Web: Arne Alsin’s Article on Fails-To-Deliver


Arne Alsin’s Article on Fails-To-Deliver

Bud Burrell, Arne Alsin

RealMoney cited by Sanity Check via Wayback, 17 April 2006

There is a systemic problem in the equity market, but the magnitude of the problem is impossible to gauge because the parties involved refuse to answer a simple question: Why?

My mutual fund purchased five blocks of stock in Overstock (OSTK:Nasdaq) during the first quarter. There was a failure to deliver shares in four out of the five purchases, with delays for delivery lasting as long as three weeks. Nobody can tell me why shares were not delivered within the requisite three-day settlement period — the so-called T+3 requirement.

Access archived page.

Article: Short-Sellers Are Burned by Novastar

Article - Media

Short-Sellers Are Burned by Novastar

Roddy Boyd

New York Post, 16 April 2006

One Midwestern financial company, long a target of short-sellers, has deployed an infrequently used tactic to inflict pain on its naysayers: Its management has put in place a strategy that consistently makes money.

The stock of Novastar Financial, a Kansas City, Mo.-based home-equity real estate investment trust, has been a battleground between long-term holders in love with its juicy dividends and short-sellers who suspect that the company has massive default risk with those loans.

Read full article.

Access archived post on Sanity Check via Wayback.

Web: The Geese Are Beginning to Be Slaughtered


The Geese Are Beginning to Be Slaughtered

Bud Burrell, Chris Clair

HedgeWorld cited by Sanity Check via Wayback, 12 April 2006

U.S. defined benefit pension plans have been upping their allocations to alternative investments, including hedge funds, in recent years, helping boost hedge fund assets to above the $1 trillion mark.

But defined benefit plans, particularly in the corporate world, are facing big problems. They are almost universally underfunded, they face a future with more retirees than ever thanks to longer life expectancies and younger retirement ages, and those retirees are receiving better benefits than in the past. A number of companies, including IBM Corp., Verizon Communications Inc., Motorola Inc., and Lockheed Martin Corp., have announced they are freezing their defined benefit plans, the first step toward eliminating them altogether.

Access archived page.

Web: Suit Against Prime Brokers for Phony Stock Borrow Charges Filed


Suit Against Prime Brokers for Phony Stock Borrow Charges Filed

Bud Burrell, Chad Bray

Dow Jones Newswires cited by Sanity Check via Wayback, 12 April 2006

An antitrust lawsuit was filed Wednesday against the securities industry’s largest brokerage firms over fees charged as a result of “naked short selling.”

The lawsuit filed in federal court in Manhattan by Electronic Trading Group LLC alleges that the major broker-dealers charged unearned fees, commissions or interest on short sales where those broker-dealers failed to borrow or deliver the stock to back a short position.

Access archived page.

Article: The Secret Lives Of Short-Sellers

Article - Media

The Secret Lives Of Short-Sellers: the Rise of Hedge Funds and Indie Research Raises New Questions about a Shadowy World

Jane Sassen

Bloomberg, 10 April 2006

Sitting in a conference room in a Manhattan office, the researcher explains how he digs up financial information, often of the damning variety, for hedge funds and other big investors. His clients need the intelligence because they frequently sell short, meaning they bet on shares falling. “Look at the Web as a giant fish pond,” he says, on the condition that he not be quoted by name. “We try to develop bait that will hook someone who knows more than anyone else.”

Paywall Access to Full Article

Web: The Coming Sentencing of Anthony Elgindy, What he is and what he deserves.


The Coming Sentencing of Anthony Elgindy, What he is and what he deserves.

Bud Burrell

Sanity Check via Wayback, 9 April 2006

On May 2nd, Anthony Elgindy is to be sentenced for his activities as a short selling syndicate operator. Over the course of several years, he attacked a couple of thousand companies, in the process putting many of them out of business. If he had been a killer or rapist, his crimes would have been collectively viewed as being “serial” in nature.

We continue to forget that Elgindy is a previously convicted felon for insurance fraud. He has now been convicted of six counts of another form of financial fraud. These counts clearly demonstrate that he engaged in operation of a criminal syndicate to manipulate markets for securities by counterfeiting (a Class B Federal Felony) those same securities, a Class A felony according to the US CJS (Criminal Code) for syndicalism, an act of insurrection and sedition, treason to its core.

Access archived page.

Web: Criminals, Prosecutors, Financial Manipulators, and Their Incestuous Relationships


Criminals, Prosecutors, Financial Manipulators, and Their Incestuous Relationships.

Bud Burrell

Sanity Check via Wayback, 3 April 2006

After the great hoopla of the the Bermuda Short Sting Case, which produced a conviction rate of about 88% of indictees, the silence from the Government on related collateral indictments in pending cases, some more than four years old, is literally deafening.

The Government’s various agencies really have an “NIH” (Not Invented Here) attitude towards grass root developed cases coming up to them not as a direct result of their own investigative initiative. I am aware of case after case taken to various agencies of the Government with substantive evidence attached, which were ignored, black-holed, or thrown back at the victims.

Access archived page.