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Anatomy of a Cover-Up

Location: Blogs Bob O'Brien's Sanity Check Blog    
Posted by:   bobo 12/7/2006 2:27 PM

 -----------------

Sign the Market Reform Petition Now!: View it here.

To view the SIA NYSE member firm spreadsheet showing $63 billion in delivery and receipt failures as of Q2, 2006, click here.

Visit the new "SEC/Gary Aguirre Cover-Up" section of this site for a compilation of Mr. Aguirre's efforts to expose the SEC's alleged obstruction of justice and whitewashing of insider trading by some of the biggest names on Wall Street.

Patrick Byrne will be live on the radio tonight at www.KFYI.com at 8:00 Arizona time.

------------------

I'm not sure which is worse - having the step by step details of how a massive cover-up at the SEC in an insider trading case worked, or reading the news that the new Senate Banking and Judiciary heads will be pretty much terminating what Specter and Grassley uncovered in their Judiciary hearings.

However this winds up playing, you have to read this testimony.

Here is part 1 of Aguirre's blow by blow.

Here is part 2.

Doesn't sound rambling, sloppy, incoherent or jabbering, does it? Completely at odds with the way the SEC is trying to paint Aguirre.

Could that be because they are lying? Engaging in a cover-up? Screwing retail investors while allowing Wall Street predators to do what they like?

Read it, and judge for yourself. Where is the special prosecutor, Senator Specter?
Copyright ©2006 Bob O'Brien
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Comments (37)
Re: Anatomy of a Cover-Up By tommytoyz on 12/7/2006 3:30 PM
It's a cover up all right. There were several lies exposed during the hearing and the retaliating towards the whistle blowers is just obvious. These long term SEC guys are just incompetent and scared - while they themselves might not think so - it's obvious that that indeed is the case.

My heart jumped when Specter and Grassley agreed that new legislation was needed and is already circulating in draft form. Perhaps we should also push for more than just whistle blower protection. Now that the Senators have seen how the SEC operates, perhaps we can convince them to also devote time to the oversight of the SEC as it pertains to how they fail to protect investors by allowing FTDs - which is prohibited by the Securities Acts.
Re: Anatomy of a Cover-Up By Thank you, Gary Aguirre on 12/7/2006 3:32 PM
The story of truth will be told.
Stand up to scare tactics and sneering sarcasm.

Looks like John Mack has lots of secrets.
Are the scapegoats lined up?
Re: Anatomy of a Cover-Up By hoagx on 12/8/2006 11:42 AM

Any one intersted in Naked Shorting and how serious things are, taken from another board.

chevy


By: gusjarvis
07 Dec 2006, 08:40 PM EST
Msg. 24931 of 24936
(This msg. is a reply to 24930 by XBARC.)
Jump to msg. #
xbarc this is what is holding us up
and remember the post I put about the classaction, it is what just over 4 trillion, hmmm. This is what is going on in the world and what I posted about for months before this ever came out:

TRILLIONS LOST IN ARTIFICIAL NAKED SHORT

-------------------------------------------------------------
http://www.worldreports.org/news/36_high-level_criminals
Re: Anatomy of a Cover-Up By ginger on 12/8/2006 11:28 AM
Problem solved.
Reinstalled RealPlayer upgrade.

http://www.real.com/freeplayer/?rppr=rnwk
Re: Anatomy of a Cover-Up By clearthinker on 12/8/2006 1:07 PM
it's worth watching more than once....We MUST pressure the new Domecratic chair to press forward. Losing Specter as chair is NOT good.
Re: Anatomy of a Cover-Up By FreddoCazzo on 12/8/2006 4:15 PM
...........and FWIW....the video is stil in Real Media......what a waste. I cannot stand Real Media Networks. Has anyone tried putting this on YouTube as of late?

Thanks Bobo, Patch, Burrell, Sanders, et al for all of your undying efforts!

Hi ginger.

FC,CF
Re: Anatomy of a Cover-Up By ACLU give me a break! on 12/8/2006 4:26 PM
You would want the ACLU to come to your aid about anything like this? Give me a break! Paleeeeze.
Re: Anatomy of a Cover-Up By Insider Trading on 12/8/2006 4:41 PM
"Hedge Funds Hire Lobbyists To Gather Tips in Washington
By Brody Mullins and Kara Scannell
Word Count: 2,189 | Companies Featured in This Article: USG, W.R. Grace, Crown Holdings

WASHINGTON -- As federal authorities try to crack down on illegal trading using secrets leaked from companies, some hedge-fund managers are tapping another source of information: the corridors of the Capitol.

Hedge funds are finding that Washington can be a gold mine of market-moving information, easily gathered by the politically connected. The funds are hiring lobbyists -- not to influence government, but to tell them what it's going to do. Several lobbying firms are ramping up their "political-intelligence" units and charging hedge funds between $5,000 and $20,000 a month for tips and predictions."

http://users2.wsj.com/lmda/do/checkLogin?mg=wsj-users2&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB116554698892944296.html%3Fmod%3Dtodays_us_page_one
Re: Anatomy of a Cover-Up By SEC Staffer on 12/8/2006 6:27 PM
Riddler/Patchie/et al - As I said before, I'm not in Enforcement so I am no more knowledgeable about the specifics of the case or than you. I come here only to say that I know of many co-workers who follow this case and who are embarrassed by it. There is no room for this behavior at the Commission.

I will say that I really believe the staff people who work at the SEC are regular folks who are absolutely interested in doing the right thing. As with this case, I think the SEC becomes compromised in the upper, upper ranks. After all, the Commissioners are political appointees and the Chairman fills the top spots with hi hand-chosen soldiers (who then fill the next tier down with their soldiers). Its a broken system, kind of like a CEO of a company filling the board with friends.

I read the WSJ's op ed today (12/8) on the Samberg/Mack case and I'll tell you it made me sick. The Journal's piece was a textbook ad hominem attack. To paraphrase the Journal's position: "Since Aguirre didn't get the first position he applied for at the SEC, his charges must be completely false and he must have no real evidence." Did the Journal even read Aguirre's sworn testimony? If so, how could they say he had no evidence with a straight face?

Reading that op ed piece today, where they attack Aguirre in a lame attempt at discrediting him (without addressing any of the evidence or points in his account) makes me wonder why the Journal is going to these lengths to discredit him.
Re: Anatomy of a Cover-Up By mhatmccane on 12/8/2006 8:37 PM
Ginger,

I followed Bobo's idea of just sending the link. The Song and verse from thesanitycheck.com came up, I clicked on #3, (the video), an error message came up and I clicked on proceed and the the video started with real player.

Bottom line, it worked for me.
Re: Anatomy of a Cover-Up By TCD on 12/11/2006 11:13 AM
It appears that c-span has removed the link to the SEC testimony? Anybody else got it out there?
Re: Anatomy of a Cover-Up By Wicked World on 12/11/2006 12:03 PM

Link to download the video:
You will need "Real Player" installed on your computer
AFTER you download and save to your drive you need to open Real Player and use IT to open the file.

http://kennedyink.com/20061205-HedgeFunds.rm
Re: Anatomy of a Cover-Up By CMElec on 12/12/2006 7:19 PM
TCD,
The link is not removed from C-Span. You can listen to it from C-Span or download it and listen from your own PC computer. Go here to find it:
http://www1.investorvillage.com/smbd.asp?mb=4148&mn=24085&pt=msg&mid=987815
Re: Anatomy of a Cover-Up By innershare on 12/7/2006 4:05 PM
Not sure if this is helpful to companies, but I clicked to them from one of the google ads on the right.

Companies can get a shareholder breakdown.

http://www.innershare.com/_pdfs/InnerShare%20Example%20Company%20Report.pdf

(Clicking on ads generates a tiny bit of revenue to this site.)
Re: Anatomy of a Cover-Up By yoda on 12/7/2006 4:08 PM
Notice how the SEC reopened the case this summer in order to delay releasing information/ testimony for the Senate investigation and Aguirre FOIA request for the "re-evaluation" information until now. Sort of reminds you of the same tactics that Mack and his hedge fund buddies used to delay responding to Aquirre's subpoenas. Looks like that SEC and the crooked hedge funds use the same play book. Even the press is playing along spinning that Specter and Grassley "waited so long" on the investigation in order to leave a mess for the Democrats instead of pointing out the obvious delaying tactics by the SEC scum.
Re: Anatomy of a Cover-Up By msucog on 12/7/2006 4:37 PM
bobo
what would you say if i could show you a stock with 57,000,000+ ftd's in a single day?
Re: Anatomy of a Cover-Up By beegdawg on 12/7/2006 5:14 PM
Having just read Aguirre's testimony all I can think to say is """Wow"!!! He has held nothing back! I hope that this testimony provided by Mr. Aquirre accompanied with the clear frustration and anger expressed by both Spector and Grassley will finally result in shining some light on the rats who are running the SEC. And perhaps even one of the big boys (Shelby) will find himself feeling like a deer caught in headlights! We all know that is where this will lead if it is pursued vigorously!
Re: Anatomy of a Cover-Up By SEC Staffer on 12/7/2006 6:23 PM
I am an SEC staff member (not in Enforcement) and all I can say is that some heads need to roll. Thomsen needs to go, Hansen needs to go, and Kreitman needs to go. These people clearly comprimised their duties to the public and are now covering their *sses. As someone on the inside, it is a complete embarrassment. I can tell you that many, many staff people at the SEC follow this case closely and I don't think I stand alone in my opinion that heads need to roll.

Maybe Thomsen, Hansen, and Kreitman will do the honorable thing and resign their posts effective immediately. And give us back Aguirre, but this time put him in Thomsen's soon to be vacated position.
Re: Anatomy of a Cover-Up By piddly_sum on 12/7/2006 6:29 PM
Staffer,
From their point of view, the safest thing is to stay on board. I think the only way they leave is either in exchange for no prosecution (and hopefully state's evidence) or in handcuffs. Of course, it has a ways to go before we can hope for that.
Re: Anatomy of a Cover-Up By The Riddler on 12/7/2006 6:53 PM
SEC Staffer- Most here concur with your "inside analysis" but riddle me this: Why are not more staffers coming public with the truth about what has been occuring at the SEC? After all this is only one investigation out of how many? There has to have been many many more of these coverups and thousands of investigations that should have done but were completely ignored with a wink and a nod. Where are honest people at the SEC. There has to be hundreds that can come forward now and be heard in this enviroment without retribution.

Gary Aguirre has done the hard work for you. There has to secretaries, assistants, clerks, staffers, etc that have observed this behavior. We "outsiders" will welcome you with open arms. We want to clean up Gotham but we need to start with the bad cops first at the SEC and elsewhere.

Help us please.
Re: Anatomy of a Cover-Up By FreddoCazzo on 12/7/2006 7:57 PM
Hails Piddly_Sum, and The Riddler!!!

As for clicking on some of the ads, I have often...but one that caught my attention, and makes me want to throw up is seeing Ann Coulter's ad.....I wouldn't click on that to save my own life......

Back to whats important.................

I hope those responsible at the SEC for covering up and aiding and abetting all of this vile, nefarious behavior get tried for TREASON and spend the rest of their natural lives in JAIL!

They have helped criminals fleece America while turning a blind eye to such obvious market manipulation staring them right in the face and they have the GALL to say Reg SHO is working.....pfft!

Ma Va SEC, Ma Va!

FC,CF
Re: Anatomy of a Cover-Up By gregcable2002 on 12/7/2006 7:57 PM
We need people who do the RIGHT thing,just because it's the RIGHT thing to do.The crooks on display at that hearing gave us americans the finger.What are we going to do about it?
Re: Anatomy of a Cover-Up By Patchie on 12/7/2006 8:16 PM
SEC staffer, If you are real, take it to the Judiciary Committee and do what is honorable. Too many members of the SEC have waited for others to do their work for them which is why we are where we are today.

Coming here today under an alias that cannot be verified will do little by way of making change. You must have the courage to do it in a manner that is effective for it to mean anything.

I once spoke to the head of teh Union at teh SEC several years ago and he informed me then of how captured the SEC was to Wall Street. The lawyers who walked past me as I conducted my protests and my interviews all had excuses but few had corrective measures. It is about time those who care actually give the people more than a bill, it is time courage to speak out steps up.
Re: Anatomy of a Cover-Up By hwh on 12/7/2006 9:49 PM
unfortunately, with Spector gone in little over a month and the holidays accounting for half of that (in excuse terms) there is little time to prosecute such a case). The incoming leader shows little interest in anything but laissez-fairre.
Re: Anatomy of a Cover-Up By hwh on 12/7/2006 9:54 PM
Now the major brokerage houses are threatening to start competing exchanges to nasdaq & nyse. Funny, they already run the SRO's and have ex-clearing as their private exchange. Guess they'll keep the rev's the x-changes have been charging for themselves.

Oh yes, they already get pro-rata kickbacks of those revenues. Now they just don't have any governing body...like they do now(rhetorical)?
Re: Anatomy of a Cover-Up By rtway1 on 12/7/2006 10:38 PM
SEC staffer, if you are in fact real, please take a moment of your most valuable time and ponder my prose. As I am writing this piece on the very intestiinal fortitude that is required to bring back justice to the American people you are pondering if your future is at stake as to whether how many hundreds of thousands dollars will be in jeapordy in the future if you done the honorable thing of protecting the American public from being ripped off financially which could lead to the loss of lives and futures. I must remind you that those less fortunate individuals who did not have the resources that you had at a young age and could not afford the education that you had opted out for careers in the military and law enforcement and as a result of their decision making decided to put their ass on the line for the rest of the country. Their very existence let you be who you are today. These people have shed blood and limbs and have created a new generation of orphans who rely upon the corrupt system you see today. Sir or Ma'm if you do not have the fortitude to stick together and stop the corruption and demise of this country the heroes before you had no meaning and the lives lost were chump change. If you do not step up and be counted to do the right thing then let's just step up the process and let the Wall St. crooks take it all and put us into a third world country. The choice is yours and I hope you have the courage that those before you had, the moment is now. Your risk is not of blood and life but only doing the right thing. I hope and pray you do.
Re: Anatomy of a Cover-Up By mhelburn on 12/8/2006 2:00 AM
These pompous cretins justify their skimming and illegal activities by the value they perceive as their services to the country.... Wheeling and dealing overseas..but always looking out for number one. Aren't we all impressed with the trips to China? Big banking deals in the recent past and the upcoming trip of the Sec. of the Treasury. What is a little skimming for me and the Mrs and special treatment? We are above the law. We are so important that the country owes us and the amount of money that we deal in makes our take seem miniscule.

After reading Aguirre's testimony and having followed the various events which make this look like a cover-up... I am convinced that Aquirre is not the loose cannon that the SEC brass presented at the hearing. Their cookie cutter complaints were as similar as if the same person wrote them. The vile terms that they used to describe him were in direct conflict with the evidence.

They are so busy reconstructing history, it is no wonder they get nothing done. If Cox can't get this straightened out, he needs to go. At least Donaldson gave a peek at some evidence with the FTD's. It looks to me like the chain of command at the SEC caved to self-interest and job protection. They want a collegial atmosphere above all. It doesn't matter if they are doing the right thing... just keep the job and everybody smile...

I wouldn't want to be any of the brass. No character.. all waffling kiss-asses and Wall Street loves it. These are the police.

They have to make Aquirre the bad guy or they can't look in the mirror. The weighted negative dialog that they presented in public trying to defame Aquirre said more about them than it did about him. It was completely unprofessional, delivered in a style grasping at cool-headedness. The necessity of the particpants at the hearing having to reference their testimony instead of speaking forthright was very telling. Both Aquirre and Eric didn't have to resort to couching and using notes.
Re: Anatomy of a Cover-Up By mhelburn on 12/8/2006 3:50 AM
Heads roll at HP for the methods they used in trying to uncover information about a leak.. because it was unethical.. had nothing to do with fraud and insider trading. Settling with a State Attorney General in a few months.. Pretexting... wham, bam.. you are humiliated... and gone. Take responsibility and resign. Careers in shambles. Sorta like Martha... maybe even overkill.

The comparison to what has happened here just makes me wonder.. What do they do at the SEC? Blumenthal was right about needing the States and good guidance to keep the State AG's on course. And the 50 AG's don't have their heads connected to Wall Street's behind and they aren't connected to Congress or the White House.
Re: Anatomy of a Cover-Up By Bob's done all the work.. on 12/8/2006 4:05 AM
Go to the SEC/Aquirre Cover-up in the upper left. Open it and copy it and send it to everyone you care about. It is concise and the links work in e-mails.
Re: Anatomy of a Cover-Up By Supreme Court A Go-Go on 12/8/2006 5:27 AM
Top court to hear stock lawsuit

WASHINGTON - The Supreme Court agreed Thursday to consider a lawsuit against major Wall Street firms accused of conspiring to manipulate prices on newly issued shares during the stock market boom of the 1990s.

A federal court dismissed the suit brought by investors, but the 2nd U.S. Circuit Court of Appeals reinstated it.

Another antitrust case accepted by the court Thursday pits a manufacturer of women's belts and other accessories against a store that sold the products for less than the manufacturer's suggested price.
Re: Anatomy of a Cover-Up By gregcable2002 on 12/8/2006 5:32 AM
I think the sec staff was told what to do by those further up the food chain,they had a disadvantage because there was no way to find out what questions would be asked,that was their downfall,anyway,no one in government,who has been in governmental service for any lenght of time acts on his own particually in this case,the top of the food chain is where guys like mack sit,these are the ones calling all the shots here threw various channels,you can bet your last dollar on that.Aguirre got to close to the top and now they have a temperary problem.We'll see a long period of silence now and once the new politicos take over this will disappear.Sad but true.Unless we get more honest people in our government to come forward and stand up for what is RIGHT,no matter what the cost maybe.DO THE RIGHT THING,BECAUSE IT'S THE RIGHT THING TO DO.
Re: Anatomy of a Cover-Up By Ribelin is Right on 12/8/2006 5:46 AM
Aguirre should now sue the SEC. Forget waiting on congress. Sue the SEC. The courts are the only way to fight Wall Street. We all know that now.
Re: Anatomy of a Cover-Up By rtway1 on 12/8/2006 7:27 AM
What is disturbing is that the useless ACLU will pick up on a case involving the most useless crap in the world and would defend the rights of a frog in a swamp but has not said a word in this whole matter. What a bunch of phony cowards.
Re: Anatomy of a Cover-Up By ginger on 12/8/2006 7:39 AM
By Bob's done all the work.. on 12/8/2006 4:05 AM
Go to the SEC/Aquirre Cover-up in the upper left. Open it and copy it and send it to everyone you care about. It is concise and the links work in e-mails.


[b]I did... I tried everything to get #3 to load but it won't, This is what I get:

The webpage cannot be displayed

Most likely cause:
Some content or files on this webpage require a program that you don't have installed.

What you can try:
Search online for a program you can use to view this web content.

Retype the address.

Go back to the previous page.[/b]

Re: Anatomy of a Cover-Up By ginger on 12/8/2006 7:44 AM
Windows has the following information about this Protocol. This page will help you find software needed to open your file.



Protocol Type: rtsp

Description: UnKnown

Windows does not recognize this Protocol.
Re: Anatomy of a Cover-Up By bobo on 12/8/2006 8:47 AM
Ginger: Just send the link to the page if it isn't working for you.
Re: Anatomy of a Cover-Up By ginger on 12/8/2006 10:05 AM
Bobo, I've seen the video already on this desktop and also my laptop. But that was yesterday and using another link.

The reason for my comment today is to notify you that I find something wrong with this new link; and I may not be the only one having this problem.

G

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