Michael Milken, 60,000 Deaths, and the Story of Dendreon (Chapter 1 of 15)


    What follows is part 1 of a 15-part series. The remaining installments will appear on Deep Capture over the next several weeks, after which point the story will be published in its entirety. It is a story about the travails of just one small company, but it describes market machinations that have affected hundreds of other companies, and it contains a larger message for anyone concerned about the “deep capture” of our nation’s media and regulatory bodies.

    * * * * * * * *

    This story, like too many others, begins with Jim Cramer, the CNBC personality, making “a mistake.”

    On September 26, 2005, Cramer  announced to his television audience the sad news (punctuated by funny sound effects – a clown horn, a crashing airplane) that Provenge, an experimental treatment for prostate cancer, had flopped. Thousands of end-stage patients had been pinning their hopes on Provenge, but according to Cramer the treatment had just been rejected by the Food & Drug Administration. It would never go to market.

    This seemed odd, because Dendreon (NASDAQ: DNDN), the company developing Provenge, had not yet submitted an application for FDA approval. As everybody in the biotech investment community knew, Dendreon had, in fact, only recently completed Phase 3 clinical trials and probably would not face scrutiny from an FDA advisory panel for at least another year.

    As for the likelihood that the advisory panel would eventually vote in favor of Provenge, the odds looked quite good. The Phase 3 trials had demonstrated that Provenge significantly increased patient survival with only minimal side-effects, such as a few days of mild fever. Moreover, Provenge was an altogether different sort of treatment – one that fought tumors by boosting patients’ immune systems rather than subjecting them to the ravages of chemotherapy.

    Provenge was not a magical elixir of life, but Dendreon was doing more than just developing a new technology. It was pioneering a treatment that could revolutionize the way that doctors fight prostate cancer. By some conservative estimates, the market for Provenge alone could reach more than $2 billion a year. If the treatment could be applied to other cancers, the market would be even larger.

    The morning after Cramer declared Dendreon and Provenge to be dead in the water, Mark Haines, the anchor of  CNBC’s “Squawk Box” program, apologized for Cramer’s “mistake.” That afternoon, at an important UBS investor conference, Dendreon presented still more promising data. This would normally have given a significant boost to the company’s stock price, but the value of Dendreon’s shares stayed flat for the day, and then began a gradual decline.

    This had partly to do with Cramer. The next evening, on his “Mad Money” program, the journalist (or entertainer, or self-confessed criminal, or… whatever Cramer is) acknowledged that the FDA had not yet rejected Provenge, but drawing upon his medical expertise, Cramer maintained that Provenge was not effective. In characteristically level-headed fashion,  he announced that Dendreon shareholders were drunken, carousing, gambling Falstaffs who “might as well take their money to Vegas.”

    Dendreon, Cramer added (rather ominously), was  a “battleground stock.”

    * * * * * * * *

    What Cramer meant by “battleground ” has since become all too apparent. For the past four years, Dendreon has been one of the most manipulated stocks on NASDAQ. During some periods the volume of trading in the shares of this little company has exceeded the trading in America’s largest corporations – a good sign that hedge funds have been churning the stock to move the market.

    And with every burst of good news, the company has faced waves upon waves of naked short selling – hedge funds illegally selling millions of shares that do not exist to flood the market and drive down the stock price. Along with the phantom stock, people seeking to diminish Dendreon have deployed false financial research , biased media, bogus class action lawsuits, Internet bashers, dubious science, and other familiar weapons of the “battleground.”

    The denouement of this stock market “battle” occurred recently, on April 28, 2009, when Dendreon was to present all-important results at the American Urological Association’s annual meeting in Chicago. Some days prior, Dendreon’s CEO, Mitch Gold, had announced that the results of an Independent Monitoring Committee study were “unambiguous in nature…a clear hit” for Provenge.

    If a CEO uses language like that and does not produce the data to back it up, he is guaranteed a visit from the Securities and Exchange Commission. Unless the CEO or his allies have juice with the SEC, the commission will usually charge the CEO with making false statements to pump his stock.  Gold was unlikely to take that risk, so it was clear to most people that the meeting in Chicago was going to be a triumph for Dendreon.

    And it indeed it was.  The data presented that day showed that Provenge lowers the risk of prostate cancer death by 22.5 percent, with little or no toxicity. With a few notable exceptions (some of whom are to appear as prominent characters in this story), nearly every medical professional on the planet now concurred that Provenge was a blockbuster drug – one that should receive FDA approval and make Dendreon a highly profitable company.

    But the hedge funds weren’t finished. In the days following Gold’s announcement, short sellers piled on with a vengeance, returning Dendreon to the leagues of the world’s most heavily traded stocks. The firm once again found itself on the SEC’s “Reg Sho” list of  companies whose stock was “failing to deliver” in excessive quantities –a sign of illegal naked short selling.

    On CNBC, meanwhile, Cramer had hammered Dendreon. On April 6, 2009,  amidst ear-rattling sound effects –dogs fighting, and (inexplicably) a baby crying — Cramer had said “I don’t like Dendreon.”  He had shouted that Provenge had no chance of getting FDA approval and Dendreon shareholders should “SELL! SELL! SELL!”

    Then, on April 28, at 10:01  am central time — just hours before Dendreon’s triumph in Chicago – an anonymous message board author on Yahoo! Finance posted this message: “HIGH PROBABILITY OF MASSIVE BEAR RAID…DNDN [Dendreon] could easily drop 50% on a massive bear raid…its coming today@12:30 pm central.”

    Just minutes before 12:30 pm central, Dendreon’s stock price began to fall. It didn’t just fall–it nosedived from $24 to under $8 … in 75 seconds.  That’s correct, during a period of 75 seconds, more than 4,000 trades were placed, totaling 3 million shares, or about 50% of Dendreon’s (spectacularly high) average daily volume. Given that the message board poster knew what was coming more than two hours beforehand, and predicted the timing almost precisely, it is a safe bet that this was a coordinated, illegal naked short selling attack. And just in case you still didn’t get this – it caused Dendreon’s share price to lose more than 65% of its value – in just 75 seconds flat.

    “My desk was floored,” one trader wrote on a message board. “We all just stood up swearing, headsets and other assorted desk items being thrown at monitors…I haven’t heard that much swearing in years…”

    It was, say others, one of the strangest occurrences in Wall Street history.

    * * * * * * * *

    In fact Dendreon had witnessed even stranger occurrences – brutal naked short selling attacks occurring simultaneously with antics that simply have no precedence in the world of medicine. As will be described presently, these strange occurrences very nearly destroyed Dendreon in 2007.  These strange occurrences have also prevented patients from having access to Dendreon’s treatment – a treatment that, as will become clear, should have reached the market some time ago.

    And from the day of that first strange occurrence in September 2005, when Cramer predicted that Dendreon would become a “battleground” stock, to the latest strange occurrence in April 2009, when Dendreon’s stock nosedived by 65% in 75 seconds, more than 60,000 men in the United States died of prostate cancer.

    So we must ask: Who did this? Who stood to profit from Dendreon’s demise? Were the extremely odd delays in getting Provenge to market purely accidental? Or, were the remarkable trading patterns and volatility accompanying those delays in fact an expression of stock manipulation, and if so, who were the manipulators?  Since we know that Dendreon experienced naked short selling, and naked short selling is a crime, who are the criminals?  And when much of the medical community rallied around Provenge last month, which manipulators crashed the stock to single digits – possibly to make the company ripe for a hostile takeover by the very people who once sought to destroy it?

    * * * * * * * *

    It is one of the peculiarities of the Securities and Exchange Commission that while it is ever-eager to hassle CEOs of small companies, it goes to considerable lengths to protect billionaire hedge fund managers. The SEC has publicly stated that naked short selling is a crime. It has said that it has evidence that illegal naked short selling occurs on a large scale and does serious damage to public companies. But it almost never says which hedge funds are responsible. It never says who is flooding the market with  phantom stock.

    As far as the SEC is concerned, it’s all a big secret. As the commission states on its website, the naked short selling statistics “of individual firms and customers is proprietary information and may reflect firms’ trading strategies.” It seems not to matter to the SEC that those “proprietary” trading strategies are illegal.

    Meanwhile, the SEC does not require hedge funds to disclose even their legal short positions. As a result, it is impossible for any journalist to present photo-perfect portraits of attacks on companies like Dendreon.

    But brokers and other sources can tell us who some of the short sellers are. And by analyzing public information (such as data that hints at various hedge funds’ options strategies) we can make educated guesses as to who has the most to gain from a company’s decline. We can also come to understand the relationships that bind certain hedge fund managers and miscreants, and ask whether these people might have been acting in concert.

    If the relationships are few in number, or separated by six degrees, we must abandon the project – a spatter of dots on the wall is not a work of art. But if the dots are plentiful, precise, and show a recognizable pattern, then we have something valuable – a sort of pointillist painting of market behavior.

    In the case of Dendreon, we have such a painting. And when we look at this painting, with its dozens of data points, we can see quite clearly the familiar smirk of Michael Milken, the famous “junk bond king” and criminal stock manipulator.

    During the times when Dendreon has been most evidently a “battleground stock,” nearly every hedge fund known to have placed large bets against Dendreon and a significant number of Dendreon’s detractors — esteemed medical professionals, financial research analysts, government officials, and Jim Cramer himself – have been tied to Milken or his close associates.

    Most of the hedge fund managers who appear in this story are part of a tight network that has been in operation – exchanging information, attacking the same stocks, employing the same tactics – for upwards of twenty years. This is the same network that attacked the major financial institutions in 2008, possibly contributing to the collapse of the American financial system. And though I recognize that some people find this hard to absorb, I will present further evidence that a good number of the people in this network have ties to organized crime – the Mafia.

    As for Milken, he was released from prison in 1993, at which point he went to considerable lengths to rebrand himself as a “prominent philanthropist.” One of the “philanthropic” outfits that he founded is the Prostate Cancer Foundation, and for this he has received widespread applause from the media, government officials, and the business elite. Because Milken has effectively bathed himself in the glow of his “philanthropy” (and because his public relations machine is so indisputably clever), many people find themselves saying that Milken’s financial crimes were but misdemeanors – the slight over-exuberance of a “market innovator.”

    But the Dendreon story raises serious questions about the nature of Milken’s “philanthropy” – and about a society that venerates and even seeks guidance and favor from the most destructive financial criminal the world has ever known.

    * * * * * * * *

    To be continued…Click here for Chapter 2.

    If this article concerns you, and you wish to help, then:
    1) email it to a dozen friends;

    2) go here for additional suggestions: “So You Say You Want a Revolution?

    This post was written by:

    - who has written 87 posts on Deep Capture.


    Contact the author

    132 Responses to “Michael Milken, 60,000 Deaths, and the Story of Dendreon (Chapter 1 of 15)”

    1. Paul Haider says:

      That is a great opener! I can’t wait for chapter 2!!!

    2. robert long says:

      Well my first best pick has just got confirmed.

      thank you.

    3. rao says:

      good job .keep it up

    4. Robyn says:

      This is amazing…thanks for having the guts to expose this story – you are doing an invaluable public service.

    5. kddublin says:

      WOW! Great start. Chapter two the sooner the better!!!!

      We want more!!!!!

      Thanks Mark!

    6. sean says:

      Anyone care to start making guesses as to the name of the “Sith Lord”is I’ll give you a hint use the initials M.M. The plot thickens and the excuse of plausible deniability is not even close to being existant!!! Someone has to go to jail for these crimes. Many Thanks to Mark and all at Deepcapture.

    7. harveedawabbitt says:

      way cool mark thank you for this article.

      come on chapter two.

      i think this series will open up a can o worms
      that the miscreants dont wanna open.

    8. Michael says:

      This is great! At last someone with guts to
      expose these rats at FDA and Wall Street!

    9. Dick says:

      Finally the truth is coming out. My brother, a prominent Bay Area attorney, was one of the 60,000 victims. Deprived of Provenge he had 20 taxotere treatments, plus as many blood transfusions from February 2008 until his death in January 2009. Amazing how greed made so many so callous, including several doctors that violated their Hippocratic Oath of “doing no harm to patients.” Thanks for providing the transparency that was sadly missing for so long.

    10. harveedawabbitt says:

      i am sorry for your loss dick.

    11. roger says:

      I was unaware of the Cramer 09/26/05 and 04/06/09 diatribes against Dendreon, and will admit being suckered by both his and Michael Milken’s attempts to rehabilitate themselves in the public eye. Thanks for the hard-hitting facts, especially the description of the 75 second collapse of DNDN’s share price.

    12. harveedawabbitt says:

      are any of ya hasin problems opening the link that says

      “waves upon waves of naked shorting”?

      i get the zip file but then it goes to something real weird.

    13. nostawft says:

      I was watching DNDN’s one minute chart as it fell from $24. down to the $7. dollar range that day…I had sold all of my shares just before the stock was halted for ‘News Pending’, because I knew it was a highly manipulated stock and I was afraid something like this would happen…It was one of the most amazing things I’ve ever seen in 15 years of trading…Whoever did this made millions of dollars in less than two minutes…Luckily for the true Investors of the stock, when it reopened it was right back at $24…There were only two more attempts by the crooks to manipulate this stock…It appears they are leaving it alone for now, and have moved on to their next target…I would like to Invest in this stock long-term, but am still afraid the crooks will return to play this one again…

    14. charles jolly says:

      I sent your article to the SEC and I commend you on a great article exploiting the scum at thestreet.com.All the simularities are happening with CTIC.Best story I have read in a very long time!

    15. Anonymous says:

      http://www.thesanitycheck.com/Portals/0/cramersubpoena1.jpg
      http://www.thesanitycheck.com/Portals/0/cramersubpoena2.jpg

      The SEC dropped the subpoena when they realized it was BS.

      Friends in high places…

    16. Anonymous says:

      Iran Contra’s Adnan Khasshoggi and Michael Milken’s officer manager, Valerie Redhorse was involved in taking down MJK Clearing on Sept. 11th, 2001, representing over 100,000 client brokerage accounts and the mainstream media doesn’t think it is news worthy enough to give any coverage to.

      http://www.rgm.com/articles/sec.html

      When you realize Dodi Fayed (Lady Diana) was Adnan’s cousin or that Adnan was part of the BCCI and S&L group, you realize the network includes some very powerful people. Milken may be the brains, but he wouldn’t get away with this if his network didn’t include some people in high places.

      I wonder what competitors would have benefited from killing this company?

      We appreciate your courage in posting this!

    17. kyoto27 says:

      Bravo Mark; this begins to explain why the War On Cancer is still bogged down in chemo-based trench warfare. The Provenge Story has sadly exposed a Heart of Darkness in America that few could have imagined existed. Keep following the truth!

    18. Anonymous says:

      Don’t think that this series of events is peculiar to Dendreon. The exact illegal activity is being done presently to another biotech company, Sequenom. It’s the same story with some of the same cast of characters. If Obama wants to really accomplish something for the good, then shine the light on these criminals and show us all that he really means business.

    19. suzy_q says:

      It was mindboggling to watch DNDN fall so far in 75 seconds on April 29th. What you didn’t mention was that many investors had stops set that were wiped out at a price far below their stop prices. Because the IMPACT results were so stellar, the naked shorters were caught with their pants down and had to do something drastic to avoid losing millions. This bear raid was their answer … per usual they raped the retail investors to avoid their own losses. As as usual the SEC did nothing.

      Thank you Patrick for bringing this story to the attention of the American public. They need to understand just how crooked the American financial system has become. I look forward to your remaining segments.

    20. suzy_q says:

      It was mindboggling to watch DNDN fall so far in 75 seconds on April 29th. What you didn’t mention was that many investors had stops set that were wiped out at a price far below their stop prices. Because the IMPACT results were so stellar, the naked shorters were caught with their pants down and had to do something drastic to avoid losing millions. This bear raid was their answer … per usual they raped the retail investors to avoid their own losses. As as usual the SEC did nothing.

      Thank you Mark for bringing this story to the attention of the American public. They need to understand just how crooked the American financial system has become. I look forward to your remaining segments.

    21. jdevine42 says:

      Way to keep the spotlight on these coakroaches, they HATE it.

    22. F. McGraw says:

      The story is tracking reality very well. A good beginning.

      Here are two corrections:
      The missing date in April for the pre-announcement was April 14, 2009. On that date the stock soared deom $7.00 to $212.40 on the open.

      The date in the Part 1 for the 75 second drop was April 28, 2009–not the 29th as reported in Part i.

      Hope Mark gets these correcitons

    23. F. McGraw says:

      Tracking reality very well. A good beginning.

      2 correctionsd:
      Date of pre-announcement 4/14/09
      Date of the 75-second drop was 4/28/09, not 4/29 as reported in the story. Let people go check it out, but they nead the correct date!

    24. charles jolly says:

      I would love to see this article run all over the web.Then the big boys would have to address the coruption if it gets enough exposure.

    25. bryan says:

      this is what is happening to cell therapeutics exactly (CTIC)

      bastards!

    26. devilsrain says:

      Too bad your article wont mean a damn thing. I enjoyed the 1st chapter but to the people who think sending this to the SEC will do anything, you are dreaming. The first thing they would do is laugh, then delete the article. Who do you think is paid off when you do a bear raid like that? We need an organization to oversee the SEC. And naturally we wont get it.

    27. Robin M. says:

      Bravo Mark!!!! As a staunch supporter of Dendreon since 2002, I’ve watched with horror and disgust these shameless manipulations occur time and again. I’m so very grateful that you’ve taken the time and devoted yourself to telling this story in depth, and to putting together all the little pieces of the Lego puzzle such that this ugly web of criminality comes into the light of full recognition for what it is, and more importantly, for whom it has served. Thank you for all your good work as well as for your courage! (Can’t wait for Sher/Hussein/Pazdur segments!)

      And now, let’s go git’em……..

    28. kelatious says:

      Thank you Mark and Patrick. Your investigation will no doubt be extremely thorough. Surely someone in the main stream media has yet to be bought. Surely a “60 Minutes” will pick up this horrendous story. A travesty. The power damn well better not “go out”…..but thanks for the “auto-pilot” initiative. I see an award coming your way…..and hopefully some arrests.

      Thanks again,
      kelatious

      PS…feel free to email the rest of the story to me.

    29. Tulip says:

      Is this a real story ?
      And the American Authorities do NOTHING ??
      WOW, unbelievable !!!!!

      Greetings from the Netherlands

    30. Downing.Austin says:

      Great article, A real eye opener. This gives a real reason why Hedge funds should be carefully regulated. Look at the damage that they can do with no (or very little) repercussion. There has got to be some changes soon before something drastic happens. I’m looking forward to more on this.

    31. dfwl28 says:

      Touche. Excellent piece of brassy investigative reporting. This is the kind of reporting that talking heads and corporate media only dream about or believe belongs in history books. Please don’t stop. EVER.

    32. M says:

      I sometimes put “dream-sheet” limit bids out on fast movers… which I did that day.

      When I saw the price crashing (assuming the worst), I immediately tried to cancel it… it was filled before I could log in.

      Call me lucky (this time). But I worry that this practice could hurt again in the future.

    33. Tar&FeatherThem says:

      Mitchell should check into ISON. This stock joined the Milken Institute several years ago when the stock was around $20.00 and then did nothing but go straight down and reverse split. It currently trades around .007.

      They got some business help from that think tank.

    34. I never knew such a site as this excisted before this very moment!
      This is not a cure for legalized crime as I refere to it imo,but it sure is great site to vent,and pass on great ideas nd info. about the reality of wide spread criminal manipulation!
      I am invested in Cell Therapuetics Inc.,and it has exactly the same problems as many other stocks be manipulated,and all the other underhanded criminal activity that goes on everyday in the market,and never seems to be eckwowledged by the SEC,nor anyone else in authority that could do something about it,at minimum star an investigation based on the obvious facts that so many sit and endure on a reg. basis with any recourse what so ever except to vent on a messedge board or a site as this one.
      I’ts totally unAmerican to be abused in this fashion or manner in the eye of the public,and to be ignored by the very people we have in place that can correct it,or prosicute the guilty as due!
      My last point I would like to add has to do with a stock in the mining sector I was invested in a couple yers ago symbol [ ezm],and the out right underhanded/unbelievable manipulation,naked shorting in extreme excess,and so many other totally obvious criminal acts agaist EZM,and no matter where or who u reported or complained ,we had the exact results as we get today with ll these bio stocks in question here on this board ,and everewhere else too!
      I must say though,finally back then one man,a congressman went in front of the congress at a meeting to discuss priority matters that needed to be address asap,and stood there and told everyone in that room the entire truth of the exteme abuse and foul play /manipulation that was occuring back than,and now,and made it very clear it was destroying many inocent hard working peoples lives that were victoms of all this foul play that was aloud to excist,and continue without so much as an investigation strted to give justice due to the American tax payers ,and citicens of the usa!
      Thier answer to the Congressmans statement concerning all the abuseive underhnded foul play was they had ackwoledged his statement and it would be addressed aat a futer time when possible,but at the moment our entire congressional system was totally tied up with our banking/finacial system when that entire mess was of people getting morgages that were totally not qualified that let to the banking colaspe we have now witnessed.
      But , wht I would like to know is ,did they ever even look into this matter at all???? And if so ,how far did thier looking go,and what was thier final ssumption of the facts??
      I don’t want to take uop this entire board w/ my rmbleing on,but when I think back of all this,and add to what we hVE NOW IT TOALLY FRUSTRte,and sickens me to no end.jmo Thank You Sincerel,James Massimino

    35. Celeste says:

      I have held DNDN stock since the 2005 mess. I just knew it was going to be approved. The day of the drop, I had a stop in at $12. Why it didn’t get executed, I don’t know but I pray thank yous to God everyday that it didn’t. I’ve been on this ride a long time and my heart goes out to the people who’s money was illegally stolen that day and the idea that those people are getting away with it is sickening. Never mind the lives that have been stolen away by the 2005 FDA decision (which I’m equally convinced was influence by big Pharma to keep this off the market).

      Good job to you and I hope your article has some influence with the SEC.

      • Anonymous says:

        Celeste, I didn’t have a stop in, thank the Lord, but when I saw DNDN drop like that, I was like a deer in headlights and I’m surprised I didn’t have a heart attack! I’ve held this stock for a long time and have truly believed in their product, Provenge, and DNDN’S CEO and scientists who are behind the project. It’s a travesty of justice for this activity to be allowed in our financial markets…and I feel it’s immoral NOT to bring to market a cancer fighting product that can save many lives. Shame on both the FDA and the SEC — the FDA for not approving Provenge based upon the recommendation of its own sub-committee and for its total disregard for the lives of end-stage cancer patients — and the SEC’s failure to protect the investors of a publicly traded company from the scumbag criminals who are getting away with this screwy manipulation of financial markets! This article has revealed so much that I couldn’t quite figure out about the shenanigans of DNDN trading.
        Thanks to the authors for your efforts in bringing out the truth. The question now is, will something be done about it now and will steps be taken to ensure these “criminal” activities don’t occur in the future?

    36. hangthemall says:

      So these thugs steal all the money, kill the companies and then use a crumb of the Money they have stolen to donate to the Cause so they can live with themselves as they live like kings? Can’t wait for more..I emailed the link to 300 people, everyone should do their part. This is a disgrace. and how about FRPT let our soldiers get blown up beacuse the company stock is to low to raise money and employee more workers. no big deal. When the Feds do arrest these bums please let them tell the parents of the soldiers that died or cancer victims to their faces that is was becasue they needed MORE money.. Hang them all in public, CANT WAIT I will throw the 1st stone

    37. iStandUp says:

      harveedawabbitt says:

      “are any of ya hasin problems opening the link that says

      “waves upon waves of naked shorting”?

      i get the zip file but then it goes to something real weird.”

      The file is NOT a ZIP file. Instead it is a 2007 Excel spreadsheet, which older version of Excel will NOT open unless you have downloaded and installed the MS conversion software.

      You can get this data from the following website and see it in a graphical form and you can also get the data in a table format which you can paste into your version of Excel:

      http://www.failstodeliver.com

    38. Lawrence says:

      AWESOME! Thank You, can’t wait for the movie!

    39. ron doc says:

      Here is another one in the last week with massive loss for shareholders, on FDA orders of product pulls.

      http://zicamlawsuits.com/

      It had been on a steady price move up. Then the FDA recall notice and in one day it dropped from $19.25 to $5.78. No lives lost over this one but if there is some funny business going on it hurt many investors, the loss was massive in any case.

    40. Anonymous says:

      http://pipeline.corante.com/archives/2007/04/08/buy_sell_shout_moan.php

      “But what if they go up after you tell people to sell them? I wrote last week about the cancer vaccine companies. Well, as it happens, Cramer told people to bail out of Dendreon the day before the FDA advisory panel gave them a good review. As you’d imagine, some of his listeners are rather peeved about that, looking at the stock move they missed out on.

      But I actually have a bit more sympathy for Cramer this time. Predicting which way some of the FDA hearings will go is a fool’s game, and you’re as likely to be wrong as right. Picking against Dendreon made as much sense as coming out for them; it wasn’t a stupid call, except in the sense that any call was a stupid one. The reaction of his audience leads to a larger conclusion, though, which is that picking stocks based on listening to Jim Cramer yell about them is a fool’s game, too. “

      • Anonymous says:

        I disagree totally with your statement that predicting the FDA’s action is a fool’s game. As the article stated, the panel follows the recommendation of its subcommittee 95% of the time! I actually believe the percentages are more like 99.5% of the time! And, the drug had been placed on a fast track for approval! These men NEED the drug to LIVE! just a little longer!

    41. iStandUp says:

      Patrick has requested that we not reprint this whole story all over the Internet, but instead we put links to this story all over the Internet so people have to some to DeepCapture.com to read the WHOLE story here:

      “Please see my prefatory note (“Preview of a Coming Attraction: Michael Milken, 60,000 Deaths, and the Story of Dendreon”) and respect what I request there, that if you like the piece, don’t reprint it in full all over the Internet, but instead, send people to DeepCapture to read it.”

      To respect Patrick’s request AND to advertise this story in such a way to illustrate the importance of this story, I suggest the following approach (Quote only one paragraph and with a link to this story in DeepCapture.com):

      Subject:
      The Hedge Fund Managers Who Appear In This Story Are Part Of A Tight Network…

      Mark Mitchel has written a 15 chapter story about the manipulation of DNDN through Naked Short Counterfeit Selling. Chapter 1 is now online at DeepCapture.com:

      http://www.deepcapture.com/michael-milke

      Here is a quote of one paragraph, which explains who he believes is behind the Naked Short Counterfeit Attacks upon DNDN:

      “Most of the hedge fund managers who appear in this story are part of a tight network that has been in operation – exchanging information, attacking the same stocks, employing the same tactics – for upwards of twenty years. This is the same network that attacked the major financial institutions in 2008, possibly contributing to the collapse of the American financial system. And though I recognize that some people find this hard to absorb, I will present further evidence that a good number of the people in this network have ties to organized crime – the Mafia.”

    42. Babyface says:

      Does everyone out there Know that Mr Milkens brother owns LRN ..Talk about a joke its home schooling in 13 states that pay LRN in the neighborhood of 6,000.00 a year to home school kids in 13 states..The companys revenue is flying and I would bet my life that Mr Milken is involved in this company heavily..So our honest Goverment is paying this company a small fortune and a man that was put in jail for being a crook is getting rewarded for by a goverment that indicted him..Talk about a joke you wanna get even with Mr Milken short LRN and call your senators in those 13 states and tell them you shouldnt be paying anyone to home school our kids lever mind someone so corrupt you indicted him…Thats the fact Jack short LRN and mass email senators and congressmen about home schooling LRN is doing

    43. zigzagman says:

      Here is the discussion on the InvestorsHub.com message board for DNDN on Tuesday, April 28, 2009 right after the stock price dropped from $24.00 to $7.50…I posted a one-minute chart of that fall in share price…

      http://investorshub.advfn.com/boards/read_msg.aspx?message_id=37372921

      I feel sorry for all of the Investors that had stop-loss Limit Orders in place that got wiped out when the shorters executed their Bear Raid so that they could cover their Short Positions…Because when it reopened the next day it was right back at $24.00

      If President Obama wants to do something really worthwhile to reinstate confidence in the markets, he should concentrate on eliminating Naked Short Selling and start prosecuting these criminals…JMVHO

    44. hootenanny58 says:

      Alzheimers is a disease that is fast becoming the biggest drain on public and private healthcare budgets around the world. Currently, there are no disease modifying drugs in this space; what drugs do exist treat Alzheimers’s symptoms and side effects. The race is on to get a disease modifying treatment to market, though in the meantime, the shenanigans that have played themselves out over the course of the Provenge story are hard at work distorting, confusing and delaying an effective response to a disease that kills its victims and hollows out the lives of its victims’ loved ones.

      The FDA gauntlet has to be run. Phase III clinical trials of possible treatments are in some cases years away from their decision dates. Why the unreasonable delays? Hedge funds and their criminal associates, in concert with their laissez-faire partners at the SEC, recognize that there exists a high-stakes billion dollar bonanza for the winning biotech, and that they are aligning themselves to rob many millions from investors while a plodding federal agency gives them plenty of opportunity to do so.

      When does this end? To hell with the SEC. Bring in the FBI. Block the exit routes to Swiss and Cayman bank accounts. Knock over the foundation and watch the termites panic! Connect the dots from the corridors of the FDA to the offices of the SEC to the hedge fund boiler rooms. Racketeering is still on the books, is it not?

    45. Willie says:

      I’ve written both my senators asking that short selling be banned entirely. It’s already illegal in many countries and has a history in the US of being outlawed at times.
      Too much room for greedy abuse with shorty.

      If you believe as I do write your elected officials too, time is now with the new reforms being proposed.

    46. Patchie says:

      istand, along with plastering the link, please get people to Digg the article. The more Digg’s the higher visibility in advertisement it will get. I out a link in or just Digg it from the icon at the bottom of the story. right now there are only 5 Digg’s. We should set a goal to get over 200 Digg’s.

    47. iStandUp says:

      Patchie,

      I like your DIGG suggestion but I must admit my ignorance about the exact process for doing this. Can you please explain…

      When I clicked on DIGG, I was not sure what I was suppose to do on the page that popped up.

      Do I have to create a Facebook login and then add a comment? Or What?

      Thanks for your help in advance….

    48. Phil says:

      Mark,
      thanks for starting this discovery project.
      It is not ONLY about Dendreon, but about the complicity of Wall Street crooks, Banksters and the regulators IN GENERAL IMO.

      I remember DNDN well, watched with slight amazement at the way the stock was manipulated up and down. I say slight, because this happens in most other stocks as well of course, except in DNDN’s case, manipulation was so volatile and noticeable and peoples lives were being directly ruined health-wise ( as well as financially of course).

      My solution to the rampant WS corruption would be to remove the SEC entirely ; bring in some respectable and older guys along with Mr. Markopolis to run it; and clean up WS once and for all.

      I would like to see each and every investor get an ID-number that appears on the ticker as well as the clearing institution – so we can see “who” is buying or selling. If they falsify IDs then make the clearing broker responsible for the fraud. The intraday trades – each and every single one – should be published on the web within 5 minutes after market close.
      Without the above, WS will remain a gambling table for the wealthy crooks – as it is now !

      Thanks for your work
      Looking forward to your next chapter.
      Phil

    49. Ben says:

      Great read … just like your other work on DeepCapture.

    50. TheArcher says:

      Awesome article. Well researched, factual and a gripping story. Who needs fiction?

      Keep up the good work.

    51. iStandUp says:

      Mark,

      I join with everyone else who is concerned about the continuing crime wave of Naked Short Counterfeit Selling on Wall Street to congratulate you, and thank you for writing this new Story about HOW Dendreon (DNDN) has been and is continuing to be manipulated by the Wall Street Counterfeit Machine.

      Since the DTCC states publicly that it has no power to stop Abusive Naked Short Counterfeit Selling on Wall Street with forced buy-ins, the DTCC should be given what it wants – no such power.

      To make it wish come true, I think all 15 of the 16 Congressionally enforcement mandated given to the DTCC should be taken away from it and given to another organization. This new organization should have the power to continuously monitor all daily DTCC transactions with the power to immediately force buy-ins for every single share that is an FTD along with ascending fines for party not delivering stock shares. THis new organization should put out a daily report of the FTDs on T+3 along with the names of the parties NOT delivery. This also means of course that the DTCC can NO longer be a black box no one can look into.

      Yes, let Congress give the DTCC what they want – NO Power to stop Abusive Naked Short Selling.

      Additionally, ALL Naked Short Selling should be made illegal by Congress so there is NO ambiguity in the mind of any regulator about Naked Short Counterfeiting Selling being illegal. Today the SEC states out of the right side of its mouth that Naked Short Selling is NOT illegal and then it states out of the left side of its mouth that it is illegal. Let Congress make ALL NAKED SHORT Selling illegal so the SEC is no longer confused.

      Of course this means that the Naked Short Exemption procured by the Brilliant Wall Street Criminal Mind of Bernie Madoff and named after him – the Madoff Exexmption – has to be eliminated. And the Market Maker’s Naked Shorting Exemption also needs to be eliminated so the Corrupt Hedge Funds can no longer rent this exemption from starving Market Makers who are no longer needed in the modern computer age.

      All shorting MUST have a mandatory pre-borrow requirement.

      I agree that every share of stock in the DTCC system must be given a serial number and tracked everywhere – no more black holes to hide in.

      All BLINDFOLDING regulations MUST be eliminated, and all blindfolded software in the DTCC system MUST be given eyes so there are no more black holes to hide in.

      I am sure there are more ways to make the DTCC transparent, since today teh DTCC is a black box NO ONE is allowed to look into – not even the SEC can look inside the DTCC.

      Mark, I am looking forward to reading the next 14 chapters.

    52. clearthinker says:

      And they must go after each and every fail in the EX CLEARING SYSTEM…..where the base of the iceberg is

    53. harveedawabbitt says:

      i stand??

      i not kiddin when i say it opened as a zip file.
      when i opened the file igot what looked like rss feed stuff.
      bunch of links and stuff.

      but today as i try the same link i get a chart.
      so i guess its fixed or i just a full blown idiot,

      more than likely the latter.

    54. GMC says:

      Great piece BUT whats going to happen. NOTHING, THEY ARE IN CHARGE.

    55. Mike Wagner says:

      Yes manipulation is a daily occurance check out spng 6/12/2009. I had stp in @ .22 . 50,000,000 share changed hands before was filled @ .13. My broker TOS

    56. Realist says:

      I sent the following to the SEC’s enforcement division 1 1/2 hours after the bear raid. Of course, nothing was done.

      <>

      Mitchell deserves a Pulitzer for his writing. Unfortunately, anyone who expects something substantively different from Schapiro than Cox is kidding themselves.

    57. Realist says:

      This is the part that is missing in my preceding post:

      Here is someone whose earliest Yahoo posting was predicting a massive bear raid 1.5 hours before it occurred, and got it right almost to the minute. Hmmmmm!

      http://search.messages.yahoo.com/search?.mbintl=finance&q=monthaphumchareon&action=Search&r=Huiz75WdCYfD_KCA2Dc-&within=author&within=tm&off=21

    58. Anonamiss says:

      Mark,
      Another great piece of investigative journalism – well done.

    59. Anonymous says:

      When I was first trying to understand this crime and the mafia behind it, I had sashimi with a promoter in a penny stock that happened to have a real cancer therapy and they squeezed the shorts, causing a massive run in their stock, making them huge returns and making them all millionaires.

      They were investigated by the SEC for stock manipulation because they purposely kept all the stock in cert. form, then started suing brokerages when they couldn’t pull the stock they bought electronically.

      They thought naked shorting was illegal and didn’t understand how it was stock manipulation to sue a brokerage for not owning the shares they claimed were in your account. At first they considered themselves conspiracy theorists and they were actually astounded to find out how deep down the rabbit hole the counterfeiting scheme went and how many “respectable” people were involved.

      It’s the reason your kids don’t use twitter, but the media makes like it is the next big thing. Or why Overstock is more successful than Amazon, but Patrick gets dissed. The people who run things decide what stocks go up and what stocks go down.

      Hint, the crime goes to the president whether he is republican or democrat. Ask Hillary about commodities or Bush about his brother, the fund manager.

      Anyway, their stock went from like a nickel to $20 in a few weeks. GMXX or something like that. Genemaxx.

      It doesn’t really matter if the promoters were good or bad (they were definitely promoters) or if the cancer cure would work. What mattered to me is that real people bought real shares and someone took their money and left town with it.

      It doesn’t matter if a lottery ticket is a winner or loser. If I go to the corner store and buy one, I expect a ticket, not an IOU from the owner that thinks I will lose and who will tell me to fk myself if I try to claim when the counterfeit ticket actually wins.

      The promoter told me he was interviewed by 60 minutes and they had put together a huge story and the story was killed from above. I said “like cigarettes” and he said “no, this is way bigger than cigarettes and the people that run the world killed it and you can’t fight them and if you try, they will kill you”.

      That was about seven years ago and the problem has only gotten worse as the stock mafia has become stronger.

      The Deepcapture team is courageous and they will win because right makes might and there’s an angry mob that will send this stock mafia that thinks they run our media, regulators and politicians running for the hills. They are pathetic little men and for every one of them, there are 100,000 of us. Their bank balances won’t protect them from the anger of Joe Public when their crimes make the light of day.

      Thanks for this investigative gem, from the bottom of my heart.

    60. Anonymous says:

      One thing that occurred to me is that if the world had gone into a 1929 great depression, the naked shorts would have won and covered. None of the banks would have gone under and they wouldn’t be seeking bailouts.

      What went wrong? Why couldn’t they cause a 1929? It wasn’t like they didn’t try.

      - the exposure by http://www.thesanitycheck.com, http://www.investigatethesec.com and this site are working?

      - the international influence is effective, with other countries understanding the mafia criminals here and as they protect themselves, they are also protecting us regular investors?

      - something else?

      What’s bad for the bankers isn’t always bad for us. People up to their neck in mortgage or credit card debt can declare bankruptcy and move on and the system has a way of renewing itself as others are able to buy assets at fire sale prices.

      People are still producing and buying and although the real economy has pulled back, it is still strong, with America considered the safest economy in the world to invest in.

      What if they tried to crash us into a 1929 and it didn’t work and we’re due for another bull run? If they could have crashed us hard, they would have by now and the more people talk about a bear rally, the more I think that we have maximum pessimism and the naked shorts are about to be creamed again, to the point that they arrested and completely lose power.

      Real stock returns have gone sideways since 2001 and in a way, we are nearly a decade into the bear market. The only people to benefit from doom and gloom are the stock mafia.

      As the Silicon Valley electric car startups by GM robots and other assets from bankruptcy, I can’t help imagining the flowers popping up after a forest fire. Out with the old criminals and in with a system that it is fair for the rest of us.

      It’s easy to feel defeatist when you read so many posts about what the SEC and government aren’t doing, but I think change is coming fast and furious and we’re all about to be rewarded.

    61. cobra says:

      Hell the Iranians know how to Twitter. It’s time for a revolution! Lets let these scumbags know we are on to them and keep the pressure on until we see the bastards in jail. Take our country back!

    62. cobra says:

      Good job Mark. Im putting you up there with Dave Patch, Patrick Byrne, and John Wayne AMERICAN HERO’S May god guide you and protect you. Thank you for standing up for the truth.

    63. dr. caution says:

      We can all agree naked short selling destroys companies, is illegal, and should be invesitgated by the SEC and punished.

      But regarding this statement:

      “And from the day of that first strange occurrence in September 2005, when Cramer predicted that Dendreon would become a “battleground” stock, to the latest strange occurrence in April 2009, when Dendreon’s stock nosedived by 65% in 75 seconds, more than 60,000 men in the United States died of prostate cancer,”

      Granted this is sensationalistic and hair-raising, but it reflects a logical fallacy: cum hoc ergo propter hoc (“with this, therefore because of this”). Sorry, but correlation does not imply casuation. Dendreon’s stock price manipulation did not cause these deaths.

      The delay in Dendreon filing its FDA application may have contributed to some deaths, but not all 60,000 of them, not by a longshot. And the FDA had good stated reasons for not accepting Dendreon’s 2007 data, and even though there were conflicts of interest held by key committee members, another problem that should be addressed, that fact alone also did not cause the delay in approval.

      Mark, good article, but don’t lose credibility by overstating causal relations in this case.

      • KDDublin says:

        Dr. Caution

        I think you are misreading that statement.

        The point is that there were a great many powerful people aligned against Dendreon’s Provenge, and those people, some working together and some working independently, caused the hurdles to approval to be higher. The delay has meant that more than 60,000 patients have died without the benefit of Provenge.

        Know that one of the reasons that Dr. Pazdur at the FDA gave for not approving this treatment for late stage prostate cancer patients, whom have no good alternative treatments available, was that the Provenge trial that was ongoing at the time of the decision might later show that Provenge did not work and that would make the FDA look silly for approving a drug that didn’t work. Although the FDA agreed that Provenge was safe they were not 100% sure about efficacy. Most of the anti-provenge rhetoric came from three oncologists at the FDA. Provenge is not a chemotherapy treatment.

        So Provenge gets denied approval in 2007 because the FDA thinks that might be the safest bet from a PR perspective….hunh!! Patients are dying so that the FDA does not look bad.

        Dendreon endured financial attacks on its company and was denied fair and proper due process by individuals inside and outside the FDA. The Investor Village DNDN site was one of the few defensive lines that went up that could successfully fight the misinformation put out there by “financial journalists” and “analysts”. That site did and does remain the best source of information about what has and is happening with regards to Dendreon.

        While Provenge will soon be approved it should have long ago been approved. Those that worked against approval and failed to help when a grass roots effort to gain immediate access for patients began and those that lacked the compassion and foresight when it came to what will be the first immunotherapy to market in the United States, were wrong. What makes it worse is they continue to say they were right. The FDA had a chance to fix this mistake when interim and final results of IMPACT were released. They didn’t, because they still make decisions based on what they think will be best from a PR standpoint for the Agency. They keep getting deeper into the mud instead of turning around and getting out.

        The issue is no longer whether the FDA made a reasonable decision in May 2007, because now we know it was the WRONG decision. Who cares now if it was reasonable or not…it was wrong…reasonable means nothing to the current 90,000 plus patients who still can’t have Provenge. It is instead about whether the decision was made because a few powerful people inside and outside the FDA did not want approval and Provenge was denied without a real democratic process. In other words if a few people in the FDA usurp great power and are able to throw 14 expert contrary opinions (that they asked for) under the bus, then something is wrong with that process. If they are unable to conduct a reasonable risk vs. benefit analysis that takes into consideration the dire circumstances of late stage prostate cancer patients then they should not be permitted to ignore the experts opinions. The FDA admits that they lack the ability to evaluate innovative new treatments yet they will listen to no one else. The patients are the losers in this.

        If the Prostate Cancer Foundation with all their money and political clout had come to the aid of CareToLive and other prostate cancer patient advocacy groups instead of acting as obstructionists and the FDA had any compassion what so ever, the mistake made in 2007 could have and would have been corrected and lives would be saved.

        That Provenge remains unavailable is an amazing thing! That Dendreon has survived and been able to bring Provenge to market is a testimonial to their fortitude in the face of much adversity from so many, many, people.

        Thank you Mark Mitchell for the work you are doing to shine the light on this worthy story.

    64. Feedchipper says:

      Outstanding work! Many thanks to Mark and to the entire Deep Capture team. You are all modern American heroes and patriots. Can hardly wait for further installments; please do not make us wait too long for them.

    65. tkalantzis says:

      Milken…AGAIN…. who let this nimrod out of jail ?

      I still remember when the judge sentenced him to 10 years and he fainted LOL …cant do the time ,dont do the crime buddy .Sure your net worth might be 2.1 bill …but your still a cue ball.

      Patrick this is even funnier when you consider its MILKEN …

      “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. “

    66. William says:

      This is absolutely a fantastic beyond fantasic story. You should win an award for this story when it’s completed. Dendreon caught my attention when i first saw it on http://www.hotstockstobuy.com. I purchased 4000 shares at $17 and have gone through a rollercoaster ever sense. that day it dipped to $8 almost lead me to a migrane headache, but i’m glad it rebounded and i still have it.

      anywaz great story

    67. J. L. says:

      Unless you remove the current ‘captured’ politicians, change is only a pipe dream. These ‘in the pocket’ whores (Dodd, Shelby etc.) have sold their souls to line their pockets and to hell with everybody else. 60,000 deaths related to stock manipulation. It’s all in a days work.
      Wholesale change is necessary, and the only way to achieve that is for every common man/woman/child to unite as one, and march on Washington with purpose, committment, and the will to outlast these criminal bastards who have stolen the future from our children and their children.
      True leaders, like Patrick Byrne, Bud Burrell, Ron Paul, Congresswoman Marcy Kaptur, Alan Grayson, are the ones asking the questions, pointing the fingers, and calling the scum out on the carpet.
      With exposes such as Mark Mitchells Deep Capture series, the light is shining ever more brightly on the perpetraitors and their minions.
      The thundering heard of change is in the air.
      God save this Republic.

    68. sean says:

      Dr. Caution, although all of your points have holes the size of the loopholes that allow this manipulation to be considered legal, don’t you see that even if one death was caused by these crimes all of the participants should be placed in jail and tried for among other things treason!! Just one, the 60K just shows the magnitude of the offense and that is what has “Caused” you to loose credibility to post such . So if only 5k people died its ok then..cause that is what you are saying. Trust me Mark and Deepcapture did’nt lose any credibility here.. you did!! And note how your post was allowed here not censored like some forums. That should send another message of credibility to you about the writers and investigative journalists here. Please try again.

    69. jb says:

      DENDREON should call the Justice Department and demand a RICO investigation into the HedgeFund/JIMCRAMER manipulation which is a felony…the is “organized crime”

    70. dr. caution says:

      @ KDDublin:

      Your points are well taken. As to your statement:

      “Although the FDA agreed that Provenge was safe they were not 100% sure about efficacy,”

      No, they weren’t 95% sure about efficacy with survival as a primary endpoint, which was the agreed-upon level of statistical significance for the trial (p < 0.05).

      The FDA is set up to approve drugs that are demonstrated to be safe and efficacious at a statistically significant level. Safety alone isn’t good enough; if it were, I would ask the FDA to approve my sugar-pill placebo for treating cancer. It’s really safe! But it has no more efficacy than, well, a placebo. Once it’s FDA approved, I’d be able to get insurance companies to pay me $500 per pill. Obviously, things don’t work that way.

      I agree the conflicts of interest Pazdur and others at FDA had are potentially serious and should be investigated and dealt with under the law. Corruption should not be tolerated at FDA, the SEC, or any other government agency.

      Unfortunately, people are dying in large numbers every day of terrible diseases, while thousands of companies work on finding treatments, conducting clinical trials that take time, while more people die. As a physician, I’m not insensitive to this.

      After completing their trials, companies submit their data to the FDA, which scrutinizes the data to ensure proper methodology, procedures, and statistical significance. This is not just “from a PR perspective . . . so that the FDA does not look bad,” as you state. It’s to be sure the drugs work. Meanwhile, as the FDA does its work, more people are dying every day. Are their deaths caused by the FDA? Not if the FDA does its job properly.

      What is the alternative, to allow more drugs to come to market faster?

      End corruption and conflicts of interest at FDA? Agreed!

      Skip FDA’s data review? Can’t.

      Compromise on the statistics? Not a good idea.

      Allow safe drugs to be made available for patients before efficacy is proven? Yes, this may be a good idea, as long as insurance companies, Medicare, and Medicaid don’t pay for them. Otherwise, they’d go broke paying for my useless sugar pills and thousands like them. Early approval would mean that primarily the wealthy would get those safe, unknown-efficacy drugs, which is OK perhaps, although the US has not wanted to allow such a program. Yet.

      @ sean:

      You said, “[E]ven if one death was caused by these crimes all of the participants should be placed in jail ….”

      Agreed. But no deaths appear to have been caused by the financial manipulation of Dendreon. Naked short selling could wipe out any company, which could then produce deaths if a lifesaving treatment were not brought to market as a result. That did not happen to Dendreon.

      Naked short selling should be investigated and prosecuted, but let’s not conflate that financial crime with murder, unless someone can show causation. No one to my knowledge has done so.

      If FDA conflicts of interest (Pazdur and others) led to delayed approval of Provenge, and the FDA’s stated reasons for denied approval in 2007 don’t seem to indicate that (to my knowledge), then you can look at indicting FDA officials on charges of at least manslaughter. But that is a stretch because criminal law requires, you guessed it, proof of causation.

      You also said, “Trust me Mark and Deepcapture didn’t lose any credibility here ….”

      I didn’t say they did. I think Mark’s article is good. I said, [D]on’t lose credibility by overstating causal relations.” That means don’t lose it, not that it’s lost yet. If Mark avoids your error, for example, of causally linking Dendreon's financial manipulation to patient deaths without providing evidence of the causation (not just providing evidence of the deaths and the manipulation), he’ll maintain his credibility just fine.

    71. dr. caution says:

      (repost, as 1st try didn’t work)

      @ KDDublin:

      Your points are well taken. As to your statement:

      “Although the FDA agreed that Provenge was safe they were not 100% sure about efficacy,”

      No, they weren’t 95% sure about efficacy with survival as a primary endpoint, which was the agreed-upon level of statistical significance for the trial (p < 0.05).

      The FDA is set up to approve drugs that are demonstrated to be safe and efficacious at a statistically significant level. Safety alone isn’t good enough; if it were, I would ask the FDA to approve my sugar-pill placebo for treating cancer. It’s really safe! But it has no more efficacy than, well, a placebo. Once it’s FDA approved, I’d be able to get insurance companies to pay me $500 per pill. Obviously, things don’t work that way.

      I agree the conflicts of interest Pazdur and others at FDA have are serious and should be investigated and dealt with under the law. Corruption should not be tolerated at FDA, the SEC, or any other government agency.

      Unfortunately, people are dying in large numbers every day of terrible diseases, while thousands of companies work on finding treatments, conducting clinical trials that take time, while more people die. As a physician, I’m not insensitive to this.
      After completing their trials, companies submit their data to the FDA, which scrutinizes the data to ensure proper methodology, procedures, and statistical significance. This is not just “from a PR perspective . . . so that the FDA does not look bad,” as you state. It’s to be sure the drugs work. Meanwhile, as the FDA does its work, more people are dying every day. Are their deaths caused by the FDA? Not if the FDA does its work properly.

      What is the alternative, to allow more drugs to come to market faster?

      End corruption and conflicts of interest at FDA? Agreed!

      Skip FDA’s data review? Can’t.

      Compromise on the statistics? Not a good idea.

      Allow safe drugs to be made available for patients before efficacy is proven? Yes, this is a good idea, as long as insurance companies, Medicare, and Medicaid don’t pay for them. Otherwise, they’d go broke paying for my useless sugar pills and thousands like them. Early approval would mean that primarily the wealthy would get those safe, unknown-efficacy drugs, which is OK, although the US has not wanted to allow such a program. Yet.

      @ sean:

      You said, “[E]ven if one death was caused by these crimes all of the participants should be placed in jail ….”

      Agreed. But no deaths appear to have been caused by the financial manipulation of Dendreon. Naked short selling could wipe out any company, which could have then produced deaths if a lifesaving treatment were not brought to market as a result. That did not happen to Dendreon.

      Naked short selling should be investigated and prosecuted, but let’s not conflate that financial crime with murder, unless someone can show causation. No one to my knowledge has done so.
      If FDA conflicts of interest (Pazdur and others) led to delayed approval of Provenge, and the FDA’s stated reasons for denied approval in 2007 don’t seem to indicate that (to my knowledge), then you can look at indicting FDA officials on charges of at least manslaughter. But that is a stretch because criminal law requires, you guessed it, proof of causation.

      You also said, “Trust me Mark and Deepcapture didn’t lose any credibility here ….”

      I didn’t say they did. I think Mark’s article is good. I said, [D]on’t lose credibility by overstating causal relations.” That means don’t lose it, not that it’s lost yet. If Mark avoids your error, for example, of causally linking the financial manipulation of Dendreon to patient deaths without providing evidence of the causality (not just providing evidence of the deaths and the manipulation), he’ll maintain his credibility just fine.

    72. sean says:

      Fair enough Dr. Caution. Well thought out response and in a very eloquent and decent manner. However I think by the end of the series the rationale and proof will be presented in a way that will show all who is at fault and why the story is stated as such.PATIENCE!!

    73. nurse. caution says:

      I agree with ya Doc. Understanding the process (pharm) companies go through to get FDA approval can be very complicated to the layman on the street. If it were so easy we would all be rich with our placebo’s of all colors, sizes and tastes. Sean seems to take issue with anyone whose fact based knowledge remotely differs from his fact(less) opinion. Sadly, his rhetoric and unprovoked attacks could have the same impact to Mark Mitchell’s article as the caution you through out there (rightfully so) could. Got any bipolar placebo’s you can link for upload !!! All the best to you Doc. Mark and all, keep up the good fight

      nursie

    74. sean says:

      nursie, a new name. Anonymous/Darlene/Ivory/whoever else was lambasted enough on your last try huh?LOL!!Well you have been outed again. Keep up more to come and you and your comrades will soon disappear like this.. POOF!!!In jail with out bail!!!

    75. fred says:

      it seems pretty clear to me what’s going on. the “big boys” target specific stocks for short-selling by hedge funds. thestreet.com people such as cramer and feuerstein “create a new truth” (as cramer says) about the company and the short sellers short the crap out of the company. i believe also the Market Makers are involved in manipulation and are benefiting also from this relationship. i also believe the SEC doesn’t do anything because it is part of this core group and everyone is receiving a “piece of the pie”

      i believe nothing will be done. there have been currently 2 stocks being bashed by thestreet.com and hedgefunds/shortsellers are targeting. CTIC and HEB. thestreet.com articles come out almost daily now when they want CTIC down. seems the Market Makers are also involved and the SEC is a useless regulatory agency.

    76. Super summary of the crooks on Wall St.

    77. Randy says:

      It saddens me that corruption has tarnished Wall Street so badly. The greed has gotten so ramped, it’s a wonder why the system hasn’t totally collapsed yet.

      There is so much “FEAR” of being the next investor to lose you’re life savings, it will amaze me if Wall Street lasts much longer.

      But, people tend to move on even if they don’t forget and more suckers will toss money into the pool of thieves in hopes of incredible gains.

      I’m no different. I bet big in DNDN April 13th paying $7.30 per share. So even though I’ve made very nice returns, if this dropped back to single digits, I’d lose my ass, as I’ve added so many more shares to my core holding in the low 20′s.

      RG

    78. Ted Girgus says:

      The picture is indeed taking shape.
      The public is getting sick and tired of the corruption at all levels of government and the lack of enforcement when it comes to outright criminal dealings.
      The bad guys have had their day…our day is coming with avengeance!!!
      On behalf of myself and all the advanced prostate cancer patients throughout the world, thank you “Deep Capture”.
      Let all know that God is watching and the corrupt will spend eternity in misery.
      May God bless all those who fight for this noble cause.
      Ted Girgus

    79. tom waits says:

      I would like to know who the short hedge fund/s that increased their short(legal) position back in 2007 after the FDA AC voted 17-0 that Provenge was safe and 13-4 the it should substantial efficiency. The short interest jumped from ~28 million shares to well over 39 million within 3 weeks! Now who in their right mind would short more shares after a FDA panel vote like Provenge had received. NO ONE……unless you had a insider a DICK if you will at the FDA informing you that Provenge was not going to be approved at that time and was going to receive an approvable letter!

    80. John P says:

      I never thought Milken had been rehabilitated while in a minimum security prison ie. country club for four years. Let’s not forget too that his brother, Lowell, got immunity while Mike paid $600 million… a huge fine, but quite obvious at the time that he was relieved it wasn’t several times that amount. I guess if the punishment fit the crimes the government would have confiscated every possesion of his and gone after his brother… But alas, that doesn’t happen in America, the country where big crime does pay. Now I wonder why anyone can be surprised to hear Mike’s misbehaving again… BTW, I wonder too, how complicit his new friend, (the former procecutor who got him convicted)Rudy Guliani is in this new scheme?.. I look forward to reading the next part in this story!

    81. Jim Hall says:

      Nice ballsy lead chapter.

      I’m reading on avidly.

    82. Jack says:

      This is only the tip of the iceberg.
      If SEC don’t effectively control naked short selling, Wall Street will be desserted, American’s saving will be wiped out.
      The very sad thing is the SEC is protecting these legalized criminals, not American people.

    83. Max says:

      YOU ARE AN IDIOT AND KNOW NOTHING ABOUT THE STOCK MARKET. YOUR CLAIMS HAVE NO CONCRETE EVIDENCE TO BACK THEM UP.
      “Given that the message board poster knew what was coming more than two hours beforehand, and predicted the timing almost precisely, it is a safe bet that this was a coordinated, illegal naked short selling attack.”

      No! This sort of thing happens ALL THE TIME! It could equally have been a massive trading trading desk unloading all their shares and taking profits at any price. Had the bought it at 2-3$/share the traders still made excess of 150%/share at 8.

      You really need a new day job, just don’t go ruining anymore good companies like overstock.

    84. paul says:

      I knew that when Milken only got a few yrs in the slammer for stealing $billions of investors money and they let him keep $100 million that the SEC is rotten to the core.

    85. Shorts shorts they haven’t paid cmkx yet. Obama owes 15 trillion in bad checks due Monday and he couldn’t borrow any money from a vast amount of countries. They blame Obama because he is blocking the settlements. The settlements have to be paid before anyone else is paid. “He has stated “They will never receive that money eventhough it is not his money”. Cmkx won their case it’s been eight years waiting for some. Some have died along the way. Corruption is bliss in the stock market we need some white hats and soon. Maybe a few of our protection ufos.

    86. Kevin H says:

      LOL,LOL
      You guys are not serious when you say this story exposing criminal activity to the tune of hundreds of millions being lost and made my a few chosen manipulators not to mention the loss of life attributed to the hold on needed life extending medication is going to bring about criminal charges..lol Come on go ask all the people who invested with Bernie Madoff. The wealth in this country is controlled by 3 % of the population. 1% calls the shots make the rules and pick and choose which they will follow and those they will break to harvest hundreds of million of dollars EVERY YEAR year day in and out. Your all “fools” if you believe anything will change. I wish it were so.

    87. alfred kettl says:

      we have to make an end to this mafia behavior. The stockmarket is based on making profit but not manipulating and crashing companies for greed with criminal halve legal activities.
      The problem is the SEC and our gouvernment which is not protecting us…. maybe they are in the same boat. Do we know how much Wallstreet is involved in gouvernment ecco affairs? Money is ruling the world. The real rulers are the owner of the world bank and American fed. Read the book Currency Wars then you will understand. But if it needs a revolution, they will get it soon….latest when the next Wallstreet Bubble is about to explode!!
      To my feeling the greed after the crash has even intensified.
      How Goldman can make Billions in such short times? With our money and such criminal activities! alfredkettl@yahoo.com

    88. This was a well thought documentation; you have covered a lot of points here.

    89. Paul Haider says:

      Jim Cramer is a liar and a complete tool. It was so gratifying to see John Stewart grill him on the Daily Show; Stewart exposed Cramer for being the fraud that he has been for years. The only thing to learned from watching Mad Money is that Jim Cramer is a bald-faced and bald-headed liar.
      Paul Haider, Chicago

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    Trackbacks/Pingbacks

    1. [...] Michael Milken, 60,000 Deaths, and the Story of Dendreon (Chapter 1 of 15) [...]

    2. [...] James Shelby Downard’s Mystical War , the upcoming re-release of his Shadow Over Santa Susana: Michael Milken, 60,000 Deaths, and the Story of Dendreon (Chapter 1 of 15) – deepcapture.com 06/19/2009 What follows is part 1 of a 15-part series. The remaining installments [...]

    3. [...] to come across a post. I find it worth reading. Just to share with all my buddies here. Enjoy Michael Milken, 60,000 Deaths, and the Story of Dendreon (Chapter 1 of 15) | Deep Capture: exposing … This is only part 1 / 15. What follows is part 1 of a 15-part series. The remaining installments [...]

    4. [...] Michael Milken, 60,000 Deaths, and the Story of Dendreon [...]

    5. [...] of Jeffry Picower’s involvement (let’s call it bezzling) with big pharma (see this series of articles on Milken too), I am starting to come to the conclusion that the games these investor types  (among their [...]

    6. [...] Intre timp, un articol interesant, beletristica pentru pasionatii de teme economice si nu numai: Michael Milken, 60,000 Deaths, and the Story of Dendreon (Chapter 1 of 15) What follows is part 1 of a 15-part series. The remaining installments will appear on Deep Capture [...]

    7. [...] voelen en een rot dag te hebben, dan heeft u een sterkere maag dan dat ik heb. Ik was er ziek van: http://www.deepcapture.com/michael-milken-60000-deaths-and-the-story-of-dendreon-chapter-1-of-15/. (u kunt onderaan het eerste verhaal de link vinden naar het vervolg) Stem of voeg toe [...]

    8. [...] permabears stomp and whine. When price doesn’t provide, they blame Goldman or Michael Milken. They blame Obama. They blame the stupid longs or the cowardly shorts – stop covering, [...]

    9. [...] Michael Milken, 60,000 Deaths, and the Story of Dendreon (Chapter 1 of 15) | Deep Capture: exposing … http://www.deepcapture.com/michael-milken-60000-deaths-and-the-story-of-dendreon-chapter-1-of-15 – view page – cached The attack on a company called Dendreon raises questions about Michael Milken, his philanthropy and his hedge fund friends. Chapter 1 of 15 — From the page [...]

    10. [...] – Michael Milken: 60,000 Deaths, and the Story of Dendreon [...]

    11. [...] have confirmed that this is a reference to the bear raid on Dendreon, described in considerable detail by Deep Capture. As the OIG notes, there is plenty to investigate in this case. Indeed, it is one [...]

    12. [...] history, of course, is what Michael Milken’s crew was infamous for. And Milken is one of the cardinal figures behind the corruption of Wall Street, according to Deep Capture. Now, on that topic, I am fairly conversant because the book I was [...]

    13. [...] the story of Dendreon, the amazing stock manipulation exposed definitely worth the read http://www.deepcapture.com/wp-conten…f-dendreon.pdf or web format http://www.deepcapture.com/michael-m…apter-1-of-15/ [...]

    14. [...] opposite exposed brief selling. Him and his associate citizen reporters in Deep Capture, summation the story and what followed: According to Cramer a diagnosis had only been deserted by a Food Drug Administration. It would [...]


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