Patrick Byrne gives Jim Chanos the Business, Episode I

Patrick Byrne responds to short seller Jim Chanos on Fox Business Network.

  1. Patrick, I am curious to see Chanos’ (non) response to this. I think you just stirred up a hornets nest. Now I watch to see them squirm!!LOL!!! Investorsvillage must be overflowing with comments!!

  2. Thanks Patrick. You have done so much to forward more attention on the dirty tricks, the manipulation that has gone on in the markets, as well as Naked Shorting Companies, hurting them.

    I salute you!

  3. Poster impersonator alert. Post number 2!!! Same as Darlene,Ivory, Ravenpeach and others.Please ignore this other personality!!! Eventually Judd will hopefully ban him.

  4. so all these e-mails are out there that omplicate this chanos criminal in serious serious financial crime and the jerk is still free.

  5. Awesome video. Patrick Byrne hqs hit it right on the head. The hedge fund managers pay to have people like Motley fools rick Aristotle write half truths,

    Keep talking bout this topic and see new movie out.

    Stock Shock – The Short Selling of the American Dream

  6. Well here we are Doc,

    “stared straight into the mouth of the beastie I’d say. The holy grail stayed holy, oh well there’s always the next time. Off the bench and here we go again…”

    I don’t really think there was ever a Dwarf Sith! Ya made him up 😉

  7. chanos will never comment. All he wants is for the truth to die, unnoticed. He is guilty as sin, and he knows it. If enough people become aware, there could be uproar that even the s.i.c. could not ignore. Same as every other day.

  8. Good work Patrick! And good job calling nonsense when the story began to get twisted there at the end.

  9. There should be NO short sales. If you don’t have it, DON’T sell it.
    Hmm, let me sell you something you are looking for, I don’t have it, but I’m pretty sure I can get it though, so I’ll be fine. Ok, Sale Done. Ooops, no I can’t get it, I’ll have to wait till someone sells some. OR, hey, I know, let me put out disinformation to scare people into selling, and that will drive the price down and I can get it even cheaper and make more money, and I can cover my A** at the same time. Brilliant. NOT! The market is a joke. The only way to clean it up is to make all short sales Illegal. Talk about a mass cover! Whoa Nelly! End of story………….

  10. Leaders wanted: now hiring.
    cockroach management lessons/pay to play

    Their presence in the home is offensive and implies uncleanliness.

    change the name, throw the toxic shit or hot potato.
    too hot to hold onto, and therefore must be passed along immediately.
    compulsive liars are good friends to have, they smile and wave as
    they attempt to act honest while the parasites breed among them.

    use others for personal gain… and power also
    beat poor and stupid right? move faster to cover up the shit
    because the squishing sound is getting louder.

    i am your friend and i can brainwash you and all of the dumb asses
    to believe anything I say or print. this is a fun game right?

    i would rather have a cockroach on my plate of food than
    see a walking talking greedy piece of shit.

    Patrick my bet is on you. *smile*
    for the people………

    the sound of big footsteps gets loud as the human cockroaches look for rocks to crawl under.

    byrne baby byrne…….it is getting hot.

  11. Chanos said that Wall Street frauds have been uncovered exclusively by:

    1. Insider whistle blowers
    2. Journalists
    3. Short Sellers

    This is true only in the fantasy world of Chanos. Despite the SEC’s documented ineffectiveness and ineptitudes, there are many Wall Street and Main Street folks who have been prosecuted and convicted solely by the SEC without any input from any of the 3 above. Just go to the SEC website under legal actions and see the legal actions and the synopsis of the cases, were the uncovered fraud.

    In what category would Chanos put Gradient, when they admitted to falsely publishing analyst reports on Overstock? This was uncovered by the harmed party – there are plenty of those as well. To add to Canos’ list

    4. Victim plaintiffs
    5. SEC

    And Chanos leaves out how many false accusations the short sellers and journalists have made.

  12. It is not what Chanos said but what he did not say that really matters.

    Chanos likes to hang his hat on the likes of Enron, whose demise came down faster than a meteor falling from the sky. But what Chanos never wants to address are those tens to hundreds of claims he and his cohorts took to the SEC and were dead wrong about; all the while billions in market cap vaporized under the pressures of the bogus SEC investigations.

    The push should be to have Chanos come clean with all his reported wrongdoings and not just the one or two success stories he reports on so frequently. ENRON is nearly a decade old, if Chanos is such a genious you would think he would have a replacement for a decade old scandal.

  13. Patchie, Chanos has many other recent sucesses and has made a kings ransome from them but he dare not name them or he would be arrested for insider trading. Examples would be Bear Stearns, Lehman Brothers and a host of other failed Financials. I would not be suprised if if did not have a hand in the auto industry failing also. These criminals are a lot smarter than we give them credit for. The fact that they own the Justice system is why nothing ever comes of these investigations ala Linda Thompsen!!!

  14. Sean, there are successes just by identifying over-value and successes in exposing fraud. Chanos wants to take credit for exposing fraud in Enron and uses that example as why he and his associates should be given more freedom not less. The issue is that Chanos has had many ‘Enron Failures’ to his credit but does not want to present that side of the coin.

    Insider Trading is a different beast. He does that to make money but he also contacts the SEC at will and presents allegations of fraud, regardless of accuracy, just so he can profit on the news of an SEC investigation.

  15. There is a distinct difference in uncovering fraud versus perpetrating one.

    What happened to Lehman was the latter.

    These short creeps have totally infested and perverted the system and our market.

    Jailtime is the required antidote, though it apparently hasn’t stopped Milken.

  16. slow is good. i am a turtle.

    2 speeds slow and slower.

    Patrick this is a long movie…….damn out of popcorn again.

  17. Funny, the miscreants media friends can’t form a retort because they would have to mention Chanos’ SEC investigation!!LOL!!This is to rich!! They’re stymied!!

  18. wow, i can’t believe the comments on this site. chanos is 100% correct. the real dirtbag in all of this is bryne. that guy has henchmen and engages in smear campaigns against anyone that tries to uncover the FRAUD going on at his company. talk about SEC investigations — how about the ones that have gone on at overstock? how about overstock’s misstatements and improper revenue recognition. that guy is one piece of work. unbelievable.

    so much hot air and touting goes on to artificially inflate stock prices, the short sellers act as a valve to bring the markets back to equilibrium. it’s not a glorified job, as you can tell. even when they do it right they get blamed for bringing the company down — not the executives that overlevered the company 40-to-1 and made bad decisions and then tried to cover it all up by keeping it off the books. who do you think uncovered enron? it was chanos.

    and by the way, analyst reports are NOT insider information. insider information comes from the company and management. and independent analyst doing his own research and then trading on it is nowhere close to insider information. the only violation here is that he gave preferential treatment to chanos by letting him see it first.

  19. “What does it profit a man if he gains the whole world yet suffer the loss of his own soul”.

    To the poster Aurelius. It won’t be over until the likes of Jim Chanos,Steve Cohen, Dan Loeb, John Paulsen, George Soros et al, for the crimes they have committted during this time economic disaster that they themselves have caused are in JAIL!!! I wonder why they have not come after Patrick and this same site for Libel? Would you care to explain this, since so are so enamoured with their abilities? I know if someone lied about me I would come back at them with everything I had, or are you it?? Is that all Chanos

  20. “and by the way, analyst reports are NOT insider information. insider information comes from the company and management. and independent analyst doing his own research and then trading on it is nowhere close to insider information. the only violation here is that he gave preferential treatment to chanos by letting him see it first”

    Lets just say that this is for the regulators to sort out. What is quite concerning is that you do not see wrong in trading off non-public information that you know will alter markets. What of those traders who set up a ring to steal advance copies of Businessweek to trade off? They were not insiders in the companies they traded but they were arrested for their activities none-the-less and insider trading charges were applied.

    Man Who Leaked Business Week Column Pleads Guilty to Insider Trading

    Sign In to E-Mail This Print Reprints Save By THE ASSOCIATED PRESS
    Published: October 24, 2006

    A former printing-plant employee admitted leaking copies of the Inside Wall Street column from Business Week magazine as he pleaded guilty to insider trading charges yesterday, in a case that the authorities have cited as a sprawling illegal stock-trading scheme.

  21. It won’t be over until the likes of Dick Fuld, Angelo Mozilo, Joe Cassano, Frank Raines, Stan O’Neal, Barney Frank, Alan Greenspan, Robert Rubin, Larry Summers, Chris Cox… are in JAIL for causing this economic disaster.

    That’s the problem with you guys — you place all the blame far from where it is deserved. You are the same people that blame mark-to-market accounting — the rules that helped to reveal just how bad things were at these companies. And then you blame short sellers for seeing it first and placing bets that these companies would in fact fall to their demise.

    you should save up your anger and outrage for the people that steered the ship into the iceberg — not the rules that told you how much water they were taking on, or the bystanders that saw the iceberg coming and knew the disaster was unavoidable.

  22. “I wonder why they have not come after Patrick and this same site for Libel? Would you care to explain this, since so are so enamoured with their abilities?”

    sean, thank you for giving me the opportunity to explin. do you honestly think chanos and paulson give two s$!ts what byrne or you, or anyone who posts comments on a blog for that matter, say about them? let me fill you in. they don’t even know you exist.

    if anything, they engage in their war of words through interviews with cnbc, fox biz, wsj, bloomberg… but at the end of the day, they speak with their money. and i’m sure chanos, paulson, rocker, and anyone else that shorted patrick’s crappy company, laughed all the way to the bank. have you pulled up a 5-year chart of OSTK lately? the truth is, it’s a sh!$$y business and a worse stock. that’s it.

  23. patchie, you make a good point about that biz week case. i’m not familiar with the facts of that case, but i wonder if it has something to do with the type of information included in the biz week article. also may be a matter of semantics — nonpublic information vs. insider information.

    in any case, i do see the problem in trading on material nonpublic information. also, i agree that naked short selling should be illegal, which it is. my only point was that the violation was that the analyst shared his research with a select group of clients before it was available to other clients. that research, btw, wouldn’t have been available at all to you or me — only the firm’s clients. analysts have no obligation to publicly distribute their reports and opinions.

    in the case in question, chanos was short FFH long before that analyst ever even initiated coverage. he was actually in the process of closing out his position when that report came out. he’d already made plenty of money on that call…

  24. harvee, is that all you got? really? no constructive counter point. just fall back to “seems he isnt familiar with reality.” wow, that’s rich dude. if you’d only take your blinders off you’d see it’s you that can’t come to grips with the truth my friend…

  25. Would someone kindly put up the charts for Bear Stearns, Merrill,Lehman,BAC, Citi, Wamu, Wachovia, Fannie, Freddie, Countrywide..need I go on and compare them to OSTK please. Oh thats right most of the companies don’t exist anymore and the ones that do are on their way out!My bad. Aurelius you were right and all on this site are wrong. My apologies. At least Dr. Byrne’s company is still in business and operating by the “Rule of Law” also he did not need any TARP or Talf to do this either. Comeback soon y’hear”.

  26. smells shit……

    the shit hit the fan and the fan broke…..
    sticky mess ….

    that big crack turned out to be more than noise
    pollution….noise levels increase

  27. Why would you pick on Harvee when you had me!!LOLThats what you do prey on the weak. Why don’t you respond to MY TRUTH!!!

  28. i was laughing my a$$ off about that youtube clip on SIRI. is that for real? or is it some spoof like borat? poor investors, they invested in a crappy “can’t miss” company that paid howard stern millions of dollars in compensation and tied their fate to the failing u.s. auto industry. yeah, they lost their shirts, because it was a crappy investment. of course there must be someone else to blame other than themselves. those evil wall street folk took our money. gimme a frickin’ break! radio is a commodity. you can’t charge people for it and run a business that way and expect to be successful long-term. every american may one day listen to satellite radio, but that day will come only when it is free.

  29. sean, thank you for making my point. those companies are out of business. their execs drove them into the ground. that’s why they should be held accountable. NOT the short sellers. “the ones that do are on their way out?” do you think every company that exists today will be around in 1 year, 2 years, 3 years? and that they will be trading higher? boy i hope not. as for OSTK, if that’s your standard for success, you could find much MUCH better my friend. OSTK down 67% last 5 years vs 16% for S&P 500. wow, that’s a great return. sign me up! i’m not making a case for the banks or bailouts or any of that. well done byrne, you don’t need a bailout. congrats for meeting sean’s standard of success. can’t wait to see where you stock is in another 5 years…

  30. being investigated by law enforcement in California

    Gradient sharply criticized Overstock in its research reports and Byrne and company cried that the reports were not true. (Oddly enough, the company still has not turned a profit several years later, and is still a horrible investment.)

    Note to Patrick Byrne: Those who have bad things to say about Overstock, its business model, its operations, and its never-ending financial losses aren’t necessarily short sellers who are trying to profit off bad news. Many of them are realists who have figured out how awful your company is. Sorry, but sometimes the truth hurts.

  31. aurelius,

    I justed looked at your link to the story about California investigating… hummmmm.

    The date on the story is:

    … Posted Apr 19th 2008 5:10PM by Tracy Coenen

    This story is over ONE Year Old.

    Can you tell me what California investigators determined about

  32. ok, so i just put 2 and 2 together — meaning i realized that this site is run by byrne himself. in fact, i wouldn’t be surprised if “sean” was actually patrick. i wouldn’t put it past the guy. it really is something that byrne would do. and that’s something that should make all OSTK shareholders worried — a ceo spending his time trolling a site like this, monitoring comments and getting into it with random foes…

    but suddenly all of these posts and comments make sense. so i’m just going to check out now and get back to the real world. i’ll leave you all to your conspiracy theories about how everyone else is to blame but yourselves and the execs that run companies into the ground… enjoy!

  33. Anyone got any theories about who sent aurelius? Is he a hired hack? We have almost never seen this type of poster here, and now all of a sudden when Patrick has some real dirt on Chanos, he shows up.


  34. I’m kind of new to the site, but I think it’s funny that you think someone “sent” Aurelius here on some kind of mission to change your minds or something. Why would that matter? Who would send him anyway? From my standpoint it looks like Sean called out Aurelius and he responded. I’d be curious to see what Sean has to say now. Just my 2 cents.

  35. Sean has nothing to say but a lot towrite Bill. I called him out because he is a member of the miscreant league and it is good versus evil here. Plain and simple you are either for or against what this site stands for. Also anyone here reads this blog long enough knows that Patrick posts under his own name and my name is actually Sean.. no fake handle here nothing to hide like Aurelius. Bill I hope I gave you more than the 2 cents you were looking for. Peace. P.S. Someone did send Aur. he did not show up here on his own volition that I can assure you!!

  36. Aurelius:

    Cause and effect: Cox and those you mentioned did NOT cause the events but allowed such. However they should be subjected to the test of NEGLECT or WILLFUL NEGLECT!

    Re Chanos, and his ilk:

    Those who were using the tactic of the illegal use of naked short selling to take down companies and exact change should be given a one way ticket to jail.

  37. Hi FTD Experts,

    I was looking at the FTD data for MEDX today, a biotechnology company (FTD Data from: ).

    I noticed something I do NOT understand. I hope our FTD experts in can explain how there can be MORE FTDs sold than the Historical TOTAL number of shares sold on a given day.

    Here is the data of interest, which I do not understand:

    MEDX Historical Data with Total FTDs on Date FTDs SOLD
    Date Volume Adj Close QTY of FTDs
    on SELL Date

    8/28/2007 1,437,900 16.58 1,084,009
    8/27/2007 1,359,200 17.35 2,347,964 ——–
    8/24/2007 1,630,600 17.58 88,125
    8/23/2007 1,746,300 17.59 2,329,184 ——–
    8/22/2007 1,601,500 17.74 29,866
    8/21/2007 1,931,500 17.9 350,893
    8/20/2007 1,885,100 17.58 215,704
    8/17/2007 2,990,200 17.61 2,393,415
    8/16/2007 3,339,600 17.09 4,822,273 ——–
    8/15/2007 8,586,000 16.27 8,893,055 ——–
    8/14/2007 2,693,700 16.39 108,083
    8/13/2007 2,694,200 16.6 97,703
    8/10/2007 4,125,700 16.55 126,070
    8/9/2007 6,255,700 17.37 24,782
    8/8/2007 15,252,000 17.01 114,514
    8/7/2007 9,929,100 15.61 36,457

  38. How can there be MORE FTDs SOLD than the Historical Total Shares Sold Data on the following days for MEDX?:

    8/27/2007 1,359,200 17.35 2,347,964 ——–

    8/23/2007 1,746,300 17.59 2,329,184 ——–

    8/16/2007 3,339,600 17.09 4,822,273 ——–
    8/15/2007 8,586,000 16.27 8,893,055 ——–

  39. Naked short apologists never explain why there is no fraud in the custody chain.

    If a depository, clearing brokerage or brokerage sends a statement that says shares are there (“Securities Held Long”), when they aren’t, isn’t that mail fraud? They are only doing it to intentionally deceive, so they can profit at the expense of the owner of those assets they secretly sold.

    Do you think any jury would ever buy the argument that “securities held long” disclosed that you owned nothing but an IOU, with the only collateral marked to market at current depressed prices?

  40. Apparently, aurelius is here because someone is nervous and is in dire need of some obfuscation on what are actually clearcut issues of fraud and the like.

  41. istand, FTD data is cumulative, it is also delayed data. The FTD data represents trade failures posted after 4:00 on T+3. If the reported data shows X fails on a Friday (representing T+3) you need to first subtract Thursdays Fails from Fridays posted numbers and that would be the number of fails created. You then match that number up to the Trade Volume for the Tuesday of that week because that is Trade Date.

    Take a look at your numbers and see how they pan out using this criteria. I have seen the scenario you speak of however and have not been able to fully identify how or why it happens.

  42. Benefits of insider trading, note the short bias to the article. (As if insiders never buy.)

    As the late Milton Friedman remarked in 2003: “You want more insider dealing, not less. You want to give people most likely to have knowledge about deficiencies of the company an incentive to make the public aware of that.”

  43. Patchie,

    What I was trying to do was take the reported FTDs reported on a given day, which as you say is T+3, and then moved this reported FTD number (T+3) back 3 days (T+3-3) to see how many of the shares sold on a given day (per Historical Data) Failed to Deliver.

    Having said this, I checked one date, and I think I made a mistake by moving the 3 days in the wrong direction… I will go correct this mistake and look at the number one more time.

  44. Remember, these are cumulative fails so the number of fails on a given day is the delta between the reporting days. The data is not reporting fails for that day but cumulative (aggregate fails) in the system. The data is likewise somewhat arbitrary because you have no idea how many of the fails reported the prior day are closed the following day. Example Thursday is Reported 100,000 Fails and Friday is 200,000 fails. Theoretically the trading on Tuesday resulted in 100,000 fails (200,000 – 100,000). But in reality some of the fails recorded on Thursday could have settled on Friday (say 25,000) and therefore the increase in fails due to Tuesdays trading would be 125,000. The data is not detailed enough to derive this type of number because it is net settlement data.

  45. Funny how Chanos’ names keeps popping up all over the place named in all these unscrupulous activities all of a sudden. They must all be just picking on him because he is RICH right? LOL!! The noose is tightening can you feel the tension? I know Milberg Weiss, David Rocker et al did!! My Mom has a saying..”Night can only run for so long before day catches it” Welcome daylight!!!

  46. Jeff Matthews today describes a bizarre, though unsurprising, phenomenon: how the nation’s premiere corporate spinmeister and earnings-manipulator, CEO Patrick Byrne, has been all over the media lately, lecturing on the evils of corporate spin and earnings manipulation.

  47. Funny how Byrne’s name is always in the media about what a complete whack-job he is. Seems most everyone views him as an absolute yahoo, while he and his few cronies are the only ones saying bad things about Chanos. Everyone must be under some magical influence of Chanos while the only one that sees the “truth” is a mad doctor.

  48. Aurelius. I think the term is cloing ranks. Bad guys close ranks and attempt and have been attempting to confuse re Patrick. HMM come to think of it, it appears by your plethora of posts you are one of the bad guys.

    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.

  49. Aurelius – you are avoiding the key points in this thread….and I am not surprised. The issues are very simple and basic….

    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

  50. Aurelius is apparently oblivious to the fact that the GAO is not pleased with the FTD issue and does not consider it to be a non-issue.

    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.

  51. Patchie,

    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?

  52. Patchie,

    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

  53. Here is better formatted data with an underscore between columns to make the data more readable, I hope, in a text only mode where “spaces” are deleted.

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

    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.

  54. The data looks okay from a cursory look. yes the closing price reported by the DTCC is presented as the previous day close. This is how they do a mark to market calculation. Last close price to reported fails.

    The numbers never exceed 100% either.

  55. is this stuff true?

    Marine admits giving CIA files to LA deputy

    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.

  56. Patchie,

    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 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!!!!:


    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:


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


    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?

  57. Patchie,

    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:

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

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

  58. I am Patrick Byrne! What a fn’ joke. Does it really matter who is who, or for that matter how well overstock is doing. The facts speak for themselves. Maybe not all the companies targeted would have survived had they not been, but some might have. The ashes without the Phoenix!

  59. Some afternoon fodder for thought, ..There were eight investment banks/Prime brokers… Goldman, JPMorgan, Morgan Stanley, Bank of America,Citi Group, Merrill, Lehman, and Bear Stearns. Three have gone poof… disappeared, vanished, dissolved. Bear S, LEH and Merrill. Two other Citi and Bank of America are on taxpayer life support. And finally the big 3 Goldman, JP Morgan and Morgan Stanley are florishing. And I have to ask all here why? What about the 3 deceased companies warranted them to the sentence of death. What was so toxic in thse companies that were’nt in the surviving bunch. Also remarkable coincidental all of these companies were and are in some serious lawsuits re: Market Manipulation ect. by OSTK, TASR just to name a few. Could this consolidation be for a reason that we are not seeing or they are not talking about? And if so maybe we should. What are our regulators really hiding and are scared that may get out into the open? The noose tightens.


    —– Original Message —–
    From: marv eatinger
    To: [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; [email protected] ; CFLETTERS ; [email protected] ; [email protected]
    Cc: [email protected]
    Sent: Sunday, June 14, 2009 5:58 PM

    Marv Eatinger

    Business Corporations Act

    Corporation Summary

    Mailing Address


    C/O 200-204 LAMBERT STREET





    Status Date:


    Attorney Address:

    Resignation Filed:

    Registered Office:
    410-435 DEVON PARK DRIVE


    Start Date:

    Start By:

    Home Jurisdiction:

    Home Start Date:

    Last Annual Return:

    Ended As:



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

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



    JUNE 15, 2009



  61. Anon I was one of the first people that started to send Mike Morgan messages when that site first began. I have read every story that he and other contributors have written. A very informative site!!Too bad it has been temporarily shut down!!! The answers I am looking for arenot there but I think I am coming up with some answers. Check this out also!!

    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.


    Paul E. Kanjorski

    Chairman, Subcommittee on Capital Markets,

    Insurance, and Government Sponsored Enterprises

    cc: Ms. Mary Schapiro

    Chairman, U.S. Securities and Exchange Commission

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