Posts Tagged ‘FBI’

Things To Do In Greenwich When You’re Dead

Joshua M Brown explains Things To Do In Greenwich When You’re Dead and provides a linkfest of Insider Trading articles. – Ilene 

I would be remiss in my duties as your favorite financial blogger if I didn’t supply you with a handy running linkfest of all the Insider Trading highlights.

A few firms in Connecticut were raided by the FBI today, two of them with ties to SAC. SAC has not been implicated in this story but the funds were spin-offs.

Here’s the Wall Street Journal’s breaking coverage of the raids:  (WSJ)

Barry Ritholtz asks the question on everyone’s mind: Is it the Big Guy (Steve Cohen) who they’re actually after? (TBP)

Bess Levin at Dealbreaker is calling this story Insider Trading Festivus 2010. Obviously her coverage simply cannot be missed:  (Dealbreaker)

I, of course, weighed in this weekend calling the whole "Expert Network" thing another Classic Wall Street Euphemism.  (TRB)

Courtney Comstock with some background on Global Level and Diamondback, two of the raided firms.  (Clusterstock)

As more hysterical headlines pop up on the story, I’ll simply add links below…

Doug Kass: "Based on my contacts, I believe that the soon-to-be-announced insider-trading indictments will be far-reaching and could even have the potential to be market-impactful, as the allegations will not only include some of the most prestigious hedge funds but will also allegations against some of the largest and most conservative mutual-fund companies, investment bankers and law firms." (TheStreet.com

Originally published at The Reformed Broker, Things To Do In Greenwich When You’re Dead 


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“National Security:” A Global Police State-Within-a-State

"National Security:" A Global Police State-Within-a-State 

Courtesy of Charles Hugh Smith, Of Two Minds 

The Global War on Terrorism (GWOT) has spawned a national security "state-within-a-state" with essentially unlimited funding and support of America’s political machine. This National Security State has infected domestic policing and courts; it is both ubiquitous and completely unaccountable.

The Democrats and Republicans have enthusiastically joined hands to create a global police/national security state-within-a-state of unimaginable reach and power.  Frequent contributor Michael Goodfellow sent me this investigative report, which I consider one of the most important of the decade: Top Secret America: A hidden world, growing beyond control (Washington Post).

Let’s go back briefly to September 1, 2001, before the 9/11 attack. The national security "assets" of the nation had all the information needed to stop the attack. The various agencies did not stop the attack because there was essentially zero coordination and data-sharing between the CIA, NSA and FBI.

This was laid out in the PBS program The Spy Factory.

Now the national security "assets" have metastasized into a gargantuan national security state-within-a-state--and the exact same problem not only exists, it has become even more intracable.

Now that the national security state (NSS) has become much larger and even more unwieldy, coordination, collaboration and data-sharing have been rendered essentially impossible. This report makes that absolutely clear.

Rather than fix the problem of coordinating our national security assets, the Federal government and its leaders have amplified the problem. At the same time, they have created a monster which is beyond the control of elected officials or the citizenry, a secretive state-within-a-state which protects itself behind the inpenetrable shield of "national security" and "need to know."

The national security state is the ultimate protected fiefdom. Cutting one dollar of funding would be instantly characterized as "weakening our fight against global terrorism," as would any limits on the NSS’s powers.

This is in effect a new arm of the "military-industrial complex" which dwarfs the power of the traditional military-industrial complex: "defense" contractors and the revolving door between the DoD (Department of Defense) and these Pentagon-dependent industrial corporations.

GWOT is the perfect defense for a state-within-a-state that is insatiable and beyond accountability. Even simple inquiries are quickly dismissed as "dangerous"--as if global terrorists would glean some useful information from knowing just how many hundreds of billions of dollars are being spent tracking them.

What’s essential to our…
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How White-Collar Criminals Exploit Your Vanity – Beware of Compliments

Career criminal, master charmer Sam E. writes about his speaking engagement in Portland, where we met and I gathered material for part II of the No Redemption. The most fascinating aspect of Sam’s story is what his admissions teach us about human nature. But on a more practical level, understanding fraud and the techniques used to commit white collar crimes can give investors insight into the integrity of the companies they invest in. Companies built on fraud tend to implode under the weight of their own lies, eventually – can we find these companies early, before their business comes crashing down?  (Stay tuned for part III) – Ilene 

How White-Collar Criminals Exploit Your Vanity – Beware of Compliments

By Sam Antar of White Collar Fraud 

Artwork by Marta Dahlig

Last Friday, I was the key note speaker at the Oregon Health Care Fraud Working Group Training Seminar, sponsored by the United State Attorney’s Office for the District of Oregon. I explained to the group that while emphasis on effective oversight and internal controls are important factors in preventing or deterring white-collar crime, not enough emphasis is given to the underlying psychology used by white-collar criminals to prey on their victims and effectively commit their crimes.

I have said many times that, "White-collar criminals consider your humanity as a weakness to be exploited in the execution of their crimes" and as the cold-blooded and ruthless criminal CFO of Crazy Eddie, I learned that you can steal far more with a smile than you can with a gun.

White-collar criminals use a combination of charm and deceit to achieve their objectives. The more likable and charming that I was as a criminal, the easier it was for me to successfully lie to my victims…
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Fraudulent ‘Flopping’ of Homes

Fraudulent ‘Flopping’ of Homes

Courtesy of Larry Doyle at Sense on Cents  

Young couple standing by 'For Sale - Sold' sign, portrait

As day follows night, financial fraud follows economic distress. God forbid people try to make an honest living as opposed to seizing opportunities to make a dishonest buck. This financial artifice is on display in the short sales of homes throughout our country.

Bloomberg highlights this fraudulent activity in reporting, Banks Face Short-Sale Fraud as Home ‘Flopping’ Schemes Spread:

Two Connecticut real estate agents found a way to profit in the U.S. housing bust: Buy low, sell fast. Their tactic was also illegal.

Sergio Natera and Anna McElaney are scheduled to be sentenced in Hartford’s federal court in August after pleading guilty to fraud. Their crime involved persuading lenders to approve the sale of homes for less than the balance owed — known as a short sale — without disclosing that there were better offers. They then flipped the houses for a profit.

The Federal Bureau of Investigation, the California Department of Real Estate and mortgage finance company Freddie Mac have warned that such schemes may be spreading after a plunge in values left homeowners owing more than their properties are worth. The scams threaten to deepen losses for lenders that are increasingly agreeing to short sales as an alternative to more costly foreclosures.

How and why might a lender agree to a sale at an exceptionally depressed price? Kickbacks and payoffs. To whom and from whom? Brokers or agents who have a buyer willing to pay more for the home. Bloomberg highlights how Uncle Sam has overlooked the potential for this fraudulent ‘flopping’:

An Obama administration effort to boost short sales may increase incentives for fraud, Neil Barofsky, special inspector general for the Troubled Asset Relief Program, wrote in an April 20 report to Congress. The government, through its Home Affordable Foreclosure Alternatives Program, that month began offering as much as $1,500 to servicers, $2,000 to investors and $3,000 to homeowners who close short sales.

“It appears that the program may lack necessary antifraud protections,” Barofsky wrote.

While the Bloomberg article focuses on payoffs to appraisers, it would seem the fraud embedded in payoffs and kickbacks likely runs far wider than that. Other likely recipients for these payoffs and kickbacks?

1. The mortgage servicers are already being paid by Uncle Sam to expedite short sales. Might a little extra cha-ching provide even greater incentive for these servicers…
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Insider Trading Busts are the Corporate World’s Darwin Awards

Insider Trading Busts are the Corporate World’s Darwin Awards

Courtesy of Joshua M. Brown, The Reformed Broker 

Insider trading busts are the Darwin Awards of the corporate world. 

The Darwin Awards are based on people doing such stupid things to end up dead that the entire human race’s gene pool is better off for their demise.  When you hear about corporate insiders emailing undercover FBI agents with insider information in this day and age, you can only shake your head and ponder the utterly pathetic intellects of the people involved.

From the Wall Street Journal:

A former Walt Disney Co. employee and a friend have been arrested for allegedly trying to sell early access to the company’s earnings, the Federal Bureau of Investigation said Wednesday.

Bonnie Hoxie, a former Disney employee, and her friend Yonni Sebbag were arrested by FBI agents in Los Angeles on Wednesday, the FBI said. They are expected to appear in federal court in Los Angeles later Wednesday.

Ms. Hoxie and her friend were allegedly trying to sell early access to the company’s second-quarter earnings report to hedge funds and investment companies, the FBI said. They have been charged with wire fraud, the FBI said.

Prisoner with ball and chain

As we hear more details about the investigation, I suspect there will be even more head-scratching over how it could be possible that these people haven’t learned better by now.

No shortcuts, Ms Hoxie.  Enjoy your imprisonment.

Props to the FBI for taking this one down.

Source:

Former Disney Employee is Arrested (WSJ) 


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The Economic Elite Vs. The People of the United States of America (I – III)

Full Report: The Economic Elite Vs. The People of the United States of America (Parts I-III)

Courtesy of David DeGraw, AmpedStatus Report

This report was originally released as a six-part series. The first part was published on February 15, 2010. The last part was published on February 27, 2010.  

 

“The American oligarchy spares no pains in promoting the belief that it does not exist,
but the success of its disappearing act depends on equally strenuous efforts
on the part of an American public anxious to believe in egalitarian fictions
and unwilling to see what is hidden in plain sight.”
– Michael Lind, To Have and to Have Not

 

The Economic Elite Vs. The People of the United States of America

 

It’s time for 99% of Americans to mobilize and aggressively move on common sense political reforms.

Yes, of course, we all have very strong differences of opinion on many issues. However, like our Founding Fathers before us, we must put aside our differences and unite to fight a common enemy.

It has now become evident to a…
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Phil's Favorites

FRBNY Nowcast 2.7%: Heads Towards Convergence With GDPNow

Courtesy of Mish.

The Federal Reserve Bank of New York “Nowcast” for 4th quarter GDP rose to 2.7%, up from 2.5% last week.

Meanwhile the Atlanta Fed “GDPNow” forecast declined from 3.6% on November 23 to 2.9% yesterday.

The numbers head towards convergence as expected in this corner.

4th Quarter Nowcast Highlights – December 2 2016

  • The FRBNY Staff Nowcast stands at 2.7% for 2016:Q4.
  • News from this week’s data releases provided mixed signals, but overall had a positive impact on the nowcast.
  • Rea...


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Zero Hedge

Erdogan Demands Turks Exchange Their Dollars To Gold, Lira

Courtesy of ZeroHedge. View original post here.

Early this morning, in yet another session of panicked selling, the Turkish Lira crashed to new record lows to just shy of USDTRY 3.60, momentarily going bidless as the currency plunged nearly 400 pips in seconds, after Turkish President Recep Erdogan said the path for investors will be opened with lower interest rates, and urged the central bank to imitate Japan and U.S. where rates are low: “why should we go around with 14-15 percent?” 

The answer is simple: the currency tends to drop when an economy is seen as weak, the political regime unstable, or - yes - a central bank cuts rates, ...



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ValueWalk

We Must Set Muslims Against ISIS

By Mauldin Economics. Originally published at ValueWalk.

There is still a debate over whom the United States is waging war against. Some regard the wave of terrorism undertaken by al-Qaida and the Islamic State as linked significantly to Islam. Others want to distinguish between Islam and these groups in order not to tar an entire religion with the actions of a few.

Clarity, in defining the enemy, is essential to waging a war. If the enemy is terrorism, then the enemy is not a political movement but a method of waging war—no matter who used the method.

...

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Kimble Charting Solutions

Interest rates could peak here, says Joe Friday

Courtesy of Chris Kimble.

The talk over the past couple of months has been, interest rates are rising and the Fed will raise rates very soon. Joe Friday feels a big test is in play, before one can say the “rate trend has changed!”

Below looks at the yield on the 10-year note, over the past 20-years.

CLICK HERE TO ENLARGE

The yield on the 10-year note has remained inside of falling channel (1), creating lower highs and lower lows, for the majority of the past 20-years. The top of the channel is bein...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Goldman Says Trump's Presidency Will Benefit Stocks in Almost Every Sector (Bloomberg)

After years of slowing earnings growth and little in the way of excitement for many Wall Street analysts, many are now hopeful that President-elect Donald Trump will finally make things interesting.

Treasury Pick Mnuchin Says Tax Cuts to Double U.S. Growth (Bloomberg)

U.S. Treasury Secretary-nominee Steven Mnuchin outlined an economic agenda aimed at almost doubling the growth rate of the...



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Chart School

US 30 yr yield, your best defence is?

Courtesy of Read the Ticker.

It is said that a rising stock market with rising interest rates is healthy ! Then why are there massive shipments of 'Adult Diapers' to Wallstreet (joke) ?

The cost of money ($USD) is changing
- Share buy backs will cost more
- Mortgage rates will rise
- Dividends will have to match this
- US Govt interest bill increasing
- 'Deals' just cost more more more!

Short Answer: This is not good.

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Remember the FED QE tends to see interest rates rise...so that wont help! Maybe Janet Yellen will say 'We will do what it takes to save the dollar, and it will be enough!'...

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Members' Corner

Second Hand Stink?

Courtesy of Nattering Naybob.

In what seems to be a recurring scatological humor theme, aka our "Toilet Thursday's" or "Thursday's in the Loo" of the past few weeks, we follow up on The Story of Poo-Pourri.

In Second Hand Stink?, men are not so subtlety reminded that an odiferous fog wafting from the bedroom loo, can indeed kill the moment. 

...

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OpTrader

Swing trading portfolio - week of November 28th, 2016

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Digital Currencies

Largest US Bitcoin Exchange Is "Extremely Concerned" With IRS Crackdown Targeting Its Users

Courtesy of ZeroHedge. View original post here.

Last Thursday we reported that in a startling development seeking to breach the privacy veil of users of America's largest bitcoin exchange, the IRS filed court papers seeking a judicial order to serve a so-called “John Doe” summons on the San Francisco-based Bitcoin platform Coinbase.

The government’s request is part of a bitcoin tax-evasion probe, and se...



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Mapping The Market

The Most Overlooked Trait of Investing Success

Via Jean-Luc

Good article on investing success:

The Most Overlooked Trait of Investing Success

By Morgan Housel

There is a reason no Berkshire Hathaway investor chides Buffett when the company has a bad quarter. It’s because Buffett has so thoroughly convinced his investors that it’s pointless to try to navigate around 90-day intervals. He’s done that by writing incredibly lucid letters to investors for the last 50 years, communicating in easy-to-understand language at annual meetings, and speaking on TV in ways that someone with no investing experience can grasp.

Yes, Buffett runs an amazing investment company. But he also runs an amazing investor company. One of the most underappreciated part of his s...



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Biotech

Epizyme - A Waiting Game

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer.  One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."

Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.  

Genetic components are the DNA sequences that are 'inherited.'  Some of these genes are stronger than others in their expression (e.g., eye color).  Yet, some genes turn on or off due to external factors (environmental), and it is und...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Promotions

PSW is more than just stock talk!

 

We know you love coming here for our Stocks & Options education, strategy and trade ideas, and for Phil's daily commentary which you can't live without, but there's more!

PhilStockWorld.com features the most important and most interesting news items from around the web, all day, every day!

News: If you missed it, you can probably find it in our Market News section. We sift through piles of news so you don't have to.   

If you are looking for non-mainstream, provocatively-narrated news and opinion pieces which promise to make you think -- we feature Zero Hedge, ...



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