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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Zero Hedge

NYC Finance Jobs Won't Recover Until 2026, Dashing Hopes Of V-Shaped Recovery

Courtesy of ZeroHedge View original post here.

Many on Wall Street are trying to forecast the shape of the economic recovery in a post-corona world. Some are split between either a V-shaped, U-shaped and or L-shaped recovery. In the last three decades of recoveries following an economic shock, each recovery has been slower and slower. 

Stock investors in a post-c...



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ValueWalk

Gold Bullion Demand Hits Record Volumes in USA

By James Anderson. Originally published at ValueWalk.

With ongoing bailouts exploding the fiat US dollar’s M1, M2, & M3 supplies at record paces. It is not surprising to see physical gold bullion USA imports now hitting 21st Century high levels.

Q1 2020 hedge fund letters, conferences and more

U.S. Physical Gold Bullion Imports

Most of this recent record-sized US gold import volume is being delivered from Switzerland which has four of the five largest gold refineries in the world.

It is safe...



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Phil's Favorites

BlackRock Is Bailing Out Its ETFs with Fed Money and Taxpayers Eating Losses; It's Also the Sole Manager for $335 Billion of Federal Employees' Retirement Funds

Courtesy of Pam Martens

Laurence (Larry) Fink, Chairman and CEO, BlackRock

BlackRock, the international investment management firm run by billionaire Larry Fink, has played an outsized role in Federal Reserve bailouts of Wall Street. As it turns out, it’s also been quietly managing hundreds of billions of dollars for more than five million federal government employees in their retirement plan, known as the Thrift Savings Plan (TSP).

During the last financial crisis of 2007 to 2010, the Federal Reserve gave BlackRock no-bid contracts to manage the toxic assets held in ...



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Kimble Charting Solutions

Crude Oil Rallies 222% in 30-days, Peak Oil Time Again?

Courtesy of Chris Kimble

Can you believe that Crude Oil has rallied 222% in the past 30-trading days?

It’s hard to believe that Crude Oil is trading nearly $75 off its lows, yet the current price is around $36!

The chart looks at the Crude Oil continuous contract on a monthly basis for the past couple of decades.

Crude has spent the majority of the past 12-years inside of falling channel (1). The collapse in Crude Oil prices in April saw it hit the bottom of the channel at (2), where it created a large bullish reversal pattern. Since hitting the bottom...



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The Technical Traders

Gold & Silver "Washout" - Get Ready For A Big Move Higher

Courtesy of Technical Traders

Gold and Silver moved lower early on June 2nd and 3rd.  Our research team believes this is a “Washout Low” price rotation following a technical pattern that will prompt a much higher rally in precious metals.  This type of washout price rotation is fairly common before very big moves after Pennant/Flag formations or just after reaching major price trigger levels.

With Gold, a sideways Pennant/Flag formation has been setting up near our GREEN Fibonacci Price Amplitude Resistance Arc.  We believe the downward price rotation recently is a perfect setup for skilled technical traders to take advantage of lower entry price levels.  The GREEN Fibonacci Price Amplit...



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Biotech/COVID-19

You don't need to worry about spreading the coronavirus with cash

 

You don't need to worry about spreading the coronavirus with cash

Cash is unlikely to give you the coronavirus. Rolf Bruderer/Getty Images

Courtesy of Marilyn Roberts, University of Washington

Some people worry that cash may be spreading the coronavirus.

Earlier this year, bot...



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Chart School

Silver volume says something is near boiling point

Courtesy of Read the Ticker

Fundamentals are important, but they must show up in the chart. And when they do and if they may matter, it is a good sign if price and volume waves show a change of character.

The Point and Figure chart below is readtheticker.com version of PnF chart format, it is designed to highlight price and volume waves clearly (notice the Volume Hills chart).

Silver ETF volume is screaming at us! The price volatility along with volume tells us those who have not cared, are starting to, those who are wrong are adjusting, and those who are correct are loading up. Soon the kettle will blow and the price of silver will be over $20. 

Normally silver suffers in a recession, maybe this time with trillions of paper money being creat...

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Lee's Free Thinking

US Southern States COVID19 Cases - Let's Give Credit Where Due

 

US Southern States COVID19 Cases – Let’s Give Credit Where Due

Courtesy of  

The number of new COVID 19 cases has been falling in the Northeast, but the South is not having the same experience. The number of new cases per day in each Southern state has been rangebound for the past month.

And that’s assuming that the numbers haven’t been manipulated. We know that in Georgia’s case at least, they have been. And there are suspicions about Florida as well, as the State now engages in a smear campaign against the fired employee who built its much praised COVID19 database and dashboar...



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Digital Currencies

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

 

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

App-etising? LDprod

Courtesy of Michael Rogerson, University of Bath and Glenn Parry, University of Surrey

Food supply chains were vulnerable long before the coronavirus pandemic. Recent scandals have ranged from modern slavery ...



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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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