1. The OIG found nothing from what they learned in their deposition of the attorney and his work product and chose not to pursue any further. I would remain concerned if this cause was taken.

2. The evidence was damaging enough that the witnesses I provided was not necessary and that their prior depositions as part of the SEC Retaliatory investigation was enough to draw a conclusion.

I am hoping Option 2 was what was found and will hopefully know within the next 60 days. Until then I will give Mr. Kotz the benefit of the doubt based on our past relationship and his personal note.

His suggestion, I may have jumped the gun.

Did you give your info directly to Kotz or to one of his subordinates? Maybe he does not have complete loyalty on his own team?

In the case I relayed a transfer agent was threatened by the SEC to dismiss a client or life would become difficult for them in the future. A second event occurred where the SEC tried to get an attorney (not a corporate attorney) disbarred after he provided them with evidence that supported his activities.

I truely hope I am wrong but fear the worst. Whether they found something substantial or not when the SEC attorney was deposed, the key people involved were never contacted which means the investigation could never be thorough.

If you read closely the entire report – retaliation and inappropriate use of power seems to be a recurring theme inside the SEC. Disturbing.

Bottom Line: I am concerned over this one. Deeply concerned.

Re: SEC – OIG Semi Annual Report To Congress
Allegation of Retaliatory Investigation
The OIG continued its investigation of an
allegation that SEC staff engaged in retaliation
against a company after it publicly complained
about naked short selling in the company’s stock. During this reporting period, the
OIG took the sworn testimony of the staff
attorney who worked on the matter and reviewed
numerous relevant documents. The
OIG has completed its investigative work and
plans to issue its report of investigation prior
to the end of the next semiannual reporting

period.

http://www.sec-oig.gov/Reports/Semiannual/2009/semifall09.pdf

Use gambling laws against Wall St.

Senator wants to use gambling laws to regulate Wall Street
by gjohnsit
Mon Nov 30, 2009
This is such a simple and obvious idea, I don’t know why no one thought of it before.

Sen. Maria Cantwell wants to use state gambling laws to regulate parts of Wall Street, saying someone needs to police financial markets where “casino capitalism” involving highly speculative trades she likens to sophisticated betting continue unabated and threaten to create yet another financial crisis.

“She’s going for their jugular,” Michael Greenberger, a University of Maryland law professor, said of the effort by Cantwell, a Washington state Democrat. Greenberger was a top official at the Commodity Futures Trading Commission during the Clinton administration who unsuccessfully fought to regulate such trading.

Full story:
http://wwww.dailykos.com/story/2009/11/30/809274/-Senator-wants-to-use-gambling-laws-to-regulate-Wall-Street

Re: SEC – OIG Semi Annual Report To Congress
Allegations of Failure to Investigate
The OIG has opened an investigation into
complaints from an investor alleging that the
SEC failed to investigate instances of market
manipulation and other misconduct in connection
with the review, and eventual nonapproval,
of a developmental drug. The investor
also has alleged that the SEC failed to
investigate a recent bear raid on the stock of
the company that developed the drug, causing
a severe plunge in the stock price. The OIG
has reviewed several hundred pages of documents,
including numerous e-mails and attachments
provided by the complainant. The
OIG expects to complete its investigation and
issue a report of investigation in the next reporting

period.http://www.sec-oig.gov/Reports/Semiannual/2009/semifall09.pdf

By Zachary A. Goldfarb
Washington Post Staff Writer
Tuesday, December 1, 2009

A Securities and Exchange Commission official received full retirement benefits and a $25,000 buyout package from the agency despite assisting a Ponzi scheme operator in Arizona who later was fined for defrauding investors, according to a new report by the agency’s watchdog.

The report by the SEC’s inspector general says there was no evidence to suggest that the employee in the SEC’s Office of Administrative Services knew she was abetting a fraud. But the report claims that the employee, who wasn’t named, violated agency rules by allegedly using government equipment and her government e-mail account to help an outsider carry out his private-investment business.

The inspector general’s office said it referred the case to the Justice Department’s criminal division for possible prosecution and to the SEC’s Division of Enforcement for investigation. The Justice Department declined to prosecute.

The apparently unwitting involvement of an SEC official in a Ponzi scheme is described in summary form in Inspector General H. David Kotz’s semi-annual report to Congress.

According to the report, Arizona authorities alerted the SEC’s inspector general to the SEC employee’s potential role in the scheme in November 2008.

Several months later, in June, the Arizona Corporation Commission announced that it had ordered a Scottsdale numerologist and spiritual adviser to pay more than $300,000 in fines and restitution for fraudulently selling investment products, promising he could predict the future.

At least 65 people invested in the products. The Ponzi operator admitted to violating Arizona securities laws in his settlement with the state.

The report offers just a general description of the SEC employee’s role. It says the supervisor “was extensively involved in handling the payments to and from his [the Ponzi operator's] victims, and used her SEC e-mail account to communicate directly with those victims.”

Investigators claimed that the SEC employee used her e-mail to conduct business on behalf of the Ponzi scheme on nearly a daily basis, the report says. In addition to that investigation, the inspector general’s semi-annual report offers an update on the status of several other inquiries.

The report says the inspector general concluded its well-publicized probe into whether the SEC’s enforcement director, Linda Thomsen, inappropriately provided information to her former SEC boss, Stephen Cutler, counsel of J.P. Morgan Chase, amid negotiations about whether to buy Bear Stearns in March 2008.

The report doesn’t name Thomsen and Cutler, but their identities were confirmed by a source familiar with the matter. The source spoke on the condition of anonymity because details of the probe have not been publicly released.

“We found that while [Cutler] did not receive the broad assurances for the acquiring investment bank that he sought, he did receive some assurances with respect to ongoing and potential investigations related to the pre-acquisition conduct of the target investment bank,” the report says.

The report says that while Thomsen’s communication with Cutler did not violate SEC policy on external communications, she should have taken other steps “to avoid an appearance of impropriety stemming from the relationship.”

The inspector general recommended that the SEC clarify what types of non-public information enforcement officials may release on their own discretion.

Though the discussion between Thomsen and Cutler was private at the time, J.P. Morgan made a public request that it shouldn’t be held accountable for potentially improper actions taken by Bear Stearns.

In another inquiry, the inspector general’s office said it was asked by the Office of Compliance Inspections and Examinations to investigate whether SEC staff leaked draft copies of a report on credit-rating agencies to the Wall Street Journal. The probe looked at more than 100,000 internal agency e-mails to see who might have been the source of the leak, but found there was no evidence that a SEC staff member provided the information.

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FD HIDDEN DIV

From the investorsvillage board by poster Lenofus..Thank you!!

Please make it your business to open link and read article you will be pleasantly suprised.

For those that believe nothing is happening…….
The IG’s office continues to probe allegations that two SEC enforcement lawyers repeatedly disclosed nonpublic information about agency investigations to a corrupt Federal Bureau of Investigations agent and a short seller.

http://news.yahoo.com/s/nm/20091130/bs_nm/us_sec_inspectorgeneral_1

The above refers to on Amir “Anthony” Elgindy, and Jeffery Royer, Spc Agent in Charge, Oklahoma City FBI Office.

If you go look at the Elgindy transcripts on Patch’s site “investigatethesec.com”, you ‘ll see Elgindy call a short in a stock that will be the subject to a yet to be announced SEC investigation. The Website transcripts were loaded with 202 ph numbers, obviously Enf Attorneys. You can look at this two ways. 1. Why in the world weren’t the Attn’ys popped years ago? The Eldindy affair goes back to the 90’s. or 2. They are finally doing something.

I prefer to believe two. I believe they’ll need a bus to take out the crooks at the SEC. But that’s just me.