The complete story of Dendreon is now available

    Those of you who have been asking for a compiled version of Mark Mitchell’s epic investigation into the short attack on Dendreon are in luck: the complete story of Dendreon is available for download in .pdf format here.

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    30 Responses to “The complete story of Dendreon is now available”

    1. sean says:

      Just an FYI!!!

      investorprotection@kaufman.senate.gov

      “In order for me to continue to receive your thoughts, tips, and concerns, I asked my staff to create a special email address where you and others can continue to correspond with me: investorprotection@kaufman.senate.gov. Please use this resource to keep me abreast of all the developments regarding investor-related issues. While I can’t respond to everyone individually, I will be sending out updates about the legislative and regulatory effort in Washington from time-to-time.”

      I have been asking the Senator’s office to either a) legislate a settlement facility since after 75 years the SEC hasn’t done it, or b) pass legislation mandating that the SEC adopt rules to establish a settlement facility by a date certain, like within 6 months, that complies with Section 17A. The SEC was mandated in 1934 in Section 17A of the Securities Exchange Act to establish a settlement facility and link it to the clearing facility – but they haven’t doe it and that’s why we see massive settlement failures today.

      There is no settlement facility in place in this country. However, there is a “settlement system” in place, which is based on trust that the seller will deliver and settle.

      I urge everyone to communicate their ideas and support to the Senator. Below is his complete letter to investors:

      Thank you for being in touch about investor concerns. In order for me to continue to receive your thoughts, tips, and concerns, I asked my staff to create a special email address where you and others can continue to correspond with me: investorprotection@kaufman.senate.gov. Please use this resource to keep me abreast of all the developments regarding investor-related issues. While I can’t respond to everyone individually, I will be sending out updates about the legislative and regulatory effort in Washington from time-to-time.

      In the few months since I took office, I’ve made it a priority to help rebuild investor confidence and restore credibility in the U.S. financial markets.

      It began with passing the Fraud Enforcement and Recovery Act, which I cosponsored with Senators Patrick Leahy (D-VT) and Chuck Grassley (R-IA). President Obama signed it into law on May 20, 2009. The Act authorizes $532 million in resources over the next two years for the Department of Justice, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the U.S. Secret Service, and the Inspector General for the Department of Housing and Urban Development to hire additional fraud agents, analysts, investigators, prosecutors, and support staff to combat financial fraud.

      Then I called for the SEC to curb abusive, or so-called “naked,” short selling by reinstating the substance of the prior “uptick rule” and instituting a “pre-borrow” requirement.

      As the old saying goes, it was like pulling a thread from a sweater. Naked short selling, the loophole of choice in 2008, was only the first sign of the need to level the playing field for investors. We’re learning more every day about the features of a two-tier market: Flash orders, co-location of servers at the exchanges, high frequency trading and dark pools all raise concerns.

      Below are links to all the letters I and a bipartisan group of Senators have sent to the SEC, speeches I have made on the Senate floor, and Op-Eds I’ve written about these topics. Again, thank you for your interest.

      Sincerely,
      Ted Kaufman (D-DE)
      U.S. Senator

      Letters to SEC Chairman Mary Schapiro
      Speeches on the Senate Floor
      Op-Eds

    2. Jim Hall says:

      First thing I did yesterday was send a copy to Sen Kaufman. I’m guessing Sean did the same.

    3. Tar_&_Feather_Them says:

      Jag Media Holdings Inc. (JAGH) which has been naked shorted for years just completed a reverse merger with Cardiogenics (www.cardiogenics.com) and lo and behold it just turned up on the Reg SHO list.

      The SEC has been bombarded with info about the manipulation by the scumbag market makers and Finra had been contacted several weeks ago and they all do nothing.

      The regulators are as crooked as all the scumbags manipulating these stocks.

      • wrister says:

        For those of you who think that working through the regulatory agencies (FINRA or the SEC) will ever yield anything good, you should think long and hard about this quote from Harry Markopolos, the guy who blew the whistle on Madoff again and again and again. “I’d give A-plus to the SEC for incompetence and I’d give the same grade to FINRA for corruption.”

        More information about this topic is available here:
        http://www.fixit.us/main/forum/blog.php?b=10

    4. iStandUp says:

      Here is a letter to the SEC from Biotechnology Industry Organization (BIO)
      ———————-
      September 22, 2008

      The Honorable Christopher Cox
      Chairman
      U.S. Securities and Exchange Commission
      100 F Street, NE
      Washington, D.C. 20549-1090

      Linda Chatman Thomsen
      Director, Enforcement Division
      U.S. Securities and Exchange Commission
      100 F Street, NE
      Washington, D.C. 20549-1090

      Dear Chairman Cox and Director Thomsen:

      On behalf of its members, the Biotechnology Industry Organization (“BIO”) would like to commend the Securities and Exchange Commission’s (“SEC”) recent efforts to investigate fraud and combat manipulation in the securities markets. The recent turmoil in our nation’s financial markets has adversely impacted the biotechnology industry by driving down security prices and harming investor confidence in our capital markets.

      BIO represents more than 1,200 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology technologies, thereby expanding the boundaries of science to benefit humanity by providing better healthcare, enhanced agriculture, renewable fuels, and a cleaner and safer environment.

      Overall, we believe the SEC’s recent rulemaking will be beneficial in strengthening investor protections against abusive “naked” short selling for all public companies, including the biotechnology industry. In addition to the recent rules, BIO urges the SEC to issue proposed rulemaking that would provide adequate disclosures of short positions to the SEC and to the public. We believe that such an initiative would increase transparency in short selling and encourage investor confidence in the financial markets. The biotechnology industry has been and is increasingly vulnerable to investors who illegally spread false rumors in efforts to manipulate security prices. This type of illegal behavior is especially detrimental to emerging biotechnology companies whose value is so dependent on the results of their research and development efforts. For example, false rumors such as “negative” results or even intentional mischaracterization of a clinical trial or in a particular individual could substantially drive down a biotechnology company’s stock price.

      BIO appreciates the efforts of the Commission to combat market manipulation and looks forward to working with the agency through the regulatory rulemaking process to ensure that securities of all public companies, including the biotechnology industry, are protected against illegal abusive “naked” short selling and false rumors. If you have further questions, please contact me or Shelly Mui-Lipnik, Director of Capital Formation and Financial Services Policy at (202) 962-9200.

      Sincerely,
      Alan F. Eisenberg
      Executive Vice President
      Emerging Companies and Business Development
      Biotechnology Industry Organization (BIO)

      ( http://bio.org/letters/SECsupportletter92208.pdf )

    5. sean says:

      Jim, here is another more suprises for you (LOL)

      Madoff dying of cancer, fellow inmates say-NY Post

      http://www.reuters.com/article/marketsNews/idUSN2413380120090824

      I figured they would fake his death..and shuttle him off to his private island..A little plastic surgery and Puff a new man is born..Just like Kenny Lay..

    6. californiagirl says:

      Fantastic Work! I sent it to my friend at the SEC in the enforcement division, and to many others. But she is probably not high up enough on the totem pole. She did tell me that they recently had an internal meeting on the evils of Goldman Sachs but has heard nothing back on the Milken issue. BTW, she doesn’t take offense to the derogatory comments about the SEC because, unfortunately, many of them are true. They need better caliber people but have a hard time attracting them.

    7. Anonymous says:

      Check out my comments on naked shorting compared to an electrical circuit at the bottom of the comment section here.

      http://www.deepcapture.com/the-climate-on-planet-money/

    8. iStandUp says:

      Sean,

      Here is a link to Senator Kaufman’s website where everyone can read his letter to the SEC:

      http://kaufman.senate.gov/press/press_releases/release/?id=ac51e2a5-e413-4f52-ad37-8cf9d080e744

      “(1) Are conflicts of interest leading to failures to protect retail investor orders from execution strategies that take advantage of such investors because of the latent disparities within the market? Such disparities lead to opportunities to take advantage of market structure.

      [ -------vvv-------vvv--------- ]
      Permitting a high-frequency trader to see information in “tomorrow’s newspaper” does not benefit retail investors who are still reading today’s newspaper (and who have been told repeatedly that a buy-and-hold strategy is best);”

    9. iStandUp says:

      Senator Assails S.E.C. and Urges Broad Overhaul

      Source: New York Times (DealBook)

      By Cyrus Sanati

      August 24, 2009

      Senator Ted Kaufman, Democrat of Delaware, has quickly become one of Congress’s most outspoken critics of the Securities and Exchange Commission since being appointed to fill the Senate seat vacated by Vice President Joseph R. Biden Jr. in January.

      On Monday, Mr. Kaufman sent a scathing letter to the S.E.C.’s chairwoman, Mary L. Schapiro, asserting that a broad overhaul of the agency is needed concerning a wide array of issues under its jurisdiction, including algorithmic trading and so-called dark pools, which are automated trading systems that do not publicly provide price quotes.

      In an interview with DealBook on Monday, Mr. Kaufman seemed determined to address what he says are “legitimate concerns” regarding the S.E.C.’s approach in dealing with these somewhat esoteric financial matters.

      “What I am doing right now is standing in the middle of the road waving a red lantern saying, ‘There’s a problem,’” Mr. Kaufman said. “Before we careen into another problem, we have to take a hard look at these things – and looking at them in piecemeal is not going to do it.”

      Mr. Kaufman first started looking into the S.E.C. in March when he and some Senate colleagues introduced legislation directing the S.E.C. to write regulations to end what they argue is abusive short-selling, focusing on reinstatement of the uptick rule, which would bar investors from betting against a stock on its way down. From there, Mr. Kaufman started digging deeper into the S.E.C. and did not like what he found.

      “For me, this is like when you pull thread and the whole cloth comes apart,” Mr. Kaufman said regarding his investigation into the S.E.C. “This all started with uptick and abusive short-selling” and has spread into other areas, he said.

      In his letter to Ms. Schapiro, Mr. Kaufman mentioned a number of concerns he had with the way the S.E.C. is regulating those parts of the market where complex algorithms and special deals set up with the exchanges give larger traders like investment banks and hedge funds an edge over ordinary investors.

      “Flash orders, high frequency trading, co-location of servers, direct market sponsored access, liquidity rebates, dark pools, retail order flow – all these things happened in the last few years when the people in charge of the S.E.C. and the administration basically felt that we should have self-regulation,” Mr. Kaufman said in the interview with DealBook.

      “Self-regulation turned out to create, what I consider to be, outside the Depression, the greatest financial crisis in the history of the country,” he added.

      The S.E.C. has already started looking into some of the issues that Mr. Kaufman raises in his letter, including flash orders, which enable some large banks and hedge funds to peek at investors’ stock orders before they are sent to the broader marketplace.

      An S.E.C. spokesman, John Nester, declined to comment on Mr. Kaufman’s letter and comments, but said, “We share the senator’s interest in market structure issues.”

      Senator Charles E. Schumer, Democrat of New York, said in a statement earlier this month that the S.E.C. promised to seek a ban on flash orders.

      But Mr. Kaufman wants the S.E.C. to move faster in addressing some of these newer trading techniques and to tackle them all at once instead of individually.

      “I don’t get a sense of urgency from the S.E.C.,” Mr. Kaufman said. “The whole market has changed and we are approaching this in piecemeal.”

      Mr. Kaufman said that he had hoped the S.E.C. would quickly move on these issues on its own, but that he was not opposed to legislating the changes by inserting new language in the financial regulatory bill currently before Congress.
      ( http://kaufman.senate.gov/press/in_the_news/news/?id=6662F746-D4A6-4550-925F-2BEB43BFC050 )

    10. iStandUp says:

      Senator Kaufman stated above:

      “Self-regulation turned out to create, what I consider to be, outside the Depression, the greatest financial crisis in the history of the country,” he added.”

      “Self-regulation” in the financial industry is a cruel joke that just about destroyed the world economies.

      Does anyone know WHEN “Self-regulation” in the financial industry started?

    11. Jim Hall says:

      And the circle-jerk remains totally unbroken:

      http://www.bloomberg.com/apps/news?pid=20601039&sid=aP7ePs7AR.SE

      This has to be stopped somehow.

    12. iStandUp says:

      Bristol-Myers Squibb Company (BMY) announced today that it has acquired 87.7% of biotechnology company Medarex (MEDX) shares in a tender offering:

      ( http://bms.com/news/press_releases/pages/default.aspx?RSSLink=http://www.businesswire.com/news/bms/20090827005479/en&t=633869589811742534 )

      Since MEDX is a biotechnology company, we all know that the Hedge Funds as Market Maker Guests have used “Naked Counterfeit Short Selling” against it for many years.

      One of the many negative effects of “Naked Counterfeit Short Selling” upon any targeted company is the existence of a larger number of shares for voting purposes than the official outstanding number of shares.

      In this MEDX example, the SEC does NOT allow the individual investors (nor the company management) to know how many extra voting shares (FTDs – IOUs – Security Entitlements) are floating in the system.

      So the shareholders and company management are NOT allowed to know if the tendered shares of MEDX, which represent 87.7% of the official outstanding shares, are really 87.7% of all the shares floating in the system or not.

      Additionally, the SEC rules HIDE the FTDs in the one reported system for up to about 5 months. So if Naked Shares were sold during the tender offer to help push the tendered percent above 50% and above 90%, the SEC rules will NOT allow us to know, since the SEC considers “Naked Counterfeit Short Selling” as a proprietary trading method of the rich and powerful Wall Streeters.
      If my calculation is correct, the SEC will not RELEASE the FTD numbers during the tendering process until the beginning of next year.

      QUESTION:
      Does anyone know of any legal process for finding out if any Counterfeit Shares were sold during the tender offering period?

      FYI – BMY as started a new tender offer in an attempt to get 90% of the MEDX shares tendered so it can proceed with a Quick Merger, which requires no shareholder meeting.

      I find it interesting that a tender offering essentially ONLY counts the YES votes as tendered shares, and does NOT count the NO votes (the un-tendered shares). It seems to me that this allows Wall Street to more easily HIDE all the extra votes above and beyond the official number of outstanding shares.

      FYI2: Goldman Sachs will receive $21 Million Dollars from MEDX if the tender offer is successful.

    13. iStandUp says:

      Jim Hall,

      I tried to post your link on the Yahoo Message Board and it was NOT POSTED. Hummmm… It is an excellent article:

      Wall Street Fox Beds Down in Taxpayer Henhouse…

      Wall Street Fox Beds Down in Taxpayer Henhouse: David Reilly

      Commentary by David Reilly

      Aug. 26 (Bloomberg) — What do you do with someone who played a key role in the deregulatory push that ultimately led to the government’s $700 billion Wall Street bailout? In Washington, the answer is easy: Have him help oversee the rescue.

      No wonder life in the U.S. capital can seem like an episode of “The Twilight Zone.”

      ( http://www.bloomberg.com/apps/news?pid=20601039&sid=aP7ePs7AR.SE )

    14. Dr. Jim DeCosta says:

      “Does anyone know of any legal process for finding out if any Counterfeit Shares were sold during the tender offering period?”

      istandup,
      There is no way to tell because FTDs associated with “Ex-clearing arrangements” are not tallied. If they were there would be no such thing as abusive naked short selling as it would be obvious to investors that what is often being sold doesn’t exist.

      A study quoted by the NYSE showed “overvoting” in 100% of the 431 corporate votes studied. Recall that when an FTD or an NSCC SBP “borrow” occurs a readily sellable share price depressing “security entitlement” is credited to the account of the buying party in the case of an FTD and to the NSCC “C” sub account of the lending party in the case of an SBP “borrow”. UCC Article-8 mandates that the “holders” of “security entitlements” be allowed to exercise all of the rights and property interest of the security involved. One of these rights is the right to vote.

      The crooked clearing firms try to hide massive disparities between the # of shares they hold in their “shares account” at the NSCC i.e. the ones that got delivered successfully and the # of votes they permit by allowing their clients to vote a “proportionate interest” in the # of shares they got delivery of. Recall that margin account investors and the b/d that loaned them the money are kind of like “co-owners” of the shares. Since technically “Cede and Co.” is the “legal owner” of all shares held in “street name” and since technically the “registered owner” of shares on a transfer agents record of ownership gets accorded voting rights then huge disparities can be easily buried. For the crooks the key is to hold all shares in an “anonymously pooled” format so that individual parcels of shares not allowed to vote cannot be identified. The foundational corporate concept of “one share, one vote” had to get thrown under the bus in order to allow these crimes to go undetected. If you want to exercise the full voting power of that which you purchased you need to demand the delivery of your shares and become the “legal owner” or “shareholder of record” on the TA’s list. Since 90% of all shares are held in “street name” in an anonymously pooled format an investor can only see that which the NSCC allows them to see which is zero.

    15. Anonymous says:

      When a low liquidity stock runs, brokerages “desk” client orders. They take their money, hoping to drive the stock down later when the momentum dries up and don’t actually bother buying anything when buy interest is high.

      The shares are listed on your brokerage statement, but the brokerage doesn’t actually own anything.

      They can’t lose by taking your money and not actually buying anything or adding to the demand for the stock. This is what the SEC means when they say shorts add liquidity to a stock. It’s kind of like p_ssing on shareholders to make sure things aren’t too dry.

      They couldn’t care less about their fiduciary duty to you to hold your shares in custody, because they have plausible deniability. They can claim they believe your shares are in a clearing house they clear through in some other jurisdiction regulators can’t get to.

      If they bet wrong, then the brokerage puts a “chill” on the stock. At first, buy orders start getting filled more and more slowly, where you can hit the ask and wait ten minutes to get filled. Finally, they start forbidding their clients from buying that stock.

      If the squeeze gets really bad, the DTC stops trading on the stock and then if that doesn’t work, the SEC (Wallstreet’s hired PR arm, they suckered congress into using to replace the DOJ in 1933) finds some reason to ban trading.

      Because the low liquidity stock is likely to also have low resources, this multi pronged approach is likely to kill / bankrupt the company and investors never realize why money was transferred from their wallets to the counterfeiters’, even though the investors were correct in their bet.

      Laid off employees are unlikely to know the brokerage they have their money with is directly responsible for killing their employer. It’s plausible deniability.

      I did a quick google and know nothing about the next link (it could be a scam), but here’s a perfect example of something that happens all the time.

      http://www.tradingmarkets.com/.site/news/Stock%20News/2498074/

      My point is EVEN IF the stock is a scam, it doesn’t give the brokerage the right to take your money, lie to you, avoid driving up demand, while increasing supply and claim they bought the shares, then try to drive those shares down.

      Scams can go up and investors invest in their belief in momentum and supply and demand and brokerages are cooking up their own rules.

    16. Anonymous says:

      Brokerages that “desk” shares, taking investor money, without buying the stock and putting collateral up to protect if they bet wrong are criminal thieves.

      Slime, scumbags, oh ya, they already got away with it once when they created fiat banking. They are hoping to legalize fiat share ownership.

      What’s next? Fiat ownership of your house, where 2 or 3 people own the same home?

      It’s fraud and because they control the government doesn’t mean it’s not fraud.

      They should be arrested. It’s fraud. They mail customers brokerage statements that fraudulently imply (mail fraud) that they actually bought something with that money when their plan was to guarantee you lost it by cheating.

      People buy lottery tickets, based on their knowledge they have a 1 in 14 million chance of winning.

      People buy penny stocks, based on their knowledge they have a 1 in a zillion chance of winning.

      It’s not about how good the chances are in the lottery ticket or penny stock and it doesn’t matter if the penny stock is 99.999% guaranteed to fail. The public has the right to place the bet without the brokerage STEALING the money and issuing FRAUDULENT brokerage statements.

      Despite the odds….

      Sometimes lottery tickets make people millionaires and sometimes penny stocks make people millionaires.

      Can you imagine if your local 7-11 “desked” a lottery ticket to you, taking your $2 and not actually giving you a real ticket? He gives you your numbers on a piece of paper, knowing that you won’t actually get paid if it pays off?

      If the stock pays off, the brokerage goes under and looks for a government bail out.

      If the ticket pays off, the clerk runs to Mexico with your $2.

      For the brokerage industry, this worked like clockwork for ten years (when they were killing companies from 1999-2009), but you can’t kill every company. It’s like evolution, the remaining ones are strong.

      In the case of the 7-11 worker, he’d be arrested.

      In the case of the Goldman Sachs brokerage, they’d merge with all their competitors, getting the regulators to crack down on the Refco’s and Lehman Brothers, then get the government to give him billions to pay off on his bad bets, but then instead of using those fund to pay off, use those billions to naked short those companies more while giving himself a bonus.

      If you aren’t mad, it’s because you don’t understand how they are bending you over.

      Don’t feel bad, the ones doing it own the media and that’s why the other sheeple bend over and thank the thieves for the opportunity to be their slaves.

      I know regulators, politicians and others that can make a difference read this.

      The problem is really simple. Brokerages lie to their customers and tell them that they own something that doesn’t exist. Arrest the compliance officers in the brokerages that allow this lie to exist and all else will fall into place.

    17. ron doc says:

      I am afraid no regulator,no government person, elected or appointed and no law enforcement person is goint to do anything about any of this crap destroying American as well as other nations. Only thing I see ending this is whenit gets bad enough the people will riot and rebel seeking out the ones who’s faces they see and will rise up and lynch the public faces in government, law enforcement and regulation. Leaving the real rullers of the hidden system to once again benifit from a hidden distance from it once again in history as the small man goes down.

      My only hope now, as it should have always been, is God will extract justice.

    18. mhelburn says:

      suppression of medical advances. Royal Raymond Rife

      Using various methods to suppress cures for virus-induced diseases, including the bankrupting of the company that produced the microscopes that allowed the viewing of virus life cycle, theft of research, purging of research from records, buying off researchers..etc..

      http://www.rense.com/general31/rife.htm

    19. mhelburn says:

      Who was Morris Fishbein? Sounds like our present-day MM.

      http://www.rense.com/general19/enemy.htm

    20. iStandUp says:

      Dr. Jim DeCosta,

      Thank you for your explanation about voting during a tender offer.

      Yes, since the FTDs associated with “Ex-clearing arrangements” are not tallied, we can never know if the vote was rigged, because the SEC does not require these “Ex-clearing arrangements” to be reported.

      I am wondering if there is some way I and / or others might be able to bring some attention to this dirty little secret on Wall Street using MEDX as an example.

      At some point there is going to be a settlement of the Class Action Law Suit against BMY and MEDX. And those that oppose the MOU between the lawyers could bring this up before the Judge.

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