Stock COUNTERFIETING...Dr. Jim DeCosta..

[hundredtoone]

To:
From: [e-mail] [mailto:[e-mail]]
Sent: Friday, December 30, 2005 2:36 AM
To: ENFORCEMENT
Subject: enforcement complaint


ENFORCEMENT COMPLAINT FORM
12-30-2005 2:36:21
- - - - - - - - - - - - - - - - - -
Information About You:
Name: greg hogberg

Information About the Complaint
Type: all
Entity Name: STOCKS
Names, Addresses, Telephone number etc:


To: Jonathan G. Katz, Secretary, Securities and Exchange Commission
Subject: NASD-2005-112 Re: Release No. 34-52679

Dear Sir,

I thank you for this opportunity to comment on the proposed changes to NASD Rule 3360 in order to expand the short interest reporting requirements to all OTC securities. In a nutshell, I highly recommend this proposal and its implementation as soon as possible. I have been fortunate enough to devote the last 24 and one half years of my life to a very thorough study of the phenomenon known as naked short selling. During that timeframe I have written 2 unpublished textbooks on the subject, the most recent being an approximately 800-page analysis of naked short selling and the role of unethical DTCC participating market makers and clearing firms and their interrelationships with primarily unregulated hedge funds.

As you at the SEC have no doubt realized by now, the wording used in Reg SHO has left a glaring loophole that any DTCC participants wishing to circumvent the spirit of this new Federal Law can easily access. Although the “Forced” federally-mandated buy-ins for certain threshold securities are clearly outlined, somebody at the SEC unfortunately inserted the verbiage, “If the participant does not take action to close out the open fail to deliver position AS MANDATED BY THIS NEW FEDERAL LAW, the participant is prohibited from making further short sales in that security without first borrowing or arranging to borrow the security”. Unfortunately, no clarification of what constitutes a legitimate reason for being unable to execute a mandated buy-in was included except that the reason cannot be of a financial nature. In other words, if you refuse to obey this new Federal Law mandating “Forced” buy-ins which is now part of the 1934 Securities Exchange Act, your punishment is nonexistent but you’re reminded to obey the law in the future. I don’t know if this was inadvertent or just more “Deterrence-SEC style”.

In a recent “self-interview” published by the DTCC, the DTCC made it crystal clear that they intend to utilize this loophole graciously provided by the SEC. In this interview, the interviewer asks the Deputy General Counsel of the DTCC the following: @ DTCC the interviewer: “So Reg SHO doesn’t force them to close out the position, even market makers are not exempt from this requirement, but if they don’t, they are prohibited from making any additional short sales without borrowing the shares first” Thompson the DTCC Deputy General Counsel: “That’s right.”

What’s interesting is that in the answer to the previous question this same Deputy General Counsel states: “The “Close-out” requirement FORCES emphasis added a participant of a registered clearing agency to close out any “fail to deliver” position in a threshold security that has remained for 13 consecutive days by purchasing securities of like kind and quality”. This verbiage is consistent with the exact phrasing of the law.

My question to you at the SEC is, “Which is it” Are these DTCC participants “FORCED” to do these “Mandated” buy-ins as outlined in the text of the law or not My second question would be can the DTCC’s actions be interpreted as recommending to its participants the breaking of the new Federal Law Reg SHO because the punishment, irresponsibly advertised by somebody at the SEC as being nonexistent, really is nonexistent People can and do break Federal Laws all the time. My third question is why advertise the loopholes accessible for breaking these new Federal Laws with no recourse within the text of these new Federal Laws unless, of course, somebody at the SEC’s heart wasn’t quite in the right place all along but wanted the SEC to be PERCEIVED anyways as acting as a shareholder advocate that is following its mission statement of providing “Investor protection and market integrity” I think that you at the SEC can now get a pretty good idea of why the shareholder advocacy groups are critiquing the effectiveness of the new Reg SHO “Threshold Lists”.

One fact that “pre-doomed” the bulk of Reg SHO’s honorable intentions is the rule on the books of the DTC and the NSCC that states that mandated buy-ins need not be executed if their effect might be “Disruptive” to the markets. In layman’s terms this means that mandated buy-ins in the shares of an issuer that fell victim to a “Bear raid” that resulted in its share price falling from 5 to 2-cents need not be done because these buy-ins might result in a “Market Disruption” involving the share price skyrocketing to 4-cents, an enormous 100 gain. As you at the SEC are painfully aware, Section 19 C of the ’34 Exchange Act disallows the SEC from amending the rules and regulations of any “Registered Clearing Agency” like the DTCC. A quick review of some facts regarding naked short selling might help you to coordinate your battle plan against naked short selling IF THIS IS TRULY A HIGH PRIORITY OF THE SEC.

SOME FACTS RELATED TO THE NAKED SHORT SELLING OF U.S MICRO CAP SECURITIES

1 There are currently approximately 8,200 hedge funds managing approximately 1.05 trillion. About half of these fly under the regulatory radar due to some loopholes in the 1940 Investment Company Act.

2 In the post-decimalization era, market maker “Spreads” are now razor thin and many securities scholars contend that ethical market making firms cannot make an honest living in this environment. The downside of that notion is the resultant “Survival of the corruptest” form of natural selection we are now witnessing in regards to the naked short selling pandemic.

3 Unethical market makers will bend or break any rule to attract the business of these hedge funds. They have to in order to survive. The money from primarily unregulated hedge funds drives this entire naked short selling “Industry within an industry”.

4 In-house proprietary trading activity has skyrocketed recently among market making firms.

5 Our OTC markets are trying to “Evolve” and eliminate human intermediaries market makers subject to human greed and in possession of a vastly superior “KAV” factor Knowledge of, Access to and Visibility of the clearing and settlement system run by the DTCC and replace them with unbiased computers ECNs to match up buyers and sellers. The current Wall Street power and influence structure will not allow this evolution to occur.

6 Unethical hedge funds will feed their massive order and commission flow generating abilities to any market making and clearing firm that prove to be the most “Accommodative” to these behemoths and their desires. They expect rules to be bent and broken on their behalf. Access to illegally working out of a MM’s “in-house proprietary account” is especially deserving of certain “Concessions” as we have seen in several recent cases involving certain hedge funds and certain market makers.

7 Hedge fund managers are under a lot of pressure to perform or their wealthy clients will move their money elsewhere. These clients expect their hedge fund managers to seek out “Accommodative” market making and clearing firms even if there is criminal risk incurred by the hedge fund manager.

8 Bona fide market makers are legally allowed to naked short sell securities but only while acting in the capacity of a “Bona fide” market maker.

9 A bona fide market maker is expected to naked short sell nonexistent “shares” at the 5 level when an imbalance of buy orders over sell orders is present at that level and he has no inventory at the time.

10 Should the share price drop to perhaps 4.80 then a bona fide market maker uses the proceeds from the sale of the nonexistent shares he legally naked short sold at 5 to buy back these shares and pocket this 20-cent “Spread”. A bona fide MM is happy making “The spread”.

11 A bona fide market maker injects liquidity by buying shares when sell orders outnumber buy orders with the same zeal that he shows while selling shares when buy orders outnumber sell orders. The problem is that buying shares consumes money while selling shares, even if you don’t own nor intend to ever purchase shares, makes money because of how the DTCC is “Wired”.

12 A bona fide market maker does not direct or restrict share price movement he buffers the intensity of the swings in share price. The two main roles for short selling in general are to inject liquidity and to create “Pricing efficiency”. To create “Pricing efficiency” all negative votes short sales as well as positive votes buy orders need to be tallied as long as the short sales were preceded by a legitimate “borrow” i.e. not a “Borrow” from a “Self-replenishing” source like the DTCC’s “Automated Stock Borrow Program” or “SBP”. Legal short selling is a very good thing that is crucial to the markets. Abusive naked short selling is a form of market manipulation which is a 10b-5 securities fraud usually involving criminal enterprises.

13 A bona fide MM, when faced with a large amount of buy-side activity, will allow the share price to find an equilibrium level above the current price after selling a MODERATE amount of shares at the lower price.

14 A bona fide MM would rather sell nonexistent shares at a higher level than at a lower level UNLESS HIS CURRENT NAKED SHORT POSITION HAS GOTTEN OUT OF HAND TO THE POINT THAT COLLATERALIZING AN ASTRONOMICALLY HIGH NAKED SHORT POSITION AT HIGHER LEVELS MIGHT BE COST PROHIBITIVE. SHOULD THIS SITUATION PRESENT ITSELF THEN FRAUDULENT NAKED SHORT SELLING IS OFTEN SEEN AS THE ONLY ESCAPE ROUTE AND A “BLANKET” OF FRAUDULENT NAKED SHORT SELLING IS OFTEN PROVIDED BY THE TROUBLED MM AND ANY WILLING CO-CONSPIRATORS THAT HE CAN “RECRUIT”.

15 Bona fide market makers don’t get caught in this trap as they are more than willing to increase the price level of their offers if the buy-side pressure remains. This is referred to as “Averaging up”. Not so bona fide market makers don’t have this luxury if they were guilty of greedily selling nonexistent shares in a non-stop fashion just to get their hands on the buyer’s money before a competing MM was able to.

16 The ability TO APPEAR to be legally naked short selling securities while acting in a bona fide market making capacity is something the unethical hedge funds desire very badly but cannot legally attain.

17 There are many unethical market makers that have been so decimated by decimalization that they allow unethical hedge funds space under their “Umbrella of immunity” from borrowing before short selling which is supposed to be only accorded to bona fide MMs acting in a bona fide market making capacity at the time. The rental fees for this “Space” is paid in fees and commissions via order flow.

18 There are very few regulatory policemen monitoring market making activity in regards to whether naked short selling is truly “bona fide” or not.

19 When presented with trading evidence in a court of law, it would be extremely difficult for an unethical MM to claim that he was indeed acting in a bona fide market making capacity while constantly naked short selling into buy orders that dwarfed sell orders as a stock’s share price plummets from 5 to 2-cents. When buy orders overwhelm sell orders for prolonged periods of time share prices go up not down. Naked short selling by theoretically bona fide MMs is only legal when buy orders overwhelm sell orders.

20 The supporting bids of unethical MMs taking part in “Predatory trading strategies” are conspicuously absent as share prices fall despite their having the money from investors buying at higher levels in their coffers. THE SEC, NASD, AND DTCC CAN EASILY DETECT THESE PREDATORY TRADING STRATEGIES BY UNETHICAL MMs WHILE STUDYING TRADING DATA. THE EVIDENCE JUMPS OFF THE PAGE AT YOU.

21 The “Continuous Net Settlement” system CNS in use at the DTCC “Nets out” on a daily basis buy and sell orders which is extremely efficient BUT has a “Masking” effect on delivery failures which is an unwanted side-effect UNLESS YOU WANT TO HIDE THE EXISTENCE OF A PLETHORA OF UNDADDRESSED DELIVERY FAILURES. THEN IT’S JUST WHAT THE DR. ORDERED. DR. LESLIE BONI RECENTLY PUBLISHED AN EXCELLENT RESEARCH PAPER OUTLINING THE “PERVASIVENESS” OF DELIVERY FAILURES RESULTING FROM NOT SO BONA FIDE MARKET MAKING ACTIVITY.

22 At the DTCC, it is extremely easy for fraudsters to illegally sell nonexistent shares and actually get their hands on the proceeds without ever covering. PARDON US IF WE INVESTORS FIND THIS CONCEPT TO BE NOT ONLY HEINOUS BUT UNCONSCIONABLE. All these fraudsters need to do is to collateralize the naked short position in a “Marked to market” manner on a daily basis such that the depressant effect on the share price from yet further naked short selling allows the proceeds from previous naked short sales to fall into the lap of the perpetrators of these frauds. The key is to never stop naked short selling which might have the untoward effect of allowing the share price to increase to find its own unmanipulated equilibrium level. The current clearance and settlement system in use at the DTCC allows naked short positions to be run up so rapidly that if the victimized issuer fails to die on cue then the perpetrators of this fraud cannot only not cover these positions without financial collapse but they can’t even stop the daily onslaught without risking the share price going up. The allure of free investor money is so overwhelming that prudent short selling practices fall by the wayside.

23 For the most part, naked short sellers don’t ever cover they don’t have to. They can always fall back on their ace in the hole as a “Participant” of the DTCC by refusing to execute even buy-ins mandated by the old NASD Rule 11830 as well as the new Reg SHO because of possible market “Disruptions”. The financial critical mass of these hedge funds and co-conspiring Wall Street behemoths will outmuscle even the most formidable preyed upon targets. If they meet resistance then there are available “Internet bashers” to employ and financial “Journalists” for hire to produce “Hatchet jobs” to propagate any negative stories whether of merit or not. First Amendment freedom of speech issues as well as Internet anonymity are utilized to delivery any unfavorable opinions.

[glow=red,2,300]24 The key to naked short selling fraudsters is to get these trades involving the sale of nonexistent shares to “Clear” even though “Settlement” Which involves the “delivery” of that which was thought to be being bought i.e. genuine “shares” or “packages of rights” attached to a specific U.S. Corporation may never occur. The “Automated Stock Borrow Program” at the DTCC allows shares held in “Street name” at the DTCC to be borrowed from an anonymous “Lending Pool” of shares. This allows the firm of the buyer of these nonexistent shares to receive delivery of “something” that at least resembles a legitimate share at first glance. The problem is that the buying firm is allowed to immediately place these “Shares or share facsimiles” right back into this same anonymous “Lending pool” of shares AS IF THEY NEVER LEFT IN THE FIRST PLACE. THE BUYING FIRM IS THEN HANDSOMELY REWARDED BY THE DTCC WITH THE CASH EQUIVALENT OF THE SHARES DEPOSITED INTO THE POOL AND CHOSEN TO CLEAR THE NEXT FAILED DELIVERY. THIS WONDERFUL ABILITY TO CONVERT A CLIENT’S PURCHASES OF REAL SHARES OR “PSEUDOSHARES” INTO CASH FOR THE USE OF THE BROKERDEALER PROVIDES PLENTY OF INCENTIVE TO KEEP THE “LENDING POOL” FULL TO CAPACITY. THE SELF-REPLENISHING ASPECT ALSO HELPS KEEP IT FULL TO ADDRESS AS MANY “FAILED DELIVERIES” AS THE SYSTEM WILL GENERATE WHICH IS AN INFINITE AMOUNT IF NO REGULATOR MONITORS FOR THE APPROPRIATENESS OF THE USE OF THE “BONA FIDE” MM EXEMPTION FROM BORROWING BEFORE SHORT SELLING.

25 The “Counterfeit Electronic Book Entries” “CEBEs”-electronic book entries at the DTCC without a certificated share in a DTCC vault to justify its existence that result from the lack of buying-in these failed deliveries then appear on investors’ monthly statements as readily-sellable “Pseudo-shares” despite the fact that there is no paper certificate in a DTCC vault to justify its existence. Keep in mind that the DTCC at all times has full visibility of the number of “CEBEs” as well as genuine shares held in their vaults. [/glow]
26 The “Supply” variable that interacts with the “Demand” variable to determine share price then becomes the arithmetic sum of all genuine paper-backed electronic book entries at the DTCC plus the number of “Counterfeit Electronic Book Entries”. This greatly enhanced “Supply of readily-sellable shares” then interacts with a greatly diminished “Effective Demand” for shares due to buy orders for shares being effectively neutralized by the sale of nonexistent shares into these buy orders resulting in the typical precipitous drop in the share price of the preyed upon U.S. Corporation. This allows the unknowing investors’ funds to flow into the lap of those that sold nonexistent “Entities” but still refuse to cover.

27 The 2 main repositories for these unaddressed delivery failures are the DTCC “D” sub accounts and the “Non-CNS delivery arrangements” shunted to “Exclearing” hiding places. The “Ex-clearing” hiding places involve DTCC participants “Pairing off” and allegedly informally agreeing to not buy-in each other’s failed deliveries. Bd “A” agrees to not demand delivery of the 5 billion worth of securities owed to it by Bd “B” in exchange for Bd “B” doing likewise with the 5 billion worth of failed deliveries owed to it. The DTCC holds that these are “Contractual” arrangements between its participants and that it has no business in monitoring. Victimized issuers and investors might beg to differ as any “Self-Regulatory Organization” might be expected to do a little “Selfregulating” of the activity of its participants which unfortunately at the DTCC own the DTCC. The DTCC management aggressively regulating the behavior of those that sign their paychecks is a bit of a design flaw creating yet another conflict of interest.

28 Section 17 A of the ’34 Act set up the DTC which later merged with the NSCC to form the DTCC. It mandated “The prompt and accurate clearance AND SETTLEMENT of transactions involving the transference of ownership”. Even in the Reg SHO environment the trades done by naked short selling fraudsters still aren’t “settling”. “Settlement” mandates “Good form delivery” of that which was intended to be purchased by the buyer-a “Package of rights” attached to a specific U.S. corporation domiciled in a specific U.S. state. You cannot have “Good form delivery” if that which is being “Delivered” comes from a self-replenishing “Lending pool” of shares provided by the DTCC’s “Automated Stock Borrow Program” the SBP especially when that which is delivered to the new buyers brokerdealer can immediately be replaced right back into the same “Lending pool” from whence it just came as if it never left at all. In order for a system like this to have one scintilla of integrity, the “Sharespseudo-shares” delivered to the new buyer’s brokerage firm would be sequestered or escrowed off to the side and not allowed to be replaced into the “Lending pool” UNTIL the original loan was repaid.

29 What our current system does is to allow trades to “Clear” at warp speed without legally “Settling”. Dr. Boni’s research clearly showed the “Pervasiveness” and extreme age of the failed deliveries stacking up at the DTCC. This vastly dilutes the “Readily-sellable” share structure of targeted corporations causing their share price to plummet which allows the proceeds from the sale of bogus shares to actually flow into the laps of the fraudsters despite their having absolutely no intent of ever buying or replacing that which they have already sold. Recall that all the fraudsters have to do is to collateralize this ever-diminishing debt on a daily “Market-to-market” basis.

30 If the SEC is sincere about addressing this problem, I would suggest they start with legislation to rescind Section 19 C of the ’34 Act which currently forbids the SEC from altering the rules and regulations of the DTCC. The combined 800-pages of rules and regulations of the DTC and NSCC, in my humble opinion, is the most conflict of interest-ridden set of rules on the planet. The lack of necessity to execute buy-ins mandated by the old NASD Rule 11830 and the new Federally mandated Reg SHO threshold securities buy-ins due to the pretense of avoiding “Market disruptions” is in the opinion of most securities scholars nothing short of criminal as by definition there has to be a “Market disruption” involved when leveling the playing field of a victimized issuer that has lost 99 of its market capitalization due to abusive naked short selling by DTCC participants hiding behind their rulebook that is untouchable by the SEC.

In summary, this NASD Rule 3360 proposed rule change represents a step in the right direction especially if made a part of a more comprehensive plan that addresses the loopholes inadvertently left in Reg SHO. The systemic risk levels currently being incurred by all U.S. citizens due to the greed of abusive DTCC participants and coconspiring hedge funds and naked short selling cartels is intolerable. The inability for Reg SHO to address the preexisting delivery failure problem hints at just how serious and pandemic this problem is. The voluntary “Grandfathering in” of previous acts of securities fraud sets a very scary precedent. As I see it, you at the SEC have run out of comfortable middle ground to occupy in this dilemma. You now see the absolute numbers of delivery failures of a given issuer on a daily basis. You either have to warn prospective buyers, as per the ’33 “Disclosure Act”, of these levels of “Readily sellable share facsimiles” unaddressed delivery failures being held at the DTCC or in “Exclearing arrangements” IN ALL OTC SECURITIES or order their being bought-in.

There is no third choice. These prospective investors need to be warned that they’re buying shares of corporations with astronomic levels of unaddressed delivery failures which have basically pre-ordained their investment to an early death as statistics will readily bear out. The 1933 Securities Act mandates that investors be made aware of all information pertinent to the “Character” of the securities being sold in our markets. In a prospectus you at the SEC appropriately make a new issuer reveal every possible tiny grain of sand of risk to the investing public yet you at the SEC, the NASD, and the DTCC possess information about a gigantic “Boulder of risk” present in investing in especially nonreporting issuers with a plethora of unaddressed delivery failures, yet you keep silent.

Note that the Reg SHO “Threshold lists” don’t even discriminate between a corporation with a 0.6 delivery failure rate from a corporation with a 66 delivery failure rate. There really is no middle ground left on this landscape strewn with corporate carcasses for the SEC to safely stand on any longer. Either tell us about these positions as the amended 3360 would partially address or buy-in the failed deliveries. If mandated buyins result in the weeding out of the most abusive market making and clearing firms then so be it. This might allow our markets to evolve into more efficient computerized markets not subject to human greed and massive conflicts of interest between DTCC participants and the investors they owe a fiduciary duty of care to. Thank you for your interest in this subject.

Dr. Jim DeCosta
Tualatin, Oregon

www.sec.gov/rules/sro/nasd/nasd2005112/ghogberg123005.htm

...F

[hundredtoone]

Continuous Net Settlement (CNS) and Illusory FTD Reporting
Location: Blogs Bob O'Brien's Sanity Check Blog
Posted by: bobo 8/28/2006 3:23 AM
The Continuous Net Settlement System (CNS). A system implemented by Wall Street to speed transaction processing, which nets sales against purchases, and against the accounts of DTCC participants.

What does it have to do with the magnitude of the Fail To Deliver (FTD) problem?

Turns out, a lot.

Because of the netting, many delivery failures never show up as such at the DTCC, and consequently are never reported. The DTCC literally doesn't know they exist. How can that be?

Here's an example created for me by Dr. Susanne Trimbath, PhD, an authority on the clearing and settlement system:




Here’s what happens if you settle trade for trade

Sell
“Deliver” at customer account level (some level below your DTCC account)

100
0

200
200

500
500

-800
+700

i.e., you are short 100 shares at this level, with 200 shares failed to be delivered and received




Now look what happens at the end of the same day after NSCC Account nets to the -800 shares position:

Seller’s DTCC Free Account
9,000

NSCC settlement
-800

Balance after settlement
8,200




There are no failures to deliver at NSCC that day because there were sufficient shares in the sellers free account to cover their bill

Ta-dah! Netting hides the failure to deliver



In other words, Prime Broker A could have, say, 1 million long shares of NFI in their account, and during the course of the day, several of their big hedge fund customers could fail 400,000 shares, and those would never show up as FTDs because the CNS system would net the fails against their securities in their account, essentially netting the fails against shares in their DTC account.

Here's how it was further clarified for me by Dr. Trimbath:

"For your question, you need to follow through to the DTC account, where shares are taken automatically for CNS settlement by NSCC. Here, we’re talking about a hedge fund that failed to deliver to Prime Broker A, a specific trade that failed delivery. However, because the “free” shares are taken from Prime Broker A’s account there is no reported failure to deliver at NSCC.

If, for example, the failure is in IBM, and Prime Broker A has a ton of shares hanging around the house account, then those get swept up for delivery and there is no failure in CNS. There is a failure in the system somewhere, but the DTCC never sees it. Prime Broker A should be tracking it, we hope, to be sure they get the shares... But there are no SEC rules about Prime Broker A reporting that. (From what I’ve seen in NYSE audits, the Prime Broker A's of the world aren’t keeping very good records on this sort of thing, frankly).

Now what if those are NFI, and Prime Broker A doesn’t have a ton of shares hanging around the house account? Now, there’s nothing to get swept out for settlement and you get a reported FTD from NSCC. This helps explain why smaller companies show up on threshold lists more often, despite the fact that over-voting of shares occurs in HP/Compaq, for example."

OK, so I get it. CNS nets against the NSCC accounts of the participants, and the only FTDs that are reported are trades over and above whatever each participant has on account, after all trades for the day are netted against each other.

So realistically, delivery failures hidden by the CNS system could be much larger than what shows up as FTDs at the DTCC, given that 90+% of all trades are netted. Literally, most of the issued shares of a company on account at the DTCC via brokers could be used up in netting BEFORE the first FTD showed up as we think of them, or as they would show up on a FOIA request.

Now think about that for a second.

We know that EVERY company has an over-voting problem. So by definition, more votes are being cast than shares exist. Margin lending, without distinguishing lent security entitlements, accounts for some of that - the brokers just allow the lent share investor, who has no right to vote as his shares were lent out - to vote anyway.

But how much is due to the slop in the system - the CNS hidden delivery failures? Nobody knows.

So what does that say about market integrity?

Try this one out. In addition to CNS netting hiding the true level of delivery failures, we also have ex-clearing, wherein failures are moved out of the system and treated as a contractual agreement between two brokers - thus out of, or "ex", clearing system. Nobody really knows how large that is, either. And foreign clearing firms also net behind their own curtain, further minimizing the problem's size.

Are you starting to get it now?

I haven't seen a comprehensible discussion of the CNS system's impact on FTDs, so I thought I would try to explain it - so next time the DTCC or the SEC say delivery failures aren't a "significant problem" (assuming you believe anything they say after the Aguirre revelations, and the Global Links and NFI and OSTK and CALM and TASR, etc. etc. revelations) consider the context, and further consider how much is hidden behind the curtain of CNS.

Hope this explains it so the average person can get their head around it. Sort of a CNS for Dummies.

The short way of saying it is that CNS netting could easily be minimizing the apparent problem by 90+%.

How's that for scary?

Here's a diagram of a 100 share failed transaction, where the ledger is adjusted against the total long shares held by the broker, resulting in no fail at the DTCC level, even though the seller never delivered the shares to the broker.



Copyright ©2006 Bob O'Brien

www.thesanitycheck.com/BobsSanityCheckBlog/tabid/56/EntryID/434/Default.aspx

...Flying Moose(cmkxunofficial)

[hundredtoone]

Stock Counterfeiting

In the old days, stock counterfeiting was a matter of using cumbersome paper and ink, and forging signatures. Nowadays, as almost all “stock” is really electronic book-entries kept in the DTC’s ledger, it is much easier. And there are numerous ways to achieve the same stock counterfeiting effect.

The most obvious is naked short selling, or “failing to deliver”.

First, an unscrupulous hedge fund or other large-scale stock manipulator sells some “stock. Second, he fails to deliver it.

In the 3 days between when he sells it, and when he is supposed to deliver it, the buyer’s broker will credit the buyer’s account with something called a “Securities Entitlement.” When the seller fails to deliver the shares on day three, legally, per the Uniform Commercial Code (UCC) Section 8, the “Securities Entitlement” becomes invalid, and should be removed from the buyer’s account.

But because the buyer’s broker got paid his commission already, he doesn’t want to have to “bust the trade” because of non-delivery (and return the commissions), so he will just keep that now invalid “Securities Entitlement” in the buyer’s account, representing it as real and valid.

That is one form of counterfeit stock, as the buyer thinks it is real, and yet it has none of the rights that a real stock has – voting rights, dividend rights, etc. And the brokers treat these fake, invalid “Securities Entitlements” as real, and will allow the buyer to sell them to the next chump – they sort of have to allow them to, as they've been representing them as real all along.

Because this practice is not limited to just a few bad brokers, it can be said to be an institutional, or systemic, problem. Everyone on the Wall Street side of the fence wants to treat those fake “Securities Entitlements” as real – the only ones that lose by the fake, invalid “Securities Entitlements” being in the system are investors, and the companies affected.

For Wall Street it is literally free money.

A valid “Securities Entitlement” ALWAYS has a corresponding book-entry share at the DTC’s ledger. A fake, invalid “Securities Entitlement” doesn’t – so it is falsely represented to have the rights of the real thing – exactly like a counterfeit. Hence the term counterfeit stock.

This first description is the mechanism where naked short selling, or “failing to deliver”, can create counterfeit stock.

Another method of stock counterfeiting occurs when a “failure to deliver” occurs and is cured by the NSCC’s Stock Borrow Program. In that instance, stock is lent from an anonymous, self-replenishing pool at the DTC, and is delivered to the buyer. But the shares that were lent from the DTC to the NSCC have “Securities Entitlements” up at the broker level that were backed by the now-lent shares, creating yet another way of achieving the same end-result – counterfeit stock, or rather, invalid “Securities Entitlements” represented as real to investors.

Yet another method of stock counterfeiting occurs when brokers lend shares from margin accounts, and fail to alert the margin account investors that the “Securities Entitlements” are now NOT backed by the corresponding electronic book-entry anymore, as that book-entry has been lent. Again, these are invalid, fake “Securities Entitlements” per the UCC Sec. 8, and thus counterfeit stock.



----------------



When a naked short seller fails to borrow shares to deliver to the buyer, he fails delivery to the NSCC – the intermediary in the trade. So he has a Failure to Deliver (FTD) sitting there at the NSCC – an IOU to the NSCC for shares. The NSCC is in charge of guaranteeing delivery to the buyer, so the NSCC either dips into the SBP and borrows some shares to give to the buyer, or if there aren't enough shares at the SBP the trade moves “Ex-Clearing” – outside of the DTCC system.

“Ex-Clearing” is where the buying broker and the selling broker make a contractual agreement to handle delivery of the shares off-line, outside the system. Nobody polices these arrangements, so there is no way of knowing when, if ever, the shares are delivered – that is between the two brokers.

This results in share counterfeiting, as the buyer is represented to have received valid “Share Entitlements” when in fact they are nothing of the sort, until the book-entry shares are delivered – which may never happen.

So share counterfeiting can occur in a number of ways, but always because of the same factors – the buyer’s broker misrepresents invalid “Share Entitlements” as real to his client.

That is why “over-voting” occurs – there are more “Share Entitlements” at the brokers than there are shares to support them at the DTC, and in order to continue misrepresenting the fakes as real, they have to allow investors to vote those fakes, as though real.

Pretty simple. It is all driven by Wall Street not wanting to have to give back commissions when shares are un-delivered. So a flood of fake “Share Entitlements” – counterfeit shares – are traded in the system as real, and as long as all the brokers treat the fakes as though they are real, everyone on the industry side of the fence wins big – more trades, more commissions, more shares with which to drive down prices for the large, super-important customers of Wall Street – the hedge funds. That is what is known as creating “liquidity” by creating fake shares. It is pervasive, and the SEC and DTCC refuse to tell anyone exactly how big the problem is, or to divulge the size of the problem by company.

Everyone on Wall Street – the financial press, the brokers, the DTCC/NSCC/DTC, the research firms, the banks – all have a ton to lose by this being understood by Main Street America.



Naked Short Selling & Stock Manipulation

The reason why stock counterfeiting is used by stock manipulators is because they can profit by driving the price of a company’s stock down. Without getting into the myriad number of ways to profit, suffice it to say that there are many ways to do so, including legal short selling. The key to a manipulation is to drive the price down. Naked short selling is one effective way to do so, as the manipulator can flood the market on thinly traded stock, causing the price to decline as supply exceeds demand. Some investors will sell out of fear, some because of trading theories (if a stock drops more than X, sell first, and then ask questions later), some because of margin calls – all help the manipulator maintain downward momentum.

Some manipulators aim to drive a company out of business, by exhausting the company’s capability to raise cash by selling its equity. Others merely seek to drop the price, and then keep the price low, covering their shorts with the shares being sold at or near the bottom due to the factors listed above, or investor exhaustion, or sentiment that the stock is a dog.

All of these manipulative techniques exploit the loopholes that the system has introduced by allowing clearing and settling to be de-linked from one another. In the old days, nobody got paid commissions until the stock was delivered. Now, everyone gets paid commissions when the trade is booked (cleared), and delivery is an afterthought.

By flooding the market with sales transactions that they know will create a flood of fake “Securities Entitlements” on delivery day, the fraudsters use the system to facilitate their stock manipulations – they know that buying brokers will not bust the trade, even if they don’t deliver the shares, thus they are secure in their scheme – the system will cover for them. And it does. Buy-ins are unheard of in actual practice, thus a manipulator has no dis-incentive to using this type of manipulation technique.



Terms:



Short Selling: A legal trading technique where a seller borrows stock, and then sells it, delivering it to the buyer. The seller is hoping for a price decline before he buys it back in the market to return to the lender.

Naked Short Selling: A generally-illegal trading technique where no stock is borrowed by the seller, and no stock is delivered to the buyer.

Buy-In: Where the buyer’s broker, having failed to receive shares, “Buys-in” the shares in the open market, and debits the failed seller’s account for the funds.

Share Entitlement: A marker that represents a share held at the DTC.

Fake or Invalid Share Entitlement: A marker that falsely claims to be representing a share held at the DTC, but in reality has no underlying share to support it.

DTC: The Depository Trust Company – subsidiary of the DTCC, it acts as the share vault for paper shares, and converts them into electronic book-entries – one book-entry per one share.

Book-Entry: An electronic representation of a share.

DTCC: The Depository Trust Clearing Corporation – clears and settles virtually all trades in the US.

NSCC: National Stock Clearing Corporation – subsidiary of the DTCC, acts as the “back office” of a bank, handling debits/credits for stock trades (basically handles the money) and acts as the contra-party in all trades.

Contra-Party: Middleman who guarantees shares to a buyer, and money to the seller. Legally bound to deliver both.

Clearing, clears: Processing the buy/sell, paying the commissions.

Settling, settles: Delivering the shares.

FTD: Failure to Deliver – where a sales transaction is performed, but the seller fails to deliver the shares on T+3.

T+3: Transaction day plus 3 business days. Legally, when shares must be delivered.

SBP: Stock Borrow Program – a program at the NSCC where shares are available from the DTC, on loan, to cover temporary delivery failures.

Self-Replenishing: The SBP is operated on the honor system, and it allows member brokers to put shares into the anonymous pool of shares in the SBP, to loan to the NSCC. It is said to be self-replenishing because once a share is borrowed by the NSCC, and delivered to the buyer, the buyer’s broker is free to put that same share back into the pool, to be relent out again to someone else. In that manner, one genuine share can give birth to a daisy chain of fake "Security Entitlements" at the brokers.

Reg SHO: Latest SEC Regulations governing naked short selling.

Reg SHO Threshold List: A list of companies for which the level of FTDs exceeds a threshold of 0.5% of their outsanding shares AND 10K shares.

www.thesanitycheck.com/Blogs/BobsSanityCheck/StockCounterfeiting/tabid/105/Default.aspx

YEP the DTCC and the NSCC knows where every NSS is I BET
...Flying moose(cmkxunofficial)

[hundredtoone]

Re: Dr. DeCosta's Analysis of The DTCC's Performance Under 17A By Patchie on 2/21/2006 2:52 PM
Dave..

While this has never happened, you are correct. De-registration is not a bankruptcy. It is a process in which a publicly traded company goes private. The owners of this now private company are teh shareholders - beneficial shareholders.

What CMKX shareholders are attempting to do is actually prove counterfeiting.

When a stock trades and results in a settlement failure, the regulators claim that the failure is acceptable because teh shareholder can still sell their entitled share. In the case of a deregistration process, the music stops and all chairs will be taken. those standing without a chair have a legitimate case against their broker for taking their money without taking posession of the share purchased. The claim is not against the sell side but your own broker.

The regulators have watched and so far all but CMKX have complied. Shareholders have walked away without seeking posession of the property they purchased weeks, months, years previously, the certificate that allows them a claim to any assetts in the now private company.

Counterfeiting and the receipt of stolen property is a case where the real property can never be delivered. In a deregistration, unlike a trading FTD, the real product purchased can never be delivered - EVER.

www.thesanitycheck.com/Default.aspx?EntryID=92&tabid=99

www.thesanitycheck.com/SearchResults/tabid/37/Default.aspx?Search=decosta+counterfit+cmkx

...Flying Moose(cmkxunofficial)

[hundredtoone]

Silver State Bank has not been charged in the CMKM Diamonds case, although they did fire an employee named Patricia DeCosta, who approved most of the transactions. DeCosta in turn filed a lawsuit in early 2006 against her former employer, detailing her side of the story:


“Throughout plaintiff’s employment she was encouraged to open new accounts and each ‘performance appraisal’ done with regard to her employment speaks glowingly of the number of new accounts her branch opened.


That on or about the 5th day of September 2004 the bank was served with a subpoena with regard to accounts maintained at the branch plaintiff supervised. Certain executives of defendants (Silver State Bancorp, Silver State Bank) owned stock in companies controlled by the subject of the subpoena and became disconcerted when the bank was served with the aforementioned subpoena.


Seeking a scapegoat the bank terminated plaintiff claiming she had not processed a suspicious activity report in a timely manner. Plaintiff was unable to timely process the SAR due to the fact that she was undergoing a ‘serious health condition’, which required her to take leave from her employment.”


The fact remains that Silver State Bank never filed a single Suspicious Activities Report (SARS) while 50,000 CMKX shareholders lost their entire investments. Did Andrew McCain look into the bank’s shady past, and if so, is he now just quietly trying to slip out the side door before the building comes tumbling down?


How this new twist plays out remains to be seen, but the saga of CMKX, as detailed in “The Naked Truth: The Stock Play of a Lifetime” seems to be a story that won’t go away. After years of being ignored by public officials at all levels, maybe it will take a presidential campaign to expose the seedy underbelly of corruption in our financial markets.

And that….as always…is the Faulking Truth.

www.fourwinds10.com/siterun_data/government/banking_and_taxation_irs_and_insurance/news.php?q=1217447050


...Flying Moose(cmkxunofficial)

[imSINGLEruRICH]

100-1

The "rats" are scurrying !
I truly believe that the outraged & determined CMKX shareholders had a huge hand in bringing this "Financial Terrorism" to light. Our emails, phone calls, faxing & letters have forced the hands of many, who wished we would just go away!!
BUT.... this quote tell it all....Thanks to the shareholders seeking justice....
the saga of CMKX, as detailed in “The Naked Truth: The Stock Play of a Lifetime” seems to be a story that won’t go away.

The crooks are finally caught with their pants down to be viewed by all. What an embarrassment to our country!

We are here to stay.... the traps have been set..... soon ALL the rats will go for the cheese !!


Thanks for all the info you supply !! Keep up the good work !!


Single

[hundredtoone]

By: leowanta
15 Aug 2008, 05:07 PM EDT
Msg. 751411 of 751439
(This msg. is a reply to 751403 by ctla_4_me.)
Jump to msg. #
ctla_4_me....one more point you should understand...it doesn't matter how BIG of a shareholder you are holding unregistered shares....they represent DAMAGES....NOT OWNERSHIP....THEY CARRY NO VOTING RIGHTS....THEY ARE COUNTERFEIT...

so a person who has 10 shares is damaged just like the person with a billion shares......one isn't stronger than the other....cause the share they hold doesn't constitute OWNERSHIP...ONLY AN AMOUNT OF MONEY PER SHARE IN DAMAGES.

i think fizzell is a very weak attorney....i can't imagine giving up private practice for nothing....unless he had not much of a practice in the first place.....from the brief that he filed....it's clear he has little experience in administrative law, and less in security law.

leowanta

ragingbull.quote.com/mboard/boards.cgi?board=CMKI&read=751411

I believe that 622 BILLION of the CERTED SHARES are COUNTERFIET also...that is why they carry NO VOTING RIGHTS...they only represent the ownership of DEBT...for THIS CERT PULL ONLY...it is possible there are some REAL CERTS that were issued when there still WERE real shares around...well before the CERT PULL...they may carry some rights but not the ILLEGAL UNREGISTERED shares represented in the CERT PULL and TF records...this is only my opinion but it makes a lot of sense too...we can never send these certs back so they must be BOUGHT OUT by the TYLER CMKM (with money from trusts/assets/settlements) or the SEC then CANCELLED...it would not be fair to the REAL SHAREHOLDERS of CMKM to bring in 622 BILLION ILLEGAL and unregistered shares IMO...Flying Moose(cmkxunofficial)

[hundredtoone]

By: eaglesrock2008
18 Aug 2008, 02:54 AM EDT
Msg. 752531 of 752543
Jump to msg. #
News-Firm Aids Compliance With SEC Naked-Sale Rules
Firm Aids Compliance With SEC Naked-Sale Rules

Harvey Pitt, of Kalorama Partners, started RegSHO.com with John Tabacco, of LocateStock.com, and Tom Ronk, of Buyins.net. (By Dennis Brack -- Bloomberg News)


www.washingtonpost.com/wp-dyn/content/article/2008/08/17/AR2008081702014_Comments.html


By Christopher Twarowski
Washington Post Staff Writer
Monday, August 18, 2008; Page D01

When the Securities and Exchange Commission issued an emergency order last month protecting the stocks of the country's largest financial institutions against a form of short selling, three businessmen saw an opportunity.

Harvey Pitt, SEC chairman from 2001 to 2003 and chief executive of District-based global consulting firm Kalorama Partners, teamed up with John Tabacco, chief executive of LocateStock.com, and Tom Ronk, the chief executive of Buyins.net, to launch RegSHO.com.

"It is a very serious problem, and it has led to a whole host of additional problems in the marketplace," Pitt said. "It's definitely a vehicle that has and can be used by those who effectively want to push the price of the stock down and do it rapidly."




www.washingtonpost.com/wp-dyn/content/article/2008/08/17/AR2008081702014.html?hpid=sec-business

ragingbull.quote.com/mboard/boards.cgi?board=CMKI&read=752531

...Flying Moose(cmkxunofficial)

[hundredtoone]

27449 von capten 22.05.08 18:03:15 Beitrag Nr.: 34.153.216
Dieses Posting: versenden | melden

Chairman Christopher Cox May 19, 2008 Securities & Exchange Commission Washington, DC
RE: REG SHO, Proposed Rule 10B-21
Dear Chairman Cox:
As Chairman and CEO of BioTech Medics, Inc., (Pinksheets: BMCS) I would like to endorse what was said in an earlier response by Pat Cluney from Florida and add to what has already been posted. Mr. Cluney is a shareholder in BMCS.
I have witnessed from personal experience over three and a half (3-1/2) years of illegal manipulation of our stock, inclusive of counterfeiting, forging, shorting and naked shorting. I have filed over a hundred Suspicious Trading Reports (SARS) with every regulatory agency imaginable and over 36,000 pages of evidence with the SEC.
There is no discipline with naked shorting and repeat offenders have no fear of the SEC because the chances of a violator being caught and disciplined is negligible. Most of the repeat offenders take the same cavalier attitude as that of a serial killer. Once you have killed, the penalty is no greater for repeat killings. So illegal manipulation of stocks continues daily by repeat offenders with impunity.
Case in point: CMKM Diamonds (a/k/a Casavant Mining, now revoked former stock symbol: CMKX). The SEC has had an ongoing investigation for over 5 years titled: In the Matter of CMKM Diamonds, Inc., LA-3028. This case goes back to 2002 and involves approximately $100 million in theft of investor funds with nearly ONE TRILLION Shares of stock, a majority of which were illegally issued without pre-requisite restrictions, legal opinions; or legal opinions issued from deceased attorneys and/or were naked shorted in the market with counterfeit shares. It was not until April 7, 2008 that the SEC has finally taken action in US Dist. Court, Las Vegas, NV regarding this egregious fraud upon the investing public. Most of the stolen funds are gone, leaving investors pennies on the dollar if anything.
The “mastermind” (SEC words not mine) in this fraud, John Edwards was also the “mastermind” of illegally issued shares in BioTech Medics (and dozens more pennystocks). Edwards had numerous accomplices who have yet to be cited by the SEC. The fraud in our case stems back to 2002 and involves scores of millions of dollars in fraud and over 50 million shares that we have been able to verify in an audit of our shareholders.
However, FINRA over a year ago in the CMKX matter sanctioned NevWest Securities Corp (CRD # 46464) of Las Vegas and Sergey Rumyantsev and Anthony Santos $100,000 and
K Houser REG SHO- 10B-21 Proposal Comments Page # 1
$75,000 each respectively, for laundering over $58 million of John Edwards and over 20 of his sham shell trusts and companies that were used to perpetrate the alleged fraud and benefit from the naked shorting. NevWest reportedly received over $2.4 million in commissions.
So the alleged manipulators got away with $58 million and the sanctioned stock broker facilitators were slapped on the wrist and got away with nearly $2 million in profits. Where is the justice in this “discipline”
Another case in point: In the Matter of SEC vs. Pinnacle Business Management and Jeffrey
G. Turino, Case No. 8:02-cv-00822-EAK, US Dist Ct, Tampa Div. Judge Elizabeth Kovachevich found Turino guilty of violating the Securities Act and prohibited Turino from trading penny stocks for five years (which ends December 5, 2008). Within five (5) days subsequent to Judge Kovachevich’s Order, Turino allegedly had established one or more sham sell corporations to trade the CMKX stock and scores of other stocks since that time, all in violation of the Order and in full contempt of court. Where is the SEC?
The SEC is impudent, under staffed and overwhelmed by the avalanche of stock fraud. You, Mr. Cox admitted in your March 4, 2008 statement that the SEC had received over 400 complaints in the past year alleging stock fraud. That is over one complaint per day. In my opinion: When will enough be enough? How much evidence do you need?
A representative of OTCBB commented regarding their SHORT REPORTING. It is FLAWED. The OTCBB representative stated that a) there is no guarantee as to 100% compliance, b) offshore non NASDAQ brokerage firms are not required to report shorting, c) offshore brokerage firms permit a higher ratio of shorting stock against restricted shares and d) sophisticated shorters can circumvent reporting by getting out of their short position on the short reporting days and get back in the next day.
My recommendations
1) PROHIBIT ANY AND ALL SHORTING OF PENNY STOCKS PERIOD! These fledging companies have enough mine fields to get through to become successful. By the SEC allowing legitimate and illegitimate parties to run a penny stock price up and then short it to profit from taking it down (pump and dump) is just not fair to the investing retail market.
2) REQUIRE THE POSTING OF A 25% OR HIGHER SHORT DEPOSIT BY ANY PARTY SHORTING ANY STOCKS ON ANY MAJOR EXCHANGE.
The Short Deposit would be proportionate to the amount of stock shorted. For example: If John Doe wants to short XXXX –NASDAQ or AMEX shares, he must post a cash short deposit with the brokerage firm of Twenty-five Percent (25%) of the shorted value. The short deposit must be held by the brokerage firm for a term of a minimum of six (6) months subsequent to the last shorted trade. Any public company that alleges improprieties files a Suspicious Trading Activity Report and a mandatory
K Houser REG SHO- 10B-21 Proposal Comments Page # 2
arbitration hearing must take place within sixty (60) days. If the shored public company prevails in arbitration, they receive the cash Short Deposit, plus any other award granted by the arbitration. If the shorter has been found to violate any rules, the shorter will be prohibited via permanent injunction for life from shorting again.
3) REQUIRE A SUBSTANTIAL AND IMMEDIATE PENALTY FOR NON-REPORTING BROKERAGE DEALERS IN THEIR FAILURE TO REPORT THE SHORTING OF STOCK (i.e. $100,000 first offense, $500,000 second).
4) REQUIRE THE REPORTING OF ANY SHORT POSITION DURING ANY THIRTY (30) DAY PERIOD WHEN THE SHORTING IS IN EXCESS OF ONE HUNDRED SHARES OR THE VALUE EXCEEDS $100.
5) BROKERAGE FIRMS AND THIRD PARTIES WHO AID AND ABET A KNOWN ADJUDGED STOCK FRAUDSTAR WILL BE FINED $1 MILLION.
6) IF THE SEC FAILS OR REFUSES TO TAKE ACTION ON A REPORTED ALLEGED VIOLATION OF SECURITIES FRAUD WITHIN SIX (6) MONTHS FROM THE DATE OF THE FILING OF A COMPLAINT, AN INDIVIDUAL MAY SEEK REDRESS IN FEDERAL COURT. IF THE PARTY PREVAILS THEY WILL RECEIVE TREBLE DAMAGES, PLUS LEGAL FEES AND COSTS.
Respectfully submitted,
Chairman/CEO BioTech Medics, Inc. P O Box 93476 Southlake, TX 76092 Phone [phone]
CC: SEC Enforcement-Washington, DC US Dept of Justice-US Attorney S Dist of NY, NYC
K Houser REG SHO- 10B-21 Proposal Comments Page # 3

www.wallstreet-online.de/diskussion/823941-27441-27450/sehr-gute-news-bei-cmkm

...Flying Moose(cmkxunofficial)

[hundredtoone]

Notice in the SEC press release that you mention that, "Canadian broker/dealers are not members of the NASD and are not subject to its short sale restrictions". Notice also the use of "wash sales" and "matched orders". Keep in mind that Rule 100 of the Canadian Investment Dealers Association allows naked short sellers to "hedge" positions in unregistered convertible securities that don't mature for years to come by selling nonexistent shares today. How can the SEC allow offshore brokers with lax rules and regulations to amalgamate the loopholes in their system with those in our system? Please closely study the Thomson Kernaghan bankruptcy and note the percentage of their business dedicated towards the naked short selling of U.S. micro cap corporations. This is not an isolated case as recent cases have revealed during their discovery phases.

The laxity, or more accurately nonexistence, of Canadian delivery laws is often referred to as the "tunnel under the border". They simply sit on "failures to deliver" for several years. Canadian broker/dealers enjoy access to the U.S. markets yet are not forced to follow the rules of the NASD and SEC. Please take note of the fact that there is no "affirmative determination" rule or Rule 3370 analogue in Canada. Not that this makes a whole lot of difference as the affirmative determination rules in the U.S. are riddled with loopholes and violations detected are met with minor hand slaps and a meaningless letter of censure. Nor is there a Rule 15c3-3 or 11830 analogue in Canada forcing buy-ins of undelivered shares after 10 days.

Notice also the incestuous ownership relationships of the offshore hedge funds utilized in these alleged frauds. The point being that there are thousands of "Sedonas" out there, some already bankrupt and others on their deathbeds. Death spiral financings probably don't even account for 1% of all of the naked short selling activity out there because of the easily recognized motive of the financiers. As heinous as the practice is, the convertible death spiral is a rather mild version of naked short selling. In the garden variety naked short selling the fraudsters pay nothing to the issuers and investors. They just take their money and run. The only expense they incur is the collateralization of the naked short position via margin maintenance requirements and/or net capital reserve requirements, but since these are tied to the "marked to market" share price that is in free fall, it is just looked upon as a cost of doing business and is minimal. At least predatory financiers cough up some money although often it is money from the sale of nonexistent shares of the victim company even before approaching them to do a financing. How's that for a slick fraud, take money from the investors in a company and hand it to the company in exchange for a floorless convertible security, and then use that convertible security to destroy the company completely?

www.sec.gov/rules/proposed/s72303/decosta122203.htm

...Flying Moose(cmkxunofficial)

[hundredtoone]

Was Dan Loeb’s capital allied with David Einhorn’s?
August 27th, 2008 by Judd Bagley
Mega-hedge fund manager Daniel Loeb recently disclosed a double-whammy to his investors: substantial losses early in the third quarter of 2008, and the initiation of a formal SEC investigation into the operation of Loeb’s fund, Third Point Partners.

Loeb blamed part of his firm’s losses on the unfortunate fact of being short financial stocks just when the SEC decided to temporarily enforce existing laws prohibiting illegal naked short selling of a handful of such firms.

Loeb blamed the SEC investigation on a perception that his communications with other hedge funds violate securities laws.

While nobody outside the SEC can know with certainty just what it is about Loeb’s communications with other hedge funds that might be problematic, based on my observations of Loeb’s stock message board postings, I do have a theory.

In this installment, we’ll examine apparent coordination between Daniel Loeb and David Einhorn, manager of mega-hedge fund Greenlight Capital.

According to his book, Fooling Some of the People All of the Time, Einhorn established his much-storied short position in Allied Capital (NYSE:ALD) in early May of 2002. Einhorn first publicly outlined his short thesis on the late afternoon of May 15, 2002. The next morning, Allied held a conference call to address Einhorn’s claims. Interestingly, Einhorn himself did not participate in that call, however the first several questions - which achieved a much greater level of specificity and detail than Einhorn offered the night before - were asked by Daniel Loeb.

Either Loeb is an unusually quick study, or he and Einhorn had communicated substantially on the subject of shorting Allied Capital in advance.

Interestingly, on Allied’s Yahoo Finance message board, one of the biggest proponents of the Einhorn thesis also turns out to be Daniel Loeb.

In this message, for example, Loeb’s alter-ego, senor_pinche_wey (as proven here), confronts a poster who questions the veracity of Einhorn’s claims regarding Allied.

A few weeks later, Loeb’s alter-alter ego, mr_pink_esq (also proven here), says of Einhorn’s analysis:
“Looks like Einhorn has this one nailed. Einhorn has one of the best reputations in the business. He would hate to be on the wrong side of this trade.”

And lest you think Loeb was just offering his buddy Einhorn moral support, consider this post, in which Loeb wonders aloud (in the third person) how he might spend the “millions He will make on his ALD short. He was considering purchasing Himself a new car. However He is torn between the Aston Martin DB9, the Bentley GT and the Ferrari 360 Spyder…Maybe if this thing goes bust He can buy Himself a Mercedes Maybach.”

In all, Loeb, with the direct support of known paid message board basher Yolanda Holtzee (using such account names as ms_mint_green_esq and regulators_have_been_notified) personally posted scores of such messages over three years.

This appears to be an example of Loeb and Einhorn coordinating their efforts on the short side.

Coming soon: a clear-cut example of Loeb coordinating efforts with another hedge fund manager in his role as a so-called “activist investor” (and in so doing, skirting key securities laws while holding a metaphorical gun to a target company’s head).

Posted in AntiSocialMedia with Judd Bagley |
seekingalpha.com/article/87653-illegal-short-sellers-may-face-rico-indictments


...Flying Moose(cmkxunofficial)

[hundredtoone]

Subject: File No. S7-19-07
From: Tony RyalsOctober 29, 2007

Dear SEC,
First of all Jim DeCosta should be investigated along with David Patch and Mark Faulk for his involvement with U.S., penny stocks and onshore-offshore manipulations and dealings with same.Just as of course should Patrick Byrne of NCANS AND James Dale Davidson and Bill Bonner of Agora Inc.In fact Davidson and Frank Carlucci should be investigated for the Israeli U.S. PENNY STOCK SCAM CALLED PLURISTEM(that claims to get and use stem cells from placentas) that was touted using both Davidson,et.al.'s newsmax.con site the National Taxpayers Union of Alexandria,Virginia to do it.James Dale Davidson and the Israelis with their Technion Universty compare placentas to 'oil'
It would appear every naked short complaint I have heard about has some offshore 'pipe' that the U.S. SEC allows even post 9/11 in terrorist suspect money laundering HAVENS SUCH AS DUBAI,KUALA LUMPUR,ETC.ETC.. Coincidence ?
Oh yeah Christopher Cox and Treasury Secretary Paulson don't count those areas as money laundering havens -only Syria,Iran and Cuba - who(ha) are punished by not being allowed to use U.S. penny stocks for fraud and money launderimng like Israelis,Saudi,and Dubia and Kuala Lumpur,etc.,can
Why did those SEC attorneys not inform the judge that no'Blue Chip stocks make the claim of being 'naked shorted' in the first place - only sleezy pump and dump and manipulation(and probable money laundering) scams ?
Below is my most recent article-post to the internet on U.S. penny stock fraud.Yes Marc Ginsberg should certainly take a bow along with George Allen and their ISRAELI PENNY STOCK MAFIA ALLIES.Also the Grin brothers of Israel(not the Ukraine as forbes dot com wrote),are also very connected to Balmore Fund and Celeste Trust that was involved in the pump and dump of Endovasc,(and so many more),before James Davidson took over the pump and dump and then the shift to Belladore Group of Kuala Lumpur.So Endovasc WAs not naked shorted - it was pumped and dumped by the Grin brothers,Davidson,then Peter Taylor et.al. of Belladore Group.I can't even find the term 'naked short' mentioned earlier that your SEC website of 1999 Is this correct or can the SEC provide me with an earlier date that THE TERM WAS MENTIONED ?
www.phillyimc.org/en/2007/10/43041.shtml
Ambassador Marc Ginsberg,Fox News,Xybernaut Israeli U.S. Penny Stock Fraud
By Tony Ryals 10.27.2007
With the best Georgetown University
'education' money can buy and his U.S. and Israeli economic and political connections,ex U.S. Ambassador to Morocco,(and the first Jewish-American ambassador of a Moslem nation),Marc Ginsberg is among other things,just another sleazy Beltway or Washington, D.C. - U.S. penny stock con artist using his American and Israeli connections to defraud naive investors in the U.S. penny stock offshore money laundering underworld in which Marc Ginsberg operates to illicitly enrich himself and his Israeli mafia or Mossad connected partners in Israel.
Ambassador Marc Ginsberg,Fox News,Xybernaut Israeli U.S. Penny Stock Fraud ,Money Laundering, Terrorism
With the best Georgetown University
'education' money can buy and his U.S. and Israeli economic and political connections,ex U.S. Ambassador to Morocco,(and the first Jewish-American ambassador of a Moslem nation),Marc Ginsberg is among other things,just another sleazy Beltway or Washington, D.C. - U.S. penny stock con artist using his American and Israeli connections to defraud naive investors in the U.S. penny stock offshore money laundering underworld in which Marc Ginsberg operates to illicitly enrich himself and his Israeli mafia or Mossad connected partners in Israel.
Ambassador Marc Ginsberg,Fox News,Xybernaut Israeli U.S. Penny Stock Fraud ,Money Laundering, Terrorism
by Tony Ryals
So far other than the brief IsraelNN article from Yoni Tidi's blog quoted below neither the U.S. nor Israeli media has confirmed Menachem Eitan's arrest in New York.In fact so far major Israeli media appears to have a black out or ignore of the Xybernaut U.S.- Israeli penny stock fraud that even involves Israeli Prime Minister Ehud Olmert because of his ties to Menchem Eitan who has offered to lie about the purchase price of Olmert's Jerusalem apartment in order to protect him.I wonder if Menachem Eitan is related to the Mossad and Olmert regime's Rafi Eitan who was the Israel-American spy,Jonathan Pollard's,handler ?
And of course Fox News hasn't gotten the word about their Middle East 'expert' and former Bill Clinton appointee as U.S. Ambassador to Morocco, Marc Ginsberg's involvement in this fraud upon investors either.
'' By contrast, Ambassador Marc Ginsberg, one of the most popular and dynamic personalities in the capital, and the first American Jewish ambassador to an Arab country (Morocco)..describ(ed) how the jihad terrorists have mastered the internet as a tool for indoctrination and mobilization. ''
- from Reflections on Euro-Islam by Stephen Schwartz
............................
It would be equally or more correct to say the far right and government connected organized crime in both the U.S. and Israel(and to some extent their right wing allies in Saudi Arabia, Kuwait,Qatar and Dubai),have learned to manipulate the internet for massive fraud as well as political misinformation campaigns and that if you were a victim of the Xybernaut penny stock pump and dump of former Ambassador Marc Ginsberg,et.al. and lost your ass-ets or if,as in my case,had your life threatened by an anonymous poster working for the British-Israeli CEO Michael Zwebner of the U.S. penny stock scam called UCSY or Universal Communications Systems' you would probably by now see Fox News' Marc Ginsberg himself as a cyber terrorist.He and his Israeli colleagues profit from using the internet(and U.S. penny stocks) for fraud
Yes Mr.Ginsberg,to me you are a terrorist and I've had way too much of you and your pals, including Fox News' colleague Ollie North's cyber frauds and cyber terrorism Futher the Israelis behind Xybernaut have bribed our U.S. politicians or at least ex Virginia Governor and Senator George Allen.Are you proud of that Mr.Ginsberg ?
Ambassador Marc Ginsberg,Fox News,Xybernaut Israeli U.S. Penny Stock Fraud ,Money Laundering, Terrorism
With the best Georgetown University 'education' money can buy and his U.S. and Israeli economic and political connections,ex U.S. Ambassador to Morocco,(and the first Jewish-American ambassador of a Moslem nation),Marc Ginsberg is among other things,just another sleazy Beltway or Washington, D.C. - U.S. penny stock con artist using his American and Israeli connections to defraud naive investors in the U.S. penny stock offshore money laundering underworld in which Marc Ginsberg operates to illicitly enrich himself and his Israeli mafia or Mossad connected partners in Israel.
Marc Ginsberg like so many Iran Contra scum from ex President George Herbert Walker Bush's Iran Contra days such as his Fox News colleague Ollie North have done very well for themselves in this post 9/11 era.For them the line from that movie,'Boiler Room', that 'greed is good' must sound quaint.For them,judging from Oliver North's known penny stock scams such as a bullet proof vest company that didn't really make bullet proof vests but instead only made and sold worthless penny stock shares to defrauded investors in the early 1990's and Fox News Middle East 'expert' Marc Rich,I mean Marc Ginsberg - FRAUD IS GOOD
..................................
query.nytimes.com
Market PlaceA Not-So-Bulletproof Stock Deal From Oliver North
By EDWARD WYATT
Published: April 24, 1996
Oliver North wants you -- and your money.
In a deal whose unusual pedigree is drawing attention on Wall Street, Mr. North, the flag-waving former marine who was the central player in the Iran-contra affair, is seeking to sell to the public part of Guardian Technologies International, a maker of body armor, including bulletproof vests, in Sterling, Va........
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The U.S. incorporated Israeli penny stock fraud named Xybernaut,(that pretended to market computer 'soft-wear' to a spaced age clientel who would wear computers instead of clothes),both corrupted and bribed politicians such as ex Virginia governor and Senator George Allen with money stolen from Americans who got caught up in the hype.
Appropriate that the folks at Xybernaut who turn humans into walking space computer cadets would also not miss out on the world wide internet's ability to spew not only information but misinformation far and wide.If these fine Israel citizens behind the U.S. penny stock scam called Xybernaut such as Israeli Ehud Olmert's pal Menachem Eitan are so willing to bribe American Congressmen - what else do they do with their stolen money in Israel and around the world ?
This is certainly something Israelis should give some thought to and whether these folks are who they want to 'represent' them in America and elsewhere.They like their American pal Marc Ginsberg,make for bad ambassadors.Are Israelis sure their own politicians are not being bribed and corrupted with the same ill gotten stolen and laundered money that corrupt U.S. polticians such as George Allen were bribed and corrupted with ? (Money stolen from investors that is then is used to bribe their politicians)
Funny that Mr. Marc Ginsberg prides himself on his hobby of checking out Islamic terrorists on the internet should turn out to be a terrorist himself.If you have seen Xybernaut's agressive promotion of itself over the internet and stock tout message boards over the years and had you been ripped off and lost much on one of the many U.S. penny stock frauds operated by far right Iraelis with ties to both U.S. and Israeli politicians and Wall Street),such as Xybernaut is - or if you had your life threatened by an internet promoter of one of the many Israeli mafia's U.S. penny stock scams such as Universal Communication Systems or UCSY with its connections to the ex Israeli President Moshe Katsav,you would also come to see the Israeli associates of Marc Ginsberg themselves be terrorists or certainly sympathizers or funders of terrorists,albeit probably not Islamic ones....
On the other hand a business partner of Michael Zwebner the British-Israeli CEO of UCSY and friend or briber of ex President Katsav,is Mohamed Hadid,who is himself a Saudi connected Palestinian-American suspect in a Herndon, Virginia Islamic charirty money laundering scheme Right wing fascists - Mormon, Jew, Christian and Moslem alike),make for strange and dangerous bedfellows. They all seem coincidentally to dabble in U.S. penny stocks and use them for money laundering as well fraud againdt investors.Could this occur without high level support within the U.S. government itself ?
I have previously written about ICTS International and its ownership by Prime Minister Ehud Olmert's Likud Party who was convicted in Israel for the equivalent of money laundering or at least diverting Israeli government money to his own political ends.ICTS International was the Israeli,(Uh,Huh,U.S. incorporated penny stock company or fraud),that provided the 'security' for Logan Airport on 9/11/01 where the two planes that collided with ex New York Mayor Rudy Giuliani's WTC originated from And yet Mr.Giuliani appears to have never noticed and his biggest supporters and law clients now appear to be these same types of U.S. penny stock scamsters and frauds(to be optimistic).Giuliani appears to be getting money not only from the corrupt 'vulture fund' parasite Paul Singer,(also a sugar daddy to W Bush), but even from ex Iran Contra arms dealer Adnan Khashoggi who has been a penny stock 'business partner' with Khashoggi in his GenesisIntermedia stock manipulation scam Of course Adnan Khashoggi is close to the Saudi Arabian royaly and to the bin Laden family just like his associates in the Bush family.
You can google 'ryals icts international securacom' for my take on that and Marvin Bush and an Al Sabah or Kuwait royal's involvement in guarding the WTC and Dulles through their Securacom company that was also like the Israeli ICTS International - a worthless U.S. penny stock pump and dump scam as well I also recommend you google 'christopher bollyn icts international' and get his earlier and more recent writing.
Another example of just how outrageous the use of U.S. penny stocks used for fraud and money laundering has gotten among politically and financially connected criminal elements in Israel is Pluristem,a shell of a company boasting of Technion University connections and patents.It has been 'touted' or promoted with the intention of allowing insiders to the fraud to sell or 'dump' its worthless shares upon a naive investing pulic by a James Dale Davidson founder of Steve Forbes' National Taxpayers Union.If you want poor taste call upon the scum bag Davidson to tout or promote your worthless 'company'.The title of Mr.Davidson's promotion that was distributed or promoted by his righgt wing newsmax.com 'news' site is 'Oil From Placentas'.
Strange that Israelis who supposedly remember the holocaust would dare associate themselves with such a sick promotion whose title speaks for itself. This (of course) U.S. incorporated Israelivfraud and probable money laundering that has ex CIA and Carlyle executive Frank Carlucci.I mean if that promotion doesn't sell their worthless 'biotech' shares what will be their next press release ? Soap from placentas ? You can google 'ryals pluristem holocaust james dale davidson' for my take on that ongoing
U.S.-Israeli penny stock fraud.
Meanwhile SEC Chairman Christopher Cox,(who lied about WMDS in Iraq sending thousands to their deaths),and Treasury Secretary Henry M. Paulson, Jr.,(who threatened Academy Award-winning filmmaker Michael Moore for taking a trip to Cuba while allowing ex Treasury Secretary John Snow, Dan Quayle, Stephen Feinberg as well as Kellogg,Brown and Root boys and their sleezy Cerberus hedge fund to operate their money laundering Austrian Bawag Bank there),keep only Syria ,Cuba and Iran on their list of terrorist money laundering nations while Chris Cox's SEC allows criminally connected far right Israelis as well as far right Arabs in Dubai(where the $70,000 check to Mohamed Atta in Venice,Florida was sent just before 9/11),to continue to 'invest' in and defraud American and retail investors with U.S. penny stocks Why ?
Israel will not allow such 'securities' frauds by Israelis or Jews upon other Israelis in Israel and yet the Israeli government appears to encourage well connected far right government connected Israelis to use the U.S. 'securities' market for fraud against Americans And worse yet the U.S. government appears up to now to allow them to use the U.S. markets for fraud and money laundering that leaves the U.S. markets with a reputation of ill repute while Israeli far right mafia and Mossad types rake in and launder the cash from U.S. penny stock fraud
I,as a victim of this fraud and who respected my fellow Jewish Americans for their history of civil rights and anti-Christian fundamentaist activity in our courts, have become quite disillusioned to discover a post 9/11 'Jew' of another nature.These are of the far right and often cynically use fundamentalist Christians for their own anti-Arab and pro-Israel agenda.
Even Jewish 'Orthodox' ex Israeli President Moshe Katsav,(who left office over accusations of rape),aided 'Orthodox' British-Israeli Michael Zwebner by lending his name and presidential office to Zwebner's UCSY or Universal Communication Systems penny stock press release.
In my case it was Endovasc a penny stock with Stanford University connections and the Isrealis behind it were the Grin brothers,(David,Eugene and Abraham),whose shell corporations Balmore Funds and Celeste Trust operated out of the Caymans or British Virgen Islands but had further connections to Bawag Bank of Austria and Refco.Also Union Bank of Israel and probably Leumi Bank.
.........................................................
www.kycnews.com/message_board_detail.asp
Israeli Menachem Eitan,Fox News' Marc Ginsberg and Xybernaut Scam
By Israeli Prime Minister Ehud Olmert's witness on 10/22/2007 9:33:14 PM
E-mail: endoscam (at) lycos.com
Fox News' Marc Ginsberg,(Former U.S. Ambassador To Morocco and all round pretend Middle East know it all),is a penny stock scum artist just like Ollie North and no telling how many other of the Fox 'business news' scumbags who parasitise the U.S. and world airways with their and Rupert Murdoch's satelite transmitted ragingbullshiiitt.
The Ginsberg-Xybernaut news is old(2003)but uncovered news.The other part is that Israeli Prime Minister Ehud Olmert's friend and cover for him in his Jerusalem apartment scandal, Menachem Eitan,has been indicted - and the rumor is arrested - in New York perhaps today over the Xybernaaut penny stock money laundering scam ex Virginia Governor and Senator George Allen,and as I mentioned,Fox's Ginsberg,is caught up in.
In fact you might note that Greta Van Susteran who covered the sideshow that was Anna Nicole Smith's funeral in Florida judge Seidlin's court room - including the fainting of 'Texas' attorney John O'Quinn - NEVER mentioned they were both involved in a penny stock pump and dump fraud called Jag Media Holdings
..............
He(Rafi Eitan) served as an advisor on terrorism to Prime Minister Menachem Begin, and in 1981 he was appointed to head the Bureau of Scientific Relations, then an intelligence entity on par with Mossad, Aman and Shabak. Eitan assumed responsibility for and resigned over the Jonathan Pollard affair, and the Bureau was disbanded.
- Wikipedia
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www.yonitheblogger.com/2007/10/prime_witness_in_favor_of_olme.html
Prime Witness in Favor of Olmert Arrested in New York
(IsraelNN.com) A prime witness in favor of Prime Minister Ehud Olmert in the case involving his purchase of a Jerusalem residence has been arrested in New York on charges of making fraudulent profits. The charges may seriously affect the validity of the testimony of the witness, Menachem Eitan, according to Globes.
Eitan previously has testified that he paid a similar price as that paid by Prime Minister Olmert for a residence in the same building in Jerusalem. The Prime Minister is under investigation for buying the apartment at far below market price, leading to suspicions that he in effect was bribed by the seller....
American government prosecutors have arrested Eitan and five others for allegedly running a fraudulent scheme that netted them $55 million. Eitan's arrest also will make it difficult for him to be questioned by Attorney General Menachem Mazuz, who is conducting the probe on the Prime Minister's purchase of the apartment.
In addition, Eitan is being represented by a lawyer who is a partner with Yossi Gross, who represented Australian millionaire Frank Lowey in a bid for the government's shares of Bank Leumi. Prime Minister Olmert also is under investigation in that case and is suspected of having used his position as Finance Minister to favor Gross.
Posted by Yoni Tidi on October 22, 2007 12:16 PM
............................
(search 'marc ginsberg xybernaut'):
Xybernaut Appoints Former U.S. Ambassador To Morocco To Board of Directors
Business Wire, March 3, 2003
Business Editors/High-Tech Writers
FAIRFAX, Va.--(BUSINESS WIRE)--March 3, 2003
As Independent Director, Ambassador Marc Ginsberg Brings Insight Into Geopolitical And Global Economic Opportunities for Xybernaut(R)
Xybernaut Corporation (NASDAQ:XYBR) today announced the appointment of Ambassador Marc Ginsberg as an independent member of the Company's Board of Directors.
Ambassador Ginsberg, whose three-decade government and private sector career has largely been focused on the Middle East as a diplomat, an international corporate lawyer, and investment banker, is considered an expert on Trans-Atlantic and Middle East politics and economics.
........................................
www.sec.gov/litigation/li...007/ lr20341.htm
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20341 / October 19, 2007
SEC v. Zev Saltsman, et al., Civil Action No. 07-CV- 4370 (NGG) (E.D.N.Y.) (filed October 19, 2007)
Commission Charges Short Sellers and Corporate Insiders in Massive Scheme to Conceal the Short Sellers' Control Over Ramp Corporation and Xybernaut Corporation
On October 19, 2007, the Commission filed a civil action in the U.S. District Court for the Eastern District of New York against: two short sellers, Zev Saltsman and Menachem Eitan two former officers and directors of Xybernaut Corporation, Edward G. Newman and Steven A. Newman a former director of Xybernaut and outside counsel to Xybernaut and Ramp Corporation, Martin E. Weisberg and Ramp's former CEO, Andrew Brown. The Commission's complaint charges the defendants with engaging in a scheme to conceal Saltsman and Eitan's control over Ramp and Xybernaut.
................................
Re: Israeli Menachem Eitan,Fox News' Marc Ginsberg and Xybernaut Scam
By marc charles ginsberg's business bio on 10/23/2007 9:16:15 PM
E-mail: endoscam (at) lycos.com
Former Bill Clinton appointee to U.S. Ambassador of Morocco must have known the Xybernaut pump and dump and stock manipulation fraud and probable money laundering he was profiting from based upon his bio below.Worse is his sick attitude towards those who he should see NOT AS THE ENEMY but as his own fellow Americans,the ones he supposedly represented as a U.S. Ambassasdor.
AND YET THIS CON ARTIST,MARC CHARLES GINSBERG,WHO APPEARS REGULARLY ON RUPERT MURDOCHS FOX NEWS(MORE AS A PROPAGANDIST FOR THE ISRALEI STATE THAN AS AS CONCERNED AMERICAN),USES HIS PRIVILEDGED AND ELITIST BUSINESS EDUCATION AND BACKGROUND AND FAMILIARITY WITH THE U.S. SYSTEM HE WAS BORN INTO AND THAT HAS GIVEN HIM SO MANY PRIVILEDGES AND EVEN ADVANTAGES OVER HIS FELLOW AMERICANS NOT TO HELP AND DEFEND THEM BUT TO CONSPIRE TO RUN U.S. PENNY STOCK FRAUDS WITH FAR RIGHT ISRAELI CRIMINALS AGAINST THEM(HIS FELLOW AMERICANS) AND TO REMOVE THEIR MONEY PLACED AND SPENT IN THE U.S. PENNY STOCK MARKET INTO HIS AND HIS ISRAELI MAFIA'S OFFSHORE AND ISRAELI BANK ACCOUNTS IS AMERICA SURE IT WANTS TO TAKE MIDDLE EAST FOREIGN POLICY ADVISE FROM THIS CRIMINAL TRAITOR ?
www.foxnews.com/story/0,2933,148634,00.html
Marc Ginsberg
Thursday, February 24, 2005
Former U.S. Ambassador to Morocco, Marc Ginsberg currently serves as a FOX News contributor in which he addresses foreign policy, economic policy, and defense issues.
Ambassador Ginsberg is currently the managing director and CEO of Northstar Equity Group, an affiliate of APCO Worldwide, a global consulting and public affairs company. Beginning his career as a Middle East foreign policy advisor to Sen. Edward Kennedy, D-Mass., Ginsberg was the first U.S. ambassador of Jewish heritage to a Middle East nation and served as the United States guide for the first Middle East economic cooperation conference in Casablanca, Morocco.
Ambassador Ginsberg holds a bachelor of arts from American University as well as a masters in business administration and a juris doctorate from Georgetown University. Born in New York, Ginsberg was raised in Israel, Egypt, Jordan and Lebanon.
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rightweb.irc-online.org/profile/1475
Foundation for the Defense of Democracies
The FDD's three board members are Steve Forbes, Jack Kemp, and Jeane Kirkpatrick. Its four distinguished advisers are Newt Gingrich, Sen. Joseph Lieberman (D-CT), Louis J. Freeh (former FBI director), and James Woolsey (former CIA director). FDD also has a Board of Advisers, whose members are: Gary Bauer, Donna Brazile, Rep. Eric Cantor (R-VA), Rep. Eliot Engel (D-NY), Rep. Mark Foley (R-FL), Frank Gaffney, Amb. Marc Ginsberg, Rep. J.D. Hayworth (R-AZ), Charles Jacobs, William Kristol, Charles Krauthammer, former Gov. Richard D. Lamm, Rep. Jim Marshall (D-GA), former Sen. Zell Miller, Richard Perle, and Sen. Charles Schumer (D-NY).
................................
............................
usinfo.state.gov/journals/itps/0900/ijpe/pj52bios.htm
AMBASSADOR MARC CHARLES GINSBERG
Ambassador Marc Ginsberg is Managing Director and CEO of Northstar Equity Group, a technology venture funding company specializing in equity placements for e-commerce and software application developers. Northstar is strategically aligned with several U.S.-based private equity and venture capital funds to provide rapid-decision financing, market analysis, and branding expertise to foreign ventures expanding into the U.S. market and U.S. ventures globalizing their products and services. Northstar is currently placing financing and developing market penetration strategies for several "b2b" portals, including a European-based financial services portal, a U.S.-based developer of ASP customized on-line manuals, a U.S.-based RFID inventory tracking system, and a European-based software developing of financial service equipment for business travelers.
Ginsberg develops investor alliances for "high-tech" investments, and represents post-incubator Internet and biotechnology companies in the U.S., Europe, and the Middle East. He also develops target-oriented revenue, and sales and branding strategies for new e-commerce ventures. Ginsberg also advises major U.S. telecommunications and energy companies in public tender and private sector competitions throughout southern Europe and the Middle East by developing unique market penetration strategies.
Before joining Northstar, Ginsberg was the founder of Georgetown Global Investments Corporation, a placement firm specializing in Middle East technology ventures.
Prior to founding Georgetown Global Investments Corporation (which was merged into Northstar), Ginsberg served as the U.S. Ambassador to Morocco, and also served as United States Coordinator for Mediterranean Trade, Investment, and Security Affairs. In this capacity, he was responsible for evaluating and coordinating American trade, investment, and national security policies in the Mediterranean Basin for the U.S. State Department.
As United States Ambassador to Morocco, Ginsberg coordinated new U.S. trade and investment initiatives in the Mediterranean Basin and the Middle East, including the new OPIC Investment Fund. He also conceptualized a new U.S. Middle East "Reverse Trade Mission" concept, which generated over $100 million in new U.S. exports from two missions. Ginsberg also served as Deputy Senior Advisor to President Carter on Middle East Policy, and was a White House Liaison for the Secretary of State.
Aside from his work with the federal government, Ginsberg served as Senior Partner and Chief Financial Officer, at Galland, Kharasch, Morse Garfinkle. In this capacity, he represented international investment banks in emerging market penetration, and multinational aviation, telecommunications and energy companies with emphasis on project finance, equity investments, international IPOs, joint venture development, and privatizations.
Ginsberg also served on the board of directors and as Vice President of Sutton Place, Inc., Gourmet where he helped to negotiate all financial instruments, expansions, recapitalizations and corporate restructurings, and developed a quality and resource management system, which realized major savings and increased productivity.
Ginsberg has authored numerous international finance, foreign policy, and business articles for the Wall Street Journal and the International Herald Tribune, and served as President Clinton's Deputy Press Secretary for Foreign Affairs during the 1992 Presidential Campaign and Transition. He also appeared frequently on CNN as a Middle East consultant and as U.S. Ambassador during the Gulf War. He is an international financial analyst for CNN Financial News and the Bloomberg Network.
Ginsberg holds his Bachelor of Arts from the American University (cum laude), his Masters of Business Administration from Georgetown University, and his Juris Doctorate from Georgetown University Law Center. He speaks fluent French, Arabic and Hebrew.
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California Scheming:Rudy Giuliani,Paul Singer, Vulture Funds Africa,Adnan Khashoggi,W Bush
houston.indymedia.org/news/2007/10/61645.php
9/11,WTC,Tanya Head,Rudy Giuliani,Adnan Khashoggi,Bernie Kerik, Naked Securities Fraud
la.indymedia.org/news/2007/09/207929.php
9/11:CIA,Daily Kos,Jerome Arnstrong,Markos Moulitsas Zniga,ICTS Israel, Securacom Kuwait,ragingbull Fraud
houston.indymedia.org/news/2007/09/61381.php
Utah Governor Jon Huntsman Jr.,Securities Fraud,Stormy Simon Striptease and Bloody Murder
la.indymedia.org/news/2007/09/206849.php
Samaritan Pharmaceuticals,a Georgetown University Penny Stock Fraud
www.portland.indymedia.org/en/2007/08/363198.shtml
Pluristem Placentas,James Dale Davidson,Leumi Bank Israel Holocaust Victims,U.S.Penny Stock Fraud
www.israel.indymedia.org/newswire/display/7200/index.php
WTC,9/11,Logan Airport, Boston:Israeli ICTS 'Security':Barney Frank,Ted Kennedy, John F. Kerry Face Psych Crisis
www.arkansas.indymedia.org/newswire/display/21040/index.php
Reuters on Security Exchange Commission Chairman Christopher Cox's Terrorist List
www.portland.indymedia.org/en/2007/07/361996.shtml
Boston Logan Airport,9/11,WTC,Barney Frank,SEC,Israeli Penny Stock Scam and Bloody Murder
www.austin.indymedia.org/newswire/display/35916/index.php
Max Keiser ,Al Jazeera,Qatar promote Naked U.S. Penny Stock Fraud
www.indymedia.org.uk/en/2007/06/373856.html
SEC'S Christopher'WMDS'Cox:Georgetown University James Angel Pimps Pink Sheet Penny Stock
www.portland.indymedia.org/en/2007/05/360325.shtml
Ex U.S. Treasury Secretary John Snow,Michael Moore, Cerberus,Bawag Austria and Cuba
www.portland.indymedia.org/en/2007/05/359319.shtml
Charles Schwab,Mantas 'AML':Did The CIA's SRA International Eat George W Bush's E-mail ?
www.indybay.org/newsitems/2007/04/28/18406278.php
U.S. Ambassador Sam Fox:From Swift Boat War Fraud to Brussels,Belgium SWIFT Finance Fraud
www.portland.indymedia.org/en/2007/04/357306.shtml
Israeli pResident Moshe Katsav's Penny Stock Partner Michael Zwebner loses in U.S. Court
www.melbourne.indymedia.org/news/2007/03/142021.php
Cryptometrics:New Zealand Passport Office Used By U.S. Penny Stock Criminals ?
www.indymedia.org.uk/en/2007/02/362828.html
David Grin,Tel Aviv University,Laurus Capital Management and Union Bank of Israel
www.israel.indymedia.org/newswire/display/6079/index.php
FOIA,Alberto Gonzales and SEC'S Chris Cox Enron,Merrill Lych,Latham Watkins conflict
www.cleveland.indymedia.org/news/2007/01/24225.php
Tim Mahoney,vFinance,Venus Methodist Church,Florida,Sayed Mustafa and Islamic Usury
www.maritimes.indymedia.org/news/2006/12/15025.php
Charles Schwab:vFinance's Charles Patrick Garcia receives Henry B. Gonzalez award ?
www.indybay.org/newsitems/2006/12/24/18340307.php
Democrats William Jefferson,Tim Mahoney, iGate,vFinance,DOBI, Endovasc penny stock frauds
www.ntimc.org/newswire.php
James Dale Davidson,Charles Schwab,Tim Mahoney,VFIN, LOM and penny stock share money laundering
www.phillyimc.org/en/2006/12/34919.shtml
Ireland Indymedia bans criticism of Lord Rees Mogg,James Dale Davidson
www.southafrica.indymedia.org/news/2006/11/11701.php
Post to Lord Rees-Mogg's Weblog re NASDAQ,London Stock Exchange
www.posting.beirut.indymedia.org/ar/2006/11/5982.shtml
Virginia:Marvin Bush,Securacom,9/11,U.S. Senator George Allen,Bawag Austria,offshores...
www.southafrica.indymedia.org/news/2006/10/11458.php
U.S. Republican George Allen More Corrupt Than Utah Senators Bob Bennett,Orrin Hatch ?
www.southafrica.indymedia.org/news/2006/10/11391.php
Asa Hutchinson,Charlie Crist,Jeb Bush,Republican stock fraud and drug trafficking,etc....
www.houston.indymedia.org/news/2006/10/52801.php
Why did Osama bin Laden choose Jeb Bush's Huffman Aviation terrorist flight school ?
www.austin.indymedia.org/newswire/display/34636/index.php
Senator Bennett :Is Patrick Byrne's NCANS a Fraud ?
www.utah.indymedia.org/news/2005/10/11883_comment.php
Utah Gov Jon Huntsman,Senator Bennett, Hatch call Republican Senator Shelby 'a gangster'
www.la.indymedia.org/news/2006/09/179748.php
Does NY Times censor 9/11 Venice,Florida connection ?
www.utah.indymedia.org/news/2006/05/14058.php
NY Rep.Peter King,CIA,Swift,NY Times,Republican stock fraud
www.utah.indymedia.org/news/2006/06/15693_comment.php
NY WTC 'protected' by Kuwaiti company and Marvin Bush on 9/11
www.dc.indymedia.org/newswire/display/132705/index.php
Asa Hutchinson,Richard Rainwater,George W Bush,Tom DeLay 5.6 Ton cocaine bust in Mexico
www.arkansas.indymedia.org/newswire/display/19870/index.php
SEC,Schwab,Chris Cox,Hillary Clinton Barbara Boxer Aid CIA'S In-Q-Tel penny stock fraud
www.indybay.org/newsitems/2006/05/22/18246601.php
Senator Bennett :Is Patrick Byrne's NCANS a Fraud ?
www.utah.indymedia.org/news/2005/10/11883_comment.php
Cocaina,Ciudad Del Carmen,Campeche, Abril 10,CIA,Republicanos Y PAN
www.la.indymedia.org/news/2006/07/167389.php
Did Israel President Moshe Katsav aid Muslim Terrorism or only fraud ?
www.sbindymedia.org/newswire/display/3226/index.php
Israel: Gal Lusky's 'IFA' Caught Up in Moshe Katsav,Mohamed Hadid, Zwebner 'UCSY' scam ?
www.chapelhill.indymedia.org/news/2006/03/19255.php
Israeli President Moshe Katsav aids massive penny stock fraud
www.israel.indymedia.org/newswire/display/4195/index.php
Did Israel President Moshe Katzav aid Muslim Terrorism or only fraud ?
www.ntimc.org/newswire.php
SEC,Schwab,Chris Cox,Hillary Clinton Barbara Boxer Aid CIA'S In-Q-Tel penny stock fraud
www.indybay.org/news/2006/05/1824660.php
Chris Cox,SEC,Makram Majid Chams,Titan Corp,9/11,Abhu Ghraib,etc.
www.maineindymedia.org/newswire/display/3952/index.php
SEC Covers Up UAE Money Laundering with U.S. Stocks
www.ucimc.org/newswire/display/112399/index.php
Time Magazine, Daniel Kadlec duped by Houston attorneys Wes Christian and John O'Quinn
www.cleveland.indymedia.org/news/2005/11/17786.php
John Reed Stark UAE,SEC,Georgetown University Stock fraud Academic fraud Cyber fraud
www.maritimes.indymedia.org/news/2006/03/12190.php
Does NSA Serve SRA International's 'Cookies' ?
www.india.indymedia.org/en/2005/12/211284.shtml
Porter Goss: CIA Cyber and stock fraud ops damaged by leaks ?
www.news.com.com/5208-1028-0.html
D.C.Terrorbaggers:James Dale Davidson,Don Nickles, ex-CIA Chief Woolsey,Asa Hutchinson,Tom McMillen
www.okimc.org/newswire.php
Asa Hutchinson,ex Congressman Tom McMillen, Fortress America,offshore money laundering
www.cleveland.indymedia.org/news/2006/03/19034.php
To CIA,In-Q-Tel,Amit Yoran re SRA International, Mantas Inc stock fraud money laundering
www.maritimes.indymedia.org/news/2006/02/11841.php
Mantas Inc,Herndon, Va, Pro-Money Laundering Arm of International Bankers,Brokers...
www.ftaaimc.org/en/2005/12/7186.shtml
CIA and Gilman Louie are less than honest
www.news.com.com/5208-1082-0.html
Charles Schwab and Share-Money Laundering
www.indybay.org/newsitems/2005/06/12/17471071.php
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www.sec.gov/comments/s7-19-07/s71907-320.htm

...Flying Moose(cmkxunofficial)