The following letter was posted on the NFI board over at InvestorVillage.com.
It is self-explanatory, and speaks volumes as to the SEC's purported truthfulness, or mendacity.
Not a lot of comment is required. I'm aware of a number of journalists trying to find a way to spin the latest revelations as to the SEC's inability to tell the truth as some sort of evil plan by the forces of anti-NSS darkness, so maybe this will provide them with something more to chew on.
Not that most of them seem to care whether the nation's top cop is as unfamiliar with the truth as a carnival barker.
"The Honorable Gordon H. Smith
United States Senate
Washington DC 20510-3704
Dear Senator Smith,
On April 22, 2005, you wrote me a letter in response to my concerns over failure of the SEC to protect investors from fraudulent sales of counterfeit securities. (A copy of your letter is enclosed.)
On August 9, 2006, the SEC response to freedom of information act request No. 06-06551-FOIA concerning fail data on Global Links included the statement: “Please note, we were advised by the staff that there were no fails to deliver transactions from January 1, 2005 through April 17, 2005.” (A copy is enclosed.)
Not only were there very significant fails in Global Links from February thru April, 2005, but the SEC had actual knowledge of this fact, as can be demonstrated by the following:
1.)GLKCE was listed on Reg.SHO from February 2005 until it temporarily left the list on April 12, 2005 when the symbol was changed to GLKC.
2.)Two 13-D filings were made in late February and early March, 2005 by purchasers of GLKCE, who reported a combined ownership of over 115% of the legally issued shares. (Copies enclosed.)
3.)In mid-March, during a US Senate committee hearing, Senator Bob Bennett questioned the then Chairman of the SEC over news stories covering the non-delivery of Global Links shares to purchasers.
4.)On April 8, 2005, Celeste M. Murphy, Special Counsel, Office of Mergers & Acquisitions called and faxed me to inquire into how I could buy over 15% of a company whose stock was already 100% owned by another investor. She was informed on that date that I had never been able to obtain delivery of the stock I had purchased. (Copies of her letter and my response are enclosed.)
With the above factual evidence, it is absurd for the SEC to now make the claim that they have no knowledge of ANY fails in Global Links prior to April 18, 2005.
It is my understanding that the Finance Committee on which you sit is presently investigating possible misconduct of the SEC in the possible improper termination of a staff attorney, and possible obstruction of Senate attempts to investigate the circumstances of the termination. I respectfully request that you bring the SEC’s deliberate falsification of material fact in their response to Freedom of Information Act (FOIA), 5 U.S.C. section 552 Request No. 06-06551-FOIA to the attention of the Finance Committee Chair and staff. I spoke to two SEC employees earlier today, whose response was that I should submit a new FOIA request with any evidence I had that the first response was incorrect. I fail to see how the FOIA can benefit members of the public if the SEC is free to lie, and only correct the lie if the citizen can prove that he knows that the SEC has not produced an accurate and complete response.
Sincerely yours,
XXXXXXXX"
Now, is there any part of that which seems confusing?
First, the SEC says there is no NSS problem, and that SHO is working. Then, Dave Patch proves via FOIA requests that there is a huge NSS problem, and that Reg SHO is not working. The SEC fires Gary Aguirre, claiming there is no cover-up, and now a senator comes out saying, "Cover-Up." Next, in writing, the SEC claims no knowledge of something that it clearly had full knowledge of, per one of the guys who filed his disclosure with the SEC.
Anyone want to play, "Spot the pattern?" Wonder what's next...
Individuals are making the decision to distort and dissemble and obfuscate. Individuals need to be investigated by an independent prosecutor, and the DOJ. Defrauding the public is a punishable offense, and is nor protected by any office that I know of in the SEC. So we need to know who, specifically, is OKing the lying, and then go after them.
That's my call. Good letter, too. Wonder if the press will pretend they never saw it?