Michael Milken, 60,000 Deaths, and the Story of Dendreon (Chapter 4 of 15)

    What follows is PART 4 of a 15-PART series. The remaining installments will appear on Deep Capture in the coming days, after which point the story will be published in its entirety.

    Click here to read PART 1

    Click here to read PART 2

    Click here to read PART 3

    Where we left off, we had learned that CNBC’s Jim Cramer, who once planned to run a hedge fund out of the offices of Michael Milken’s famous criminal co-conspirator Ivan Boesky, had declared Dendreon to be a “battleground stock.” And we had learned that Dendreon eventually came under a brutal, illegal naked short selling attack, right at the time that an FDA advisory panel voted in favor of the company’s prostate cancer treatment, and right before some strange occurrences were to prevent that treatment from reaching patients.

    We had also learned that naked short sales are often “married” to put options (bets against a company), and at the time of the Dendreon attack, in 2007, only ten hedge fund managers on the planet owned large numbers of put options on Dendreon’s stock. Finally we had learned that those imminent strange occurrences (which will be described in due course) might have had something to do with the “philanthropy” of Michael Milken, the famous criminal. Thus, it seemed worth noting that at least seven of those ten hedge fund managers who placed large bets against Dendreon can be tied to Michael Milken or his close associates.

    One of the seven hedge funds was the Mafia-connected Bernard Madoff, who orchestrated a $50 billion Ponzi scheme while helping author an SEC loophole that enabled hedge funds to “marry” naked short sales to put options – creating phantom stock “bullets” that could be used to drive down prices. The second of the seven hedge fund managers worked for Lindsay Rosenwald, a Milken crony who once helped manage a Mafia-affiliated brokerage called D.H. Blair.

    Now we learn a bit more about D.H. Blair and meet two more of the hedge funds that stood to profit from the demise of Dendreon, a company with a promising treatment for prostate cancer…

    * * * * * * * *

    D.H. Blair, the Mafia-affiliated brokerage founded by Lindsay Rosenwald’s father-in-law (the so-called “king of stock fraud”) and managed for some time by Rosenwald and Michael Milken’s former national sales manager, received much of its finance from the family of a man named Zev Wolfson. Mr. Wolfson was also closely involved with another Mafia-affiliated brokerage, A.R. Baron.

    As you will recall, D.H. Blair and A.R. Baron featured prominently in the prosecution’s case against White Rock Partners, the firm that was co-founded by Felix Sater. Felix Sater, remember, is the alleged son of a top Russian Mob boss. He previously worked as a trader for Gruntal & Company, a Mafia-affiliated brokerage that was stacked with cronies of Michael Milken.

    You will remember that Sater, the fellow alleged to have blood ties to the Russian Mafia, is currently a business partner of Milken crony Leon Black. You will also recall that Sater is allegedly the man who sent a message that the Mafia would murder Deep Capture reporter Patrick Byrne if he continued his crusade against illegal naked short selling. And Sater is the same guy whose naked short selling colleague, Alain Chalem, had his ears and face shredded with bullets.

    Wolfson, meanwhile, was involved in another “colorful” brokerage, Pond Equities. In 2006, the SEC filed civil charges accusing Pond Equities of participating in a massive naked short selling fraud.

    Aside from funding Mafia-affiliated brokerages, some of which were closely tied to Michael Milken, Wolfson was also the key early investor in funds controlled by a number of Milken’s more “prominent” cronies.  For example, Wolfson was an early benefactor of a “prominent billionaire” named Saul Steinberg.

    In the 1980s, Steinberg built a company called Reliance Insurance with generous junk bond financing from Milken. Reliance, in turn, became one of the Milken-aligned financial conglomerates that regularly bought the junk bonds that Milken was selling for his other cronies. In other words, Steinberg was a key player in Milken’s junk bond merry-go-round – one of history’s great Ponzi schemes. Eventually, Steinberg looted and bankrupted Reliance, though he has never been charged with any crime.

    Today, Steinberg is a founding partner of Wisdom Tree Investments, which is managed by Steinberg’s son, Jono. Jono is married to CNBC’s Maria Bartiromo, also known as the “Money Honey.” The Money Honey’s father is the former owner of a Brooklyn catering outfit and private club called the Rex Manor. Residents of Brooklyn know the Rex Manor as a popular hang-out for members of the Bonanno organized crime family (a fact that is merely of biographical interest and not meant to imply that Mr. Bartiromo is tied to the Mob).

    The other founding partner of Wisdom Tree Investments is Michael Steinhardt, who is one of the nation’s most “prominent” hedge fund managers. As was noted in Chapter 3, Steinhardt’s father, Sol “Red” Steinhardt, worked for the Genovese organized crime family and spent a number of years in Sing-Sing prison after a New York prosecutor pegged him as “the biggest Mafia fence in America.” According to Steinhardt himself, the key limited partners in Steinhardt Jr.’s first hedge fund were the Genovese Mafia and three “prominent investors” – Marty Peretz, Marc Rich, and Ivan Boesky.

    Ivan Boesky, we know, was famously indicted in the 1980s for participating in various stock manipulation schemes with Michael Milken. Also convicted for his participation in these schemes was a man named John Mulheren, who had run an arbitrage fund largely financed by Zev Wolfson (the fellow who also financed Saul Steinberg, the Mafia-affiliated brokerages tied to Milken, and other Milken cronies who will be introduced shortly).

    Although Mulheren’s conviction for manipulating stocks was ultimately reversed on appeal, there was a time when he believed that Boesky might squeal on him and his friend, Michael Milken. So one day Mulheren loaded his car with weaponry and set out to assassinate Boesky. Fortunately, the police arrested Mulheren before he could commit the murder.

    According to a famous book called “Den of Thieves,” written by Pulitzer Prize winning author James Stewart, Mulheren spent most of his time in jail conversing with Anthony “Fat Tony” Salerno, who was then the top boss of the Genovese Mafia family. In addition, Scotland Yard has linked Salerno to Steven Wynn, a Las Vegas casino operator. Wynn’s wife, Elaine, sits on the board of Michael Milken’s Prostate Cancer Foundation. Steven Wynn is Milken’s closest friend, according to Milken.

    After he got out of jail, Mulheren co-founded a hedge fund called Millennium Partners, then promptly died of an early heart attack, leaving his co-founder, Izzy Englander, to continue operating the fund. Izzy Englander secured much of his investment capital from not just Zev Wolfson, but also the Belzberg brothers – William, Sam, and Hymie. Executives at an investment firm called the Bache Group, citing U.S. Customs Service reports, once accused the Belzberg’s of having ties to organized crime.

    As we know, only ten hedge funds on the planet owned large numbers of Dendreon put options at the end of March 2007, right after Dendreon received the fantastic news that the FDA’s advisory panel had voted that the company’s treatment for prostate cancer should be approved. In other words, after Dendreon received its fantastic news only ten hedge funds were maintaining long-shot bets against Dendreon (long-shot bets that would, in time, prove strangely prescient). At least seven of those hedge funds are quite “colorful” – and all seven are part of the same network.

    So far we have discussed two of the seven “colorful” fund managers who stood to profit from the demise of Dendreon. Those two are Bernie Madoff, the $50 billion Ponzi schemer and naked short seller, and Lindsay Rosenwald, formerly a manager of the Wolfson-financed D.H. Blair, which was founded by Rosenwald’s father-in-law (the “king of stock fraud”). Both D.H. Blair and Madoff had ties to organized crime. Both worked intimately with Michael Milken or his closest associates.

    So perhaps it is no surprise that the third hedge fund that was betting heavily against Dendreon in March 2007 was Millennium Management, co-founded by John Mulheren–jailhouse confidante of “Fat Tony” Salerno (the Genovese Mafia boss); co-conspirator of Michael Milken; would-be murderer of Ivan Boesky; and recipient, like other Milken cronies and a number of Mafia-affiliated brokerages; of key finance from Zev Wolfson.

    Altogether, Millennium owned put options on 800,000 shares of Dendreon at the end of March 2007 – just after the company’s prostate cancer treatment was endorsed by an FDA advisory panel; right at the time that Dendreon came under a blistering illegal naked short selling attack; and just before Dendreon was to experience some strange occurrences.

    * * * * * * * *

    Let us return to Zev Wolfson. As we know, Wolfson funded D.H. Blair, the Mafia-affiliated brokerage which became the target of a 173 count indictment, saw two vice chairmen please guilty to securities fraud, had a president (Richard Maio) who was once Michael Milken’s national sales manager, and had another vice chairman (the son-in-law of the “king of stock fraud”) who is now one of America’s biggest biotech traders and an adversary of Dendreon.

    We also know that Wolfson was the key early investor in funds run by Milken cronies Saul Steinberg (partner of Michael Steinhardt, whose father worked for the Genovese family as the “biggest Mafia fence in America”) and John Mulheren, who spent his jail-time conversing with Genovese boss Anthony “Fat Tony” Salerno, and then co-founded Millennium Management, which later also became an adversary of Dendreon.

    In addition, Wolfson was a key early investor in a fund managed by “prominent billionaire” Carl Icahn.

    Before he became a “prominent” billionaire, Icahn, remember, founded the options trading department at a firm called Gruntal & Company, which owed its existence to the generous finance that the criminal and future “philanthropist” Michael Milken gave to its parent company, the Home Group. Like Steinberg’s Reliance Insurance, the Home Group was a key player in Milken’s junk bond Ponzi scheme.

    As mentioned, Icahn was replaced at Gruntal by Milken crony Ron Aizer, who proceeded to hire as traders two associates of Michael Milken. According to a reliable source, one of those traders was investigated for trading on inside information provided by Milken’s operation at Drexel Burnham Lambert. Both traders are now “prominent” hedge fund managers, and both are important characters in the story of Dendreon, so I will return to them soon.

    As also mentioned, Gruntal was caught embezzling millions of dollars. One of its traders was found to be running money for the Gambino Mafia family. And a large number of its traders went on to work for White Rock Partners, the Mafia firm that was indicted for manipulating stocks with help from the Mafia-affiliated D.H. Blair, founded by the father-in-law of Lindsay Rosenwald, who was one of those seven “colorful” hedge fund managers who stood to profit from the demise of Dendreon.

    Recall that White Rock also did business with the naked short seller Alain Chalem. Recall also that White Rock’s other co-founder has said that he once worried that Felix Sater might murder Chalem. As we know, Chalem eventually was assassinated in his New Jersey mansion (which does not, of course, prove that those fears were correct).

    When Icahn left Gruntal, he began a career in “greenmailing” – acquiring large amounts of companies’ stock and threatening to make problems if the companies didn’t buy back the stock at a premium. His greenmailing (a.k.a. blackmailing) exploits were made possible by generous junk bond finance handed to him by Michael Milken. By most accounts, Icahn owes his phenomenal wealth and power to two people – Zev Wolfson (financier to multiple Mafia-affiliated brokerages) and Michael Milken, who is (as should be clear by this point) on close terms with many Mafia-connected investors, and is now considered a “prominent philanthropist.”

    Given his association with Milken and Wolfson, it is perhaps predictable that Icahn has relationships with other Mafia-connected goons as well. For example, Icahn once employed a man named Allen Barry Witz, who was later implicated by the U.S. government in a Mafia-run stock manipulation fraud. As it happens, Witz also did business with Alain Chalem, the Mafia-connected naked short seller who was assassinated in New Jersey – his head, face and ears filled with bullets.

    According to various reports, Icahn’s former employee, Barry Witz, was one of the last people, other than the killers, to see Chalem alive.

    * * * * * * * *

    Milken crony Carl Icahn has had multiple brushes with naked short selling. For example, Icahn was the man behind Ladenburg Thalmann, an investment bank that financed many companies through so-called PIPEs – private investments in public equities.

    The PIPEs industry is rife with abuse (See Forbes magazine’s story, “Sewer PIPEs,” which describes some of the industry’s ties to the Mafia).  Since PIPEs dilute equity, a company that does a PIPEs deal will typically see its stock fall in value. To capitalize on this, hedge funds affiliated with the PIPEs investor (i.e. with the company’s supposed benefactor) will sometimes illegally naked short the company before and after the PIPEs deal is announced.  Often, this naked short selling sends the stock into a “death spiral,” and the company is put out of business.

    In one famous case, Icahn’s Ladenburg Thalmann was hired to broker a PIPEs deal for a small software firm called Sedona Corporation. In this capacity, Ladenburg introduced Sedona to a hedge fund called Rhino Advisors, which in turn brought in a hedge fund called AMRO International. According to prosecutors who later charged Rhino with stock manipulation, as soon as AMRO and Sedona entered into their PIPEs deal, Rhino’s owner Andreas Badian, instructed his traders to naked short Sedona with “unbridled aggression.” Rhino’s other owner, Thomas Badian, is now a fugitive from the law living in Austria.

    According to the SEC, Rhino’s naked short selling was conducted in collaboration with Pond Equities (also known as Pond Securities), which was financed by Zev Wolfson, the fellow who also financed all those Milken cronies, including Icahn and the folks at the Mafia-affiliated D.H. Blair.

    Most of Rhino’s phantom stock was processed through a giant brokerage called Refco Securities, which was later found to be hiding more than $400 million worth of liabilities in off-balance sheet entities. As Deep Capture reporter Judd Bagley detailed in a recent video (click here to watch), those liabilities were likely related to Refco’s rampant naked short selling.

    In a series of stories for The Deal, a financial news magazine, reporter Stacy Mosher determined that Amro International had provided PIPEs financing to over sixty companies, many of them biotech firms. At least 29 of those deals involved Carl Icahn’s Ladenburg Thalmann. Soon after announcing their PIPEs deals, every one of those 29 companies were hit with unbridled naked short selling. Every one of those 29 companies saw their stocks go into “death spirals.” And nearly every one of them quickly went out of business.

    Icahn is not the most famous player in the world of PIPEs. That accolade belongs to another of Milken and Wolfson’s charges — Lindsay Rosenwald, one of those seven “colorful” hedge fund managers who stood to profit from the demise of Dendreon.

    Rosenwald worked for Ladenberg Thalmann before joining his father-in-law (the “king of stock fraud”) at D.H. Blair, the Mafia-affiliated brokerage whose president was Michael Milken’s former national sales manager. In addition to financing medical companies with no medicines, Rosenwald’s Paramount Capital has done some PIPEs deals with companies that did, indeed, have promising medicines. Many of those companies are now gone — drowned by tsunamis of phantom stock.

    * * * * * * * *

    As mentioned, Carl Icahn, who would later owe his status as a billionaire to Michael Milken, founded the options department at Gruntal & Company, which owed its existence to Michael Milken.  When Icahn left Gruntal, he was replaced by Milken crony Ron Aizer, who proceeded to hire two traders who are cronies of Michael Milken.

    The first trader hired at Gruntal by Aizer was a man named Steve Cohen, who later founded a hedge fund called SAC Capital. Cohen has been described (by BusinessWeek magazine and others) as “the most powerful trader on Wall Street.”

    In an upcoming chapter, I’ll name the second trader hired by Aizer. Soon after that trader was hired, Cohen was joined at Gruntal by Stephen Feinberg, who had previously been a top trader for Milken’s operation at Drexel Burnham, and now runs Cerberus Capital Management, which was, until recently, co-owned by J. Ezra Merkin, one of the  most important “feeders” to Bernard Madoff’s Mafia-connected $50 billion Ponzi scheme.

    While at Gruntal, Cohen grew closer to Milken, and came to be on especially good terms with one of Milken’s top employees, Bruce Newberg, who was later implicated in Milken’s stock manipulation schemes. A reliable source has told Deep Capture that the SEC once investigated Cohen for allegedly trading on inside information provided to him by Milken’s staff at Drexel, Burnham, Lambert.

    Nowadays, Cohen is known for demanding strict loyalty from his co-workers, past and present. Some say that these demands border on paranoia (Cohen’s employees are required to sign non-disclosure agreements swearing them to absolute secrecy – for a lifetime), but many of Cohen’s colleagues have benefited. Cohen’s former employees often move to new hedge funds that are in actuality satellites of Cohen’s powerful trading empire.

    Sometimes the hedge funds that are staffed by Cohen’s former employees are initially or wholly financed by Cohen himself. Other times Cohen and the hedge funds staffed by his former employees merely trade in the same stocks. It is fair to assume that, collectively, Cohen, his former employees, and others in his network (traders who are tied to Michael Milken or his close associates) have enough fire power to move share prices.

    In the 1990s, Cohen’s SAC Capital sometimes bought stocks that were being promoted by D.H. Blair, the Mafia-affiliated brokerage that figured prominently in the prosecution’s case against White Rock Partners, whose traders were mostly Cohen’s former co-workers at Gruntal. Cohen would hold these D.H. Blair stocks even when they had no revenues and had been delisted from stock exchanges. Generally, these kinds of stocks were held by only two sorts of investors – little old ladies who’d been bamboozled by D.H. Blair, and stock manipulators. But who knows, maybe Cohen did the math and figured they were the next big things.

    At any rate, Cohen seems to have had some sort of relationship with the Mafia-affiliated D.H. Blair. But D.H. Blair is gone. In its place, we have Paramount Capital, run by Lindsay Rosenwald, the son-in-law of the “fraud king” who founded D.H. Blair.

    One employee of Paramount Capital was Joseph Edelman, who, remember, was simultaneously running one of the seven “colorful” hedge funds that was betting big against Dendreon. Meanwhile, Rosenwald was the controlling shareholder in Cougar Biotechnology, which claimed to have a promising treatment for prostate cancer, though that treatment was (and is) largely untested and years away from recieving FDA approval.

    In future chapters, we will begin to ask why Michael Milken’s “philanthropic” outfit, the Prostate Cancer Foundation, went to lengths to promote Milken crony Rosenwald’s untested prostate cancer treatment while seeming to dismiss (and perhaps even seeking to derail) Dendreon, whose treatment had received the overwhelming endorsement of an FDA expert advisory panel and was capable (if it had not been derailed) of saving patients’ lives right away.

    Another employee of Rosenwald’s Paramount Capital was a man named David J. Kellman. Mr. Kellman was Paramount Capital’s vice president. Prior to becoming the vice president of Paramount Capital, the hedge fund owned by Lindsay Rosenwald, formerly of the Mafia-connected D.H. Blair, Kellman was a top trader for Steve Cohen’s SAC Capital.

    I assume that Steven Cohen has been as diligent about maintaining his relationship with Kellman as he has been with all his former employees (a diligence that some describe as “maniacal”). Presumably Cohen also stays in touch with the folks at Millennium Management, the fund that was co-founded by the fellow who sought to assassinate Ivan Boesky, and later became one of the seven “colorful” hedge funds that owned large numbers of put options in Dendreon.

    Over the years, Millennium has employed a number of Cohen’s former traders, including Edmund Debler and Steve Lisi, who ran Millennium’s healthcare trading until 2005, when they set up their own fund, which no doubt served as another satellite of the Cohen empire.

    Millennium is a highly secretive fund, so it is difficult to know which of its employees were responsible for its Dendreon trades, but perhaps its current healthcare team, like its previous one, are colleagues of  Mr. Cohen. We do know that Millennium has hired a new vice president. His name is Hanming Rao. And he was previously a top trader for Cohen’s SAC Capital.

    Millennium, Paramount, Steve Cohen and others in this network often take similar positions in the same stocks. Many of those stocks have been pummeled by illegal naked short selling.

    So it should not surpirise that Cohen is the fourth of those seven “colorful” hedge fund managers (the other three being Millennium’s Izzy Englander; Joselph Edelman of Paramount and Perceptive Advisors; and Bernard Madoff) who happened to have the foresight to hold large numbers of put options in Dendreon at the end of March, 2007, right at the time when Dendreon was hit with an unprecedented wave of illegal naked short selling (phantom stock).

    Cohen’s lesser known hedge fund, Sigma Capital, held put options on 750,000 shares of Dendreon at the end of March 2007. Another of Cohen’s lesser known hedge funds, JL Advisors, owned 1.3 million shares of Dendreon as of the end of 2006. These shares were dumped sometime before March 31, 2007, contributing to the selling volume that would be created by Paramount Capital employee Joseph Edelman dumping more than 6 million Dendreon shares that he’d recieved by exercising call options  — and by the simultaneous appearance in the marketplace of at least 9 million more phantom shares, the result of rampant naked short selling that the SEC decries as illegal, but refuses to address, except to say that naked short selling is a big secrety — a “proprietary trading strategy.”

    * * * * * * * *

    To be continued…Click here for Chapter 5.

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    79 Responses to “Michael Milken, 60,000 Deaths, and the Story of Dendreon (Chapter 4 of 15)”

    1. NOYBIZNIZ says:

      Keep it coming! I hope that, at some point, you will provide a graphic that connects all of these various relationships.

      Thank you to Mark, Patrick, and Judd for all of your continued work.

    2. huck says:

      Mark. You let the cat out of the s.a.c.

    3. Lawrence says:

      This Country and ALL their so-called Leaders are WORTHLESS!

      The ONLY things worth investing in for the Future in the USA are:

      Gold, Silver, Food, Water, Guns, AMMO if you can find it and a Farm to escape to when it gets Really BAD! And yes it will get Really BAD!


      • Sani says:

        OMG OMG OMG!!!



    4. Curt says:

      Once all chapters are posted, can you provide a single PDF we can use to forward to our elected officials? I want to make sure they all have ample chance to read this and I will firmly ask for their views on this criminal activity and what they plan to do about it.

      Keep up the great work guys!

    5. Lenofus says:

      Who’s ever President of this Third World Republic called America should wear Khaki Shirts with creased rails, a Service Cap with eggsalad on a patent leather brim, and shoulder boards. Because if these “rats” aren’t run out of town with this missive, it’s really all we deserve.

      You can’t properly describe them without profanity. I mean US Navy six months at sea profanity. And then, it might not be adequate. You see my point? “Rats” seems like an insult to rodents. It doesn’t do them justice.

    6. J. L. says:

      This Story is absolutely HUGE!

      Where the Hell is the Main Street Media!

      Charlie Gibson, Brian Williams, Katie Couric, Bill O’Rielly,
      Geraldo Rivera, Glen Beck, Wolf Blitzer, Sheppard Smith,
      Sean Hannity, Alan Colmes, Chris Matthews, Anderson Cooper,
      Larry King.

      These same talking heads crucified Martha Stewart, yet they can’t get their arms around this Global conspiracy that has brought the world economy to a halt!

      Money, Mafia, Murder, Maria, Mayhem……..

      Seems like a good lead story to me.

    7. kddublin says:

      Two captured agencies…the SEC and the FDA…

      Keep it coming guys and thanks again for shining this light on the corruption on Wall Street, which seems to enjoy the protection of the SEC!!!!

      With Madoff gone where will the SEC get people to write their regulations?

    8. Lenofus says:

      MSM???? Main St. Media? All the names you named are multimillionaires. They are doing just fine. Why rock the boat?.

      There is only one man of means who stepped up to the plate. Never, ever, forget that. You owe him that much.

      It is a sad state of human affairs when men don’t step up for their fellow man in despair. That’s one thing you can say for the Deepcapture guys. Not a single one of them had to do this. I HAD to do it. Not these guys. They simple saw the rest of us catching a real ass kicking, and they elbowed their way into the fight. Judd, Mark, others will go unnamed………. My sincere gratitude.

      • huck says:

        You know, lenofus, I spent last evening agonizing over the lack of acclaim some deserving individuals were failing to receive, in this decade long battle. His take was great though. “Patrick has the wherewithal to pursue this fight, and deserves any acclaim” or some close sentiment……. So, I hereby proclaim, and affirm, my personal gratitude to……….the easter bunny. If it weren’t for his devotion to the fight, Patrick would never have thought about the true identity of the felons, or the means they employed, while corrupting our, once great, society.

    9. Dendreonite says:

      Dendreon’s drug was rejected in 2007 by the FDA because both of their then-completed trials had failed to achieve their pre-specified primary endpoints. The medical community at that time was outraged by the advisory panel’s premature determination that the drug should have been approved; the practicing oncologists on the panel voted against approval.

      Fast forward to April 2009, having completed its third study which achieved its primary endpoint the FDA now has enough evidence to approve the drug.

      Patrick Byrne is writing this multi-chapter conspiracy theory essay on Dendreon without doing basic homework. Wow. What a staggering idiot. And he’s the CEO of a public company.

      • jeep says:

        Only 2 of the 4 Medical oncologists voted against the approval and as we know they both had conflicts of interest. The community oncologists and urologists have always been very excited about Provenge.

    10. Lenofus says:

      So, I guess the bear raid was justified?

      What don’t you get Dendreonite, about “illegal”?

    11. al says:


      Patrick Byrne is not writing this story. Mark Mitchell is writing this story… don’t you even do basic research before criticizing?, geez… what a staggering idiot you are!

    12. SueRae says:

      Well done again, gentlemen. When this net is finally cast, it is going to remove some very big fish. Stinking, rotted fish. That the SEC can protect them (and not us or the companies), well, there’s a special place for people like that. If there are still honest poiticians in Washington, then the SEC must be held accountable for their action and inaction. Personally, I’d like to see them abolished and give the investigation straight to the FBI or other task force. If this isn’t the biggest RICO case in the making, I’m living in the wrong country. A little Turkish justice would go a long way right about now. Thank you again for your enormous efforts. I wish you well.

    13. Lenofus says:

      Picower from Chapter III


      Buy “Den of Thieves”. On line, used, less than five bucks. it’s important if you want to understand this story. They were not going to be denied. That problem lies in our regulatory system.

    14. Kilroy.Killbasher says:

      Kudos to Mark Mitchell, and the whole Deep Capture team. The “miscreants” really don’t like it, which means I LOVE IT! That “Dendreonite” poster earlier is one of those really angry paid message board bashers from the CMKI board on Raging Bull. They’ll do anything to disrupt constructive discussion of the naked shorting problem, which to this day they ignorantly deny after all the evidence and admissions by just about everyone but them.

      Mark, Judd and Patrick, it takes a lot of courage to do this kind of reporting. Not one of the mainstream media has the courage and sense of duty to report this. I don’t know if they fear for their lives, or if they just fear for their jobs, as they would probably get fired just as fast as the SEC fired Gary Aguirre for doing his job and getting too close to the truth.

      Keep up the good work, and I can’t wait to read the remaining parts!

    15. carlk says:

      First and foremost, bravo, men, bravo! In the final analysis, however, jail is too friendly for these criminal thugs. Moreover, as we have witnessed, once released, they’re quickly back to their same old crime sprees.

      I see an angle here for “murder charges” being laid out.

      When I first heard Warren Buffett begin equating our earth’s financial crisis to “Pearl Harbor,” I immediately concluded that ultimately, nothing less than, “The Nuremberg Trials,” would be appropriate as an end to their sickness.

      Notwithstanding our weak judicial system except for those less privileged in our society, draconian measures based upon the most severe charges, in this case, treason, must be levied against this scum of the earth.

      That is my prayer tonight, that justice prevails and these scoundrels are rounded up for hanging!

    16. rao says:

      after you publish 15 chaptrs .you make it this one as a book .Iwii sell it all over the world

    17. tom waits says:

      Harry Markopolos: Yes. It’s basically when the regulator is in bed with the industry they purport to regulate and do not regulate the industry. In fact, they consider the industry the client, not the public citizens.

      Congressman Alan Grayson: And have you seen that in action.

      Harry Markopolos: Yes. At the Food and Drug Administration and at the SEC.>

      The pieces of the puzzle are coming together….Madoff,crooked Hedge funds, the Milkman, and the above! IMHO former FDA commissioner needs to be looked at because he and the Milkman are good friends! In-fact Avon tried to get Bush to pardon him! IMHO, one of the only good things Bush ever did was not pardon this lowlife SOB! jmho

      • tom waits says:

        Is this what Harry Markopolos was talking about when he told the world and Congress………Yes. At the Food and Drug Administration and at the SEC.

        Mark, Have you interviewed Harry??????????????

      • Kilroy.Killbasher says:

        Tom, so true. There was Gary Aguirre with SEC enforcement who did his job, got too close to the big rats and was fired for doing that excellent job.

        Then there’s Linda Thomsen with SEC enforcement who was complicit with the abusive firms she failed to regulate. One HAS to watch that video clip of her with that “deer in the headlights” vegetative state during the Senate hearing. And, what does she get, retirement and the rewarding posh position for failing to do her job.

        SEC enforcement has truly become an Orwellian joke. From what I understand, there has been ZERO successful prosecutions of paid message board bashers. Perhaps I’m wrong, and I challenge anyone to give me a link to one, because I can’t find one.

    18. huck says:

      So Mark, chanos is next, or will you wait?

    19. iStandUp says:


      Do you have a list of Biotechnology companies that received funding from Hedge Funds?

      Or does anyone else have a link to such a list?


    20. Jeff says:

      Kudos, once again to the Deep Capture team. This looks like a very well-researched blockbuster story.

      However, please oonsider that the information contained in the mterial might be more clearly conveyed by, as one poster suggested, a large graphic showing the deeds of and the interconnections among the miscreants. Or short of that, perhaps a more complete table than the one submitted by a poster in response to chapter 3, with another column showing persons connected to each individual.

      That would allow readers to follow along and see the details clearly without the need for you to constantly repeat the same facts over and over (a bit tedious, imo).

      Thanks for listening and for your dedication to getting the story out.

      • Jeff says:

        Sorry, meant to say: Please consider that the information contained in the material might be more clearly conveyed by, as one poster suggested, a large graphic showing the deeds of and the interconnections among the miscreants, AS A COMPANION TO PERHAPS A MORE CONCISE NARRATIVE. Or short of that, perhaps a more complete table than the one submitted by a poster in response to chapter 3, with another column showing persons connected to each individual.

        That would allow readers to follow along and see the details clearly without the need for you to constantly repeat the same facts over and over (a bit tedious, imo).

        Thanks for listening and for your dedication to getting the story out.

    21. Fishmonger says:

      From the Yahoo message boards, I found this:

      It shows how someone near or in New York City tried to remove a reference to Milken’s ties to Dendreon and others mentioned in this article!

      Great work!


      • Kilroy.Killbasher says:

        Fishmonger, you must have been onto something, because that first link you gave is now GONE! So, there appears to be some trail-covering going on for sure. LOL!

    22. Lenofus says:

      “Do you have a list of Biotechnology companies that received funding from Hedge Funds?

      Or does anyone else have a link to such a list?


      All of them………..

    23. akcje says:

      Mitchell, beware of the worst sins of a conspiracy theory: being repetitive and boring.

      Since you spread your conspiracy by casual associations, let me give you some help:

      It is now self evident that the Russian Mafia is involved in conspiracy against Dendreon. It’s only one step to Vladimir Putin. And from him you can directly connect anti-Dendreon conspiracy to the eternal president Kim Il Sung. And since he is kind of dead, it leads directly to Devil or God or both. This thing is getting way bigger than anybody could suspect. I’m afraid you may not fit everything in only 15 segments and one season. 🙂

    24. Kyle says:

      Dendreonite you are indeed a staggering idiot…. that is a fact… maybe a question to ask you is “who are you sleeping with”? Cohen? Others?

      Patrick Byrne and team are hero’s that don’t get the credit they deserve, not idiots.

    25. Tiny Tim says:

      It appears that a mid-level basher has been assigned to disrupting this dialog.

      Note the tactics. Always use ad hominem attacks, and always slam the quality of the writing while ridiculing any obviously direct connections to organized crime. Never address the links between the players in the article, nor the incredible amount of coincidence required to have all the big NSS hedge funds be one degree of separation from MM. It’s actually fairly transparent in terms of style.

      At least he finally figured out Patrick isn’t writing the article. That’s a plus.

      Look for an increasing number of these sorts of nuisance posts, all attempting to either clutter the discussion. It’s standard MO for message board bashers.

      Remember that the size of the money involved in stealing from not just most of mainstreet America, but also from many of the participants who aren’t in the loop with MM and crew, makes it of paramount importance that these remarkable articles receive as little traction as possible. Although I’m quite sure that there is a legal team already working around the clock to figure out how to stop this before it gets any further.

      Given the players, I hope Mark and Patrick are well insulated from physical harm.

      • tom waits says:

        Mid level basher> are you referring to akcje? He posted BS on the IV dndn board. I put him on ignore many moons ago! Is he paid? I hope not or min wage maybe! I bet just a shortseller of dndn that got a good azz-whipping!

    26. Don says:

      In the old days if a man stole your your horse you would hangem high.Today your money is your horse and if some one steals it we have the right to hang them in my book.

    27. sean says:

      Even when reading stories like the the hypocrisy is evident and Joe Nocera still miises the point, THE AGENCY AND THE INDUSTRY are both rife with corruption and will apparantly remain that way, just like he and the rest of his main street media buddies are!!

      Chasing Small Fry, S.E.C. Let Madoff Get Away
      Do tell. NYT Joe Nocera, no less. SEC drove two small brokers to BK (nearly) over eight years of prosecution, and they were exonerated of all charges. While they had no interest in Madoff. Boston office of SEC.


      Three months ago, in a courtroom in Bridgeport, Conn., a 72-year-old former Morgan Stanley broker named Richard A. Kwak was cleared of any involvement in a small-time stock manipulation scheme.

      Skip to next paragraph
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      The Boston office of the Securities and Exchange Commission began the investigation around 2001. Three years later, formal charges were brought against Mr. Kwak and seven others. By the time the case went to trial, in 2007, only three defendants were left; the others had settled with the S.E.C.

      In that 2007 trial, Mr. Kwak and another defendant, Stephen J. Wilson, were cleared of one charge, with a hung jury on the remaining charges. (The third defendant, who foolishly acted as his own lawyer, was found liable and fined $10,000.)

      The S.E.C. retried Mr. Wilson in 2008. He was cleared. Finally, in March 2009, the S.E.C. retried Mr. Kwak, with the same result. The jury took less than four hours to exonerate him.

      Mr. Kwak’s life is now in tatters. He is around $1 million in debt and suffers from emotional problems. He has struggled to stay out of bankruptcy. Although he is still a broker — he certainly can’t afford to retire — he long ago lost his job with Morgan Stanley, where he had spent several decades without so much as a hint of impropriety. Needless to say, his business is a small fraction of what it once was.

      “It pretty well wiped me out,” he said a few days ago. He is extremely bitter. The same is true of Mr. Wilson, who is also deeply in debt and struggling to reclaim his life.

      I bring all this up because this Monday, Bernard L. Madoff, a contender for the title of greatest financial criminal in history, will be sentenced for the Ponzi scheme he ran for years. Mr. Madoff ruined lives, destroyed philanthropies and cost his investors billions of dollars — yet the S.E.C. was nowhere to be found, despite the repeated entreaties of a whistle-blower, Harry Markopolos.

      Indeed, it was the agency’s Boston office — the same one that so relentlessly pursued Mr. Kwak — that Mr. Markopolos first approached about Mr. Madoff, whom he strongly suspected of financial chicanery. In 2000, 2001 and 2005, he peppered investigators with evidence that, while circumstantial, was far more compelling than anything the S.E.C. ever had on Mr. Kwak. In 2005, the Boston office finally referred the Madoff matter to the S.E.C.’s New York office, which did nothing.

      After Mr. Madoff’s crimes were exposed, there was an outcry over the failure of the S.E.C. to uncover the Madoff scandal. What in the world was it doing all that time? Now we know the answer. Among other things, it was prosecuting two men who, in all likelihood, did nothing wrong.

      When you talk to lawyers who defend people in trouble with the S.E.C., they tend to make several broad complaints. The first is that the agency spends too much time going after small fry like Mr. Kwak. “It happens more times than you can possibly imagine,” said Steven N. Fuller, one of the lawyers in the case.

      This is an allegation the S.E.C. fiercely denies: “I have been at the agency for over 10 years, and I haven’t seen any evidence of that,” said Sylvester Fontes, who prosecuted Mr. Kwak.

      But even the new S.E.C. enforcement chief, Robert Khuzami, acknowledges that the agency has for too long judged itself primarily on “quantitative metrics” — that is, the number of actions it brings and cases it settles — something he hopes to change. John A. Sten, a former S.E.C. lawyer who was Mr. Kwak’s lawyer during the second trial, said, “As an investigator, you are pressured to generate ‘stats.’ ” Clearly, it is far easier for the S.E.C. to add scalps by going after little guys, who will often agree to a settlement and a fine even when they are innocent. They either run out of money, or lose the will to keep fighting, or both.

      A second issue is that the S.E.C. has a very difficult time shutting a case down once the commissioners have agreed to pursue it. Even if the facts start to look shaky, the internal dynamics of the agency push its lawyers to either settle or go to trial, but never to abandon it. “The staff has a real problem persuading the commission to cut off a case once it has begun,” Mr. Sten said.

      Now that it has new leadership, the enforcement division is undergoing “a self-assessment of our management structure, process and operations,” Mr. Khuzami told me. He wants to make sure the agency puts a premium on cases that grew out of the financial crisis — such as the fraud and insider trading charges the S.E.C. recently brought against Angelo R. Mozilo, the former chief executive of Countrywide Financial.

    28. iStandUp says:

      Hi Everyone,

      Does anyone know if the Market Maker’s Exemption for Naked Short Selling was rescinded last September?

      I was just told that Market Makers NO LONGER can engage in Naked Short Counterfeit Selling:

      “Following the issuance of the September Emergency Order, we adopted amendments making permanent the elimination of the options market maker exception.”19

      19 See Exchange Act Release No. 58775 (Oct. 14,
      2008) (adopting final amendments to Rule 203(b)(3) of Regulation SHO to eliminate the options market maker exception from the rule’s close-out
      requirement) (‘‘2008 Regulation SHO Final
      Amendments’’); see also Exchange Act Release No.
      56213 (Aug. 7, 2007), 72 FR 45558 (Aug. 14. 2007) (‘‘2007 Regulation SHO Proposed Amendments); Exchange Act Release No. 54154 (July 14, 2006), 71 FR 41710 (July 21, 2006) (‘‘2006 Regulation SHO Proposed Amendments’’); Exchange Act Release No. 58107 (July 7, 2008), 73 FR 40201 (July 14, 2008) (‘‘2008 Regulation SHO Re-Opening Release’’)

    29. Fishmonger says:

      At least one of the hedge funds are involved with LDK Solar in Feb 2009.

    30. chrisb says:

      MSM is now on this, somewhat…


      “Between December 1995 and December 2008, Picower and his family withdrew from their various Madoff accounts $5.1 billion more than they invested with the self-confessed swindler, according to a lawsuit filed by the trustee who is trying to recover money for those Madoff defrauded.”

    31. tom waits says:

      Yahoo is now in the business of censoring! They are removing all DeepCapture links! Get the word out! Are we in China????

      • akcje says:

        tom waits says: Yahoo is now in the business of censoring! They are removing all DeepCapture links!

        Sure, sure. Yahoo is captured. Google is captured. It is just you, and a few more brave souls left…

        Just to make you and your spamming body ralphie (who started this nonsense about Yahoo and Google) happy, I have posted several links to deepcapture over there. Please, no need to thank me.

    32. JA says:

      Wow, this could be a great story, but the writing and organization make it a chore to read. I reads like the script to an Oliver Stone movie or something. It so convoluted and full of redundancies. Every other paragraph is a rehash of something prior. Count the number of paragraphs that start with “remember,” “as you may recall,” “recall,” “as mentioned,” etc etc etc

      It’s just atrocious reading, which is a shame because the issue of naked shorting needs a strong advocacy, but I fear this article does that purpose a disservice, because frankly, it reeks of conspiracy theory bitterness. The writer should have started with a succinct outline and written an overview type article. Could have saved the nit and gritty and ancillary details for the book and Oliver Stone script.

      I’m afraid I’m going to have to abandon it.

      • MeToo says:

        Ha. I understand this comment totally! Unfortunately, I am also at the point of near-abandonment after 5 chapters…

        The author is in sore need of an editor. The constant repeating is brain numbing and detracts from this important story. Sometimes you have to wade through swamps to get to the promise land…

        Maybe the author was paid by the word… if not, he should hire an editor or ghost-writer to rewrite this piece for him (yes, even a year later!!)

    33. harveydawabbitt says:

      sorry to see ya go JA
      your loss.

      have a super day.

    34. sean says:

      JA I amasuming that this is the last we will hear from you and if so please note that you are a party of one and that you and your opinion won’t be missed. Thanks for your impartial view though!!LOL!!Peace!!

    35. Tiny Tim says:

      Indeed, JA, I take it that your view is that others should also abandon this extremely important series because of your preference of writing style. I also take it that the ham-handed references to Oliver Stone are intended to lump this into the conspiracy twaddle pile, hoping to reduce the impact of the data and facts documented by Mitchell.

      Again, pretty easy to figure out who is expressing a legit view, and who has an agenda to attack based upon writing or personality or using ad hominem. The most reassuring thing is that were it not for these entirely predictable and predicted sorts of attempts, I would question whether this had all made a seriously wrong turn somewhere. Fortunately, we see the expected attacks wholly lacking any rebuttal of any of the data, so we can safely assume that those writing the negative stuff are doing so for a reason.

    36. sean says:

      Not sure, but I hope everyone read this…


    37. kevin says:

      This story could get instant legs in the alternative press if it gets picked up by http://www.whatreallyhappened.com.

      I’m not sure if it is a government CIA site or not (I think it probably is), but stories picked up there fly across the alternative press. This site is just a list of links.

      Please email a request to the owner of the site, Michael Rivero at wrh@whatreallyhappened.com. You can also try joining the forum and getting trusted users to email him.

      He does a lot of financial stories and has linked to deepcapture in the past.

      Here’s a story from this morning.

      While Ponzi’s scam was under way, Ponzi himself was its biggest beneficiary. It now appears that the biggest winner in Madoff’s scheme may not have been Madoff at all, but a secretive businessman named Jeffry Picower.


    38. kevin says:

      Sean, I hope we all look back and laugh when these criminal scumbags are all behind bars or six feet under.

      This isn’t really commerce, but much more like organized crime: it was a gigantic fraud perpetrated on the economy that wouldn’t have been possible without accomplices in the ratings agencies and regulators willing to turn a blind eye. Imagine a meat company that bred ten billion rats, fattened them on trash and sewage, ground their bodies into chuck, and then sold it all as grade-A ground beef to McDonald’s and Burger King, right under the noses of the USDA: this is exactly the same thing, only with debt instead of food. We’re eating it, they’re counting the money.

    39. ginger says:

      Thanks Kevin… I just finished a Whopper.

      What’s worse is the fact that the mainstream media is participating in the coverup because they own shares in McDonald and Burger King.

    40. iStandUp says:

      Patrick, Judd, Mark,

      Is there a list of articles published in DeepCapture.com sorted by author or by some other way?

      I am looking for your article Patrick about the SEC Rules 204T and 10a-3T:

      34-58775 Oct. 14, 2008 Amendments to Regulation SHO
      File No.: S7-19-07
      Effective Date: October 17, 2008
      ( http://www.sec.gov/rules/final/finalarchive/finalarchive2008.shtml )

      Using the DeepCapture search engine I was unable to find it.

    41. iStandUp says:


      From tech stocks to high gas prices, Goldman Sachs has engineered every major market manipulation since the Great Depression – and they’re about to do it again


      The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. In fact, the history of the recent financial crisis, which doubles as a history of the rapid decline and fall of the suddenly swindled-dry American empire, reads like a Who’s Who of Goldman Sachs graduates….

      ….Continued at LINK………..
      ( http://www.correntewire.com/great_american_bubble_machine_0 )

    42. sean says:

      Has anyone seen the mainstream media coverage of this Picower 5.1billion dolar plunder from investors? I have’nt. I thought this would be a huge story if they were really trying to locate the money stolen!!!

    43. Jim Hall says:

      Please provide a single pdf of these installments.


    44. poodaddy says:

      Can you imagine how hard these thieves must have been laughing when Martha Stewart was convicted?
      The massive fraud that is Wall Street must be brought to its knees, but at what cost for the country as a whole? If reputable media outlets (oxymoron acknowledged) get the balls to explain this scheme to average Americans, there will be riots. The derivative debacle will pale in comparison.
      Best of luck to you amazingly brave and dedicated warriors.

    45. Uday Pratap says:

      In his first-ever video interview, Izzy Englander shares with Opalesque’s Matthias Knab little known details and personal background of almost 40 years on Wall Street, including a stint in Chicago

    46. Your blog post is well written and informative

    47. I like the valuable information you supply in your articles. I’ll bookmark your weblog and check once more here regularly. I am slightly certain I’ll learn a lot of new stuff right right here! Best of luck for the following!


    1. […] Michael Milken, 60000 Deaths, and the Story of Dendreon (Chapter 4 Jun 26, 2009. Who's ever President of this Third World Republic called America should… involved in stealing from not just most of mainstreet America,. – Michael Milken, 60000 Deaths, and the Story of Dendreon (Chapter 4 […]

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    At the time much of the content on DeepCapture.com was written, the Great Financial Crisis of 2008 was either on the verge of happening or had just occurred. In those days, emotions among this publication’s contributors were raw and, in an effort to get their warnings noticed and appropriate blame placed, occasionally hyperbolic language and shocking imagery were employed.

    Were we to write these entries today, a different tone would most certainly prevail.

    Yet, being a record of a pivotal time in our global economic history, we’ve decided to leave the rawness unedited, with the proviso that readers take the context of the creation of certain posts into account, and that those easily offended re-consider the decision to read them.