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Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day....

Location: Blogs Bob O'Brien's Sanity Check Blog    
Posted by:   bobo 2/22/2006 8:14 PM

Well, I touched down in my travels, and was greeted with a flurry of emails about the Biovail suit against Stephen Cohen and Gradient. One particularly intrigued me, as it was from a particularly astute guy who remembered one of Dr. Byrne’s statements, in light of today’s suit. Specifically, it was with respect to a statement that Byrne made to our good friend Tim Mullaney at BusinessWeek:

"e. Asserting that "a master criminal from the 1980s" is coordinating an attack on Overstock? Is this Michael Milken? Why does Bob O'Brien appear to think so, judging from his postings?

Who is this "Michael Milken" everyone asks about? I don't know why O'Brien says that: you'd have to ask him. I refuse to tell him who I think it is.

Myself, I really think in terms of a composite of two people. Some day I might sack up and let the world know who the master minds are, but not now.” (Emphasis added)

Now, I’ve known Dr. Byrne a while, and he is not a guy that uses language carelessly. The Sith Lord is an obvious reference to a Star Wars enthusiast. But the “sack up” reference had no basis in colloquial use of the language. I didn't really register it at the time. Probably nobody did.

I have a call into him, to see what, if any, role he's played in today’s massive suit against Stephen Cohen - Stephen A. Cohen. Of S.A.C. Capital Management, LLC, S.A.C. Capital Advisors, LLC, S.A.C. Capital Associates, LLC, S.A.C. Healthco Funds, LLC.

Sack up.

S.A.C.

Multiple master minds. And here we have a little fun with a double entendre and one of the most influential and powerful hedge funds on Wall Street.

And Gradient is involved with them.

Small world.

So now, as my mind works in evil suspicious ways, I have to wonder how and if Dr. Byrne’s hand is in this as well. Wouldn’t surprise me. In fact, given this little bit of fun, I am almost sure there is a connection.

So all the “whacky Patty” stuff is starting to look a little threadbare, and it looks like there may be more going on than meets the eye.

Huh.

I’ll keep everyone posted as to what I find out. Sack up. S.A.C.

I get it…
Copyright ©2006 Bob O'Brien
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Comments (17)
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By bobo on 2/22/2006 8:39 PM
So, RICO is triple damages if it is shown to be true. Racketeering. Criminal.

Is that bad, when your name is in several lawsuits now, all saying that you are doing bad things with hedge funds?

Maybe Gradient is just being victimized by unfortunate circumstances? Bitter companies are picking on them?

Triple the $4.6 billion is $13+ billion, right? That is a lot of cash.

All these poor hedge funds, struggling to make a buck, and these companies are picking on them - and they all just so happen to be using the same research firm.

Wonder how SLAPP will play on that one?

Can Gradient's lawyers quit more than once?

Makes Cutler's move to cut the cord and run for the hills on this one seem awfully smart - not that anyone should infer anything whatsoever from this.

How long will it be before the SEC is giving Cohen the same proctology exam Rocker is receiving? Cohen throws a lot of commissions around the Street, so he likely has a much stronger network, but doesn't it seem like this may be starting to fray a bit? Seem a little reminiscent of, well, the Drexel days?

Where there's smoke, that just maybeeeee there's a little fire?

Perhaps it is all in my head. I'm sure it is. What are the odds that a network of loosely affiliated hedge funds use the same game plan to manipulate different companies, and that the common thread is the journalists they use, and the research firms?

Wonder how long till the Street figures out that this is how large networks get rolled up - historically speaking, of course. I'm quite sure that all these ugly accusations are pure speculation, coincidence....yeah...that's it....
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By n-tres-ted on 2/22/2006 8:40 PM
Quite a day of events. The New Jersey article is the best news report on the subject I've seen. Tomorrow should be equally interesting re the NJ hearing.
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By mhelburn on 2/22/2006 9:04 PM
Pillets did a pretty good job. He didn't call NS "trading strategy" or "controversial". He doesn't sound like a lapdog or lackey.. Maybe he isn't paid to try to cover-up the whole thing and deny its existance.
Cohen has two funds.. one 10B, 1 3B... 3x 4.6 is 13.8... It would clean him out..all his expense will be covered by the state. All his rich buddies who don't get caught will surely bring him toothpaste and vaseline.
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By bobo on 2/22/2006 9:22 PM
Now Mary. We both know that the presence of two NJ hedge funds using the same research firm and being accused of what sounds like much the same thing is probably just coincidental.

It is unlikely that Wall Street would allow a network of bad guys prey on companies, assisted by their lackeys in the press, as well as their captured research firms, violate the law with impunity for years and serial killing small companies for profit.

You have a dirty mind.

How dare you.

As to Pillets, hats off to him. It is amazing how similar reporters who haven't been afforded the "proximity" to Wall Street sound when they cover this - almost like the Time Magazine guy, remember? Apparently if you aren't on the inside, fraud and criminal behavior aren't controversial or trading strategies or require the cloak of secrecy and must not be mentioned - they are just scumbags stealing stuff.

But what do I know?
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By Jimmy on 2/22/2006 9:45 PM
Jon D. Markman is publisher of StockTactics Advisor, an independent weekly investment research service. He is also co-portfolio manager of the Helios Equity Fund, LLC, and senior investment strategist of Pinnacle Investment Advisors, LLC. He also writes a weekly column for CNBC on MSN Money.
------------------------------------------------------------------------------------------------------
"The defendants include: several SAC-affiliated companies, Gradient Analytics, Inc., Camelback Research Alliance, Inc., Pinnacle Investment Advisors, Helios Equity Fund, Hallmark Funds, Gerson Lehrman Group, and Gerson Lehrman Group Brokerage Services. "


Biovail's US$4.6B suit claims it's the victim of stock market manipulation
19:38:28 EST Feb 22, 2006
DAVID PADDON
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By Captspell on 2/22/2006 9:49 PM
Verb 1. sack up - make as a net profit; "The company cleared $1 million"
net, sack, clear
earn, realise, pull in, bring in, realize, gain, make, take in, clear - earn on some commercial or business transaction; earn as salary or wages; "How much do you make a month in your new job?"; "She earns a lot in her new job"; "this merger brought in lots of money"; "He clears $5,000 each month"
benefit, profit, gain - derive a benefit from; "She profited from his vast experience"
net, clear - yield as a net profit; "This sale netted me $1 million"
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By mhelburn on 2/22/2006 9:55 PM
http://www.businessweek.com/magazine/content/03_29/b3842001_mz001.htm
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By dave on 2/22/2006 10:26 PM
"The primary focus is a long-short equity strategy..."

Are they referring to this strategy?

http://www.asensioexposed.com/longshort.htm

Since it is illegal to hit the bid with a short, you keep a small long position at another brokerage to hit the bid with, when necessary.
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By dave on 2/22/2006 10:47 PM
"The strategy is to maintain net short as opposed to pure short exposure."

http://www.salusalpha.com/main/eng/strategy.htm
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By hwh on 2/22/2006 11:38 PM
Dave post illustrates a manip I dew proof of today & forwarded to authorities. No action taken. Suprised? I printed the L-II & t & S and no one took a serious look at it...hwh
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By Falstaff on 2/23/2006 1:30 AM

Go fetch me a quart of sack; put a toast in't

William Shakespeare
Merry Wives of Windsor
Act 3 Scene V
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By mfairview on 2/23/2006 1:53 AM
Interesting comment by Byrne. To whom does this refer to?

"I know a man who was raised in the Midwest by parents who thought he was the Second Coming. He now has a Messiah Complex, hair plugs, and like Jay Gatsby, his eyes fixed on the green light at the end of the pier, sensing his life is about to turn bad."
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By antny@singsing on 2/23/2006 6:14 AM
Question: How did the "sudden" interest in Rocker on the part of the SEC come about? Was it the OSTK suit specifically OR have they turned on Gradient? What was the catalyst to descend on him like locust?The forensic scrubbing of Cohen should be fun to watch. Also, has anyone heard if Rocker investors are fleeing. I can only imagine they can withdraw $$$ if he's being investigated by the SEC.
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By ummm on 2/23/2006 6:52 AM
Actually, I'm pretty familiar with the colloquial use of "sack up".... It's a reference to getting some "balls"..."sack" being a place where you put your "nuts."

I wouldn't read Byrne's statement for any mystery.
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By bobo on 2/23/2006 8:36 AM
ummm:

Wrong, in this case. Just got off the phone, and am writing the piece now.
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By mhelburn on 2/23/2006 8:40 AM
Perhaps the comment was not directed at the public, but at someone who would realize it was targeting him. Would Patrick send the message to his adversary in such a way? In the context of having courage, I don't believe he was saying that someday he would have the courage to say who the masterminds were. It was odd, intended to be odd and now it seems that could have been directed at SAC. S.A.C. are Stephen Cohan's initials as well as the names of his funds. Stephen Cohan has a habit of trying to stay out of the limelight and unless you are on Wall Street, you wouldn't make the connection. Without Bob, I would have never made the connection... if indeed this is a connection. I wonder how many people who might have heard it, only heard it subliminally. I'm going to go back and read the chart.
Re: Dr. Byrne's "Sack O Fun", RICO, and Gradient's Very Bad Day.... By james on 3/2/2006 12:40 PM
One of the Biovail attornies contacted one of the well known members of the Elan Yahoo message board and wanted any and all info they had regarding SAC shorting Elan shares.

Jesse Eisenger wrote a hit piece about a "death spiral" occuring in Elan shares a few years ago which tanked the stock. I wonder where Jesse got his info to write that article?

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