Tag: Dodd

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Article: Millions vanish into crypto world in high-yield bond scam

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Millions vanish into crypto world in high-yield bond scam

Michael Roddan and Jonathan Shapiro, 08 March 2021

Sophisticated British criminals exploited vulnerabilities in Australia’s search engine and cryptocurrency infrastructure to dupe small investors, lured by the promise of high-yield funds badged by some of the finance world’s most trusted brands.

The complex scheme involved stolen identities and fraudulent prospectuses that claimed to represent high-yield investment funds run by global managers Citibank, Nomura, and IFM Investors. It has ensnared millions from unsuspecting victims who sought better returns as interest rates collapsed during the COVID-19 crisis. Continue reading “Article: Millions vanish into crypto world in high-yield bond scam”

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Article: The GameStop Mess Exposes the Naked Short Selling Scam

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The GameStop Mess Exposes the Naked Short Selling Scam

LUCY KOMISAR, 25 February 2021

At the House Financial Services Committee hearing last week on the GameStop debacle, there was an elephant in the room: naked short selling.

Short selling, effectively betting that a stock will go down, involves a trader selling shares he does not own, hoping to buy them back at a lower price to make money on the spread. The trader is supposed to locate (or have a “reasonable belief” he can locate) or borrow the shares in brokerage accounts, and then transfer them to the buyer within two days. This accounts for as much as 50 percent of daily trading. Continue reading “Article: The GameStop Mess Exposes the Naked Short Selling Scam”

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Article: Ex-Deutsche Bank Gold Traders Found Guilty in Spoofing Trial

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Ex-Deutsche Bank Gold Traders Found Guilty in Spoofing Trial

Bloomberg, 26 September 2020

Prosecutors behind a sweeping U.S. crackdown on market “spoofing” scored a big win Friday when former Deutsche Bank AG traders Cedric Chanu and James Vorley were convicted of fraud for manipulating gold and silver prices.

A federal jury in Chicago, after three days of deliberations, concluded Chanu and Vorley made bogus trade orders between 2008 and 2013 to illegally influence precious-metals prices. The weeklong trial was the latest U.S. prosecution of a “spoofing” case since the global market “flash crash” in 2010. Continue reading “Article: Ex-Deutsche Bank Gold Traders Found Guilty in Spoofing Trial”

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Article: Has Wall Street Stolen $100 Trillion from the American Public? Will Donald Trump Get It Back?

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Has Wall Street Stolen $100 Trillion from the American Public? Will Donald Trump Get It Back?

Tehran Times, May 26, 2020 – International

TEHRAN – Robert David Steele, a former Marine Corps infantry officer and CIA spy as well as an activist for Open Source Everything Engineering (OSEE), contributes regularly to Tehran Times.

Continue reading “Article: Has Wall Street Stolen $100 Trillion from the American Public? Will Donald Trump Get It Back?”

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Article: Another U.S Bank Bailout Under Cover of a Virus

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Another U.S Bank Bailout Under Cover of a Virus

Ellen Brown

Global Research, 19 May 2020

When the Dodd Frank Act was passed in 2010, President Obama triumphantly declared, “No more bailouts!” But what the Act actually said was that the next time the banks failed, they would be subject to “bail ins” – the funds of their creditors, including their large depositors, would be tapped to cover their bad loans.

Then bail-ins were tried in Europe. The results were disastrous.

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Article: Chat room messages are ‘smoking gun’ in $25 million Merrill CFTC spoofing penalty

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Chat room messages are ‘smoking gun’ in $25 million Merrill CFTC spoofing penalty

Todd Ehret

Reuters, 17 July 2019

The U.S. Commodities Futures Trading Commission (CFTC) last month chalked up another impressive settlement over the market manipulation tactic known as “spoofing.” The $25 million penalty for Merrill Lynch Commodities in the case is the second largest related to spoofing.

Like many of the prior cases, where the firms cooperated with the investigations and were given credit for doing so, the proverbial “smoking gun” in the case was the record of online chat rooms where traders discussed markets, prices, and their strategies and actions.

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Article: The Government’s New Strategy to Crack Down on ‘Spoofing’

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The Government’s New Strategy to Crack Down on ‘Spoofing’

Peter J. Henning

New York Times, 4 September 2018

The Justice Department has tried to crack down on traders who try to move markets by entering and quickly canceling orders, conduct that goes by the catchy moniker “spoofing.”

But the government’s early prosecution of the crime has faced a big setback. In just the second trial for spoofing, which the Dodd-Frank Act outlawed, a Connecticut jury acquitted a former trader at UBS of spoofing this spring. That raised questions about whether prosecutors can pursue these cases.

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Article: U.S. CFTC to fine UBS, Deutsche Bank, HSBC for spoofing, manipulation: sources

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U.S. CFTC to fine UBS, Deutsche Bank, HSBC for spoofing, manipulation: sources

Reuters, 27 January 2018

The U.S. derivatives regulator is set to announce it has fined European lenders UBS, HSBC and Deutsche Bank millions of dollars each for so-called “spoofing” and manipulation in the U.S. futures market, three people with direct knowledge of the matter told Reuters.

The enforcement action by the Commodity Futures Trading Commission (CFTC) is the result of a multi-agency investigation that also involves the Department of Justice (DoJ) and the Federal Bureau of Investigation (FBI) – the first of its kind for the CFTC, the people said.

The fines for UBS and Deutsche Bank will be upward of ten million, while the fine for HSBC will be slightly less than that, the people said, without providing exact figures. Continue reading “Article: U.S. CFTC to fine UBS, Deutsche Bank, HSBC for spoofing, manipulation: sources”

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Paper: Counterfeiting Stock

Paper

Counterfeiting Stock

Anna McParland

The Creation of Counterfeit Shares — There are a variety of names that the securities industry has dreamed up that are euphemisms for counterfeit shares. Don’t be fooled : Unless the short seller has actually borrowed a real share from the account of a long investor, the short sale is counterfeit. It doesn’t matter what you call it and it may become non–counterfeit if a share is later borrowed, but until then, there are more shares in the system than the company has sold.

The magnitude of the counterfeiting is hundreds of millions of shares every day, and it may be in the billions. The real answer is locked within the prime brokers and the DTC. Incidentally, counterfeiting of securities is as

It is estimated that 1000 small companies have been put out of business by the shorts.

PDF (12 Pages): Paper Counterfeiting Stock

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Article: Former Deutsche Bank trader banned for ‘spoofing’

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Former Deutsche Bank trader banned for ‘spoofing’

Dave Michaels

MarketWatch, 2 June 2017

A former futures trader at Deutsche Bank AG was permanently barred from the industry after admitting he conspired to manipulate the price of gold and silver futures contracts.

David Liew, a trader who was based in Singapore, also pleaded guilty in federal criminal court in Illinois on Thursday to using illegal spoofing techniques from 2009 to 2012. Regulators and prosecutors have cracked down on spoofing, which involves sending fake offers intended to push prices in a direction that benefits the trader’s other orders. Congress made it illegal through the 2010 Dodd Frank financial overhaul law.

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Article: Southridge Hedgie Hicks Shrugs Off Regulators Investor Fraud Suits

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Southridge Hedgie Hicks Shrugs Off Regulators Investor Fraud Suits

Teri Buhl, 26 October 2010

Stephen Hicks and his Ridgefield, CT hedge fund, Southridge Capital, were sued yesterday for multiple securities violations by the SEC and the Connecticut Banking Commissioner in Connecticut state and federal courts. Howard Pitkin, head of the CT Department of Banking, has been after Hicks for investor fraud and abuse in its broker dealer business since 2007.

Hicks is fight back- after being ordered to comply with a subpoena from the Banking Commission, Southridge then appealed to the Connecticut Supreme Court but Pitken eventually won the right to review the funds internal records. Pitkin had originally filed a cease and desist order against the broker dealer side of the hedge funds business. Now he wants to shut the whole Southridge opperation down. Continue reading “Article: Southridge Hedgie Hicks Shrugs Off Regulators Investor Fraud Suits”

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Article: Wall Street’s Big Win

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Wall Street’s Big Win

Matt Taibbi

Rolling Stone, 4 August 2010

Cue the credits: the era of financial thuggery is officially over. Three hellish years of panic, all done and gone – the mass bankruptcies, midnight bailouts, shotgun mergers of dying megabanks, high-stakes SEC investigations, all capped by a legislative orgy in which industry lobbyists hurled more than $600 million at Congress. It all supposedly came to an end one Wednesday morning a few weeks back, when President Obama, flanked by hundreds of party flacks and congressional bigwigs, stepped up to the lectern at an extravagant ceremony to sign into law his sweeping new bill to clean up Wall Street.

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THE DOLLAR HAS NO INTRINSIC VALUE : DO YOUR ASSETS?