Is the SEC Covering Up Wall Street Crimes Rolling Stone Magazine

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Is the SEC Covering Up Wall Street Crimes?

Matt Taibbi: A whistle blower says the agency has illegally destroyedthousands 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 seriouscrimes, but never prosecuted, has his slate wipedclean every time the cops fail to make a case. Nomore Lifetime channel specials where themurderer is unveiled after police stumble uponpast intrigues in some old file – "Hey, chief, didjaknow this guy had two wives die falling down thestairs?" No more burglary sprees cracked whensome sharp cop sees the same name pop up inone too many witness statements. This is adifferent world, one far friendlier to lawbreakers,

where even the suspicion of wrongdoing getswiped from the record.

That, it now appears, is exactly how theSecurities and Exchange Commission has been treating the Wall Street criminals who cratered theglobal economy a few years back. For the past two decades, according to a whistle-blower at theSEC who recently came forward to Congress, the agency has been systematically destroyingrecords of its preliminary investigations once they are closed. By whitewashing the files of some ofthe nation's worst financial criminals, the SEC has kept an entire generation of federal investigatorsin the dark about past inquiries into insider trading, fraud and market manipulation againstcompanies 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 apparentlydisappeared forever into the wormhole of history.

Under a deal the SEC worked out with the NationalArchives and Records Administration, all of theagency's records – "including case files relating topreliminary investigations" – are supposed to be

maintained for at least 25 years. But the SEC, usinghistory-altering practices that for once actuallydeserve the overused and usually hysterical term"Orwellian," devised an elaborate and possibly illegalsystem under which staffers were directed to disposeof the documents from any preliminary inquiry thatdid not receive approval from senior staff to become a full-blown, formalinvestigation. Amazingly, the wholesale destruction of the cases – knownas MUIs, or "Matters Under Inquiry" – was not something done on thesly, in secret. The enforcement division of the SEC even spelled out the

procedure in writing, on the commission's internal website. "After youhave closed a MUI that has not become an investigation," the site advised staffers, "you shoulddispose of any documents obtained in connection with the MUI."

Many of the destroyed files involved companies and individuals who would later play prominentroles 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 insidertrading at the same soon-to-be-bankrupt bank. A 2009 preliminary investigation of insider tradingby Goldman Sachs was deleted, along with records for at least three cases involving the infamoushedge 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 wasresponsible for helping to manage the commission's records, the SEC has been destroying recordsof preliminary investigations since at least 1993. After he alerted NARA to the problem, Flynnreports, 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 inevidence he presented to the SEC's inspector general and three congressional committees earlier thissummer, the 13-year veteran of the agency paints a startling picture of a federal police force that haseffectively been conquered by the financial criminals it is charged with investigating. In at least onecase, according to Flynn, investigators at the SEC found their desire to bring a case against aninfluential bank thwarted by senior officials in the enforcement division – whose director turnedaround 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 bythe company under investigation. The outside firm, unsurprisingly, concluded that no furtherinvestigation of its client was necessary. To complete the bureaucratic laundering process, Flynnsays, 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; todate, federal and state prosecutors have yet to put a single senior Wall Street executive behind barsfor any of the many well-documented crimes related to the financial crisis. Indeed, Flynn'saccusations 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 regulatorsspend 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’sthe author of fivebooks, most recentlyThe Great

Derangement andGriftopia, and awinner of the NationalMagazine Award forcommentary.



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

The destruction of records by the SEC, as outlined by Flynn, is something far more than anadministrative accident or bureaucratic fuck-up. It's a symptom of the agency's terminal braindamage. 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 neverrecovered. "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 SenateJudiciary Committee, whose staff has interviewed Flynn. "It doesn't make sense that an agencyresponsible 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 overwhat 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-levelattorney described as a highly reluctant whistle-blower – spilling the agency's most sordid secrets toCongress? 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 theagency's staff with the subject line "Lawyers Behaving Badly." In it, Khuzami asked hissubordinates to report any experiences they might have had where "the behavior of counselrepresenting clients in... investigations has been questionable."

Khuzami was asking staffers to recount any stories of outside counsel behaving unethically. ButFlynn 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. Khuzamimay have gotten something more than he expected," Flynn's lawyer, a former SEC whistle-blowernamed 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 wasworking with a group of investigators who thought they had a "slam-dunk" case against DeutscheBank, the German financial giant. A few years earlier, Rolf Breuer, the bank's CEO, had given aninterview 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 apparentlyuntrue – and it sent the stock of Bankers Trust tumbling, potentially lowering the price for themerger. Flynn and his fellow SEC investigators, suspecting that investors of Bankers Trust had beendefrauded, 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 themultitude 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 SECinvestigator can conduct interviews or ask a bank to send in information voluntarily. Bumping aMUI 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 andwaterboarding. In the Deutsche case, Flynn and other SEC investigators got past the MUI stage andused their powers to collect sworn testimony and documents indicating that plenty ofübernahmegespräche indeed had been going on when Breuer spoke to Der Spiegel. Based on theevidence, they sent an "Action Memorandum" to senior SEC staff, formally recommending that theagency 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 wasapproved by several levels of the SEC's staff. All that was needed to move forward was a thumbs-upfrom the director of enforcement at the time, Richard Walker.

But then a curious thing happened. On July 10th, 2001, Flynn and the other investigators wereinformed 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 fraudinvestigation. In contradiction to the agency's usual practice, it provided no explanation for itsdecision to close the case.

On October 1st of that year, the mystery was solved: Dick Walker was named general counsel ofDeutsche. Less than 10 weeks after the SEC shut down its investigation of the bank, the agency'sdirector 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 noneother than Robert Khuzami, a young federal prosecutor, to join him at Deutsche. The two wouldremain at the bank until February 2009, when Khuzami joined the SEC as Flynn's new boss in theenforcement division. When Flynn sent his letter to Khuzami complaining about misbehavior byWalker, he was calling out Khuzami's own mentor.

The circular nature of the case illustrates the revolving-door dynamic that has become pervasive atthe 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 companiesbefore the agency – sometimes within days of their having left the SEC. More than half of thedisclosures came from the agency's enforcement division, who went to bat for the financial industryfour 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 thatthe SEC's top policemen almost always wind up jumping straight to jobs representing the banksthey were supposed to regulate. Lynch, who represented Deutsche in the Flynn case, served as theagency's enforcement chief from 1985 to 1989, before moving to the firm of Davis Polk, whichboasts many top Wall Street clients. He was succeeded by William McLucas, who left the SEC in1998 to work for WilmerHale, a Wall Street defense firm so notorious for snatching up top agencyveterans 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 servesas general counsel for JP Morgan Chase. Next came Linda Chatman Thomsen, who stepped downto join Davis Polk, only to be succeeded in 2009 by Khuzami, Walker's former protégé at DeutscheBank.

This merry-go-round of current and former enforcement directors has repeatedly led to accusationsof improprieties. In 2008, in a case cited by the SEC inspector general, Thomsen went out of herway to pass along valuable information to Cutler, the former enforcement director who had gone towork for JP Morgan. According to the inspector general, Thomsen signaled Cutler that the SEC wasunlikely to take action that would hamper JP Morgan's move to buy up Bear Stearns. In anothercase, the inspector general found, an assistant director of enforcement was instrumental in slowingdown an investigation into the $7 billion Ponzi scheme allegedly run by Texas con artist R. AllenStanford – and then left the SEC to work for Stanford, despite explicitly being denied permission todo so by the agency's ethics office. "Every lawyer in Texas and beyond is going to get rich on thiscase, 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-blowninvestigations 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-levelstaffers like Flynn all the way up to the revolving-door level at the top, where senior management iscomposed largely of high-priced appointees from the private sector who have strong social andprofessional ties to the very banks they are charged with regulating. And if senior managementdidn't approve an investigation, the documents often wound up being destroyed – as Flynn wouldlater discover.

After the Deutsche fiasco over Bankers Trust, Flynn continued to work at the SEC for four moreyears. He briefly left the agency to dabble in real estate, then returned in 2008 to serve as anattorney in the enforcement division. In January 2010, he accepted new responsibilities thatincluded helping to manage the disposition of records for the division – and it was then he firstbecame 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 federallaw, which gives responsibility for maintaining and destroying all records to the National Archivesand Records Administration. Over a decade earlier, in fact, the SEC had struck a deal with NARAstipulating 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 longerexisted. In his letter to Congress, Flynn estimates that the practice of destroying MUIs had begun asearly as 1993, and has resulted in at least 9,000 case files being destroyed. For all the thousands oftips that had come in to the SEC, and the thousands of interviews that had been conducted by theagency's staff, all that remained were a few perfunctory lines for each case. The mountains ofevidence gathered were no longer in existence.

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

PARTY MUI # OPENED/CLOSED ISSUE

Goldman Sachs MLA-01909 6/99 - 4/00 Market Manipulation

Deutsche Bank MHO-09356 11/01 - 7/02 Insider Trading

Deutsche Bank MHO-09432 2/02 - 8/02 Market Manipulation

Lehman Brothers MNY-07013 3/02 - 7/02 Financial Fraud

Goldman 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 namedJacqueline Millan reported irregularities in the trading of AIG stock to her superiors, only to findherself fired. Incredibly, instead of looking into the matter itself, the SEC agreed to accept "aninternal investigation by outside counsel or AIG." The last note in the file indicates that "the staffplans to speak with the outside attorneys on Monday, August 24th [2009], when they will share theirfindings with us." The fact that the SEC trusted AIG's lawyers to investigate the matter shows thebasic bassackwardness of the agency's approach to these crash-era investigations. The SEC formallyclosed the case on October 1st, 2009.

The episode with AIG highlights yet another obstacle that MUIs experience on the road tobecoming 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 broughtbefore a grand jury – that's basically how the SEC now handles many preliminary investigationsagainst Wall Street targets.

The evolution toward this self-policing model began in 2001, when a shipping and food-serviceconglomerate called Seaboard aggressively investigated an isolated case of accounting fraud at oneof 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" tocompanies that police themselves. In practice, that means the agency simply steps aside and allowscompanies to slap themselves on the wrists. In the case against Seaboard, for instance, the SECrewarded the firm by issuing no fines against it.

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

Harry Markopolos, a certified fraud examiner best known for sounding a famously unheededwarning about Bernie Madoff way back in 2000, says the SEC's practice of asking suspects toinvestigate themselves is absurd. In a serious investigation, he says, "the last person you want totrust 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 concernedthat 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. OnJuly 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 destroyingclosed Matters Under Inquiry files," Wester wrote. "If you confirm that federal records have beendestroyed improperly, please ensure that no further such disposals take place and provide us with awritten report within 30 days."

Wester copied the letter to Adam Storch, a former Goldman Sachs executive who less than a yearearlier had been appointed as managing executive of the SEC's enforcement division. Storch'sappointment 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 questionableethics and too cozy a Washington connection, or that he's just 29." In any case, Storch reacted to theNARA 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 SEClawyers 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 toNARA 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," Flynnquotes 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 forme 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 MUIsdestroyed, including Madoff."

Four days later, the SEC responded to NARA with a hilariously convoluted nondenial denial. "TheDivision 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 overthe 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 in2005, when Flynn's attorney, Gary Aguirre, tried to pursue an insider-trading case against PequotCapital that involved John Mack, the future CEO of Morgan Stanley, he was fired by phone whileon vacation. Two Senate committees later determined that Aguirre, who has since opened a privatepractice 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 experiencedretaliation – including reprimands and demotions – after raising concerns about superficialinvestigations. "There's no mechanism to raise these issues at the SEC," says another formerwhistle-blower. Contacting the agency's inspector general, he adds, is considered "the nuclearoption" – 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 chairmanMary Schapiro with a promise not to go outside the agency if she would grant Flynn protectionagainst reprisal. When no such offer was forthcoming, Flynn went to the agency's inspector generalbefore 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 IowaRepublican 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 ithad referred to the SEC about SAC Capital, the hedge fund run by reptilian billionaire short-sellerStevie Cohen.

SAC has long been accused of a variety of improprieties, from insider trading to harassment. But nocharge in recent Wall Street history is crazier than an episode involving a SAC executive namedPing Jiang, who was accused in 2006 of enacting a torturous hazing program. According to a civillawsuit that was later dropped, Jiang allegedly forced a new trader named Andrew Tong to takefemale 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 suspicioustrades at SAC to federal regulators. Curious to see how many of those referrals had been lookedinto, Grassley wrote the SEC on May 24th, asking for evidence that the agency had properlyinvestigated the cases.

Two weeks later, on June 9th, Khuzami sent Grassley a surprisingly brusque answer: "We generallydo not comment on the status of investigations or related referrals, and, in turn, are not providinginformation concerning the specific FINRA referrals you identified." Translation: We're not givingyou 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 beenforthcoming.

In the interim, Grassley's office was contacted by Flynn, who explained that among the missingMUIs he had uncovered were at least three involving SAC – one in 2006, one in 2007 and one in2010, involving charges of insider trading and currency manipulation. All three cases were closedby the SEC, and the records apparently destroyed.

On August 17th, Grassley sent a letter to the SEC about the Flynn allegations, demanding to knowif it was indeed true that the SEC had destroyed records. He also asked if the agency's failure toproduce 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. NARAis also seeking answers. "We've asked the SEC to look into the matter and we're awaiting theirresponse," says Laurence Brewer, a records officer for NARA. For its part, the SEC is trying toexplain away the illegality of its actions through a semantic trick. John Nester, the agency'sspokesman, acknowledges that "documents related to MUIs" have been destroyed. "I don't have anyreason to believe that it hasn't always been the policy," he says. But Nester suggests that suchdocuments do not "meet the federal definition of a record," and therefore don't have to be preservedunder federal law.

But even if SEC officials manage to dodge criminal charges, it won't change what happened: Thenation's top financial police destroyed more than a decade's worth of intelligence they had gatheredon some of Wall Street's most egregious offenders. "The SEC not keeping the MUIs – you can seewhy 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 overa period of 20 years on something similar involving the same company, you should be able toconnect five dots and say, 'You know, I've had five MUIs – they're probably doing something. Let'sgo tear the place apart.'" Destroy the MUIs, and Wall Street banks can commit the exact same crimeover and over, without anyone ever knowing.

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

But we're equally in the dark about another hypothetical. Forget about what might have been if theSEC 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 LehmanBrothers had been forced to reveal its shady accounting way back in 2002? Might the need fortaxpayer bailouts have been lessened had fraud cases against Citigroup and Bank of America beenpursued in 2005 and 2007? And would the U.S. government have doubled down on its bailout ofAIG if it had known that some of the firm's executives were suspected of insider trading inSeptember 2008?

It goes without saying that no ordinary law-enforcement agency would willingly destroy its ownevidence. In fact, when it comes to garden-variety crooks, more and more police agencies arecatching criminals with the aid of large and well-maintained databases. "Street-level lawenforcement is increasingly data-driven," says Bill Laufer, a criminology professor at the Universityof Pennsylvania. "For a host of reasons, though, we are starved for good data on both white-collarand 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 ifthose 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 anddumped 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-blowninvestigation.

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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 Presidentaccording to Toni Morrison, Presidential Medal of Freedom Winner, you might know hisguy 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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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 overseeingfutures dealers, AGP principals John Wilkins, Paul Rangal and PhilipeLeone, admitted to misaporopriation of investor funds by granting

each 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 the

Matterhorn 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 a

brilliant 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 the

mishandling 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 their

only 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 many

corrupt 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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• 4 weeks ago

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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!) younoted 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?

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• 8 months ago

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George Buzzetti 1 comment collapsed Collapse Expand

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

The game is on. Will the public wake up in time? Maybe, if the occupy movement does notturn out to be astroturf. They cannot sit around like they are in Los Angeles withoutdirection. I listened to them in L.A. vote to not have leadership. To not take a stand on WallStreet. To not use a bullhorn so all could hear in the noisy downtown environment. Not oneperson I talked with knew that the L.A. City Council had a resolution signed on by themayor 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 thecomet with their Nike shoes on. WAKE UP.

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• 8 months ago

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• 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 wipedclean on 9-11-2001, when WTC 7 collapsed in comical fashion.

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• 9 months ago

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• 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 grossdistortion that Rand's belief in and defense of capitalism included approval andencouragement of stealing.

Ayn Rand, whose books I have read, made very clear that any capitalist transaction was anhonest 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, legaland otherwise, by the likes of AIG and Goldman Sachs, are either lying, deluded, or haven'tread 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 fullysupported 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 GeorgeW. Bush, with the willful blood of tens of thousands of innocent people on his hands, isChristian.

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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 appreciatewhat 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 andhonest analysis in return for your pay.

Robert Henry EllerMilan, Italy

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• 9 months ago

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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 Bankof 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'soperations department to find a publication of this split. I worked in finance and if acompany 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 theexchange went from $3 to $26 without comment. This price change reflects a reversesplit. Citi did a reverse split a little while back and the stock slid back down. So theydid it again?The SEC should look into this practice. I cannot believe such goings-on with theOWS protesters outside the window. Exemplary gangster behaviour. Matt Taibbaiyou 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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• 9 months ago

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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 themost widespread outbreaks of white collar crime in history. I guess Ayn Rand felt thatsteeling was okay, too, as long as it suits your own best interests.

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• 9 months ago

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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 herbeliefs.

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• 9 months ago

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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 ama 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. hasbeen jacked, and on that note, I'm so peed off @ these DC/Wall St. bottom feeders, Ican't stand to see their faces, and definately am sick of reading what illegal BS comesout daily! Since I'm new, nice to be here, and off to see what my dear FB friends haveposted. I really need a new/comfortable bed, so when I opened Overstock.com, typedin search for spondylosis, they put up an ad for Drs. treating this-) and ended up onhere!!! Thank you so much! Off to tell everyone about a tech I got from thePhillipines, 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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• 9 months ago

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Joseph Walsh 1 comment collapsed Collapse Expand

I SAW AMERICA BEING ROBBED FOR 5 YEARS ON A DAILY BASIS BYFRONTRUNNING. WENT TO ARBITRATION WITH 8 FRONTRUNNING CASES ANDTO PROTECT THE CRIMINALS THE OFFICIAL ARBITRATION TAPES WERETHROWN OUT. I HAVE HAD NO GOVERNMENT RESPONSE IN 13 YEARS. WROTE18 LETTERS TO OBAMA AND TOLD HIM EVERY ENTITY OF GOVERNMENT WASNOT RESPONDING TO ME. I GAVE HIM PHONE NUMBERS TO CALL TO VERIFYAND NOTHING HAPPENED MY REP JEFF MILLER HAS NOT RESPONDED TO MEIN 10 YEARS AND HE TOLD OTHER GOVERNMENT ENTITIES NOT TO RESPONDTO 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 ANDA FORMER NY STATE AG CAUGHT THE CRIMINALS ONE AFTER THE OTHERAND SAID IT WAS EASY. LISTEN TO MATT TAIBBI AND MICHAEL MOORE

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• 9 months ago

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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 besteconomic option has a pitfall. Without check and balances instituted in our constitution toguarantee probity, the SEC created to be a check, is bribed as it is in our governmentlegislators by the lobbyist. There is no incentive for an appointed SEC member to impedeill-gained wealth, when the beneficiaries of that wealth are willing to spread some of it onthe SEC members. It is the same as the corporate lobbyist do to our senators andrepresentatives to get favorable treatment.In Florida, for instance, FLP, the electrical energy producing giant, got the state governmentto fire two power regulators because they had unfavorable reviews of their acts. One of theunfavorable 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 withpublic 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. Theseare the new royalty!SEC appointees should be closely monitored as DEA agents are. A DEA agent living wellbeyond his means is immediately suspect of colluding with the drug lords. The SEC agencyshould have an Internal Affairs office as all police forces have, after all they are a policeforce, 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, theirregulation of the industry was simply lax. they'd send someone in at required times, makecopies of what they needed and left. bare minimals and routine....their protocol was morethan questionable and obviously not followed up. lame, at best.

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• 10 months ago

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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" isbogus. The definition from NARA is here: Records or Federal records is defined in 44U.S.C. 3301 as including ``all books, papers, maps, photographs, machine readablematerials, 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 forpreservation by that agency or its legitimate successor as evidence of the organization,functions, policies, decisions, procedures, operations or other activities of the Governmentor because of the informational value of the data in them (44 U.S.C. 3301). So, I think thisassertion is tenuous at best.

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• 10 months ago

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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 notrubber-stamped an industry proposal in 2004 that allowed the investment banks to determinetheir own acceptable degree of leverage, based on their own proprietary models .

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• 10 months ago

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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 religioncould hope to.

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• 10 months ago

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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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• 10 months ago

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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 thestreet, one mega-million at a time” , starts with life after Sept. 11 in NYC but it is about awoman that takes over an international biker club and turns them into a global financialservice firm on wheels. My point was that white collar crime is above the law and costs thetax payers a fortune whether they are caught and often they are not or prosecutedsuccessfully or not. It is sad the Feds could not stop the crime and were not monitoring themwith 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 eddeals for the largest white collar crimes ever in NYC gov. history although sadly most NewYorkers don’t seem to know we have the largest theft and fraud of tax payer moneyEVER!!!! You can see YouTube footage of me standing with with Local 375 outside SAIC’sNYC offices asking for our tax payer money back! I say a billion x 3. I talk about RICOcharges meaning x3. Like this Rolling Stone piece no arrests so far no RICO charges....

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• 10 months ago

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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—- thiswould 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 aonce existing note.Security investors fund the BANK—not the borrowers—there is no direct relationshipbetween security investors and borrowers. If banks are able to sell their income stream, thatis an accounting transaction—it is not a “loan” to borrowers. This is why security investorsare 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 arefake). When some people here talk about Non-Deposit “trust” non-members—they arereferring to derivative transactions—that “SWAP” out collection rights—although the creditenhancers 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 fortransaction—but, were then able to profit by the “sale” of the receivable pass-throughs tosecurity investors.. This is also why MBIA (insurance co.) legal action against BOA andothers is hugely important."

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• 10 months ago

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i remember when storch was placed at the head of the sec by goldman. yea, look, i think 3 or4 years into this, all of the people who have been reading zerohedge, naked capitalism, linksfrom dollarcollapse, and a matt taibi and articles from all over the internet land of somethingtrying 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 adifferent 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 whenit's going to hit the asymptote.

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

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• 10 months ago

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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 putunder 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 themarkets. There are so many so-called Americans that have used their darkest energies intocultivating avenues of corruption at every level of our society. They hide behind the identityfacade of a so called job-title and yet they have harmed this culture in ways that most peoplecannot possibly imagine. They know who they are and I truly trust that the karmic force oftruth will ferret out their crimes, all for the sake of money and power. There is no therapy ordrug that will allow those who have corrupted the American peoples government to be freeand happy. The only way one can be happy is by right work, right effort, and waking up eachday with the intent of doing good and helping those around us by our sincere efforts. I amsaddened that so many from my generation took the path of deception even after we learnedfrom 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 inyou the wisdom of living in a principled way. You are a light in a steady stream of darknessin our capital city. I know from living here that the reason they destroyed what legallybelonged in our national archives was an attempt to hide corruption so rotted and foul thatthey decided it belonged in a landfill. They know who they are and their protest is justanother 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 upyour investigative journalism, many thanks, Susan S.

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• 11 months ago

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• Phil Ryan 1 comment collapsed Collapse Expand

Good work Matt - linked from POGO website - cheers

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• 11 months ago

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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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• 11 months ago

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This is my surprised look… Oh please… There is so much corruption in our government that ablind 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 farwould you go with this? After all, the entire system is based on corruption. How deep would you cutto 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 beerand looking for the hotdogs.

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• 11 months ago

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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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Congrats to Matt Taibbi and the temerity clan of inflexible fighters who refused to buy into thebabbling 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 TYCOCEO

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

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•11 months ago

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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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• 11 months ago

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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 harassedand 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 McKinseyClient 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 notmentioned in the press.

Shortly thereafter a long string of thefts, threats, telephone and email hacking and disruptions, and astalk and smear campaign that has spanned many years and CONTINUES TODAY intensified. Lawenforcement 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 fromincluding 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 inthe 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 Actcases involving fraud against the government. If your whistleblowing case does not fall within thenarrow specialty of this law, they won't help you. Corporate whistleblowers are left with little helpor 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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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 youwish, that is corroborated.

Hang in there, there are several of us here, who did lose everything for blowing the whistle andturning 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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• 11 months ago

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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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• 11 months ago

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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 wasdrawn 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 ofevery major newspaper in the country? Of course we know why, since this is an extremelyinconvenient truth! The Emperor's New Clothes - Well done Matt!

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• 11 months ago

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• Thom Langley 1 comment collapsed Collapse Expand

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

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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 RIGHTOF OWNERSHIP. THEY CAN ALSO STEAL FROM US AND INCARCERATE US FOR THESAME REASON AND WITHOUT ACCOUNTABILITY. THEY CLAIM THEY HOLD TITLE TOOUR BODIES FROM THAT DISASTER.CYNTHIA MARIE BREWER HUMAN 5001 TAXONOMY 9606 AND PRINCIPLE IN FACT OFBRE CELL, GENE AND CLONE LINES - TAKEN WITHOUT DISCLOSURE OR CONSENT

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• 11 months ago


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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 Madofffrauds even after numerous early complaints and allegations. But the issue is not governmentcollusion or corruption. They simply don't have the skills that exist in the private sector. The bestsolution would be to shut down the SEC and allow the private sector to set up organizations thatmake a profit for ferreting out fraud. A little less government reliance and more independentthinking on the part of the individual wouldn't hurt either.

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• 11 months ago

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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 andasset recovery, and the government agencies silo their investigators -- not the investment people; theones who should be chasing the crooked investment people -- to a degree that their skills sets arelimited. 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 somethingto be desired.

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• 11 months ago

• in reply to Walter Cruttenden

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

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• 11 months ago

•in reply to Walter Cruttenden

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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 SECbecause 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 thatexist 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 atwork. These people who "simply don't have the skills that exist in the private sector" are being hiredby the private sector as a reward for their cover-ups. Did you even read the article or are you soanti-government that you are blinded to the sins of the capitalist abusers? That's like blaming yourmother 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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• 11 months ago

• in reply to Walter Cruttenden

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• Meister Omega 1 comment collapsed Collapse Expand

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Occupation?

Stand-up Philosopher

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• 11 months ago

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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 theConstitution, but to overthrow the men who pervert the Constitution." - Abraham Lincoln

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• 11 months ago

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• Maria Marsala 1 comment collapsed Collapse Expand

Type your comment here.

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• 11 months ago

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• Linda Joy Adams 2 comments collapsed Collapse Expand


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• 11 months ago

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

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• 11 months ago

• in reply to Linda Joy Adams

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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 capitalistscannot/will not police themselves. There is too much money and too much power at the top. Unlessand until we change the culture of our country, to "what serves the country and the people of thecountry is what is good for the country", we can expect more of the same. It's great to blame theSEC for acting like capitalists if it deflects us from looking to closely at what the bankers andcorporatists 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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• 11 months ago

• in reply to Maria Marsala

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Unfortunately Maria Marsala,

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

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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• 11 months ago

• in reply to Maria Marsala

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Toby

I am losing websites on a daily basis. www . ACT4Justice . com and hundreds of others. Myenemies 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 4Justice). The MN Dist and BK courts already had made up their minds before the hearing transpiredand approved the fact that NO ONE could sue those who plead guilty or did not get charged. Eventhough there is a MVRA Mandatory Victims Restitution Act the MN Federal Judge (Kishel) said hewould 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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• 11 months ago

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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 andrulings. They are public documents.

My case record is complete. Fraud was requested for judicial notice in the 2003 Complaint andevery 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 defraudedthe trial court. Thus I have exhausted all avenues in state court, and extortion, under color of law iswell 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 isthe original Complaint, then the trial court ruling and appeals court ruling. Fraud, misrepresentationof when lawful process began, is obvious.

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• 11 months ago

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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 ofCitibank corrupt machine. As a single individual it is impossible to have anybody to listen. the storyends with court clerks making decision for the judges. I wonder what they are promised? Judicialposition or the legal post at Citibank. I think OWS is doing wonderful thing. they will be the forceto reckon with in the elections to come and they know it. What goes on beyond the Wall that Streetis separated from? I think something that 99% will not like it.

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• 9 months ago

• in reply to Toby Seiler

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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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• 11 months ago

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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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• 11 months ago

• in reply to Nancy Dadkhah-Zaitooni

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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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• 11 months ago

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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

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• 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 ourrights, we have allowed it to become an overbearing monster from whom we must get permission tocatch a fish! The Constitution was written to restrain the power of government TO PROTECT THERIGHTS OF THE PEOPLE! Until Americans begin working together to shrink government and getit back under our control, which was what the tea parties were about when they started. They were41% 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 thegovernment off our backs and out of our lives, cut spending and stop policing the world. Did youread about the tea party protests of GE paying no taxes and getting 3.2 billion in tax dollars? Didyou read about the tea party protests of SWAT raids on raw milk farmers and consumers? Of coursenot, 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

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

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• 11 months ago

• in reply to Delia Lopez ForCongress

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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

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Something else that you might want to consider are elected legislators and executives that arelawyers by trade. In elected positions, where lawyers are put into office, they have a conflict withbeing a "check" upon the judicial branch. Few if any legislators who are attorneys, will speak outagainst judicial wrongdoing. They have a prior bar commitment to maintain a "hands off" approachto 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 barcommitment.

Thus each lawyer elected to a legislative or executive position, assures that a "check" on the powerof 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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• 11 months ago

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

You can see the real way the DOJ works, in the case of In re Convertino. US Attorney RickConvertino criticized AG Ashcroft's handling of terrorist issues. He was then prosecuted by USAttorney Craig Morford, who had also prosecuted James Traficant. In the Traficant case, JTbelieved in the system and represented himself - paid a heavy price for his naivete. Morforddeported Okolo to make sure the vindication evidence did not make it into court and Morfordterrorized Rick Detore who went on C-SPAN and told Congress that he was forced by CraigMorford to perjure himself.In the Convertino case, he was the Michigan US Attorney who had successfully prosecuted the 1sttwo terrorist after 911. To assure the case of punishing Convertino, Special Prosecutor Morford hadthe court Release the 2 terrorists. Spending millions and millions of dollars in a 2 week trial - it tookthe 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 DeputyDirector - No 2 - under US Attorney General Gonzales. Through Mo Hurley sending out, over andover, 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 awaywith 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

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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 processbegan, 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, notover a month later in August, "is not cogent".

Transfer was denied and known fraud, judicially noticed manufactured evidence.... prevaied uponappeal. 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 heldaccountable.

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

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

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• 11 months ago

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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 dateof the discovery of the crime being committed.

Unfortunately, when the "Fix" is in, the courts will utilize anything they can to permit their "goodole boys" network to prevail. As reported below, the Chief Justice said 34 acts (CONFESSED mindyou) - 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 nevergot an answer, TownHall pulled down the public blog and Kelly B Stapleton resigned from being aUS Trustee.

The 3rd Cir stipulated that the Federal Rules of Appellate Procedure (FRAP) - did not apply to us. Ifthe FRAP Rules do not apply, then the 3rd Cir had no legal right to address the issue. Nor do youneed to get me started about the fact that District Ct and Circuit Court Judges are nominated by thePresident - 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-pickedparties?

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 gladlyresearch the facts and publish it - as a 3rd party asking why & how they can get away with this inAmerica.laser AT petters-fraud dot Com

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• 11 months ago

• in reply to Toby Seiler

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

do you have any idea how much they are getting away withbecause 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

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OH Yeah, By the WayRemember 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


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Oh yeah

Harold Bonacquistof

Traub Bonacquist & Foxwas listed by the NY Supreme Courtas to be contacted bycalling 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 GreekThe 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

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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 withMarc 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 AdelphiaEnron

K martLevitzStage Stores

andMNAT (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 $78where 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

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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

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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

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Delaware Chief Justice Walrath says she does NOT have to refer the matter to the US Trustee'soffice, because admitting to 34 false affidavits and the scheme to put Barry Gold in secretly - wasNot 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 SECRETclients, 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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• 11 months ago

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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 underRule 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 mid2004, 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) wascarried out

We filed an timely appeal in SeptemberandJudge 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 handlecriminal 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 criminalmatters by law violations of an attorney or judgeto the US Attorney's office

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So Chief Justice Mary F Walrath(MFW) in charge of eToys = hands off my companyclaim 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 own

6 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 ourselves

and graciously gave it away to the crooksRight

W R O N G

the court did NOT read the document. If you are going to forge a document and callit 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 saysyou 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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• 11 months ago

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What we found really funny, is that the visiting Judge (Sullivan, Donald) who waspresiding that day. Heard my motion on the fraud and told the US Trustee to let mespeak.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!

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

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

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

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

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• 11 months ago

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Sorry about the double posting

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So, as anyone can guess, we were mad that DOJ Deputy Director LawrenceFriedman 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 tofind, 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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http://petters-fraud.com/KenneyKB_Obstruction_2228

















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

Sounds like Lehman Brothers -it is even worse

Michael Glazer paid himself and BAIN $100 million

and 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 totell 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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• 11 months ago

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So, as anyone can guess, we were mad that DOJ Deputy Director LawrenceFriedman 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 tofind, 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 millionprior 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 totell 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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Dept of Justice Obstruction of Justice No 1

less than 10 days after the Motion to Disgorge, the SEC Bankruptcy Fraud Divisionin ATlanta GA told us they spoke to DE DOJ Trial Attorney Mark Kenney and thatthe 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 additionaldisclosures"

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

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

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

Then Asst US Trustee Frank Perch put forth the Motion to Disgorge TraubBonacquist & Fox for $1.6 million. This item even made it to the Wall Street Journalon July 25, 2005

Judge finds possible Conflict of Interest in eToys by WSJ reporter Joe Pereira

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Not only did they scheme for Liquidity Solutions and its connected associated firmMadison 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 faithnegotiations between Debtors and Creditors

That is between Debtor (Barry Gold) and Creditors (Paul Traub)

where arm's length is Impossible to achieve

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After Barry Gold was secretly (ILLEGALLY) made President/ CEO of eToysLiquidity Solutions (Co-Debtor of Stage Stores) - related to Bain/ Kay Bee andRomneybegan 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 onepennyas it would be a Preferential treatment.

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MNAT is the Delaware Attorney for Goldman SAchs and BAIN

Barry Gold and Paul Traub worked with BAIN interest for over a decade

including in the Stage Stores case prior to eToysThen, 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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We report all these crimes to the FBI, SEC, OPR, OIG, Public Integrity Section,Senators, Congressman, OSC, OGE, President Bush's Corporate Fraud Task Forceand the Deputy Director of the Dept of Justice over the Executive Office of USTrustee's (EOUST)

Director Lawrence Friedman sent me this email promise

From: [email protected]

Date: 02/25/05 14:49:58To: ‘[email protected]’Cc:[email protected]: RE: Item sent to the record today

Mr.. Haas:

You most assuredly have our attention and my personal commitment that we will actin every case where action is required and we are aware of it. Please understandhowever, that like any prosecutor, we must exercise appropriate discretion in carryingout 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 yourfrustration and again assure you that my staff is extremely competent to handle thismatter and will exercise appropriate judgment.

Lawrence A. Friedman, Director

Executive Office for US Trustees

United States Department of JusticeWashington, DC

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

Traub met Mitt and his Robber Baron horde in NeoStar.Jumbo SportsStage Stores

Barry Gold testified that Jack Bush from Dallasgot him jobs oftenJack Bush is the CEO of IdeaForest, a Bain entityMr. Bush was also at Jumbo SportsandStage 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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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 thebankruptcy case

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

wayI said no

and it almost cost them tens of millions of dollars

I say "almost"

because they stole it back....

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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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You can see in the United States Trustee's motion to Disgorge, that Traub and MNATspecifically 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 ourDemocracy. The book "The Plot To Seize The White House", by Jules Archer was areal eye opener. Also the testimony from "McCormack-Dickstein House CommitteOn Un-American Affairs" is an instant replay of todays political climate on WallStreet.

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Asst US Trustee Frank Perch testified, in theMotion to Disgorge Traub Bonacquist & Fox for $1.6 million

thatTBF had committed a fraud on the courtsee parts 19 & 35 ofpetters-fraud.com/DisgorgeMoti... . pdf

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http://petters-fraud.com/DisgorgeMotion_TBF_1_6_Million







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http://petters-fraud.com/DisgorgeMotion_TBF_1_6_Million









You can also see the facts of Dept of Justice Cover UPs and Obstructionat

www . petters-fraud . com/DOJ_Cover_UP . html

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

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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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One of the very 1st crimes in the eToys case, beyond the erroneous Rule 2014Affidavits 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 Evidence

Especially at the very beginning of a case.

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MNAT withheld the fact that it was Goldman Sachs attorney when it became theeToys 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 Courtby

Officers of the Courthas

NO Statute of Limitations

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

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Here is just a few cases, of the SEC & DOJ doing a cover up - to stop Goldman Sachs, Bain, WellsFargo 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 Usis in Possession of Stolen Property

eToys

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 listeningmore closely to the news in the middle of the last decade will remember many questions ofimpropriety inside the SEC starting at the top. We heard implications that the fox was guarding thehen house. It was much worse than anyone might have expected for a law enforcement agency ofthe 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 districtsin America would be ghost towns. But I guess only a "higher power" could do it for us and I do seethis coming as we enter the highly anticipated "last days" The names of these criminals will havebeen 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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Well said Mr. Green

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• in reply to Stephen Green

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

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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 allthe same, corrupted no good murderers, thieves, liars and rapists. Their track record speaks forthemselves......Ban private lobbying, with life in prison with no parole for either party thatparticipates, 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 filesby the SEC. This is a story that should be on the front page of every newspaper! Please write yourcongressman, 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 theanswers!

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You ask how Madoff or Petters could get away with it for a decade or more. We have the SECdestroying files, the Delaware (I call it "Deal-aware") courts having attorneys Confessing to Fraudon the Court by Perjury - and Chief Justice Walrath said admittances to 34 acts of false affidavits tothe court is NOT perjury. She let the crooks, who were caught red-handed inside the federal faultsfleecing, 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 Bellof Lancelot/ Sky Bell.

Surely we should ask questions of this guy. Did his brother know of the Petters issues? Did onebrother 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 MPRNewsMore 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 coupleyears 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 stockbrokers, bank execs and throw in a few lawyer for giggles. Take them all down to ground zero andstring 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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• 11 months ago

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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’SCOUP D’TAT ON GOVERNMENT AT THE HIGHEST OUTPOSTS OF LAW ANDREGULATION

NEW YORK SUPREME COURT WHISTLEBLOWER ATTORNEY, CHRISTINE C.ANDERSON, ESQ. (“Anderson”) MAKES FELONY CRIMINAL ALLEGATIONS IN USFEDERAL COURT AND BEFORE THE NEW YORK SENATE JUDICIARY COMMITTEE.ALLEGATIONS AGAINST SENIOR RANKING OFFICIALS OF THE US ATTORNEY’SOFFICE, THE NEW YORK ATTORNEY GENERAL’S OFFICE, THE DISTRICT ATTORNEY’SOFFICE, THE NEW YORK SUPREME COURT, THE NEW YORK SUPREME COURTDISCIPLINARY DEPARTMENTS, “FAVORED LAWYERS AND LAW FIRMS” AND A“CLEANER”, AS REVEALED IN FEDERAL COURT TESTIMONY, NAMED NAOMIGOLDSTEIN. 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 SupremeCourt Disciplinary Department Attorney and Expert in Attorney Criminal Misconduct Complaints,Whistleblower, Christine Anderson, Esq., to this RICO & ANTITRUST Lawsuit, exposes from theinside a legal conspiracy of corruption involving the highest levels of Regulatory, Prosecutorial andJudicial Public Offices, both State and Federal. Heroism is a word earned through action. TheWhistleblowing Efforts of Anderson, another New York Supreme Court Attorney Whistleblowerand Hero, Nicole Corrado, Esq., and, a Sitting New York Supreme Court Justice, Honorable DuaneA. Hart, Esq., all cited herein, should be the Moniker of HEROISM for others in the legalprofession 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 providethe World with an understanding of how America’s Financial System has melted top down, fromrigged economic breakdowns, with no Regulators or Prosecutors or Courts to stop it, in fact all ofthem aiding and abetting the crimes. Nobody attempting to recover the stolen funds for thePEOPLE, as all of the Government appears on the take according to these Whistleblowers. TheirWhistleblowing efforts expose how and why no one on Wall Street/Greed Street/Fraud Street ischarged with Criminal Acts, despite massive evidence of CRIMINAL ACTS and FRAUD, andfurther why none of the Stolen Loot from their Economic Crimes has been Recovered back to thePeople. What is unveiled is a COUP D’TAT on the HIGHEST OUTPOSTS OF LAW & ORDER inthe United States and yet not a single story in the Mainstream Media aka US Pravda Press regardingthese 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 PRIVATEPRACTICE and PUBLIC OFFICE, working in CONSPIRACY within the RICO CRIMINALORGANIZATION to OBSTRUCT JUSTICE for the CRIMINAL ENTERPRISE, as they areDIRECT BENEFACTORS OF THE CRIMINAL ACTIVITY. Anderson, Corrado and Other PublicOffice Whistleblowers cited herein, also provide explanation for why Judges and Attorneys at Laware 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 CRIMESand the CREATION OF ILLEGAL/FRAUDULENT INSURANCE CONTRACTS that led to aRIGGED HOUSING COLLAPSE by FRAUDULENT CDO contracts and DERIVATIVE contractsthat led to 8 MILLION VERY ILLEGAL FORECLOSURES WITH FORGED DOCUMENTS andMORE. While futile and obvious, these attempts show culpability in the crimes, a fear of retributionwhen the “long arm of the law” swings back. "

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Keep us informed Eliot Bernstein

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• 11 months ago

• in reply to 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 himfor co-opting the democrats with big wall street money. Of course the problem accelerated withGeorge W.

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Mikie,

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

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• 11 months ago

• in reply to Mike Lemmon

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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 theyhave 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 hedisclosed. Like, before the crash of 89, Wall Street knew it was coming, so the brokers all bailed outbut took spoils from all their clients. Were any of these guys prosecuted? Of course not. I believethat if Americans knew what happens on the inside of investment banking, no one would ever buy asingle 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, & congressionaloversight -- that deliberately thwarted doing what should be their jobs. I wonder how deep theregulatory capture goes...bet it's deep. We're paying extra for a system designed to crush us evenmore - 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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Conveniently, SEC files on Wall Street investigations were also destroyed on 9/11 when WTCBuilding 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 besplashed 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 lessdesirable candidates. In order to compete with Wall Street we should pay federal financialregulators and enforces more than the people they are prosecuting that would level the intellectualplaying 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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• 11 months ago

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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 Englishlanguage. I'd read most anything he wrote about anything just to read his descriptions out loudbecause 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 thetop of page two, Taibbi asks a rhetorical question along the lines of, "how did Flynn end up awhistleblower" and then there's the nice bit about the SEC literally asking for it in the formKhuzami's memo inquiring about lawyers behaving badly and Flynn misinterpreting it by reportingthe 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 werebeing destroyed. Did I miss something? What is the role of the Khuzami case, then? Just anillustrative anecdote about corruption at the SEC generally? If so, why introduce it as the loosethread that introduces Flynn's whistleblowing and leads to the unraveling of the corruption thatprovides the meat for this excellent piece? I only ask because now I have unanswered questionsabout how Khuzami reacted to Flynn unwittingly informing on his boss, how Flynn's decision to dothis was or was not influenced by the face that he was already a known whistle blower at thecompany, etc. Again, great reporting, but the narrative is a little preposterous - also, on the last pagewhen the narrative incorporates Grassley and hastens to detail how awareness of the scandal isexpanding, dates seem to almost completely drop out ("August 17" for instance is mentionedwithout a year, so that I'm not clear whether it's referring to '10 or '11) so that the timeline becomesblurry. I'd really like to know details about what happened when most recently, particularly becauseI'd like to know how long the media has been totally in the dark about the fact that all this wasgoing 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, ormaybe 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 inits 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 - clearlyCongress 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 revolvingdoor at the top of the SEC and its clear ethical dilemma.

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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 wherewhen and why are journalism 101. Almost none of our TV or Print or Internet "journalists" reallyreport 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 acouple of others.

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

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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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• 11 months ago

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

www dot laserhaas dot wordpress dot com

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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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DOJ covers up Wall Street Fraud on regular basis.

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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 3Federal 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 TrustCompany was sentenced/convicted and became a Federal Felon (3 Counts) and as such Felons areprohibited 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 thisgeneration'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 CommissionI submit the following information concerning SEC employees involved in suspected criminalactivities. I am not an attorney and do not know all the laws that may have been broken. I am awarethat whistle blower statutes protect government employees who blow the whistle on wrongdoing byothers. 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 detailedallegations of wrong doing that have gone unanswered it can be assumed that all knew and all had aduty 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 andExchange Commission to answer a Freedom of Information request for the identities of 14companies that PricewaterhouseCoopers LLP had taken public with fraudulent documents. Theyhave 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" whichshould be required reading everywhere!) and, as usual, you lay out with clarity what is really goingon. Investigative journalism lives in Rolling Stone (thank goodness!) as it disappears fromeverywhere else...

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

The revolution is coming soon to America - the corruption is too deep and an uprising seems theonly 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 violentcontraction / response happens. I hope the information revolution helps to decrease a truly violentresponse - 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 Iwant 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 notbe 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) goldstandard 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 hastalked at length about this and he (IMO) KNOWS WHAT'S GOING ON. He also worked underPaul 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 enoughgold!".... 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 incredibleamounts of physical gold over the past 2-3 years, because they KNOW what real money is and theyKNOW that the damage they have done will cause much further destruction of all fiat monies andeconomies 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 theUS 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/courtsystem) "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 (thishas already been done and TRILLION$ were stolen, thus ruining the world economies - that moneywill 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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If I understand Dale Richey's comments correctly he thinks free markets are the best way to go. Isee that several issues must be considered. There are no free markets when our government is on theside 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 willalways be.

A "gold Standard' in my mind is a ploy for someone to make a lot of money and since its pricefluctuates it is an unstable platform to depend upon and for what? The strength of the U.S. dollarhas been based on our stable democracy and the economy of the working class in America whichgreases 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 corruptgovernment and its rich greedy and criminal manipulators robbing our pot of gold. And this isexactly what has and is happening as we speak. This latest round goes back to 1913 when TheIncome Tax Act was instituted to pay for the hijacking of our banking system by The FederalReserve 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 justlearned about Scalia's son being a lawyer that and he gets to present cases before his father on thesupreme court of America. I wonder if he has ever lost a case or if his law firm has ever lost a casebefore this court?

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

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

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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'swidespread. If you're reading this, why don't you call up your county courthouse, or other agencieson the state level, and see how long they keep records. In Warren County it's six months.

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

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Follow this if you will; in 1913 the most powerful banking group in Europe bribed WoodrowWilson who was running for president with enough money for him to be elected president. Theyalso 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 ReserveBanking System which would control the money of the U.S. Treasury. Second was the Income TaxAct.

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 borrowthe money from the Federal Reserve Banking System, which would have the Treasury secretly printthe 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 FederalReserve Banking System ( or the people that the Federal Reserve Banking System sold the Treasuryobligations to) close to a TRILLIONS DOLLARS A YEAR IN INTEREST ON THATUNNECESSARY NATIONAL DEBT. In addition in 1913 the Income tax Act was passed so thegovernment 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 andtwo we can pay back the money we borrow from The Treasury and allow the Treasury to use theinterest on the repayment of the loans to run the country. There are well over 40 trillion dollars inloans out in America. if that interest of just 6% annually was going to U.S. The Treasury that wouldbe 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 ourNational Debt, and we eliminate income taxes.

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

Do any of you have a better way to do things, I don't think so. Another thing, ban currency tradingto stablize the value of currency for every country. Money is not a commodity, it is the medium thatwe barter goods and services with. The bankers do not want a stable soceity because then can notsuck the riches from us anymore, if we changed our banking system. Dennis Kucinich said, "wedon't need to depend on bankers for money, we are a soverign nation and we can can print all themoney we need to keep pace with our economy." And for the record; the FED said we can't justprint money and yet where did the 14 trillions dollars come from for THE FED to loan back to ourGovernment??? Just recently, between 2007 and 2010 The FED loaned the banks and the majorcorporations 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 fellowAmericans you still want to trust your democrats or republicans??

If you do you are dumber than dumb. With America having the most corrupt Executive, Legislativeand Judicial branches of any government ever in the world, it means we don't stand a chance againstthe 35,000 Washington lobbyists, and I wonder what they are all doing for all of our governmentofficials 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 andwhich cases the supreme court judged that robbed the American people and who benefited from allof these happenings and nonsense, we would know who stole what in short order, and if Obamadoes not allow this to happen, then he is guilty of tyranny!!!

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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 thedecisions of SEC officials leaving for higher paying jobs, have any connection?

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• Eliot Bernstein 1 comment collapsed Collapse Expand

Part 3and

free-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. – DLUviewit 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 Corporation

2753 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 outEliot'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 Fischer

liberty-candidates.org/greg-fi...facebook.com/pages/Vote-For-Gr...killallthelawyers.ws/law (The Shakespearean Solution, The Butcher)

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Part 2What followed was a Coup in Bush v. Gore with lawyers at Supreme Court of Clowns picking PresBush in 5-4 decision of TREASON. Lawyers from the DIRTY ROTTEN LAW FIRMS involvedthen flooded key government posts and well, note that in all the crimes plaguing the Nation andWorld, lawyers are behind them all. Whether they are AIG Fraudulent Ins Contracts, Fraudulent

Derivatives, Fraudulent Subprime Loan Documents, Fraudulent TARP thefts, ANTITRUSTVIOLATIONS, Fraudulent Foreclosure Documents including Forged Documents by Lawyers,Fraudulent CDO contracts, all these Frauds are being committed in the BACKGROUND byATTORNEYS AT LAW. Why are there no prosecutions, well other RICO Operative Attorneys atLaw have infiltrated all of the regulatory posts, prosecutorial posts, etc. so no prosecution for theCartel 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 theROOTS of the PROBLEM, nice job Matt on naming some of these firms in this article, I believeThompson 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 employeeshow 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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http://judgewatch.org/index.html

http://enddiscriminationnow.com/

http://corruptcourts.org/

http://makeourofficialsaccountable.com/

http://parentadvocates.org/

http://newyorkcourtcorruption.blogspot.com/

http://cuomotarp.blogspot.com/

http://disbarthefloridabar.com/

http://trusteefraud.com/trusteefraud-blog


http://constitutionalguardian.com/

http://americans4legalreform.com/

http://judicialaccountability.org/

http://ruthmpollackesq.com/

http://voteforgreg.us/

http://liberty-candidates.org/greg-fischer/

http://facebook.com/pages/Vote-For-Greg/111952178833067

http://killallthelawyers.ws/law









http://deniedpatent.com/

http://exposecorruptcourts.blogspot.com/

http://judgewatch.org/index.html

http://enddiscriminationnow.com/

http://corruptcourts.org/

http://makeourofficialsaccountable.com/

http://parentadvocates.org/

http://newyorkcourtcorruption.blogspot.com/

http://cuomotarp.blogspot.com/

http://disbarthefloridabar.com/


http://constitutionalguardian.com/

http://americans4legalreform.com/

http://judicialaccountability.org/

http://ruthmpollackesq.com/

http://voteforgreg.us/

http://liberty-candidates.org/greg-fischer/

http://facebook.com/pages/Vote-For-Greg/111952178833067

http://killallthelawyers.ws/law










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

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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. Notethat all the Wall Street/Fraud Street crimes are COMPLEX ILLEGAL LEGAL CRIMES that canonly be committed by one who possess a legal degree. They work together as a RICO CRIMINALENTERPRISE 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 offmillions of People and the people are sold that they are Harvard or Yale lawyers when these are justbought degrees from Rockafella bought schools. OK OK so the SEC, well I have probably filed thelargest ONGOING SEC COMPLAINTS in history and certainly one of the largest, involvingMadoff (MadeUp or Made Off With or Proskauer Rose Money Laundering Scheme), Stanford (orProskauer 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 asthe "Holy Grail" inventions of digital imaging and video by the very lawyers who later were caughtSTEALING 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 KennethRubenstein of Proskauer/MPEG was also the RNC Chief Counsel at the time the PATENT OFFICESUSPENDED my PATENTS pending ONGOING INVESTIGATIONS into the Lawyers whocommitted FRAUD UPON THE US PATENT OFFICE. Anyhoot, Michael Grebe, former RNC GCwith his Law Firm Foley and all his worth at risk decided a COUP would be necessary to block thecomplaints 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 watchedlast 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 theNY 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. (Nixonlet loose the Watergate burglars in response - oops.) Ellsberg paid a heavy personal price to do theright thing and to expose the lies that the US government had been feeding it's people for theprevious decade: in fact, exposing criminal actions in Vietnam. The NY Times took a huge risk - itcould 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 decisionthat it was in the public interest to have an independent media with sufficient freedom to expose theactivities 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 ... byone writer from Rolling Stone. Where are the other patriots acting for the greater good of thenation? Where is the NY Times or the Washington Post? Where is the outrage? Why is there noWoodward and Bernstein tracking down leads to the crime of the century that will damage theeconomy of the entire country (and world) for years to come? We are seeing a repeat of the silencethat 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 nowowned by the very oligarchs who ought to be the target of investigation. CNN was absorbed byTime-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 leastsomeone 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 surelypulverized into dust. On this very day, unarmed Syrians have the courage to face tanks and almostcertain 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 tonot be victimized by corporate criminals? This is a threat to every freedom taken for granted. Yearsare 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 lookthe 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 tradecenter 7 it housed all the records of SEC on the prior scandals Enron,Worldcom, etc. Looks like thistime 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 anoverwhelming majority of people.When the concientious employees of a regulating entity are labeled "whistleblowers" obviouslysomething is very wrong. Commno sense determines that criminal activities are happening based onnews reports. It's excellent to have it written down. Now what is our next step? I remember DannySchechter 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 ofsurrender.

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 tadnauseating.

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• Carlos Ramirez 1 comment collapsed Collapse Expand

Bottom 99% you meant, i think.

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• 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. Inother words are we the former middle class with two small kids expect to be scraping by for the restof our lives as the social systems that differentiate us from animals dwindle like our naturalresources do; or is this some neo-utopian economical model being developed and practiced by theuber-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 yourinvestigative ability. I have a small website and have now put a link to you and Rollingstonemagazine to drive even more traffic to you and this magazine. Good journalism and investigativeskills are a dying art. The fact that no one else even dares to touch these subjects just shows me howcorrupt the US has become and how, "distorted capitalism" is now, the norm. This is the sort ofthing 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 thebest and hope that any traffic I can drive to this website results in some subscriptions to keep yougoing. Were a small site but I will try to buy some subscriptions for some teens in the local hospitalso they have something to read. I think you and your publisher should be supported , thanks foryour 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 thistype of honest reporting. As many of the comments below suggest...a revolution is brewing. We areall 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 awindow 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 meaningto 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 forYEARS. 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 theydon’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, nearlyalone, for his entire career. I call BS on you and your rejection of the honest man you stealfrom...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 RonPaul....please, just be quiet, write about Sarah Palin or something. You're disingenuous. Hell, I hearNewt 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 thebiggest of those is abortion. The "good doctor" thinks 40% of American women (those who havehad abortions) are MURDERERS. Think of all the jails we will need to house almost half thefemale population, because we're MURDERERS! i will never ever support anyone who thinks I'm amurderer--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 theyshare 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 hasyou 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 ofdestruction orchestrated by some bad dudes. My guess is that you drink the dribble from networknews 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 hasbut one political solution: Ron Paul. When the 2012 election arrives, it will be interesting to seewhat 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 andwhere 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'ttouch it with a ten foot pole.

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

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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 forthe 3 decades of the Reagan/Bush era. In fact, let's get ANOTHER big tax cut to the wealthiest aswe 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!!! Getgovernment 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 peopledeciding 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 andpaid for legislation. Stealing is wrong, lying is wrong, killing people is wrong....we have had lawsagainst these things since the Magna Carta....let's use them. Free markets ALWAYS make the mostproducts or services available to the most people at the lowest cost...to state or think otherwise is anon-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 agreat 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. Andremember: even as corrupt as it is, at least one party is still trying to starve it to death and itwouldn't surprise me if members of a certain sect would like to kill it outright. Free market, youknow. 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 thisextent, 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) wherebasically people who headed up the agency in place to police Wall St. would be lured into lucrativegigs at the very firms they're supposed to be watching and even more amazingly sometimes rotateback 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 theSEC trying to do their jobs being thwarted by superiors, now evidence is being destroyed. Evidencethat would cause many to question many of the firms at the heart of the meltdown long before ithappened, 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 theyto find out that high-ranking members of Al Qaeda were in top positions at the Department ofHomeland Security? Seriously, what is the difference? One might say hey, Wall St. didn't fly planesinto 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 gotpaid for it. Handsomely. With our money. BTW one of OBL's wishes with 9/11 was to wreck theAmerican economy. He certainly put a dent in it, but sorry Osama: these guys did it in a way youcould 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 warnedabout 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 inplace 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" HaleThompson, and Capone's gang operated largely free from legal intrusion. He operated casinos andspeakeasies throughout the city. With his wealth, he indulged in custom suits, cigars, gourmet foodand drink (his preferred liquor was Templeton Rye from Iowa[21]), jewelry, and femalecompanionship. He garnered media attention, to which his favorite responses were "I am just abusinessman, 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 heprobably did create quite a few jobs as opposed to these guys, who in reality were catastrophic jobdestroyers.

So now that America is completely exposed to another financial 9/11 and having their gov'tprograms sliced and public lands bundled up and sold off to foreign entities, you'd think this wouldbe 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 likePerry 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'tSucceed 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 gotteninto derivatives instead of liquor, who knows what could have been?

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FBI, RICO charges. CIA?

deepcapture.com

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• 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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I can recall Schapiro or some other SEC bobblehead on TV saying she would tell us who had the1.7 million dollar put on Bear Sterns....

What happened?!??!

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• Adam Weinberg 1 comment collapsed Collapse Expand

streets

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The current market-capital based system must collapse it is unsustainable. It is one giant ponzischeme 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 paythe interest well we ask the federal reserve to print more money at 2% interest now tell me whendoes the cycle end? What we need is a revolution to tear down this enslaving system and replace itwith 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 theU.S. hey corporate overlords and bankers what will you do when we come for you? Where will yourun? 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 Stearnsand 427 other banks went belly up. Banks that did survive received bailout and Tarp money fromthe federal government. The banks took our taxpayer money and invested in commodities and in thecurrency market. By January the oil market had hit bottom; oil was selling for $34 a barrel. So thebanks and hedge funds invested in oil, betting that it would go up. After all, they had beenpreviously 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 worldconsumption was down, they were successful at pumping oil up again with the resurrection of thebig 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 noplace to store it.) Instead of the price of oil being determined by supply and demand, the oil andcurrency traders now control the price of oil. These American and international bankers didn'tbelieve that the Obama administration would be successful combating the crisis that these verybanks created. As the deficit grew and the treasury printed more money to bail out the banks, theirtraders and analysts declared the Obama administration dead on arrival when it came to theeconomy. 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 costof everything goes up, especially oil and other commodities.The banks scored twice; first by betting that oil would go up, then shorting the greenback, insuringthat oil would go up. Don't forget, we loaned the banks the money to do this, and for years thosebanks 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 ofthe price of commodities world wide. It's been a good couple of years for Goldman Sachs, J PMorgan, and their commodity and currency trading subsidiaries. A bright guy who ran an oil tradingsubsidiary for Citi Bank made 100 million as compensation. Their hoarding practices have started tobe 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 effortshave 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 bemade! Problem is, there is no place to store it anymore and everyone continues to pump it out of theground. 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, arepaying way more than we should. And we have been for some time. Bernie Madoff ripped off hisclients to the tune of 50 billion dollars, a monumental theft. So what do you call this oil market thathas taken 50 times that amount? We have paid $2.5 trillion dollars more than we should! The ironyof 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 of1999?

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• Mary Bagatelos 1 comment collapsed Collapse Expand

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

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• Don Smith 1 comment collapsed Collapse Expand

Disclosure:Long: Boiled RopeShort: Patience

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• 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 beenfrustrated 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 willfollow.

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• Don Smith 1 comment collapsed Collapse Expand

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


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• Micheal Meginley 1 comment collapsed Collapse Expand

We have a criminal class the permeates both Wall Street and the halls of the federalgovernment. We are emulating the political structure of Third World kleptocracies. Insuch countries, everyone knows the political elites are thoroughly corrupt andcompletely unaccountable. The only thing that fixes the miserable situations thatultimately impoverish those countries is a revolution. Such a revolution won’t beforthcoming until the United States finds itself as poor and miserable as the Tunisianswere just months ago.

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

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• 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!!!

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Joy Toth 1 comment collapsed Collapse Expand

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

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• Reno Fickler 1 comment collapsed Collapse Expand

I am embarrassed I can't remember the name of the black, female Congres-personwho "perfectly" described the SEC when she was referring to the Bernie Madofffiasco.

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!!!!

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• Gloria Aleixo Hall 2 comments collapsed Collapse Expand

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

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• Jon Patrick Cavanaugh-Spain 1 comment collapsed Collapse Expand

Yes.

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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 theSEC, or lack of oversight, is too great a temptation to expect even highly regardedpeople to overcome, and the amounts of money or other emoluments the supposedperpetrators have to tempt SEC officers with are enormous. There must be anassumption of untrustworthiness whenever opportunity and temptation combine,rather than an assumption that strong character will prevail against corruption. "Leadme not into temptation", not 'give me strength to resist temptation'.

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• James Logue 1 comment collapsed Collapse Expand

The SEC is a disgrace. They have Gone Rogue, in the classical way, like anundercover cop strung out on the junk. Bad Lieutenant time, but like Really

Expensive. A Pox on all their houses.

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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 hearingsregarding these issues on all kind of agencies and committees formed and NOTHINGGETS DONE! It all just sits out there and anyone who pays attention knows about allthe corruption and insiders taking care of the other by payoffs of huge money andcorporate/government jobs. Congress does nothing because there is a revolving doorin congress in lobbying companies, to huge corporations to huge banks.

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• Jody Hoon-Starr 3 comments collapsed Collapse Expand

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

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is there ever gonna be a bottom

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• Dominic Haberstumpf 1 comment collapsed Collapse Expand

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

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• Cullen Stapleton 1 comment collapsed Collapse Expand

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

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Matt Brown 3 comments collapsed Collapse Expand

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

Imagine if the SEC, unencumbered by revolving door appointees of the financialindustry, were let loose to prosecute, seize and amass a warchest from successfulconvictions. The program could be self-funding simply by the effective seizures of"proceeds of illegal activity" without having to get the much more difficult criminalconviction 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 theymay prove to have been, who can be classified as the victims & therefore beentitled to claim. Remember some of Madoff's 'victims' successfullyreclaimed 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 allforfeiture cases practiced today are civil. In civil forfeiture cases, the USGovernment sues the item of property, not the person; the owner is effectivelya third party claimant. Once the government establishes probable cause thatthe property is subject to forfeiture, the owner must prove on a"preponderance of the evidence" that it is not. The owner need not be judgedguilty of any crime. In contrast, criminal forfeiture is usually carried out in asentence following a conviction and is a punitive act against the offender.Since the government can choose the type of case, a civil case is almostalways chosen."

- and -"The United States Marshals Service is responsible for managing anddisposing of properties seized and forfeited by Department of Justiceagencies. It currently manages around $1 billion worth of property. TheUnited States Treasury Department is responsible for managing and disposingof properties seized by Treasury agencies. The goal of both programs is tomaximize the net return from seized property by selling at auctions and to theprivate sector and then using the property and proceeds for law enforcementpurposes."


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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 EnforcementDivision giving a lawyer who WAS a partner at a major NYC firm a pass becauseand this is a direct quote from the investigative report: "2. Internal Resistance WhenBringing Cases Against Attorneys"

A second factor cited by Enforcement staff in the decision not to bring an actionagainst ......was an overall reluctance by staff to bring cases against attorneys becauseof 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 ofinvestigations – $8,000 ... including Madoff," as one high-ranking SEC official put it

during a panicked meeting about the destruction – have apparently disappearedforever into the wormhole of history."

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

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• Jeff Miller 1 comment collapsed Collapse Expand

"Regulation isn't a panacea. The SEC could have placed federal agents on everycorner of lower Manhattan throughout the past decade, and it might not have put adent in the massive wave of corruption and fraud that left the economy in flamesthree 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 - Icouldn't help but to think that there is similar corruption and "brain trading" inagencies like the Office of the Comptroller of the Currency (the oldest federalregulatory agency), FDA, EPA, OSHA, etc. That said, I applaud your personalcrusade to shine a bright light on how the global cartel of banksters have extractedtrillions (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 cancontinue to educate those who have blinders on or are genuinely interested in makinga difference.

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

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• Ronald McKenzie 1 comment collapsed Collapse Expand

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

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Hugh Magbie 1 comment collapsed Collapse Expand

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Campaign finance reform anyone? Lawyers, lobbyist, hedge funds and bankers arebig financial supporters of our congressional delegations. Our lawmakers need todistance themselves from their commodities masters. The speculators at banks andhedge funds make money by playing the futures market in commodities. They hordeoil 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 createhigher prices and artificial shortages. They also have currency traders who try tolower the value of the dollar. If the value of the dollar goes down then it will costmore 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 havetaken our taxpayer bank bailout money and have created record profits for theirbanks, big oil and OPEC, while all the time draining our pockets. Drilling andopening up the reserves won’t work and will only enrich these bad actors. We need toget off oil asap, but do we have to be fleeced while we transition? Repeal theCommodity Futures Modernization Act of 2000 and the Financial ServicesModernization 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. LehmanBros, Bear Stearns and 427 other banks went belly up. Banks that did survivereceived bailout and Tarp money from the federal government. The banks took ourtaxpayer money and invested in commodities and in the currency market. By Januarythe oil market had hit bottom; oil was selling for $34 a barrel. So the banks andhedge funds invested in oil, betting that it would go up. After all, they had beenpreviously successful in driving up the price to $140 dollars a barrel. They beganhoarding 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 thoughworld consumption was down, they were successful at pumping oil up again with theresurrection 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 tothe 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 beingdetermined by supply and demand, the oil and currency traders now control the priceof oil. These American and international bankers didn't believe that the Obamaadministration would be successful combating the crisis that these very bankscreated. As the deficit grew and the treasury printed more money to bail out thebanks, their traders and analysts declared the Obama administration dead on arrivalwhen it came to the economy. They bet that the US dollar would lose its value. TheUS dollar has lost between 25-30% in the last four years. They bid it down and theymade lots! Their cynical efforts to make a buck impoverished all of us by devaluingour 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 thegreenback, insuring that oil would go up. Don't forget, we loaned the banks themoney 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 thestock 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 goodcouple of years for Goldman Sachs, J P Morgan, and their commodity and currencytrading subsidiaries. A bright guy who ran an oil trading subsidiary for Citi Bankmade 100 million as compensation. Their hoarding practices have started to beemulated by other countries; we now see China, The US, and others building vast oilstorage facilities to take advantage of climbing oil prices. OPEC, big oil and thebank'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 ofthe money to be made! Problem is, there is no place to store it anymore and everyonecontinues 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. BernieMadoff ripped off his clients to the tune of 50 billion dollars, a monumental theft. Sowhat 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 thetaxpayers 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 JusticeDepartment and state Attorney Generals applying the RICO act against thesecriminals? Why haven’t we repealed the Commodity Futures Modernization Act of2000 and The Financial Services Modernization Act of 1999?

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Is the SEC Covering Up Wall Street Crimes Rolling Stone Magazine

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