

Including the Wells Fargo Foothill capitaland$100 million in the Kay Bee Toys Bankruptcy

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See, Michael Glazer, who was CEO of KB, paid himself and BAIN $100 million prior to KB filing for bankruptcy.

Sounds like Lehman Brothers -it is even worse

Michael Glazer paid himself and BAIN $100 millionand MNAT is defending BAIN in the KB Toys case (DE Bankr 04-10120)

Guess who asked the court for permission to prosecute the case

Yep - believe it or not

PAUL TRAUB

When I pointed this out to the SEC and Deputy Director Friedmanthe SEC Bankruptcy Fraud guy vanished, his gal (Susan Sherril-Beards) called me to tell me I really should leave the law issues to those who know what they are doing

and

DOJ Deputy Director Friedman RESIGNEDwww . justice . gov /ust /eo /public_affairs /press/docs/ friedman_resignation_4-27-05 . htm

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• Laser Haas 1 comment collapsed Collapse Expand

So, as anyone can guess, we were mad that DOJ Deputy Director Lawrence Friedman words and promises seemed to now go out the window.

I don't care if a judge wants to go softly on Traub, Gold and MNATbut you CAN NOT allow the thieves, caught red-handed robbing a bankto keep the keys to the vault and bank branch they are fleecingwhile the Police become depublictious and willfully blind!

Alerted by the obvious ruse, that there was even more dirt they did not want me to find, I decided to digg deep what other "not compel to disclose" items were hidden.

We found 10o crimes

Including the Wells Fargo Foothill capitaland$100 million in the Kay Bee Toys Bankruptcy

See, Michael Glazer, who was CEO of KB, paid himself and BAIN $100 million prior to KB filing for bankruptcy.

Sounds like Lehman Brothers -

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it is even worse

Michael Glazer paid himself and BAIN $100 millionand MNAT is defending BAIN in the KB Toys case (DE Bankr 04-10120)

Guess who asked the court for permission to prosecute the case

Yep - believe it or not

PAUL TRAUB

When I pointed this out to the SEC and Deputy Director Friedmanthe SEC Bankruptcy Fraud guy vanished, his gal (Susan Sherril-Beards) called me to tell me I really should leave the law issues to those who know what they are doing

and

DOJ Deputy Director Friedman RESIGNEDwww . justice . gov /ust /eo /public_affairs /press /docs / friedman_ resignation_4-27-05 . ht

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• Laser Haas 1 comment collapsed Collapse Expand

Dept of Justice Obstruction of Justice No 1

less than 10 days after the Motion to Disgorge, the SEC Bankruptcy Fraud Division in ATlanta GA told us they spoke to DE DOJ Trial Attorney Mark Kenney and that the issue was solved.

Then, Mark Kenney gave Paul Traub and TBF an ILLEGAL - Stipulation to Settlewhere the DOJ made this promise

"WHEREAS the United States Trustee shall not seek to compel TBF to do additional disclosures"

This blew our mind, but you can see the WHEREAS clauses are a cover uppetters-fraud.com/US_Trustee_M... . pdf

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• Laser Haas 1 comment collapsed Collapse Expand

The Deputy Director of the Dept of Justice US Trustee's program - Lawrence Friedman's email seemed to be true -- at 1st.

Director Friedman removed the Region 3 US Trustee (Roberta DeAngelis) and replaced her with a Fraud prosecutor Kelly B. Stapleton on December 22, 2004 press release

Coincidently, December 22, 2004 is the very day of the Emergency hearing in eToys to handle the Perjury & Fraud (we have the transcript of Asst US Trustee Frank Perch saying Traub failed to disclose a serious issue from the beginning)

Then Asst US Trustee Frank Perch put forth the Motion to Disgorge Traub Bonacquist & Fox for $1.6 million. This item even made it to the Wall Street Journal on July 25, 2005Judge finds possible Conflict of Interest in eToys by WSJ reporter Joe Pereira

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• Laser Haas 1 comment collapsed Collapse Expand

Not only did they scheme for Liquidity Solutions and its connected associated firm Madison Liquidity Partners to buy up the claims in eToys.

Barry Gold lied to the court - on the stand - to the eToys shareholders he worked forsaying this Confessed NOW - false statement

The Confirmed Plan of eToys was drafted in "extensive" arm's length good faith negotiations between Debtors and Creditors

That is between Debtor (Barry Gold) and Creditors (Paul Traub)where arm's length is Impossible to achieve

• A Like • Reply • 11 months ago • 0 Like • F

•

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Laser Haas 1 comment collapsed Collapse Expand

After Barry Gold was secretly (ILLEGALLY) made President/ CEO of eToysLiquidity Solutions (Co-Debtor of Stage Stores) - related to Bain/ Kay Bee and Romneybegan buying up the claims of the eToys case.

Anyone can buy claims, including the DebtorHOWEVER,you must disclose all connections.Any connected Claims purchase is forbidden to profit. are not permitted to profit one pennyas it would be a Preferential treatment.

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• Laser Haas 1 comment collapsed Collapse Expand

MNAT is the Delaware Attorney for Goldman SAchs and BAIN

Barry Gold and Paul Traub worked with BAIN interest for over a decadeincluding in the Stage Stores case prior to eToys

Then, MNAT handled the merger of The Learning Company with MattelThis made MNAT also attorney with MattelThe owner of The Learning CoMitt Romney, Bain, Sankaty etc etc

Mattel lost over $1 billion dollars and gave The Learning Company away for freeto Gores Technology Group.That happened in 1999the same year eToys went public with Goldman SAchs

Then, in the fall of 2000, everyone knew eToys was going to file bankruptcy.

So Paul Traub arranged for their other secret client = Wells Fargo/ Foothill Capitalto loan eToys $40 million during November 2000and though Foothill Capital loaned them moneyall proceeds went to Wells Fargothe loan was closed up prior to March 7, 2001transacting over $100 million

The failure to point out these connections is a crimeanother case involving a former Goldman SAchswas In re Bucyrus 94-20786 -- Gellene from Milbank & Tweed

Gellene went to jail for hiding the connections (by Perjury)

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Milbank & Tweed had to Disgorge $1.9 millionand lost more than $20 million in a malpractice suitSee the story in a book by Milton C Regan"Eat What You Kill" the Fall of a Wall Street Lawyer

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• Laser Haas 1 comment collapsed Collapse Expand

We report all these crimes to the FBI, SEC, OPR, OIG, Public Integrity Section, Senators, Congressman, OSC, OGE, President Bush's Corporate Fraud Task Force and the Deputy Director of the Dept of Justice over the Executive Office of US Trustee's (EOUST)

Director Lawrence Friedman sent me this email promise

From: Lawrence.A.Friedman@usdoj.gov

Date: 02/25/05 14:49:58To: ‘laserhaas@msn.com’Cc: Kelly.B.Stapleton@usdoj.govSubject: RE: Item sent to the record today

Mr.. Haas:

You most assuredly have our attention and my personal commitment that we will act in every case where action is required and we are aware of it. Please understand however, that like any prosecutor, we must exercise appropriate discretion in carrying out our responsibilities which while sometimes in a particular case may seem unjust, it is done with perspective to ALL matters we handle. I sympathize with your frustration and again assure you that my staff is extremely competent to handle this matter and will exercise appropriate judgment.

Lawrence A. Friedman, Director

Executive Office for US Trustees

United States Department of Justice

Washington, DC

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• Laser Haas 1 comment collapsed Collapse Expand

3 secrets about Stage Stores you never see in the papers or Resume of Mitt

Mitt personally owned the controlling stockLiquidity Solutions was Co-Debtor of Stage StoresMichael Glazer was a director/ stockholder at Stage Stores(BTW - Mr. Michael Glazer was also CEO of Kay Bee Toys at that time)

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• Laser Haas 1 comment collapsed Collapse Expand

Secretly, - because they have a plan. If you follow the true business profits of Romney and BAIN, you will see a whole different story.

Traub met Mitt and his Robber Baron horde in NeoStar.Jumbo SportsStage StoresBarry Gold testified that Jack Bush from Dallasgot him jobs oftenJack Bush is the CEO of IdeaForest, a Bain entityMr. Bush was also at Jumbo Sports and Stage Stores

Barry Gold worked for the Director at Stage StoresPaul Traub worked for the Stage Stores bankruptcy caseS TX Bankr. 00-35078

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• Laser Haas 1 comment collapsed Collapse Expand

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My company - Collateral Logistics Inc (CLI) was the court approved head of eToysthey were going to sell everything to Bain/ Kay Bee Toys for $3 to $5.4 million

we made them pay much more - where there was almost $50 million in the bankruptcy case

That is why they persecuted me - they offered me an $800,000 bribe to look the other way

I said no

and it almost cost them tens of millions of dollars

I say "almost"

because they stole it back....

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• Laser Haas 1 comment collapsed Collapse Expand

Traub and MNAT then violated the Police of the Courts instructions(as the US Trustee - all 21 of them - are the Police of All 1.5 million yearly bankruptcy cases)

Traub has confessed that he 'Secretly" placed in his partner - Barry Goldwho was also a paid associate of his Law firmas thenew President, CEO and Confirmed Plan Administrator of eToys

So the Bank Robbers, asked the Police if they could rob the bankWere told NOthenWent ahead and did it in secret

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• Laser Haas 1 comment collapsed Collapse Expand

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You can see in the United States Trustee's motion to Disgorge, that Traub and MNAT specifically asked if they could "hand-pick" the key executive of eToys.

They were told NO (again see parts 19 & 35)as it would violate the lawSection 327(a), Rule 2014 by failing to be a Disinterested Person (as per 101(14)

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• Peter Gatliff 1 comment collapsed Collapse Expand

To bad people seem to be unable to make the connection between the "Business Plot" of 1934 and the familys, corporations and orgs of today trying to destroy our Democracy. The book "The Plot To Seize The White House", by Jules Archer was a real eye opener. Also the testimony from "McCormack-Dickstein House Committe On Un-American Affairs" is an instant replay of todays political climate on Wall Street.

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• Laser Haas 1 comment collapsed Collapse Expand

Asst US Trustee Frank Perch testified, in the Motion to Disgorge Traub Bonacquist & Fox for $1.6 millionthatTBF had committed a fraud on the courtsee parts 19 & 35 ofpetters-fraud.com/DisgorgeMoti... . pdf

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• Laser Haas 1 comment collapsed Collapse Expand

You can also see the facts of Dept of Justice Cover UPs and Obstruction atwww . petters-fraud . com/DOJ_Cover_UP . html

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• Laser Haas 1 comment collapsed Collapse Expand

RS does not allow linksso you can see the web links to these facts atwww . laserhaas.wordpress . com

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• Laser Haas 1 comment collapsed Collapse Expand

Traub Bonacquist & Fox firm (TBF) and Paul Traubalso confessed to supplication of more than 17 false affidavitsTBF was eToys creditors attorney

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• Laser Haas 1 comment collapsed Collapse Expand

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One of the very 1st crimes in the eToys case, beyond the erroneous Rule 2014 Affidavits of MNAT, was the Motion to Destroy Books n Records(Docket item ("D.I.") 300 - in DE BK case 01-706)

You will find NO other case where a Court approved of the Destruction of EvidenceEspecially at the very beginning of a case.

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• Laser Haas 1 comment collapsed Collapse Expand

MNAT withheld the fact that it was Goldman Sachs attorney when it became the eToys Debtor attorney.

This was Perjury to perpetrate Fraud on the Court - by an Officer of the Court.

US Sup Ct has stated in the case of In re Hazel Atlas Glass v HartfordthatFraud on the CourtbyOfficers of the Courthas

NO Statute of Limitations

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• Laser Haas 1 comment collapsed Collapse Expand

The MNAT law firm has confessed to supplication of more than 15 false affidavits in the Delaware Federal case of In re eToys 01-706

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• Laser Haas 1 comment collapsed Collapse Expand

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Here is just a few cases, of the SEC & DOJ doing a cover up - to stop Goldman Sachs, Bain, Wells Fargo and Cerberus from being investigated - and the exact facts that I have posted online - testifying to all Federal Agents as True and Correct Under Penalty of Perjury

Toys R Us is in Possession of Stolen PropertyeToys

Toys R Us is owned by BAINBain conspired with Goldman Sachshaving the same attorneyto dump the public company eToysso that Bain/ Kay Bee Toys could steal eToys public company assets for pennies on the $andGoldman Sachs could succeed in the classic "pump-n-dump" schemetaking eToys public in 1999 and bankrupting such March 7, 2001

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• John Hablinski 1 comment collapsed Collapse Expand

Americans who read this article will come away with anger and disgust. Those who were listening more closely to the news in the middle of the last decade will remember many questions of impropriety inside the SEC starting at the top. We heard implications that the fox was guarding the hen house. It was much worse than anyone might have expected for a law enforcement agency of the US Government. Get a rope!

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• Alexander Schmidbauer 1 comment collapsed Collapse Expand

Thanks for some honest and intelligent journalism Mr. Taibbi. Keep up the good work.

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• Al Foss 1 comment collapsed Collapse Expand

If they executed all those who commited crimes against we low life citizens, most financial districts in America would be ghost towns. But I guess only a "higher power" could do it for us and I do see this coming as we enter the highly anticipated "last days" The names of these criminals will have been forgoten even by historians.

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• Stephen Green 2 comments collapsed Collapse Expand

All the wars being fought by the US, there's only one war we never see or hear about. That's the"war" being fought by the 'haves' against most of us, the 'have nots'..There's really only one power in this once great nation, and that's the power of MONEY!

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• Laser Haas 1 comment collapsed Collapse Expand

Well said Mr. Green

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• 11 months ago • in reply to Stephen Green • 0 Like • F

• Laser Haas 1 comment collapsed Collapse Expand

To an idiot, everyone with more intelligence, must appear to be a moron and above!

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• Laser Haas 1 comment collapsed Collapse Expand

Wow Walter Frazer, considering the source, that is a highly profound reflection.

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• Walter Frazer 1 comment collapsed Collapse Expand

Matt Taibbi is a liberal moron.

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• Lucky Lieberman 1 comment collapsed Collapse Expand

Mikie,

Left, Right, Republican, Democrat, Liberal, Conservative, if they are in Public Office they are all the same, corrupted no good murderers, thieves, liars and rapists. Their track record speaks for themselves......Ban private lobbying, with life in prison with no parole for either party that participates, no presdiential pardons for these lowlifes.

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• Karen Viau 1 comment collapsed Collapse Expand

Thanks Matt for a great piece of investigative journalism! I have written Senator Grassley with my support for finding out the details of the destruction of files by the SEC. This is a story that should be on the front page of every newspaper! Please write your congressman, senator, white house, SEC, and anyone else you can think of to make sure that this story is kept alive, and the SEC is held accountable. Matt,you went out on a limb for all Americans, in your search for the truth on this subject, now let all us Americans make sure that we receive the answers!

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• Laser Haas 1 comment collapsed Collapse Expand

You ask how Madoff or Petters could get away with it for a decade or more. We have the SEC destroying files, the Delaware (I call it "Deal-aware") courts having attorneys Confessing to Fraud on the Court by Perjury - and Chief Justice Walrath said admittances to 34 acts of false affidavits to the court is NOT perjury. She let the crooks, who were caught red-handed inside the federal faults fleecing, keep the keys and continue to defraud.

We pointed out in the Petters Fraud case that a MN Asst US Attorney had a brother connected to the

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crimes, Asst US Attorney J Lackner's brother was Marty Lackner, who was a partner with Greg Bell of Lancelot/ Sky Bell.

Surely we should ask questions of this guy. Did his brother know of the Petters issues? Did one brother give anything to the other brother?

It is a BIG story for the press- Correct????

But the MSM said no.

Even when that brother of the MN US Attorney's office

Committed SUICIDE.

The Main Stream Media said it wasn't a story........

See MPRNews More than lost fortunes in the wake of Petters' Ponzi scheme

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• Penny Armstrong Bernath 1 comment collapsed Collapse Expand

Orwellian is an apt description.

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• Vince Ruff 1 comment collapsed Collapse Expand

Haven't read the entire article yet. I'll do it later tonight. One thing I've been saying for a couple years now is this. It's NOT republican vs. democrats. It's NOT "red" vs. "blue" states.

It's the elite vs. the rest of us. Big Oil, Pharm, Insurance, etc. vs. the middle class.

Corporations, Money, Power vs. the other 95% of Americans.

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• Barry Schmittou 1 comment collapsed Collapse Expand

Check out :

treasonevidence.blogspot.com

obamacontributorsfelonies.blog...

bidriggingandhealthcarefraud.b...

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• Art War 2 comments collapsed Collapse Expand

I question the source, not the story. The markets have been minuplated for as long as they existed. The problem is that in times of old a good public hanging went a long way, let's hang a few stock brokers, bank execs and throw in a few lawyer for giggles. Take them all down to ground zero and string them up on national TV, that should at least put the fear of BOB into them.

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• Mike Lemmon 1 comment collapsed Collapse Expand

First we kill the MBA's.William Shakespeare

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• Eliot Bernstein 2 comments collapsed Collapse Expand

From my Upcoming Second Circus Court of Criminals Filing,"A. ANDERSON WHISTLEBLOWER TESTIMONY REVEALS A CRIMINAL RICO CARTEL’S COUP D’TAT ON GOVERNMENT AT THE HIGHEST OUTPOSTS OF LAW AND REGULATION

NEW YORK SUPREME COURT WHISTLEBLOWER ATTORNEY, CHRISTINE C. ANDERSON, ESQ. (“Anderson”) MAKES FELONY CRIMINAL ALLEGATIONS IN US FEDERAL COURT AND BEFORE THE NEW YORK SENATE JUDICIARY COMMITTEE. ALLEGATIONS AGAINST SENIOR RANKING OFFICIALS OF THE US ATTORNEY’S OFFICE, THE NEW YORK ATTORNEY GENERAL’S OFFICE, THE DISTRICT ATTORNEY’S OFFICE, THE NEW YORK SUPREME COURT, THE NEW YORK SUPREME COURT DISCIPLINARY DEPARTMENTS, “FAVORED LAWYERS AND LAW FIRMS” AND A “CLEANER”, AS REVEALED IN FEDERAL COURT TESTIMONY, NAMED NAOMI GOLDSTEIN. THESE ALLEGATIONS DEMAND IMMEDIATE REPORTING, INVESTIGATION AND HALTING OF THE LEGALLY RELATED IVIEWIT RICO & ANTITRUST LAWSUIT IN ORDER TO BEGIN INVESTIGATIONS TO IDENTIFY AND PROSECUTE THOSE FINGERED BY WHISTLEBLOWER ANDERSON and OTHERS.The “Legally Related” Federal Lawsuit of New York Supreme Court, Veteran Senior Supreme Court Disciplinary Department Attorney and Expert in Attorney Criminal Misconduct Complaints, Whistleblower, Christine Anderson, Esq., to this RICO & ANTITRUST Lawsuit, exposes from the inside a legal conspiracy of corruption involving the highest levels of Regulatory, Prosecutorial and Judicial Public Offices, both State and Federal. Heroism is a word earned through action. The Whistleblowing Efforts of Anderson, another New York Supreme Court Attorney Whistleblower and Hero, Nicole Corrado, Esq., and, a Sitting New York Supreme Court Justice, Honorable Duane A. Hart, Esq., all cited herein, should be the Moniker of HEROISM for others in the legal profession to follow. These Whistleblowers Expose Corruption at the Top of Government, including, the Courts, This Court, the Department of Justice, the New York Attorney General and others. They further provide the World with an understanding of how America’s Financial System has melted top down, from rigged economic breakdowns, with no Regulators or Prosecutors or Courts to stop it, in fact all of them aiding and abetting the crimes. Nobody attempting to recover the stolen funds for the PEOPLE, as all of the Government appears on the take according to these Whistleblowers. Their Whistleblowing efforts expose how and why no one on Wall Street/Greed Street/Fraud Street is charged with Criminal Acts, despite massive evidence of CRIMINAL ACTS and FRAUD, and further why none of the Stolen Loot from their Economic Crimes has been Recovered back to the People. What is unveiled is a COUP D’TAT on the HIGHEST OUTPOSTS OF LAW & ORDER in the United States and yet not a single story in the Mainstream Media aka US Pravda Press regarding these shocking allegations by insiders. lso exposed by these HEROIC WHISTLEBLOWING EFFORTS is a REVOLVING DOOR

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between a CORRUPT GROUP OF LAW FIRMS, ATTORNEYS AT LAW in both PRIVATE PRACTICE and PUBLIC OFFICE, working in CONSPIRACY within the RICO CRIMINAL ORGANIZATION to OBSTRUCT JUSTICE for the CRIMINAL ENTERPRISE, as they are DIRECT BENEFACTORS OF THE CRIMINAL ACTIVITY. Anderson, Corrado and Other Public Office Whistleblowers cited herein, also provide explanation for why Judges and Attorneys at Law are now desperately trying to grant themselves immunity for felony crimes in recent days. Immunity involving ATTORNEYS AT LAW and their part in TORTURE CRIMES, WAR CRIMES and the CREATION OF ILLEGAL/FRAUDULENT INSURANCE CONTRACTS that led to a RIGGED HOUSING COLLAPSE by FRAUDULENT CDO contracts and DERIVATIVE contracts that led to 8 MILLION VERY ILLEGAL FORECLOSURES WITH FORGED DOCUMENTS and MORE. While futile and obvious, these attempts show culpability in the crimes, a fear of retribution when the “long arm of the law” swings back. "

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• Laser Haas 1 comment collapsed Collapse Expand

Keep us informed Eliot Bernstein

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• Mike Lemmon 1 comment collapsed Collapse Expand

You'll never work in this town again, Taibbi! That name sounds a little middle eastern... suspicious.I'd stay out of small planes if I were you.

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• Mike Lemmon 2 comments collapsed Collapse Expand

I can hear the righties now, It's Clintons' fault. They are correct, it is partially his fault. I blame him for co-opting the democrats with big wall street money. Of course the problem accelerated with George W.

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• Lucky Lieberman 1 comment collapsed Collapse Expand

Mikie,

Left, Right, Republican, Democrat, Liberal, Conservative, if they are in Public Office they are all the same, corrupted no good murderers, thieves, liars and rapists. Their track record speaks for themselves......Ban private lobbying, with life in prison with no parole for either party that participates, no presdiential pardons for these lowlifes.

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• Lois Gagnon 1 comment collapsed Collapse Expand

If the lack of coverage by establishment press on this story doesn't convince the public that they have zero credibility, I don't know what will. They are completely useless.

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• Allison Frank 1 comment collapsed Collapse Expand

I dated the vice president of one of the big investment firms and you would not believe what he disclosed. Like, before the crash of 89, Wall Street knew it was coming, so the brokers all bailed out but took spoils from all their clients. Were any of these guys prosecuted? Of course not. I believe that if Americans knew what happens on the inside of investment banking, no one would ever buy a single stock, bond or IRA.

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• Gaby Romeri 1 comment collapsed Collapse Expand

i think what we're all trying to say is: Revolt Already.

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• Gaby Romeri 1 comment collapsed Collapse Expand

I was wondering who else's salaries we pay for -- besides the SEC, the FBI, & congressional oversight -- that deliberately thwarted doing what should be their jobs. I wonder how deep the regulatory capture goes...bet it's deep. We're paying extra for a system designed to crush us even more - perfect.

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• Pat Wooten-Kline 1 comment collapsed Collapse Expand

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Check this out.

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• Chalie Robinson 1 comment collapsed Collapse Expand

love matt taibbi keep up the hard work honest sincere thank you

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• [deleted] 1 comment collapsed Collapse Expand

Conveniently, SEC files on Wall Street investigations were also destroyed on 9/11 when WTC Building 7 collapsed.

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• Jay Stephenson 1 comment collapsed Collapse Expand

Good God, what's wrong with the media? This is 100 times worse than Watergate and should be splashed across every paper and news show in the country.

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• [deleted] 2 comments collapsed Collapse Expand

The brightest minds and finance will always choose high paying corporate jobs leaving the less desirable candidates. In order to compete with Wall Street we should pay federal financial regulators and enforces more than the people they are prosecuting that would level the intellectual playing field considerably.

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• Gloria Aleixo Hall 1 comment collapsed Collapse Expand

Laws that are enforced evenly are supposed to level the playing field.

SEC isn't even attempting to do that.

Boycott the stock market.

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• Corky Wedges 1 comment collapsed Collapse Expand

Leave it to Matt Taibbi to be brutally honest. No one has a better command of using the English language. I'd read most anything he wrote about anything just to read his descriptions out loud because they sound so good.

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• James Agee 1 comment collapsed Collapse Expand

This is a great story about a really urgent topic, but the way it's structured is a bit confusing. At the top of page two, Taibbi asks a rhetorical question along the lines of, "how did Flynn end up a whistleblower" and then there's the nice bit about the SEC literally asking for it in the form Khuzami's memo inquiring about lawyers behaving badly and Flynn misinterpreting it by reporting the internal incident involving Deutsche bank ten years' previously. But then later in the story it appears that Flynn began blowing the whistle early in 2010 when he noticed that documents were being destroyed. Did I miss something? What is the role of the Khuzami case, then? Just an illustrative anecdote about corruption at the SEC generally? If so, why introduce it as the loose thread that introduces Flynn's whistleblowing and leads to the unraveling of the corruption that provides the meat for this excellent piece? I only ask because now I have unanswered questions about how Khuzami reacted to Flynn unwittingly informing on his boss, how Flynn's decision to do this was or was not influenced by the face that he was already a known whistle blower at the company, etc. Again, great reporting, but the narrative is a little preposterous - also, on the last page when the narrative incorporates Grassley and hastens to detail how awareness of the scandal is expanding, dates seem to almost completely drop out ("August 17" for instance is mentioned without a year, so that I'm not clear whether it's referring to '10 or '11) so that the timeline becomes blurry. I'd really like to know details about what happened when most recently, particularly because I'd like to know how long the media has been totally in the dark about the fact that all this was going on. Excellent story, not the best editing.

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• Stephanie Palmer 1 comment collapsed Collapse Expand

Since I haven't heard of any executives going to prison, I guess the SEC isn't real serious, nor, apparently, does it have any particular reason for existence. Maybe we should just disband it, or maybe we should put its members in jail.

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• Dave Pula 1 comment collapsed Collapse Expand

Farther PROOF that the Fed Gov has become NOTHING but a CRIME SYNDICATE !!!!!!!!!!!

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• Patrick Bishop 1 comment collapsed Collapse Expand

Thank you Matt for reporting on an Ivory Tower organization much like the FDA, that acts only in its best interest and has standing documented orders to break the law daily. So much in your article to digest, the first question is who polices the SEC and who do they have to answer to - clearly Congress would be my guess and the Senate Banking Committee:

Tim Johnson Chairman (D-SD) Richard C. Shelby Ranking Member (R-AL)

Jack Reed (D-RI) Mike Crapo (R-ID)

Charles E. Schumer (D-NY) Bob Corker (R-TN)

Robert Menendez (D-NJ) Jim DeMint (R-SC)

Daniel K. Akaka (D-HI) David Vitter (R-LA)

Sherrod Brown (D-OH) Mike Johanns (R-NE)

Jon Tester (D-MT) Patrick J. Toomey (R-PA)

Herb Kohl (D-WI) Mark Kirk (R-IL)

Mark R. Warner (D-VA) Jerry Moran (R-KS)

Jeff Merkley (D-OR) Roger F. Wicker (R-MS)

Michael F. Bennet (D-CO)

Kay Hagan (D-NC)

So are these people asleep at the wheel as well? What actions have they taken to end the revolving door at the top of the SEC and its clear ethical dilemma.

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• [deleted] 1 comment collapsed Collapse Expand

Great article, actual fact checked journalism with detail.

The question I have is what is wrong with so many of the other journalists? Detail, who what where when and why are journalism 101. Almost none of our TV or Print or Internet "journalists" really report anything. Even people who agree with the temper and tone and conclusions that Matt puts forth do not do similar work. There is a lot to cover it cannot just be left to a guy like Matt and a couple of others.

Jeeze what is wrong with so many journalists I would think writing of this kind would be very satisfying and fun, if hard work.

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• Laser Haas 1 comment collapsed Collapse Expand

A case so big the main culprit attorney was involved as partner of Marc Dreierdoing 20 years

Partner with Tom Pettersdoing 50 years

worked both sides of OKUN 1031 Tax Group - where he was 1031 attorneyand his former partner was attorney for Trustee CreditorsOKUN got 100 years

What did Paul Traub getPOLAROID for FreeandDept of Justice Get out of Jail Free Cards extra-ordinaire

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• Laser Haas 1 comment collapsed Collapse Expand

also, see my testimony to all federal agents Under penalty of perjury atwww dot petters-fraud dot com/DOJ_Cover_UP dot html

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• Laser Haas 1 comment collapsed Collapse Expand

You can see Goldman Sachs and Bain fraud, with attorney confessions and Dept of Justice cover ups extensive at

www dot laserhaas dot wordpress dot com

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• Laser Haas 1 comment collapsed Collapse Expand

Should be is the Dept of Justice covering up Wall Street Crimes.We even re-submitted the case to the NEW SEC Tip info line TCR

We had previously submitted the cases to the MN, DE, CA and Wash DC Dept of Justice,the FBI (so many times nearly uncountable) - the OPR, OSC, Public Integrity Section, OGE, OIG. EOUST GC and even President's Corporate Fraud Task Force.

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• Laser Haas 1 comment collapsed Collapse Expand

DOJ covers up Wall Street Fraud on regular basis.

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• Laser Haas 1 comment collapsed Collapse Expand

Censorship by RS, please say it ain't so

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• Sue McCormack 1 comment collapsed Collapse Expand

A Salint Footnote For the Record - On March 11, 1999 Bankers Trust Company pled guilty to 3 Federal Felony counts of making false entries in bank book in the amount of $19 million(SDNY - 250-CR-99 - USA v. Bankers Trust Company). Deutsche Bank purchased Bankers Trust Company (along with the Bank Holding Coruporation) on June 4, 1999. On July 26, 1999, Bankers Trust Company was sentenced/convicted and became a Federal Felon (3 Counts) and as such Felons are prohibited from acting in any Fiduciary capacity whatsoever.

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• Susan Hoff Pizzo 1 comment collapsed Collapse Expand

Matt Taibbi, hero of the people!!! Light in the darkness, voice in the wilderness. You, sir, are this generation's Thomas Paine. I've already named my firstborn son, pity...

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• R. Dale Abshire 1 comment collapsed Collapse Expand

Natasha Dandridge

Office of Inspector General

U.S. Securities and Exchange Comm

Dear Ms. Dandridge,

Per the request of the Office of Inspector General of the U.S. Securities and Exchange Commission I submit the following information concerning SEC employees involved in suspected criminal activities. I am not an attorney and do not know all the laws that may have been broken. I am aware that whistle blower statutes protect government employees who blow the whistle on wrongdoing by others. I am not aware of any SEC employees making any claims with regards to this matter. Considering the enormous volume of information that I have provided to the SEC and the detailed allegations of wrong doing that have gone unanswered it can be assumed that all knew and all had a duty to take appropriate action. None did.

details at pwcsucks.com

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• R. Dale Abshire 1 comment collapsed Collapse Expand

April 15, 2009President Barack Obama The White House1600 Pennsylvania Avenue NWWashington, DC 20500

Dear Mr. President,

Thank you for helping with my March 2, 2009 request for help in getting the Securities and Exchange Commission to answer a Freedom of Information request for the identities of 14 companies that PricewaterhouseCoopers LLP had taken public with fraudulent documents. They have responded that the documents have now been destroyed due to the "retention period". Please consider this as a report of criminal fraud by members of the Securities and Exchange Commission, Goldman Sachs, PricewaterhouseCoopers, AXA Financial and others. Background:continued at pwcsucks.com

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• Tony Boyko 2 comments collapsed Collapse Expand

Thanks Obama! YOU SUCK.

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• Palmer Jan Ward 1 comment collapsed Collapse Expand

What? Why?

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• Leif Madsen 1 comment collapsed Collapse Expand

Taibbi, you are the best!!! I've been reading you for awhile now (read your book "Griftopia" which should be required reading everywhere!) and, as usual, you lay out with clarity what is really going on. Investigative journalism lives in Rolling Stone (thank goodness!) as it disappears from everywhere else...

I noticed the NYT article on this subject, looks like they did no work other than lift what you wrote entirely; nice they at least included a link to the source; not nice they gave you no credit ("Rolling Stone story" rather than an author credit) but why am I not surprised? Regular media has become mostly a shill for whatever corporate masters...

The revolution is coming soon to America - the corruption is too deep and an uprising seems the only alternative. The pattern of history is about to repeat again; the "rich" loose touch with the regular world, the poor increase to unmanageableness, the middle is overly squeezed and a violent contraction / response happens. I hope the information revolution helps to decrease a truly violent response - when corruption is identified in a free press; change can happen (Thanks indeed Matt!) - and other avenues of information are opening that the "corporations" cannot control.

Here's hoping that real justice gets served... keep up your great work Matt & Rolling Stone - when I want the truth of what's going on, I'll be reading it here...

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• Datura Seed 2 comments collapsed Collapse Expand

In order for this story to show up in a Google search for "Matt Taibbi", you have to also type in "August 17 2011". I wouldhave missed it if Matt hadn't told us it was coming in his Aug 16 blog post.

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• Vincent Kingston Coffee 1 comment collapsed Collapse Expand

You can always check Rolling Stone to see it posted...

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• Al Smithee 1 comment collapsed Collapse Expand

One more thing...

There WILL indeed be a RETURN to the Gold Standard for the US Dollar. HOWEVER, it will not be done in the same exact manner as that which existed prior to 1933. Instead, it will be done (eventually) via an FGCR (Federal Gold Certificate Ratio). BTW - The return to a (revised) gold standard may be the only thing left that saves & preserves the US Dollar.

For those that wish to argue against this point... FORGET IT!

This WILL eventually happen for many reasons (too numerous to mention) and James Sinclair has talked at length about this and he (IMO) KNOWS WHAT'S GOING ON. He also worked under Paul Volker (former Chairman of Federal Reserve) many years ago.

AGAIN, this will eventually happen (in spite of the age-old argument that "there's not enough gold!".... HOG WASH, it WILL happen).

Also, the US Dollar will cease to be the world's reserve currency and other currencies may revert (eventually) to a revised Gold Standard and foreigners/foreign govts will DEMAND accountability.

Gold isn't just REAL MONEY, it is a hedge... physical gold is INSURANCE. It has no counter-party risk.

FYI - Many of the extremely wealthy (from ripping off innocent investors) have bought incredible amounts of physical gold over the past 2-3 years, because they KNOW what real money is and they KNOW that the damage they have done will cause much further destruction of all fiat monies and economies world-wide.

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• Al Smithee 1 comment collapsed Collapse Expand

Hey Lucky - I'm afraid that you have it COMPLETELY BACKWARDS concerning Gold and the US Dollar!!

It's the US Dollar that is unstable... NOT Gold!

As far as free markets and capitalism... I agree there must be rules & regulations (and enforcement & punishment) to ensure that people don't cheat, commit fraud and steal.

Right now and for the past 20+ years, what we have is really Capitalism which has been altered & destroyed via massive fraud . And... the SEC and our Government (and law enforcement/court system) "Looked the Other Way" once deregulation occured under Clinton, Bush Jr. and a crooked & bought Congress-Senate.

I do believe in Capitalism and Free Open Markets (with transparency). But... there MUST be Rules & Regulations. Otherwise, the criminals and thieves come out to play and ruin it for everyone (this has already been done and TRILLION$ were stolen, thus ruining the world economies - that money will never be returned).

Pension Funds (both public & private) were also looted by Wall Street via fraudulent derivatives & other toxic paper.

FYI (to all): Wall Street CONTROLS the White House & Congress.

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• Lucky Lieberman 1 comment collapsed Collapse Expand

If I understand Dale Richey's comments correctly he thinks free markets are the best way to go. I see that several issues must be considered. There are no free markets when our government is on the side of the people that fix and control those "free markets."

Honest government regulations are absolutely necessary, because "capitalism is greed driven" & "free markets are predatory driven." As long as human beings are in the game, this is the way it will always be.

A "gold Standard' in my mind is a ploy for someone to make a lot of money and since its price fluctuates it is an unstable platform to depend upon and for what? The strength of the U.S. dollar has been based on our stable democracy and the economy of the working class in America which greases every wheel when they earn and spend money.

Government spending is not the way to keep the thing rolling, it is the ability for the American

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people to work, earn a decent wage and spend it on their needs and not allowing a corrupt government and its rich greedy and criminal manipulators robbing our pot of gold. And this is exactly what has and is happening as we speak. This latest round goes back to 1913 when The Income Tax Act was instituted to pay for the hijacking of our banking system by The Federal Reserve Banking System which I explained in my just printed article below.

My oh my what slick criminal minded lawyers in America can do to destroy a great civilization like a nation called America and as a matter of fact destroy the well being of the entire World. I have just learned about Scalia's son being a lawyer that and he gets to present cases before his father on the supreme court of America. I wonder if he has ever lost a case or if his law firm has ever lost a case before this court?

Just thinking out loud, but the pieces of the puzzle are making more and more sense now. I think Ron Paul is correct on abolishing THE FED but I feel that he doesn't have a sensible solution to replace it, and his ideas about free markets is a dangerous path to go, because they are controlled as I stated above.

But many thanks to the Rolling Stones Magazine for having the courage to allow Matt Taibbi to do his thing. Boys, watch your backs because these are the worst slime buckets on this planet that you are writing about and your life means nothing to them, and they will step on you literally like a cockaroach.

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• Anonymous 2 comments collapsed Collapse Expand

This is standard practice in the Warren County New Jersey Superior Court. I imagine it's widespread. If you're reading this, why don't you call up your county courthouse, or other agencies on the state level, and see how long they keep records. In Warren County it's six months.

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• Laser Haas 1 comment collapsed Collapse Expand

Most courts don't destroy, they just archive them in FAR away places

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• Lucky Lieberman 1 comment collapsed Collapse Expand

Follow this if you will; in 1913 the most powerful banking group in Europe bribed Woodrow Wilson who was running for president with enough money for him to be elected president. They also bribed congress and all of this was with the understanding that if Wilson won he would sign into law two things. First the Federal Reserve Banking Act which would create the Federal Reserve Banking System which would control the money of the U.S. Treasury. Second was the Income Tax Act.

This was and is a private for profit baning group that has dominion over your government's money. Here the catch. The governement was no longer permitted to print money for itself. It had to borrow the money from the Federal Reserve Banking System, which would have the Treasury secretly print the money so THE FED could loan it back to our government and earn the interest on it.

That is why you have the National Debt of 14 trillion dollars and that is why we pay the Federal Reserve Banking System ( or the people that the Federal Reserve Banking System sold the Treasury obligations to) close to a TRILLIONS DOLLARS A YEAR IN INTEREST ON THAT UNNECESSARY NATIONAL DEBT. In addition in 1913 the Income tax Act was passed so the government could pay the interest on this unnecessary National Debt.

Now we can do a couple of intelligent things. One we can make our U.S. Treasury our lender and two we can pay back the money we borrow from The Treasury and allow the Treasury to use the interest on the repayment of the loans to run the country. There are well over 40 trillion dollars in loans out in America. if that interest of just 6% annually was going to U.S. The Treasury that would be an income for our U.S. Treasury of 2.4 trillion dollars anually, it is Capitalism at its purest form, we stop giving money to the FED, The U.S. Treasury stops borrowing money eliminating our National Debt, and we eliminate income taxes.

If we adopt this life saving mechanism for Capitalism it will drive the lenders (the blood sucking bankers) from our soceity.

Do any of you have a better way to do things, I don't think so. Another thing, ban currency trading to stablize the value of currency for every country. Money is not a commodity, it is the medium that we barter goods and services with. The bankers do not want a stable soceity because then can not suck the riches from us anymore, if we changed our banking system. Dennis Kucinich said, "we don't need to depend on bankers for money, we are a soverign nation and we can can print all the money we need to keep pace with our economy." And for the record; the FED said we can't just print money and yet where did the 14 trillions dollars come from for THE FED to loan back to our Government??? Just recently, between 2007 and 2010 The FED loaned the banks and the major corporations of the world 16 trillion dollars. Where the "F" did that money come from?? Your Treasury printed it secretly as usual for THE FED just like it has done since 1913, and they got

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away with it because the law said we had no right to see what they were doing. And my fellow Americans you still want to trust your democrats or republicans??

If you do you are dumber than dumb. With America having the most corrupt Executive, Legislative and Judicial branches of any government ever in the world, it means we don't stand a chance against the 35,000 Washington lobbyists, and I wonder what they are all doing for all of our government officials in Washington? If Obama would allow the Justice Department which he controls to investigate which lobbyists backed what laws from congress that robbed the American people and which cases the supreme court judged that robbed the American people and who benefited from all of these happenings and nonsense, we would know who stole what in short order, and if Obama does not allow this to happen, then he is guilty of tyranny!!!

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• Lucky Lieberman 1 comment collapsed Collapse Expand

Type your comment here.

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• Mark Gwyther 1 comment collapsed Collapse Expand

Do the words 'overpaid buroughcrat' (sp?) that is preached from Fox and other news sources and the decisions of SEC officials leaving for higher paying jobs, have any connection?

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• Eliot Bernstein 1 comment collapsed Collapse Expand

Part 3andfree-press-release.com/news-op...andiviewit.tv/wordpress/?p=18Best - YF - EliotEliot I. BernsteinInventorIviewit Holdings, Inc. – DLIviewit Holdings, Inc. – DL (yes, two identically named)Iviewit Holdings, Inc. – FLIviewit Technologies, Inc. – DL Uviewit Holdings, Inc. - DLUview.com, Inc. – DLIviewit.com, Inc. – FLIviewit.com, Inc. – DLI.C., Inc. – FLIviewit.com LLC – DLIviewit LLC – DLIviewit Corporation – FLIviewit, Inc. – FLIviewit, Inc. – DLIviewit Corporation2753 N.W. 34th St.Boca Raton, Florida 33434-3459(561) 245.8588 (o)(561) 886.7628 (c)(561) 245-8644 (f)iviewit.tviviewit.tv/wordpressfacebook.com/#!/iviewitmyspace.com/iviewitiviewit.tv/wordpresseliotyoutube.com/user/eliotbernstei...

Also, check out Eliot's Testimony at the NY Senate Judiciary Committee Hearings Part 1youtube.com/watch?v=8Cw0gogF4F...and Part 2 @youtube.com/watch?v=Apc_Zc_YNI...andChristine Anderson Whistleblower Testimony @youtube.com/watch?v=6BlK73p4Ue...and Eliot Part 1 - The Iviewit Inventions @ youtube.com/watch?v=LOn4hwemqW...

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Other Websites I like:deniedpatent.com exposecorruptcourts.blogspot.c... judgewatch.org/index.html enddiscriminationnow.comcorruptcourts.org makeourofficialsaccountable.co...parentadvocates.orgnewyorkcourtcorruption.blogspo...cuomotarp.blogspot.comdisbarthefloridabar.com trusteefraud.com/trusteefraud-... constitutionalguardian.comamericans4legalreform.com judicialaccountability.org ruthmpollackesq.com VoteForGreg.us Greg Fischerliberty-candidates.org/greg-fi...facebook.com/pages/Vote-For-Gr...killallthelawyers.ws/law (The Shakespearean Solution, The Butcher)

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• Eliot Bernstein 1 comment collapsed Collapse Expand

Part 2 What followed was a Coup in Bush v. Gore with lawyers at Supreme Court of Clowns picking Pres Bush in 5-4 decision of TREASON. Lawyers from the DIRTY ROTTEN LAW FIRMS involved then flooded key government posts and well, note that in all the crimes plaguing the Nation and World, lawyers are behind them all. Whether they are AIG Fraudulent Ins Contracts, Fraudulent Derivatives, Fraudulent Subprime Loan Documents, Fraudulent TARP thefts, ANTITRUST VIOLATIONS, Fraudulent Foreclosure Documents including Forged Documents by Lawyers, Fraudulent CDO contracts, all these Frauds are being committed in the BACKGROUND by ATTORNEYS AT LAW. Why are there no prosecutions, well other RICO Operative Attorneys at Law have infiltrated all of the regulatory posts, prosecutorial posts, etc. so no prosecution for the Cartel while they rip of hundreds of millions of People and TRILLIONS of Dollars. Start with my SEC complaints and follow the LEGAL DUNG TRAIL and you will have the ROOTS of the PROBLEM, nice job Matt on naming some of these firms in this article, I believe Thompson from SEC was from Proskauer and Proskauer had most MadeOff Clients, hmmm. Sjoblom who you missed here who was at Stanford, taped and caught teaching Stanford employees how to LIE to SEC and FBI was also from Proskauer and SEC Enforcement head. Well I could go on but that should be a starting point.

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My SEC Complaints @ iviewit.tv/wordpress/?p=288 and iviewit.tv/wordpress/?p=274 and

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• Eliot Bernstein 1 comment collapsed Collapse Expand

Part 1The SEC like most government agencies has been seized as part of Treasonous and Tyrannous Coup D’tat on the US Gov by mostly Attorneys at Law dressed as Politicians (all parties), Judges, Regulators, Supreme Jesters, Prosecutors and just about the whole system of Jurisprudence. Note that all the Wall Street/Fraud Street crimes are COMPLEX ILLEGAL LEGAL CRIMES that can only be committed by one who possess a legal degree. They work together as a RICO CRIMINAL ENTERPRISE to run their crimes with cover from the gov and then fear no retribution as they are judging and investigating themselves, how Kingly of them. Yet, they are just thugs, ripping off millions of People and the people are sold that they are Harvard or Yale lawyers when these are just bought degrees from Rockafella bought schools. OK OK so the SEC, well I have probably filed the largest ONGOING SEC COMPLAINTS in history and certainly one of the largest, involving Madoff (MadeUp or Made Off With or Proskauer Rose Money Laundering Scheme), Stanford (or Proskauer Rose money laundering scheme), Dreier (or Money Laundering Scheme), etc. and where these are money laundering schemes for the Profits of the Dirty Law Firms in the Criminal Cabal. In my case, patents worth TRILLIONS of dollars, that changed the WORLD and were heralded as the "Holy Grail" inventions of digital imaging and video by the very lawyers who later were caught STEALING the patents, including one patent attorney putting 90+ in his own name. But it is worse, one of those law firms, Foley & Lardner, working with Proskauer Rose Law Firm and Kenneth Rubenstein of Proskauer/MPEG was also the RNC Chief Counsel at the time the PATENT OFFICE SUSPENDED my PATENTS pending ONGOING INVESTIGATIONS into the Lawyers who committed FRAUD UPON THE US PATENT OFFICE. Anyhoot, Michael Grebe, former RNC GC with his Law Firm Foley and all his worth at risk decided a COUP would be necessary to block the complaints filed by my companies Iviewit Technologies at the US Patent Office, the DOJ, the SEC, the IRS for massive amounts of FRAUD that were uncovered, evidenced and submitted to proper authorities.

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• David Allison 1 comment collapsed Collapse Expand

In reading Taibbi's latest article, I was struck with a comparison from a documentary that I watched last night on the Pentagon Papers and Daniel Ellsberg. Ellsberg was the whistle-blower who took classified documents exposing the government's lies about the Vietnam War (6,000 pages) to the NY Times, then the Washington Post, then a dozen other newspapers to get them all into circulation. The White House went after him hard, threw him in jail, tried to discredit and destroy him. (Nixon let loose the Watergate burglars in response - oops.) Ellsberg paid a heavy personal price to do the right thing and to expose the lies that the US government had been feeding it's people for the previous decade: in fact, exposing criminal actions in Vietnam. The NY Times took a huge risk - it could have destroyed the newspaper and landed the publisher and others in prison for espionage. Ellsberg was facing 25 years in prison. The US Supreme Court handed down a landmark decision that it was in the public interest to have an independent media with sufficient freedom to expose the activities of a government lying to it’s citizens.

Here we are all these years later. Some of the crimes of Wall Street are slowly being exposed ... by one writer from Rolling Stone. Where are the other patriots acting for the greater good of the nation? Where is the NY Times or the Washington Post? Where is the outrage? Why is there no Woodward and Bernstein tracking down leads to the crime of the century that will damage the economy of the entire country (and world) for years to come? We are seeing a repeat of the silence that we saw from the media during the build-up to the Iraq war. They didn't ask any questions ... shhhhh, the media is sleeping. Why is this?

The fact is that the 'independent' media has been absorbed into corporate America and it is now owned by the very oligarchs who ought to be the target of investigation. CNN was absorbed by Time-Warner, FOX by Murdoch, NBC Universal by General Electric. The Supreme Court was stacked (by Bush) with corporate-friendly judges. So we are left with Matt Taibbi doing the grunt-work. I'm going to subscribe to Rolling Stone just to support them for the work they do. At least someone still has some integrity and sense of patriotism and courage. One writer, one magazine - shame on the rest of them.

If ever there was a case to be made for the necessity for organizations like WikiLeaks, this is it. There is practically no one else willing to speak out, terrified as they are of The Corporation.

Wake up America! The precious freedoms that you love to talk about are being slowly but surely pulverized into dust. On this very day, unarmed Syrians have the courage to face tanks and almost certain death as they demand freedom. As did the Egyptians and Tunisians and Libyans this year. Individuals take these risks in China, or Burma, in every police state. In a nation of 330 million people; no one is going to get off their comfortable chair to fight for the rights of the individual to not be victimized by corporate criminals? This is a threat to every freedom taken for granted. Years are passing with hardly a peep from the media, so don't look to them.

Thank-you Rolling Stone and thank-you Mr. Taibbi. I hope that you succeed while your peers look the other way. What cowards they show themselves to be.

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• Jacques De Jager 1 comment collapsed Collapse Expand

Stay on them! Great job on this one. It was worth the wait.

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• Eric Meiers 2 comments collapsed Collapse Expand

Remember that Silverstein building the one that didn't get hit by a plane I think it was world trade center 7 it housed all the records of SEC on the prior scandals Enron,Worldcom, etc. Looks like this time a plane wasn't necessary.

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• Vicki S. Nikolaidis 1 comment collapsed Collapse Expand

Thanks Eric, now that makes sense. Amazing that a huge building in NYC can be demolished (the third tower) and be ignored by an overwhelming majority of people. When the concientious employees of a regulating entity are labeled "whistleblowers" obviously something is very wrong. Commno sense determines that criminal activities are happening based on news reports. It's excellent to have it written down. Now what is our next step? I remember Danny Schechter in his investigative doc "Plunder" and his last two books has steps for us to push for justice so I'm going to check those out.Let's jump in with both feet and demand justice.

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• Sharon Lank 1 comment collapsed Collapse Expand

Great investigative journalism. Too bad it won't make a bit of difference. They're laughing at you, and all of us. Class war is over, the bottom 90% LOST, and we don't get to negotiate the terms of surrender.

I don't feel better now.

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• David Brown 2 comments collapsed Collapse Expand

Don't U all git it? Gentlemen don't put gentlemen don't put gentlemen in jail. Quite simple if a tad nauseating.

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• Carlos Ramirez 1 comment collapsed Collapse Expand

Bottom 99% you meant, i think.

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• 11 months ago • in reply to David Brown • 0 Like • F

• Steve Wolfram 1 comment collapsed Collapse Expand

You da man! My question is where the hell should I put my money, do I have even have a choice. In other words are we the former middle class with two small kids expect to be scraping by for the rest of our lives as the social systems that differentiate us from animals dwindle like our natural resources do; or is this some neo-utopian economical model being developed and practiced by the uber-rich, some kind of natural economic selection.

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• Patty Pelfrey 1 comment collapsed Collapse Expand

The New York Times doesn't mention Rolling Stone until the seventh paragraph --

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• Dennis Bremmer 1 comment collapsed Collapse Expand

Hi MattI admire your tenacity and your courage. I have read every one of your articles and marvel at your investigative ability. I have a small website and have now put a link to you and Rollingstone magazine to drive even more traffic to you and this magazine. Good journalism and investigative skills are a dying art. The fact that no one else even dares to touch these subjects just shows me how corrupt the US has become and how, "distorted capitalism" is now, the norm. This is the sort of thing that CNBC and Squawkbox should be pursuing, and discussing daily, but instead its nothing

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but a pump station, for a market that they know is rift with corruption. More and more people are just packing up and leaving the market because the criminals have now taken over. I wish you the best and hope that any traffic I can drive to this website results in some subscriptions to keep you going. Were a small site but I will try to buy some subscriptions for some teens in the local hospital so they have something to read. I think you and your publisher should be supported , thanks for your work and I hope you are rewarded for your efforts.

Dennis

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• Amber Phillips 1 comment collapsed Collapse Expand

A revolution is brewing. For anyone interested in direct action against the banksters go to:occupywallst.org, occuppywallstreet.blogspot.com, adbusters. org, #occupywallstreet

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• Alton J. Duderstadt II 1 comment collapsed Collapse Expand

Well done Matt. As usual you find the dirt and RS prints it [that the gods for that]. We all need this type of honest reporting. As many of the comments below suggest...a revolution is brewing. We are all sick and tired of the lies, corruption, and Wall Street selling us all for pennies per pound [or less]. When is the revolution going to start and by who are the big questions. The riots in the UK are a window into what may and should happen here.

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• Randy Louis 2 comments collapsed Collapse Expand

Matt: Thank you for an excellent article, and let me add a ka-ching moment here; I've been meaning to subscribe to Rolling Stone becasue of your outstanding work and I will do it tomorrow. I still have a strong desire for a big dish of calamari after your earlier articles, keep it up!

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• Anna Sadika Shook 1 comment collapsed Collapse Expand

Ditto. I am subscribing to the print version. I have not had a subscription to a print magazine for YEARS. Entirely because of this article, I am changing a long standing policy of mine.

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• [deleted] 1 comment collapsed Collapse Expand

Here’s someone worse than Madoff. Read then forward this link to everyone you know, so they don’t get scammed: texsquixtarblog.blogspot.com/2...

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• Dale Ritchey 5 comments collapsed Collapse Expand

Matt, All your intelligent, well written articles........you parrot everything Ron Paul has stood for, nearly alone, for his entire career. I call BS on you and your rejection of the honest man you steal from...You're no different than Maddow or Limbaugh. The disconnect tends to make me think you're not a very honest person.

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If you're going to point out the fallacies in policy and legislation, and then belittle Ron Paul....please, just be quiet, write about Sarah Palin or something. You're disingenuous. Hell, I hear Newt and Rick Perry parroting Ron Paul now too...That's some fine company you're keeping.

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• Deborah Anne 1 comment collapsed Collapse Expand

Dale, Ron Paul is right about a lot of things but he is also WRONG about a lot of things, and the biggest of those is abortion. The "good doctor" thinks 40% of American women (those who have had abortions) are MURDERERS. Think of all the jails we will need to house almost half the female population, because we're MURDERERS! i will never ever support anyone who thinks I'm a murderer--that's Ron Paul's biggest problem, he hates women with a passion

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• Ellery Curtis 1 comment collapsed Collapse Expand

I think its perfectly feasable for someone like Matt to be very conflicted about Ron Paul.....yes they share some views about the corruption and the scum of the banks...but do they share the idea of the gold standard or on broader issues such as "the size of government", environmental regulation, healthcare, immigration, etc? And again, RP simply cannot win the primary, no way, now how.....

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• Bill Savarese 1 comment collapsed Collapse Expand

Dale, you seem willing to learn because, I assume, you read the whole article. I don't know what has you feeling so backed into a corner, but perhaps you are of the mind-set that thinks the financial collapse is so complicated and far from our understanding. That in no way this was a symphony of destruction orchestrated by some bad dudes. My guess is that you drink the dribble from network news as 'real info'!

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• Leon Kelly 1 comment collapsed Collapse Expand

Dale Ritchey hit the bullseye. Excellent comment!!Matt has to diss Ron Paul soze he can be hip with his liberal peeps. All that Matt rails against has but one political solution: Ron Paul. When the 2012 election arrives, it will be interesting to see what the slick writing Taibbi tells his reader/disciples. Revolution is coming, and the left is not going to lead it. Americans are up to here with elitists (like comrade Taibbi) telling us when and where to go and why. Liberty will defeat ideology. It's gonna be quite a ride!

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• Lois Gagnon 1 comment collapsed Collapse Expand

This is political dynamite Matt. We can rest assured the lackeys in the establishment press won't touch it with a ten foot pole.

Please everyone, pass this article around so no amount of corporate press censorship can slow it down.

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• Balking Points 2 comments collapsed Collapse Expand

...hey, let's just listen to Rick and the failed GOP, and go back to cut taxes / cut govt that we tried for the 3 decades of the Reagan/Bush era. In fact, let's get ANOTHER big tax cut to the wealthiest as we did in 1981 and 2001.

I mean, that worked SO well to deliver trickle down prosperity. Almost nobody is unemployed now. And the banks and oil drillers and health insurers, heck - they POLICED THEMSELVES!!! Get government out of the WAY by golly!

Abe Lincoln would have said; "You can fool some of the people, ALL of the time"... ;^)

- Balkingpoints / www

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• Dale Ritchey 1 comment collapsed Collapse Expand

The only way for corporations to be policed by the people, is through free markets, free people deciding for themselves a trillion times a second, which products are worthy and which are not. Government control of products and services only serves corporate interests through bought and paid for legislation. Stealing is wrong, lying is wrong, killing people is wrong....we have had laws against these things since the Magna Carta....let's use them. Free markets ALWAYS make the most products or services available to the most people at the lowest cost...to state or think otherwise is a non-truth.

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• John William DeFeo 1 comment collapsed Collapse Expand

Matt, this is your best piece yet. As I always comment, keep digging -- you're doing the world a great service and proving that journalism is still alive.

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• Tony Healy 2 comments collapsed Collapse Expand

At this stage it seems the only solution would be to absolutely purge the SEC and start anew. And remember: even as corrupt as it is, at least one party is still trying to starve it to death and it wouldn't surprise me if members of a certain sect would like to kill it outright. Free market, you know. It will police itself. As we all saw starting in 2008.

Here is the reality: when an industry has bought off/infiltrated the gov't in place to police it to this extent, you are looking at a virtual banana republic. Or perhaps an oligarchy like they have in Russia. I won't even mutter the P word.

We already knew about the "revolving door" that existed (Taibbi's covered it before) where basically people who headed up the agency in place to police Wall St. would be lured into lucrative gigs at the very firms they're supposed to be watching and even more amazingly sometimes rotate back INTO the SEC. Round and round we go, Jack.

Here though we see a new, abysmal low for the level of corruption, where not only are those at the SEC trying to do their jobs being thwarted by superiors, now evidence is being destroyed. Evidence that would cause many to question many of the firms at the heart of the meltdown long before it happened, or certainly after. Do I even have to mention their names at this point?

With a nod to the hyperbole, how long do you think it would be tolerated by Americans were they to find out that high-ranking members of Al Qaeda were in top positions at the Department of Homeland Security? Seriously, what is the difference? One might say hey, Wall St. didn't fly planes into buildings and kill 3,000 people.

No, they did not. What they did was fly our economy into a building and destroyed the economy, the building, the lives/homeownership of millions of Americans and even better than AQ, they got paid for it. Handsomely. With our money. BTW one of OBL's wishes with 9/11 was to wreck the American economy. He certainly put a dent in it, but sorry Osama: these guys did it in a way you could never dream of.

While Osama ultimately took a bullet to the head, as did many of his 9/11 co-conspirators, not one Wall St. guy (as noted in another thread) is in jail for this. Save for placebo conviction Bernie

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Madoff (you will note that evidence on him was among that destroyed and that the SEC was warned about him from other sources, most famously Harry Markopolos).

What this means in real terms is that there is nobody policing Wall St. They've bought off congre$$, they've bought off the White Hou$e, and they have completely bought off/infiltrated the agency in place to watchdog them. Like we've never seen before.

Here's a clip from the Wikipedia entry on Al Capone:

"The organized corruption included the bribing of Chicago Mayor William "Big Bill" Hale Thompson, and Capone's gang operated largely free from legal intrusion. He operated casinos and speakeasies throughout the city. With his wealth, he indulged in custom suits, cigars, gourmet food and drink (his preferred liquor was Templeton Rye from Iowa[21]), jewelry, and female companionship. He garnered media attention, to which his favorite responses were "I am just a businessman, giving the people what they want," and "All I do is satisfy a public demand."

Hmm doesn't that ring a bell? All that's missing is him saying "I'm a job creator!" Actually he probably did create quite a few jobs as opposed to these guys, who in reality were catastrophic job destroyers.

So now that America is completely exposed to another financial 9/11 and having their gov't programs sliced and public lands bundled up and sold off to foreign entities, you'd think this would be topic #1 on the new 2012 campaign, right?

*crickets*

And the worst part is that as much of a bag boy as Obama is to these guys, you get somebody like Perry or Bachmann in there and you might as well have elected Chainsaw Al.

You know where we're heading, right? Probably number one on the list of Reasons Countries Don't Succeed is: "Because their governments are too corrupt." Prime example: Mexico.

Back to our friend Al Capone: what finally brought him down here in Chicago? The Feds. You see, Al never had the power to buy off the entire federal government. Not like now. If Al had only gotten into derivatives instead of liquor, who knows what could have been?

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• Gloria Aleixo Hall 1 comment collapsed Collapse Expand

FBI, RICO charges. CIA?

deepcapture.com

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• 11 months ago • in reply to Tony Healy • 0 Like • F

• Buck Nekid 2 comments collapsed Collapse Expand

I wonder if Congress will also investigate his parents for naming their son Darcy?

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• Carol Burns 1 comment collapsed Collapse Expand

That's what you got from this, Bucky?

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• Buck Nekid 1 comment collapsed Collapse Expand

I wonder if Congress will also investigate his parents for naming their son Darcy?

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• Gloria Aleixo Hall 1 comment collapsed Collapse Expand

I can recall Schapiro or some other SEC bobblehead on TV saying she would tell us who had the 1.7 million dollar put on Bear Sterns....

What happened?!??!

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• Adam Weinberg 1 comment collapsed Collapse Expand

streets

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• Adam Weinberg 1 comment collapsed Collapse Expand

The current market-capital based system must collapse it is unsustainable. It is one giant ponzi scheme designed to keep us indebted to the banks. Why do we pay a private bank (federal reserve) 2% interest to print off money the united states treasury can print at no interest and how do we pay the interest well we ask the federal reserve to print more money at 2% interest now tell me when does the cycle end? What we need is a revolution to tear down this enslaving system and replace it with a real resource based economy. You smell that in the air I think it is the smell of revolution. You just wait the riots in London and in Rome are nothing compared to the riots that will engulf the U.S. hey corporate overlords and bankers what will you do when we come for you? Where will you run? LMFAO Don't let me pass you on the str

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• Hugh Magbie 2 comments collapsed Collapse Expand

Three years ago most investment banks were on the brink of extinction. Lehman Bros, Bear Stearns and 427 other banks went belly up. Banks that did survive received bailout and Tarp money from the federal government. The banks took our taxpayer money and invested in commodities and in the currency market. By January the oil market had hit bottom; oil was selling for $34 a barrel. So the banks and hedge funds invested in oil, betting that it would go up. After all, they had been previously successful in driving up the price to $140 dollars a barrel. They began hoarding oil, storing it in tank farms and on supertankers.Then the bankers hired an army of oil traders to bid the price of oil up. Even though world consumption was down, they were successful at pumping oil up again with the resurrection of the big lie of "peak oil" and a few geopolitical crises'.Drilling will do nothing to the price of oil. Opening the reserves will do nothing to the price of oil. The present price of oil has nothing to do with supply and demand (there is a glut of oil and no place to store it.) Instead of the price of oil being determined by supply and demand, the oil and currency traders now control the price of oil. These American and international bankers didn't believe that the Obama administration would be successful combating the crisis that these very banks created. As the deficit grew and the treasury printed more money to bail out the banks, their traders and analysts declared the Obama administration dead on arrival when it came to the economy. They bet that the US dollar would lose its value. The US dollar has lost between 25-30% in the last four years. They bid it down and they made lots! Their cynical efforts to make a buck impoverished all of us by devaluing our currency. When your currency becomes devalued, the cost of everything goes up, especially oil and other commodities.The banks scored twice; first by betting that oil would go up, then shorting the greenback, insuring that oil would go up. Don't forget, we loaned the banks the money to do this, and for years those banks have made record profits.Two years ago there was still a lot of idle money around that was frightened of the stock market, and the insolvency of banks. That money was put into the commodity markets and fueled the rise of the price of commodities world wide. It's been a good couple of years for Goldman Sachs, J P Morgan, and their commodity and currency trading subsidiaries. A bright guy who ran an oil trading subsidiary for Citi Bank made 100 million as compensation. Their hoarding practices have started to be emulated by other countries; we now see China, The US, and others building vast oil storage facilities to take advantage of climbing oil prices. OPEC, big oil and the bank's speculative efforts have and will cost American consumers billions.Then there is the continued greed of oil producers. With the price so high, think of the money to be made! Problem is, there is no place to store it anymore and everyone continues to pump it out of the ground. And world consumption continues to be low. Those of us who heat our homes, drive our cars, and use oil products in a myriad of ways, are paying way more than we should. And we have been for some time. Bernie Madoff ripped off his clients to the tune of 50 billion dollars, a monumental theft. So what do you call this oil market that has taken 50 times that amount? We have paid $2.5 trillion dollars more than we should! The irony of all of this is that we the taxpayers provided the seed money for this, the greatest rip off in history.All of this hoarding and manipulation needs to end. Why aren’t the Justice Department and state Attorney Generals applying the RICO act against these criminals? Why haven’t we repealed the

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Commodity Futures Modernization Act of 2000 and The Financial Services Modernization Act of 1999?

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• 11 months ago • 0 Like • F

• Mary Bagatelos 1 comment collapsed Collapse Expand

Hugh; well done post. Exactly that and so much more.

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• 11 months ago • in reply to Hugh Magbie • 0 Like • F

• Don Smith 1 comment collapsed Collapse Expand

Disclosure:Long: Boiled RopeShort: Patience

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• 11 months ago • 0 Like • F

• Deonna Taylor 2 comments collapsed Collapse Expand

Great job of reporting Matt. As a former AIGFP employee and a friend of Ms. Millan, I have been frustrated by what I read in the 'so-called' mainstream news that is just regurgitation of corporate/agency PR spin. What is unfortunate is that the lives of those with the courage to speak

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out are often destroyed in the process. Please keep at it. I hope that if one domino falls, others will follow.

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• Don Smith 1 comment collapsed Collapse Expand

@DeonnaTaylor - How is Joe Cassano not in jail? Is there anything that can be brought to light from your time there?

• A Like • Reply • 11 months ago • in reply to Deonna Taylor • 0 Like • F

• Micheal Meginley 1 comment collapsed Collapse Expand

We have a criminal class the permeates both Wall Street and the halls of the federal government. We are emulating the political structure of Third World kleptocracies. In such countries, everyone knows the political elites are thoroughly corrupt and completely unaccountable. The only thing that fixes the miserable situations that ultimately impoverish those countries is a revolution. Such a revolution won’t be forthcoming until the United States finds itself as poor and miserable as the Tunisians were just months ago.

That time is coming, just not soon. Until then, the best players of Monopoly enjoy an endless supply of get-out-of-jail-free cards.

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• [deleted] 1 comment collapsed Collapse Expand

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• A Like • Reply • 11 months ago • 0 Like • F

• Plank White 2 comments collapsed Collapse Expand

This is Why I will be Voting for Ron Paul in The Primaries ..Go Google or Youtube Ron Paul 2012!!!

• A Like • Reply • 11 months ago • 0 Like • F

• Joy Toth 1 comment collapsed Collapse Expand

President Paul!! He's our man.VOTE RON PAUL!

• A Like • Reply • 11 months ago • in reply to Plank White • 0 Like • F

• Reno Fickler 1 comment collapsed Collapse Expand

I am embarrassed I can't remember the name of the black, female Congres-person who "perfectly" described the SEC when she was referring to the Bernie Madoff fiasco.She said, "If they can't catch the biggest criminal in America, what are the chances

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they can catch anybody?" BRAVA!!!!

• A Like • Reply • 11 months ago • 0 Like • F

• Gloria Aleixo Hall 2 comments collapsed Collapse Expand

Isn't this information that was deleted the property of the taxpayers?

• A Like • Reply • 11 months ago • 0 Like • F

• Jon Patrick Cavanaugh-Spain 1 comment collapsed Collapse Expand

Yes.

• A Like • Reply • 11 months ago • in reply to Gloria Aleixo Hall • 0 Like • F

• Gloria Aleixo Hall 1 comment collapsed Collapse Expand

Beyond infuriating. Keep on their tails Matt.

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• Ted Carr 1 comment collapsed Collapse Expand

Opportunity is the best predictor of corruption. The lack of transparency within the SEC, or lack of oversight, is too great a temptation to expect even highly regarded people to overcome, and the amounts of money or other emoluments the supposed perpetrators have to tempt SEC officers with are enormous. There must be an assumption of untrustworthiness whenever opportunity and temptation combine, rather than an assumption that strong character will prevail against corruption. "Lead me not into temptation", not 'give me strength to resist temptation'.

• A Like • Reply • 11 months ago • 0 Like • F

• James Logue 1 comment collapsed Collapse Expand

The SEC is a disgrace. They have Gone Rogue, in the classical way, like an undercover cop strung out on the junk. Bad Lieutenant time, but like Really Expensive. A Pox on all their houses.

• A Like • Reply • 11 months ago • 0 Like • F

• Julie Dahlman 1 comment collapsed Collapse Expand

It does not even surprise me any longer. Year after year we read investigative journalistic reporting like Matt's and see senate hearings and house hearings regarding these issues on all kind of agencies and committees formed and NOTHING GETS DONE! It all just sits out there and anyone who pays attention knows about all the corruption and insiders taking care of the other by payoffs of huge money and corporate/government jobs. Congress does nothing because there is a revolving door in congress in lobbying companies, to huge corporations to huge banks.

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• Reply • 11 months ago • 0 Like • F

• Jody Hoon-Starr 3 comments collapsed Collapse Expand

After every article I think that can't be much further 'til rock bottom and I am consistently proven wrong.

• A Like • Reply • 11 months ago • 0 Like • F

• Adam Weinberg 1 comment collapsed Collapse Expand

is there ever gonna be a bottom

• A Like • Reply • 11 months ago • in reply to Jody Hoon-Starr • 0 Like • F

• Dominic Haberstumpf 1 comment collapsed Collapse Expand

Ha, just when you think you've hit rock bottom, Taibbi's standing there with a shovel. Great article, Matt. Keep up the good work.

• A Like • Reply • 11 months ago • in reply to Jody Hoon-Starr • 0 Like • F

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• Cullen Stapleton 1 comment collapsed Collapse Expand

The fourth branch is alive and kicking! Thanks for the educational and deeply troubling piece. We don't get this type of honest dialogue any longer.

• A Like • Reply • 11 months ago • 0 Like • F

• Matt Brown 3 comments collapsed Collapse Expand

Why not allow the SEC to become self-funding through expanded use of the seizure laws already on the books, the same way that all levels of law enforcement are able to underwrite virtually any discretionary spending with forfeitures from the War on Drugs. This built-in funding mechanism has managed to perpetuate vigilante enforcement of even the dumbest drug laws. In the case of drug seizures, the government only has to prove that the property was involved in an illegal deed ("we find this house guilty of having pot inside it..."), which often occurs before any people are actually convicted of the related drug charges.

Imagine if the SEC, unencumbered by revolving door appointees of the financial industry, were let loose to prosecute, seize and amass a warchest from successful convictions. The program could be self-funding simply by the effective seizures of "proceeds of illegal activity" without having to get the much more difficult criminal conviction for the executives responsible.

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• Chris Damico 1 comment collapsed Collapse Expand

Problem there is the funds confiscated had a 'rightful' owner, greedy as they may prove to have been, who can be classified as the victims & therefore be entitled to claim. Remember some of Madoff's 'victims' successfully reclaimed some losses.

Not so in the case of Drug Money. Both parties there entered upon a

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consensual, albeit illegal, agreement.

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• Matt Brown 1 comment collapsed Collapse Expand

From Wikipedia - "Asset Forfeiture In The United States" - tinyurl.com/ c46ykc

"There are two types of forfeiture cases, criminal and civil. Almost all forfeiture cases practiced today are civil. In civil forfeiture cases, the US Government sues the item of property, not the person; the owner is effectively a third party claimant. Once the government establishes probable cause that the property is subject to forfeiture, the owner must prove on a "preponderance of the evidence" that it is not. The owner need not be judged guilty of any crime. In contrast, criminal forfeiture is usually carried out in a sentence following a conviction and is a punitive act against the offender. Since the government can choose the type of case, a civil case is almost always chosen."

- and -

"The United States Marshals Service is responsible for managing and disposing of properties seized and forfeited by Department of Justice agencies. It currently manages around $1 billion worth of property. The United States Treasury Department is responsible for managing and disposing of properties seized by Treasury agencies. The goal of both programs is to maximize the net return from seized property by selling at auctions and to the private sector and then using the property and proceeds for law enforcement purposes."

• A Like • Reply • 11 months ago • in reply to Matt Brown • 0 Like • F

• Jim Farnen 1 comment collapsed Collapse Expand

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Nice work Matt. Not surprised at all about this. Coincidentally, I sent a note to R. Khuzami, Kotz, Schapiro, and some politicians yesterday re: the Enforcement Division giving a lawyer who WAS a partner at a major NYC firm a pass because and this is a direct quote from the investigative report: "2. Internal Resistance When Bringing Cases Against Attorneys"

A second factor cited by Enforcement staff in the decision not to bring an action against ......was an overall reluctance by staff to bring cases against attorneys because of the internal difficulties often encountered.

The following is the redacted version of the SEC OIG's Investigative report... (actually, it will not permit me to link the report...message me for it if interested)

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• Peter INova 1 comment collapsed Collapse Expand

There's a sentence in the exposition that simply doesn't make sense:

"With a few strokes of the keyboard, the evidence gathered during thousands of investigations – $8,000 ... including Madoff," as one high-ranking SEC official put it during a panicked meeting about the destruction – have apparently disappeared forever into the wormhole of history."

Is this really supposed to be [...investigations - "8,000 (as in 8 thousand files gone missing?)... including Madoff," as one...] ??

• A Like • Reply • 11 months ago • 0 Like • F

• Jeff Miller 1 comment collapsed Collapse Expand

"Regulation isn't a panacea. The SEC could have placed federal agents on every corner of lower Manhattan throughout the past decade, and it might not have put a dent in the massive wave of corruption and fraud that left the economy in flames three years ago." IMHO, the key point of your article Matt. I'm afraid that the incest-like relationship between the SEC and the banksters will continue until you and I are

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long gone. While I appreciate your thorough piece of investigative reporting - I couldn't help but to think that there is similar corruption and "brain trading" in agencies like the Office of the Comptroller of the Currency (the oldest federal regulatory agency), FDA, EPA, OSHA, etc. That said, I applaud your personal crusade to shine a bright light on how the global cartel of banksters have extracted trillions (yes, with a T) of dollars of wealth from the "working" people. We need pis#%*# journalists like you to continue your work so pis#%*# people like me can continue to educate those who have blinders on or are genuinely interested in making a difference.

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• [deleted] 1 comment collapsed Collapse Expand

Here's someone worse than Madoff. Read then forward this link to everyone you know, so they don't get scammed: Google "Tex Madoff who is worse"

• A Like • Reply • 11 months ago • 0 Like • F

• Ronald McKenzie 1 comment collapsed Collapse Expand

SEC and rateing agents are only feel good toys for corporation. The time has come to make an effrot to end corporte personhood and find some sanity in the markets.

• A Like • Reply • 11 months ago • 0 Like • F

• Hugh Magbie 1 comment collapsed Collapse Expand

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Campaign finance reform anyone? Lawyers, lobbyist, hedge funds and bankers are big financial supporters of our congressional delegations. Our lawmakers need to distance themselves from their commodities masters. The speculators at banks and hedge funds make money by playing the futures market in commodities. They horde oil in supertankers and oil storage facilities and have armies of oil traders whose only mission in life is to raise the price of oil. They horde metals in warehouses and create higher prices and artificial shortages. They also have currency traders who try to lower the value of the dollar. If the value of the dollar goes down then it will cost more dollars to buy commodities. By this market manipulation they have taken oil to $100 plus dollars a barrel and predict that it will go much higher. These vultures have taken our taxpayer bank bailout money and have created record profits for their banks, big oil and OPEC, while all the time draining our pockets. Drilling and opening up the reserves won’t work and will only enrich these bad actors. We need to get off oil asap, but do we have to be fleeced while we transition? Repeal the Commodity Futures Modernization Act of 2000 and the Financial Services Modernization Act of 1999.

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• Hugh Magbie 1 comment collapsed Collapse Expand

Three years ago most investment banks were on the brink of extinction. Lehman Bros, Bear Stearns and 427 other banks went belly up. Banks that did survive received bailout and Tarp money from the federal government. The banks took our taxpayer money and invested in commodities and in the currency market. By January the oil market had hit bottom; oil was selling for $34 a barrel. So the banks and hedge funds invested in oil, betting that it would go up. After all, they had been previously successful in driving up the price to $140 dollars a barrel. They began hoarding oil, storing it in tank farms and on supertankers.Then the bankers hired an army of oil traders to bid the price of oil up. Even though world consumption was down, they were successful at pumping oil up again with the resurrection of the big lie of "peak oil" and a few geopolitical crises'.Drilling will do nothing to the price of oil. Opening the reserves will do nothing to the price of oil. The present price of oil has nothing to do with supply and demand (there is a glut of oil and no place to store it.) Instead of the price of oil being determined by supply and demand, the oil and currency traders now control the price of oil. These American and international bankers didn't believe that the Obama administration would be successful combating the crisis that these very banks created. As the deficit grew and the treasury printed more money to bail out the banks, their traders and analysts declared the Obama administration dead on arrival when it came to the economy. They bet that the US dollar would lose its value. The US dollar has lost between 25-30% in the last four years. They bid it down and they made lots! Their cynical efforts to make a buck impoverished all of us by devaluing our currency. When your currency becomes devalued, the cost of everything goes up,

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especially oil and other commodities.The banks scored twice; first by betting that oil would go up, then shorting the greenback, insuring that oil would go up. Don't forget, we loaned the banks the money to do this, and for years those banks have made record profits.Two years ago there was still a lot of idle money around that was frightened of the stock market, and the insolvency of banks. That money was put into the commodity markets and fueled the rise of the price of commodities world wide. It's been a good couple of years for Goldman Sachs, J P Morgan, and their commodity and currency trading subsidiaries. A bright guy who ran an oil trading subsidiary for Citi Bank made 100 million as compensation. Their hoarding practices have started to be emulated by other countries; we now see China, The US, and others building vast oil storage facilities to take advantage of climbing oil prices. OPEC, big oil and the bank's speculative efforts have and will cost American consumers billions.Then there is the continued greed of oil producers. With the price so high, think of the money to be made! Problem is, there is no place to store it anymore and everyone continues to pump it out of the ground. And world consumption continues to be low. Those of us who heat our homes, drive our cars, and use oil products in a myriad of ways, are paying way more than we should. And we have been for some time. Bernie Madoff ripped off his clients to the tune of 50 billion dollars, a monumental theft. So what do you call this oil market that has taken 50 times that amount? We have paid $2.5 trillion dollars more than we should! The irony of all of this is that we the taxpayers provided the seed money for this, the greatest rip off in history.All of this hoarding and manipulation needs to end. Why aren’t the Justice Department and state Attorney Generals applying the RICO act against these criminals? Why haven’t we repealed the Commodity Futures Modernization Act of 2000 and The Financial Services Modernization Act of 1999?

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