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Whistleblower On Madoff Rocks Mainstream Media

March 4, 2010 (By Bud Burrell)

Harry Markopolos’ Book: “No One Would Listen”

– From “Front and Center”, by C. Austin Burrell –

This week, Certified Fraud Examiner Harry Markopolos announced the release of his new book, “No One Would Listen”, about the complete stonewall he hit with US Government Regulators including the SEC and FINRA. He told his story in his typical low key and very professional manner, making his message all the more devastating.

I am sure that SEC, FINRA and other officials to whom he reported his findings on the scope of the Madoff fraud felt footfalls on their graves.

Starting with CNBC, and then going to Matt Lauer, CNN and FOX News, he recounted his story of his discovery of the Madoff fraud, which had been ongoing for many years, when he examined the claimed performance of Madoff’s split strike price conversion strategy, and his quick realization that he claimed performance that would have simply been impossible to produce. He recited the sequence of events that led him to conclude within 30 minutes that Madoff was a fraud. It is where it went from there that no one except people who had faced similar risks could imagine. [entire post]

Tags: book, conversions, finra, harry markopolos, lawyer misconduct, madoff, no one would listen, reverse conversions, sec, short selling, split strike price, threats
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5000 Attorney General DOJ Indictments Targeting Financial Fraud, National Security

January 14, 2010 (By Bud Burrell)

– From “Front and Center”, by Bud Burrell –

Last week, in a speech given in West Palm Beach, Attorney General Holder announced the pendency of 5000 indictments by the Department of Justice of individuals linked to financial institution fraud as part of an overall targeting of market manipulators and cheaters across the Board. His speech did not specify for the audience the type of targets the DOJ was focusing on, leaving open the most important questions about such an announcement. Who is being indicted by type, for what kind of specific misconduct?

I have devoted thousands of man hours over ten years to try and work with and within the legal system of the United States to get its principals to focus on the rape of the American investors stealing literally trillions of dollars, through conduct that could only be identified legally as sedition. Ten of thousands of securities issued by thousands of legal issuers have been manipulated, counterfeited, and stolen in virtually every form of security bought and sold in every market in the World. I pointed out to many of the responsible government oversight and regulatory officials that various tactics were being strategically employed to launder money for the purpose of stealing securities and evading taxes.

I broke this down into a single memo of eight bullet points for not only these parties but also for numerous journalists, lawyers, victims, government officials and more, with a uniform silence from them with only a handful of exceptions. The summation of this memo was that criminals both domestic and global were tactically manipulating all forms of assets, engaging in various forms of counterfeiting facilitated by vested public interests, in a huge global conspiracy lined inextricably to all forms of organized crime, again, done strategically to launder US assets into foreign accounts for the purpose of evading all forms of taxes, both legitimate and illegitimate. [entire post]

Tags: 5000 indictments, cboe, clearance and settlement, clearstream, euroclear, exchanges, financial fraud, ftd's, hedge fund(s), journalist, nasdaq, prime brokers, short selling, state attorneys general, syndicates, task forces
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A Sea Change In Short Selling Regulation

August 10, 2009 (By Peter Chepucavage)

From “Plexus Nexus”, by Peter Chepucavage

We have noticed with frustration the Commission’s recent actions’ confirmation of a change from pre-trade regulation to post trade regulation of abusive short selling. It’s an affirmation of the wisdom of unsafe sex if it can be fixed later. The essence of our argument is found in a recent courageous Dow Jones article by Joe Checkler (http://compliancex.typepad.com/compliancex/2009/08/even-with-new-rules-naked-short-violations-hard-to-enforce.html). These arguments were also reinforced by CEO Neiderhauer of the NYSE who recently stated:

“But even if we get that done, your second part of your question is the important part. What was really broken in this country was not the trading rules. It was the borrowing, lending and delivery rules. They were not being enforced. People were not borrowing stock and had no intention of borrowing stock when they shorted. And that was our big issue with the SEC in the previous administration. Enforce the rules.

“Settlement’s supposed to be T-plus-three in this country, not T-plus-100. And there were a lot more aged fails than people thought. So I think tightening up those rules has made a big difference and has dramatically reduced the amount of naked short selling. [entire post]

Tags: liquidity, madoff, neiderhauer, ponzi, reg sho, short selling
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