6/15/09: Kanjorski Demands Immediate Update from SEC Inspector General on Madoff Investigation | Print |

Capital Markets Subcommittee Chairman Says: “The Time Has Come for You to Act”

WASHINGTON – Today, Congressman Paul E. Kanjorski (D-PA), the Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, sent a letter to U.S. Securities and Exchange Commission Inspector General H. David Kotz in which he strongly urges the inspector general to immediately provide a public update about his investigations into the failure of the Commission to detect Bernard Madoff’s Ponzi scheme and to offer recommendations for improving enforcement and closing legal loopholes that became apparent as a result of the $65 billion fraud. While Mr. Kotz previously pledged in testimony before the House Financial Services Committee that he would try to issue reports on a timely basis and move quickly on his investigations into these matters, five months have passed, and the SEC Office of the Inspector General has released very little information on these matters.

The text of Chairman Kanjorski’s letter to SEC Inspector General Kotz from June 15 follows:

Dear Mr. Kotz:

When the Obama Administration reveals its much-anticipated proposal for restructuring the financial services industry later this week, the debate in Congress on regulatory reform will begin in earnest. As part of one of our hearings on the fraud perpetrated by Mr. Bernard Madoff, you have publicly committed to provide us with your recommendations, based on your findings, for closing statutory loopholes and fixing our securities laws. Additionally, you pledged to act expeditiously in your investigations into the Madoff matter and to make public your results as they become available. Accordingly, please provide me at once with an update on your examinations on the failure of the U.S. Securities and Exchange Commission to detect the Madoff fraud and your suggestions for modifying our federal securities laws.

In your written testimony at the meeting of the Financial Services Committee in early January, you noted that the Office of Inspector General at the U.S. Securities and Exchange Commission opened an official investigation into the Madoff matter on December 17, 2008. You also said that you understood “that it is critical that our investigative efforts be conducted expeditiously.” Moreover, you noted that you were “considering preparing reports on a ‘rolling basis’ – assuming that we can identify discrete issues that may be resolved separately and expeditiously – so that some conclusions may be provided very shortly.” At these proceedings, you further testified that you were mobilizing additional resources to ensure that your office made “every possible effort” to complete “as soon as possible” its investigations and reviews.

Additionally, in response to one of my questions you indicated that you hoped to “be able to get something out in a matter of months, certainly not years.” When replying to yet another one of my questions, you also said “this is not something that we can sit and we can work on for years and years and years and then issue some 500-page report many years down the road.” You then added that you understood “absolutely” that this was “a matter that has to be dealt with immediately.”

Moreover, in the ongoing series of hearings of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises on these matters, I have sought to use the Madoff fraud as a case study for determining how to improve oversight of and investor protection in our securities markets going forward. In my questioning, I therefore specifically asked you expeditiously to provide information about your findings so that Congress could act to close loopholes and fix enforcement problems. In response, you said: “I agree with you, absolutely. … So, absolutely, as we can identify issues and we can thoroughly investigate them and come to a conclusion, we will absolutely issue a report.”

Six months have now passed since you began your investigations into the $65 billion Madoff Ponzi scheme. In addition, more than five months have ensued since you testified and made public commitments regarding these matters. To the best of my knowledge, the only information that your office has made public during these timeframes is a one-page summary of your Madoff investigations, as found in your most recent semiannual report to Congress for the period ending on March 31. While this brief discussion provided some helpful insights, I found it an inadequate response to my earlier requests and your prior public commitments.

In short, the time has come for you to act. Consistent with all applicable law and regulation, I therefore ask that you inform me of the progress your office has made in examining the shortfalls of the Commission in detecting the Madoff fraud and your expected timeframes for issuing reports on these matters. Additionally, I request that you provide your current recommendations for legislative action resulting from your Madoff investigations or your other examinations, as I am now actively working to develop legislation to modify our securities laws and build upon the reforms contained in H.R. 6513, the Securities Act of 2008, which passed the House last year.

In closing, I look forward to hearing from you on these issues no later June 30, 2009. Please also contact me if you should have any questions regarding these matters.

Sincerely,

Paul E. Kanjorski

Chairman, Subcommittee on Capital Markets,

Insurance, and Government Sponsored Enterprises

cc: Ms. Mary Schapiro

Chairman, U.S. Securities and Exchange Commission

http://kanjorski.house.gov/index.php?option=com_content&task=view&id=1558&Itemid=114

http://online.wsj.com/article/BT-CO-20090615-712361.html

http://www.goldmansachs666.com/

—– Original Message —–
From: marv eatinger
To: corporateaffairs@gov.yk.ca ; inquiries@osc.gov.on.ca ; inquiries@ontariobusinesscentral.ca ; complaints@asc.ca ; fraudnet@gao.gov ; hawked@sec.gov ; Criminal.Division@usdoj.gov ; attorney.general@state.de.us ; racorps@state.pa.us ; CFLETTERS ; brandon_barford@banking.senate.gov ; CASEwork@grassley.senate.gov
Cc: Kara.scannell@wsj.com
Sent: Sunday, June 14, 2009 5:58 PM
Subject: A LEGAL PUBLIC CO. “CONUNDRUM” OR A FAILURE OF THE NORTH AMERICAN SYSTEM FOR PUBLIC CORPORATION REGULATION, INVESTIGATION, & TIMELY PROSECUTION OF MAJOR TAX FRAUD & SECURITIES FRAUD!!!

DEAR NORTH AMERICAN PUBLIC AND PRIVATE EQUITY REGULATORY AUTHORITIES: DOES IT PRESENT A CONUNDRUM WHEN THE PROBABILITY EXISTS THAT “ACCESS NO. 24173″ – DALECO RESOURCES CORPORATION REGISTERED ON “SEPTEMBER 15, 1984″ (YUKON, CA) TO “WITHDRAWN DATE OF AUGUST 28, 2000″, NEVER HAD A PUBLISHED LEGAL “JURISDICTION OF INCORPORATION” ???
Sincerely,
Marv Eatinger

Business Corporations Act

Corporation Summary

Mailing Address

DALECO RESOURCES CORPORATION

C/O 200-204 LAMBERT STREET

WHITEHORSE YT Y1A 3T2

CANADA

Name:
DALECO RESOURCES CORPORATION

Status:
WIthdrawn

Status Date:
2000-08-28

Attorney:
C. BRIAN CAMPION

Attorney Address:

Resignation Filed:

Registered Office:
410-435 DEVON PARK DRIVE

WAYNE,PA,19087

Start Date:
1984-09-15

Start By:
Registration

Home Jurisdiction:
ON

Home Start Date:
1981-11-25

Last Annual Return:
1998

Ended As:

Directors:
AMIR, DOV,Chairman,339 NORTH PALM DRIVE,BEVERLY HILLS,90210

MUELLER, EBERHARD,Director-Other,1060 ALBERNI STREET PH#8,VANCOUVER,V6E 4K2

NOVINSKIE, GARY,President,410-435 DEVON PARK DRIVE,WAYNE,19087

LINCOLN, DAVID,Vice President,410-435 DEVON PARK DRIVE,WAYNE,19087

TRAINOR, C. WARREN,Director-Other,2 PANN CENTER PLAZA,PHILADELPHIA,19102

==================================

JUNE 15, 2009

SO FROM THE PERIOD ENDING SEPT. 30, 1984 WHEN DALECO (UNITED WESTLAND RESOURCES LTD.) WOULD COMMIT TO FILE ITS FIRST 10K REPORT WITH THE SEC AS A NASDAQ (SYMBOL UNWRF) LISTED COMPANY TO AUG. 28, 2000, DALECO RESOURCES CORPORATION YUKON, CA. WAS A BUSINESS ENTITY THAT COULD MOVE FORWARD WITHOUT LEGAL CONSTRAINTS OF GOVERNMENTAL REGULATION! A FREE FLOATING ISLAND OF FRAUD!

CAPITALISM CANNOT GET ANY BETTER THEN THIS!

I see the Historical FTD data archived, but I do not see the Historical SHO Threshold List archived.

Also the Historcial FTD data is available in graphical form at:

– http://www.failstodeliver.com

But I do not see an archived Historical SHO Threshold List.

Does an Historical SHO Threshold List archive exists? Did I miss it?

Click on the Archived data link at the bottom of the page.

One thing I find interesting about the MEDX data above is that it appears to follow a pattern that, I think, Judd mentioned in one of his DeepCapture.com articles – Thank you Judd for bringing this to my attention….
….a pattern of what I would call “FLYING UNDER THE SHO RADAR” by the Wall Street Counterfeit Machine.

I need to find which article written by Judd explained what I call “FLYING UNDER THE SHO RADAR” so I can quote him accurately, but as I remember, the Naked Short Counterfeiters manipulate stocks by starting and finishing their Counterfeiting attacks upon companies by within 5 days to reset the SRO 5 consecutive days clock requirement.

This means that the SEC is NOT notified about the COUNTERFEIT ATTACK, because the company is not put onto the SHO Threshold List. And because of the Blindfolding Regulations for FTDs, which keeps these COUNTERFEIT ATTACKS a secret for 5.5 months, a company can be theoretically destroyed before the CRIMINAL COUNTERFEIT ATTACKS are reported to the public – How convenient for the Wall Street Counterfeit Machine!

On August 9th 2007, 88.48% of the MEDX shares traded that day
were NOT DELIVERED on T+3. Of the 9,929,100 traded on that day, 8,784,972 were COUNTERFEIT!!!!:

8/7/2007__9,929,100_15.61___8,893,055_____8,784,972___88.48%

By the 5th day of this “Wall Street Counterfeit Attack”, the total counterfeit shares were purposefully reduces to fall UNDER THE SHO RADAR.

The following day, August 15th 2007, “The Wall Street Counterfeit Machine” attacked again with 2,329,184 counterfeit shares, which equaled 26.78% of the total shares traded that day:

8/15/2007_8,586,000_16.27___2,329,184_____2,299,318___26.78%

I suspect this same “FLYING UNDER THE SHO RADAR” pattern is repeated over and over again, which I plan to analyze.

QUESTION…………..

Does the SEC keep an historical SHO Threshold List so anyone can see if a specific company was ever on the SHO Threshold List?

And is this list in the public domain for anyone to view online?

Marine admits giving CIA files to LA deputy

http://news.yahoo.com/s/ap/20090612/ap_on_re_us/us_marines_stolen_files

A Marine charged with stealing war prizes and classified documents will have his case heard today at Camp Pendleton, not far from where he allegedly stored some of his booty.
Gunnery Sgt. Gary Maziarz is accused of taking computer and camera equipment, secret government information and a variety of weapons, including three pistols that former Iraqi President Saddam Hussein had apparently received as gifts. Authorities say Maziarz accumulated about 100 Iraqi and U.S. government weapons in all.
He also is charged with possession of steroids.
Maziarz allegedly kept the stolen items in a Carlsbad apartment and in storage units he rented in Carlsbad and Manassas, Va. Military investigators discovered them while searching the sites late last year.
The developments began in October when a Camp Pendleton colonel said a large amount of U.S. government trophy weapons obtained during the Iraq war had gone missing. An internal investigation eventually focused on Maziarz, who had done intelligence work in Fallujah, Iraq, participated in a National Security Agency program and had access to federal documents categorized as “top secret” or even more sensitive material.
Maziarz is being held at Camp Pendleton. If convicted, he could spend several years in prison and be discharged from the Marine Corps.

The numbers never exceed 100% either.

http://www.cnbc.com/id/15840232?video=1149068722&play=1

I wonder where Chanos is going to speak when they go out of business.

…Date…. Volume AdjClose Total-FTDs…. FTDs……FTDs%-of-Vol
——————————- on —— ThisDay
————————— TRADE Date
8/28/2007_1,437,900_16.58
8/27/2007_1,359,200_17.35
8/24/2007_1,630,600_17.58
8/23/2007_1,746,300_17.59___10,290________-79,150_____-4.53%
8/22/2007_1,601,500_17.74___89,440________-2,911______-0.18%
8/21/2007_1,931,500_17.9____92,351________-991,658____-51.34%
8/20/2007_1,885,100_17.58___1,084,009_____-1,263,955__-67.05%
8/17/2007_2,990,200_17.61___2,347,964_____2,259,839___75.57%
8/16/2007_3,339,600_17.09___88,125________-2,241,059__-67.11%
8/15/2007_8,586,000_16.27___2,329,184_____2,299,318___26.78%
8/14/2007_2,693,700_16.39___29,866________-321,027____-11.92%
8/13/2007_2,694,200_16.6____350,893_______135,189_____5.02%
8/10/2007_4,125,700_16.55___215,704_______-2,177,711__-52.78%
8/9/2007__6,255,700_17.37___2,393,415_____-2,428,858__-38.83%
8/8/2007__15,252,000__17.01___4,822,273___-4,070,782__-26.69%
8/7/2007__9,929,100_15.61___8,893,055_____8,784,972___88.48%
8/6/2007__2,995,300_14.38___108,083_______10,380______0.35%
8/3/2007__2,341,400_14.11___97,703________-28,367_____-1.21%
8/2/2007__2,173,900_14.52___126,070_______101,288_____4.66%
8/1/2007__2,414,800_14.38___24,782________-89,732_____-3.72%
7/31/2007_2,280,500_14.16___114,514_______78,057______3.42%
7/30/2007_2,716,000_14.15___36,457________-1,954______-0.07%
7/27/2007_2,155,700_14.07___38,411________-87,252_____-4.05%
7/26/2007_3,037,400_14.18___125,663_______89,460______2.95%
7/25/2007_1,972,300_14.26___36,203________-254,921____-12.93%
7/24/2007_4,507,500_14.14___291,124_______241,510_____5.36%
7/23/2007_1,751,600_14.67___49,614
7/20/2007_2,075,100_14.49
7/19/2007_4,697,900_14.8

The added last two columns on the RIGHT I find very interesting:

“FTDs-ThisDay” column = FTDs on this day
- A POSITIVE Number indicates NEW Counterfeit Shares of Stock being created This Day, which were NOT delivered.
- A NEGATIVE number indicates the shares bought This Day to cover a previous POSITIVE Number of FTDs.

“FTDs%-of-Vol” colunm = FTDs as a Percent of the Total Historical Volume
- A POSITIVE Number indicates NEW Counterfeit Shares of Stock being created This Day, which were NOT delivered.
- A NEGATIVE number indicates the shares bought This Day to cover a previous POSITIVE Number of FTDs.

Patchie or anyone else, if you find any ERRORs please let me know.

Here is the MEDX data with the “FTDs-ThisDay” column and “FTDs%-of-Vol” colunm

…Date…. Volume AdjClose Total-FTDs…. FTDs……FTDs%-of-Vol
——————————- on —— ThisDay
————————— TRADE Date

8/28/2007 8/28/2007 1,437,900 16.58
8/27/2007 1,359,200 17.35
8/24/2007 1,630,600 17.58
8/23/2007 1,746,300 17.59 10,290 -79,150 -4.53%
8/22/2007 1,601,500 17.74 89,440 -2,911 -0.18%
8/21/2007 1,931,500 17.9 92,351 -991,658 -51.34%
8/20/2007 1,885,100 17.58 1,084,009 -1,263,955 -67.05%
8/17/2007 2,990,200 17.61 2,347,964 2,259,839 75.57%
8/16/2007 3,339,600 17.09 88,125 -2,241,059 -67.11%
8/15/2007 8,586,000 16.27 2,329,184 2,299,318 26.78%
8/14/2007 2,693,700 16.39 29,866 -321,027 -11.92%
8/13/2007 2,694,200 16.6 350,893 135,189 5.02%
8/10/2007 4,125,700 16.55 215,704 -2,177,711 -52.78%
8/9/2007 6,255,700 17.37 2,393,415 -2,428,858 -38.83%
8/8/2007 15,252,000 17.01 4,822,273 -4,070,782 -26.69%
8/7/2007 9,929,100 15.61 8,893,055 8,784,972 88.48%
8/6/2007 2,995,300 14.38 108,083 10,380 0.35%
8/3/2007 2,341,400 14.11 97,703 -28,367 -1.21%
8/2/2007 2,173,900 14.52 126,070 101,288 4.66%
8/1/2007 2,414,800 14.38 24,782 -89,732 -3.72%
7/31/2007 2,280,500 14.16 114,514 78,057 3.42%
7/30/2007 2,716,000 14.15 36,457 -1,954 -0.07%
7/27/2007 2,155,700 14.07 38,411 -87,252 -4.05%
7/26/2007 3,037,400 14.18 125,663 89,460 2.95%
7/25/2007 1,972,300 14.26 36,203 -254,921 -12.93%
7/24/2007 4,507,500 14.14 291,124 241,510 5.36%
7/23/2007 1,751,600 14.67 49,614
7/20/2007 2,075,100 14.49
7/19/2007 4,697,900 14.8
7/18/2007 1,939,700 14.19

Below is the CORRECTED MEDX Data for FTDs (T+3-3). Ok, this makes more sense, because now the TOTAL reported FTDs are no longer greater than the TOTAL Historical Volume on a given day:

Date Volume Adj Total FTDs
Close on
TRADE Date

8/28/2007 1,437,900 16.58
8/27/2007 1,359,200 17.35
8/24/2007 1,630,600 17.58
8/23/2007 1,746,300 17.59 10,290
8/22/2007 1,601,500 17.74 89,440
8/21/2007 1,931,500 17.9 92,351
8/20/2007 1,885,100 17.58 1,084,009
8/17/2007 2,990,200 17.61 2,347,964
8/16/2007 3,339,600 17.09 88,125
8/15/2007 8,586,000 16.27 2,329,184
8/14/2007 2,693,700 16.39 29,866
8/13/2007 2,694,200 16.6 350,893
8/10/2007 4,125,700 16.55 215,704
8/9/2007 6,255,700 17.37 2,393,415
8/8/2007 15,252,000 17.01 4,822,273
8/7/2007 9,929,100 15.61 8,893,055
8/6/2007 2,995,300 14.38 108,083
8/3/2007 2,341,400 14.11 97,703
8/2/2007 2,173,900 14.52 126,070
8/1/2007 2,414,800 14.38 24,782
7/31/2007 2,280,500 14.16 114,514
7/30/2007 2,716,000 14.15 36,457
7/27/2007 2,155,700 14.07 38,411
7/26/2007 3,037,400 14.18 125,663
7/25/2007 1,972,300 14.26 36,203
7/24/2007 4,507,500 14.14 291,124
7/23/2007 1,751,600 14.67 49,614
7/20/2007 2,075,100 14.49
7/19/2007 4,697,900 14.8
7/18/2007 1,939,700 14.19

From your explanation above, the theoretical FTDs on a given day is:

TOTAL FTDs (T+3-3) on a given day MINUS TOTAL FTDs (T+3-3) on the previous day

So I need to ADD another column on the left that calculates this number. And then I can add one more additional column to show what percent the FTDs on a given day were of the Total Historical Volume.

I see something else in the FTD data that does not make sense to me…..
Namely, the Price of the stock on the Reported FTD date (T+3) does NOT Match the historical closing price – INSTEAD the Closing Price of the stock matches the PREVIOUS Day of the Historical Data.

Hummmmm – What does this mean?

Further, the ad hominem attacks on Patrick have been a sophomoric attempt to distract readers, particularly the uninitiated. Sorry, but we’re a bit more astute than that…

Back to the FTD’s; Aurelius must have better information than the GAO or is an outright liar.

1. If someone is going to short a stock there must be a legal locate, borrow and deliver. Any other type of “short” is nothing more than an attempt to overwhelm demand with supply and depress the price. There is no REASONABLE argument for any selling that is not compliant with the regulations of proper locate, borrow and deliver T+3.

2. Trading in front of a piece that bashes a company IS inside information as long as the public does not have the same degree of access. Furthermore, if ANY co-ordination between the short seller and the “journalist” can be proved, it’s illegal – period.

3. Finally, Overstock is just like any other business. It sells things and it either makes money or it doesn’t. The fair value of the stock should be determined by a FAIR and ORDERLY market. Byrne has gone on record countless times stating that he is NOT against LEGAL short selling. But that’s not what deepcapture is addressing, and you know that. I don’t own any Overstock shares at present, but I shop there regularly and it is a good business model, if they can just nudge their margins up a little bit, and I think they will. You build brand first, then adjust the margins – and I think they will do just that.

When they do find the right formula, I’m a buyer – but if there have been shenanigans with the trading of Overstock and the company wins big in court, it won’t matter, now, will it?

Bashing Patrick doesn’t obscure the key issues at all. And you wouldn’t be here unless he was hitting “a nerve”. As to how he is perceived, well, let’s just say “he has a lot of fans”….

I gather you’re not one of them…..LMAO

The good guys understand that Patrick has been out in front and that the FACTS have proven him correct. What you should be focussing on is ensuring you and your coeteries butts are covered for the time is coming there are going to be a plethora of PERP walks and justifiably so.

Now maybe you can explain why those many so called reporters were not able to hone in on the ILLEGAL USE OF NAKED SHORT SELLING. Tsk tsk.

Keep it up PATRICK. They can run/they can hide but EVENTUALLY the FACTS will convict them.

http://video.google.com/videoplay?docid=4490541725797746038