Take 5 With Patrick - Essays on Unrelated Subjects

Thoughts on issues other than the Deep Capture of the major institutions of our society. Some of these are about Overstock, and some not. It starts with early posts from the auction message board (forums.auctions.overstock.com/patrick.php ) that we migrated over to this new blog section.

Culture Project

May 24th, 2007 by Patrick Byrne

Posted: Thu May 24, 2007 1:25 pm
Post subject: Don’t Miss This Special Engagement

Dear Overstock.com Customer – I would like to extend an invitation to you for the encore special engagement of My Trip to Al-Qaeda, presented by Culture Project.

Lawrence Wright - arguably the man who knows more about Al-Qaeda than any other American - uses facts, figures, and PowerPoint to bring his Pulitzer-Prize winning The Looming Tower: Al-Qaeda and the Road to 9/11 (a personal favorite, a national best seller and one of the The New York Times Book Review’s “Top 10 Books of 2006″) to the stage in My Trip to Al-Qaeda.

I have arranged a special offer for Overstock.com customers:

    20% off regular orchestra tickets (normally $40 each).

This limited engagement is 2 nights, June 5th and 6th only, at Town Hall (123 West 43rd Street, New York, NY). To take advantage of this offer, enter the Special Offer Code OStwenty when you reserve tickets through Ticketmaster online or by calling 212-307-4100.

For premium, patron, and VIP seats, call 212-925-1806 or write willow@cultureproject.org.

The seating is limited, and tickets are sure to sell out fast. I hope to see you there.

Your Humble Servant,

Patrick

    Click Here for more information on My Trip to Al-Qaeda.
    Click Here for more information on Culture Project.

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Götterdamerung of the American Mainstream Media

May 12th, 2007 by Patrick Byrne

Posted: Sat May 12, 2007 1:03 am
Post subject: Gotterdammerung of the American mainstream media

Ha ha - this is a great one. An all-time classic from Joe Nocera. Below you will find an email Joe Nocera sent me asking for my “reaction” to some odd claims he wanted to include in his weekly column. Alas, he sent the email Friday afternoon at 12:11 PM his time (note the “10:11 AM” time stamp of our email system, which is in Salt Lake City, that is to say, Rocky Mountain Time) and, as I was in Texas this afternoon in a meeting, I missed the window of a few hours that I theoretically had been offered to respond before Joe’s deadline for his weekly column. Congratulations are due Joe, who has crossed a line never previously crossed (not even by Carol!) by those engaged in their desperate efforts to keep the wig in place.

—–Original Message—–
From: Joe Nocera [mailto:XXXXX]
Sent: Friday, May 11, 2007 10:11 AM
To: Patrick Byrne
Subject: david rocker

patrick– David Rocker made a speech a couple of weeks ago in which he said, among other things, that your lawsuit was nothing mroe (sic) than an effort to silence critics. He also said that Gradient did its first report about Overstock a year before Rocker Partners even became a client. And he said that Mr. Anafantis (sp?) has been discredited with the SEC’s “no action” letter. Your reaction?


Joe Nocera
XXXX
YYYY
nocera@nytimes.com
==================================================

Had Joe actually abided by the principles of Ethics in Journalism 101, I would pointed out the numerous flaws in his attempt to whitewash the criminal activity of his friend Rocker with a “Free speech in America is very important” spin. Remember, from the start Rocker’s lawyers have tried to spin his illegal activity as being about free speech, and this is how the argument has been met by the adults who have examined it:

1) On 8 counts versus 0, the trial judge in Marin Country sided with us and against Rocker’s claim that this suit was about free speech. In fact, the judge said in the courtroom that after his initial review of the evidence there was a “high likelihood” that we would win the suit. Rocker appealed.

2) The California Attorney General appeared out of nowhere and filed an amicus with the appellate court supporting our side and against Rocker’s attempt to spin this as about free speech.

3) The appellate court recently heard Rocker’s arguments. This Law.com article gives a good sense of how the appellate court responded to the hysterical attempts by Rocker’s lawyers to spin his illegal conduct as being about free speech. www.law.com/jsp/article.jsp?id=1176282246984

The Law.com article captures one judge’s reaction nicely: “Justice Ignazio Ruvolo indicated there was evidence even ‘at this stage of the proceedings’ that could substantiate Overstock.com’s claims.” Somehow Joe missed that.

I’d also have pointed out that Rocker does not seem to think “Free speech in America is very important” when someone criticizes Rocker: Rocker famously sued some message board posters a few years back for daring to criticize him and his unethical behavior (incidentally, that case got laughed out of town). Free speech doesn’t seem to be that important to Rocker, Joe.

In the face of these facts, Joe blithely asserts that “The facts are not on Mr. Byrne’s side” without mentioning that the trial court, the California attorney general, and the appellate judge have indicated exactly the opposite, even at this extremely early stage.

Joe notes without question that, “Mr. Rocker wasn’t even a client of Gradient when it began writing its tough-minded reports on Overstock,” neglecting to mention that ex-employees of Gradient assert that the firm had a relationship with Rocker even before he formally became a client.

Joe writes about his friend Rocker “But you know how lawsuits are: a year and a half later, the thing has barely gotten started” without mentioning that we have been most eager to move forward, but that his friend Rocker has stalled and delayed at every opportunity, rejecting the appellate court’s offer to rule without delay for a hearing: there was even one article where an attorney for the miscreants promised to appeal the appellate court ruling. That is, Joe bemoans the fact that “the thing has barely gotten started” while conveniently neglecting to mention that it is his friend Rocker who is doing everything he
can to keep it from getting started.

And so on and so forth.

Is anyone else noticing that something seems to be going on this week? First, after a year of criticizing me for my decision to issue a press release celebrating my receipt of a subpoena from the SEC, the shills are now trying to make a case that I should have sent out a second press release when I received another addressed to me as a person, though it was a small fraction as long as the first, covered sub-issues of the first, as well as issues related to a broader investigation that is not about me or Overstock at all. As though there is a world of difference between a subpoena addressed to our corporate lawyer asking for our CEO’s materials, and one addressed to me at our corporate address: I hate to disappoint, but that distinction is such a fine one it did not occur to me it was worthy of a second press release. The funny part is how it still has not dawnede on the miscreants that a fair bit of the material being requested by the SEC concerns them, not me or Overstock.

What would have made them so angry this week? Perhaps they are mad that last Sunday, at an event hosted by The Economist (a publication with infinitely more credibility than Joe, Roddy, Herb, Gary etc. could ever aspire to), the bad guys lost control of the narrative?

http://www.cultureproject.org/index.php?option=com_content&task=view&id=49

http://cultureproject.org/video2/archivepages/hedge2.html

I think these fellows better hope that the scandal whose lid they are trying so desperately to secure never blows off, because if it does, in the aftermath not only with their journalism come under examination, but more importantly, the publications which have blithely published it will be seen to have been part of the cover-up. Which is entirely right and approrpiate. And then that will be the end of it.

Can anyone doubt at this point that we are witnessing the Götterdammerung of the American mainstream media?

Patrick

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That Herd of Independent Minds: Our New York Financial Press

May 10th, 2007 by Patrick Byrne
Posted: Thu May 10, 2007 1:14 pm Post subject: That Herd of Independent Minds: Our New York Financial Press

Some seem to be noticing that my mitzvah (that is my name for my efforts to expose an enormous financial scandal that is occurring on Wall Street) is gaining traction. Forbes has covered it in several articles in the last few months, Bloomberg Television recently released “Phantom Shares,” an amazing half-hour documentary about it, numerous foreign news sources are starting to cover it, The Economist hosted me earlier this week in a debate before an audience in Manhattan ( http://www.cultureproject.org/index.php?option=com_content&task=view&id=49 ), and there may even be a couple more major pieces in the works.It was entirely predictable then, that today Roddy Boyd of The New York Post (a newspaper for people who move their lips when they read People Magazine), Floyd Norris of The New York Times, and Herb Greenberg have all contacted me today about a trivial non-issue but asking precisely the same question in similar language that makes the same false assumptions, almost as though it were orchestrated. How odd (Sloppy work, guys: write back for new instructions). Their sloppiness presents, however, a wonderful opportunity to display the corruption of our financial press, how it shills for the powerful financial interests which own it and against whose perfidy I have been gaining traction in exposing. I will tell you the facts, and then present their questions, to give you an idea of how this works.I and some colleagues (both within and outside the company) have voluntarily cooperated with the SEC for over two years in a variety of investigations run out of several offices. I started doing this because I became convinced our capital markets are strikingly corrupt and have to be fixed or else our country may endure a 1929 event. All along I informed them that at any time I would be more than happy to provide them, in fact pleaded with them to examine, documentation of my various assertions. In addition, I repeatedly suggested to them that on any issue within the company about which they ahd any doubt or concern, to please permit me to provide them whatever documentation they needed in order to clear their minds and satisfy themselves that my motives were pure.On May 4 of last year they took me up on my offer, sending a subpoena for an enormous volume of documents concerning my allegations regarding corruption on Wall Street, along with questions concerning issues about which I had repeatedly suggested I would love to clear their minds. Upon receiving that subpoena, we visited them to suggest that it was not sufficiently broad enough, that there were additional materials in my personal (not corporate) possession I would like to turn over that were not covered in the first, and to request that they request these of me (which they immediately did in a subsequent short, 150 word coda subpoena on issues that were generally a subset of the first, along with those additional materials we were suggesting we provide but were in my personal, not corporate, possession).

This all happened over an 11 day period in the first half of May, 2006. Though not required to do so, in the midst of it I issued a press release not only informing the public of our receipt of subpoena, but celebrating it. I literally put out a press release of which, their subsequent kibbutzing notwithstanding, I was and remain proud: “Overstock.com Celebrates Receipt of SEC Subpoena” (http://investors.overstock.com/phoenix.zhtml?c=131091&p=irol-newsArticle&ID=858248&highlight= ). And in subsequent interviews and radio appearances I have discussed these events.

Now, a year later, how odd that the precise set of journalists and their lampreys (can lampreys have lampreys?) who write stories that support the investment positions of a small stable of hedge funds would concern themselves with precisely the same trivial point on the same non-issue that I have been discussing publicly for over a year. These three journalists have apparently decide that have decided that this was not enough, that I should have put out another press release about the coda-subpoena that followed up on the first that I announced with a press release, which itself made headlines for my decision to publicize my “celebration” of it, as though (after all that). Typical of their ilk is this from Herb:

Quote:
From: Greenberg, Herbert [mailto:XXX]
Sent: Thursday, May 10, 2007 6:05 AM
To: Patrick Byrne
Cc: XXX
Subject: Patrick’s subpoenaPatrick,I’m working on a small piece about your subpoena and had one question: Why did you wait nearly a full year to disclose your subpoena?Thanks,

Herb Greenberg

Roddy Boyd writes:

Quote:
“i had no idea of was that you had received a subpoena. looking at the docs last night, it is disclosed that you did get one. why the 1 year delay in disclosure?”

Floyd Norris contacted us with the same question.The beat goes on. I’m just curious that I did not hear from Bethany and Carol as well.Here is the punch-line: as a matter of law I must tread carefully here, but I can say that the heart of the investigation is not, I would suggest, Overstock-centric, but rather, concerns itself with a strange set of relationships among ….. Well, let me just say that the irony here is just delicious.

In a strange occurrence that would tend to confirm the existence of a karmic balance in the universe, not long ago I was contacted by a source located at the core of the relationships alluded to above. That source paints a startlingly clear picture of how this “system” really works, backed up by approximately one-thousand emails and other documents provided to confirm every word. Given the apparent locus of the SEC’s interest, you can expect me to deal with this gold mine of evidence as any concerned citizen would.

Your humble servant,

Patrick

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