Michael Milken, 60,000 Deaths, and the Story of Dendreon (Chapter 12 of 15)

    What follows is PART 12 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.

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    Click here to read PART 2

    Click here to read PART 3

    Click here to read PART 4

    Click here to read PART 5

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    Click here to read PART 7

    Click here to read PART 8

    Click here to read PART 9

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    Click here to read PART 11

    Where we left off, we had learned that on March 29, 2007, an FDA advisory panel voted overwhelmingly to recommend approval of Provenge, Dendreon’s promising new treatment for prostate cancer. As a result, most financial analysts and investors expected that Dendreon would have  a promising future. However, ten hedge funds (out of a universe of 11,500 hedge funds) held large numbers of Dendreon put options (bets against the company), suggesting they expected Dendreon would be derailed.  At least seven of those hedge funds can be tied to Michael Milken or his close associates.

    We had also learned that Milken himself stood to profit if Dendreon were to experience problems receiving FDA approval. This is because Milken was the early financier and principal deal maker for ProQuest Investments, a fund that (along with an affiliate) controlled a company called Novacea, which was one of Dendreon’s competitors in the race to produce a new treatment for prostate cancer. Meanwhile, Lindsay Rosenwald (a Milken crony who once helped run a Mafia-linked brokerage called D.H. Blair, which specialized in pumping and dumping fake biotech companies) controlled Cougar Biotechnology, which was Dendreon’s second competitor in the race to develop a new treatment for prostate cancer.

    We had learned further that Milken’s “philanthropic” outfit, the Prostate Cancer Foundation, seems largely to be an extension of Milken’s investment fund, ProQuest. This might explain why the Prostate Cancer Foundation endorsed and provided financial support to Novacea and Cougar, neither of which had shown that their treatments were safe or effective, while snubbing its nose at Dendreon.

    In addition, we had learned that in April, 2007, an FDA-contracted physician, Dr. Howard Scher, who was also an executive and director of Milken’s ProQuest Investments, and the chairman of Milken’s Prostate Cancer Foundation “Therapeutic Consortium”, spearheaded an unprecedented lobbying effort to undermine the prescribed regulatory process and convince the FDA to deny approval to Dendreon — the first time in history that the FDA went against an advisory panel’s recommendation to approve a drug destined for dying patients.

    In the days before and after the lobbying effort, Dendreon was subjected to a blistering attack by naked short sellers who illegally flooded the market with millions of phantom shares to help drive down the company’s stock price. This criminal naked short selling continued intermittently for much of the next two years, while other events conspired to hobble Dendreon, a company that had completed multiple clinical trials that strongly suggested that its product, Provenge, was capable of lengthening the lives of tens of thousands of men with prostate cancer….

    * * * * * * * *

    “Black Wednesday at the FDA.”

    That is how Dr. Mark Thornton, a former medical officer in the FDA’s Office of Oncology Products, described the FDA’s decision not to approve Dendreon’s Provenge.  In an op-ed for the Wall Street Journal, Dr. Thornton described vaccines such as Provenge as the “Holy Grail of cancer treatment.”  Without directly referring to anyone by name, Dr. Thorton described Dr. Scher’s lobbying effort as “arrogant” and “unprecedented.”

    Dr. Thornton added that when the FDA succumbed  to that lobbying, “the dawn of a new era in cancer immunotherapy was driven back into the night. It will be years before we know the full impact of these decisions and how many cancer patients…have had their lives cut short as a result.”

    This scandal infuriated many other physicians and patient advocates (with  the exception of those affiliated with Milken’s Prostate Cancer Foundation). Some Dendreon supporters took to the streets.

    On June 2, 2007, there was a protest in front of the American Society of Clinical Oncology. Two days later, several prostate cancer advocacy groups rallied in Washington. On June 6, there was yet another protest, this one attended by still more physicians who demanded to know why the FDA had failed to approve Dendreon’s treatment.

    “I’d like to explain in the most basic of terms,” said Dr. Mark Moyad of the University of Michigan medical school, at the June 6 rally. “We think a mistake has been made. We are here in a friendly way to start the process of correcting that mistake.”

    That word — “friendly” – seems to me to perfectly describe Dendreon’s supporters. I might add  “intelligent,” and “fair,” and “engaged.”  But the mainstream media played its customary role by portraying such advocates as vexatious wackos (notwithstanding the fact that many of Dendreon’s supporters were respected physicians).

    “Oncologists do not usually need bodyguards…” began a story in the Washington Post, which was all about the Dendreon “controversy.”  The gist of this story was that people advocating for prostate cancer patients might somehow be dangerous – that it was strange how vocal they were, it was strange that they used the Internet to get the word out – and Dr. Scher (the physician who helped derail Dendreon) feared for his safety. He had even received some “threats.”

    Nowhere in the story was it suggested that a great many prominent doctors were saying that the FDA had made a “mistake” in failing to approve Dendreon’s application. Nowhere was it mentioned that Dr. Scher played a significant role in engineering this “mistake.”  And nowhere was it mentioned that Dr. Scher was egregiously conflicted due to his financial ties to Michael Milken’s investment fund and Dendreon’s competitors, Novacea and Cougar Biotechnology.

    Essentially identical stories appeared in the Philadelphia Inquirer, the New York Times, the Boston Globe, the Seattle Times, and on CNBC. Every one of these media outfits portrayed Dendreon’s supporters as potentially dangerous lunatics. Every one of them stated unequivocally that Dr. Scher had been “threatened.”  Yet, not one of them specifically described the threats, and as far as I can ascertain, there were no “threats.”

    Clearly, there was a new party line – Dr. Scher was the victim. Given the near verbatim repetition of this party line in so many newspapers, and given my experience working in the mainstream media, I can say with near certainty that this was the work of an orchestrated public relations campaign – a campaign to distract attention from what was really happening to Dendreon.

    Meanwhile, Dendreon remained one of the most manipulated stocks on Nasdaq. On the day that the Washington Post story appeared, SEC data showed that criminal naked short sellers had sold, and failed to deliver, more than 13 million Dendreon shares. Following the mainstream media’s standard operating procedures, no mention was made of this phantom stock in any of the stories on Dendreon’s troubles.

    * * * * * * * *

    By June of 2007, Dendreon’s stock price was averaging around $7 – down from its early April high of $25. There was no way the company could raise more money on the stock market, and so it had to significantly scale back its work on Neuvenge, a promising treatment that fought breast cancer in the same way that Provenge fought prostate cancer. In order to get enough cash to continue work on Provenge, Dendreon issued over $100 million worth of convertible bonds.

    Sometimes, hedge funds that buy a company’s convertible bonds are well-intentioned – they want the company to succeed so that the company can repay the loan.

    But, often, hedge funds that buy convertible bonds do not have the company’s best interests at heart. Indeed, Deep Capture has obtained an internal client presentation given by a well-known investment bank that states that the single largest segment of investors in convertible bonds are hedge funds that actually intend to increase their bets against the companies that they are financing.

    A convertible bond is debt that can be “converted” into stock. A hedge fund lends a company, say, $100 million. As repayment, the hedge fund can either receive the $100 million plus interest at maturity, or instead it can receive, say, 10 million shares in the company.

    If the share price is $8 at the time of the loan, those 10 million shares would be worth $80 million. But if the share price rises to $20, the hedge fund can convert his $100 million loan into $200 million worth of stock. If the hedge fund manager is a value investor who wishes the company well, he will make his loan and wait for the stock to rise.

    But there are various ways that convertible bonds can be put to malevolent use. Suppose a group of hedge funds have launched a full scale short selling attack against a company, but the hedge funds want to short sell even more stock.  To do that legally, the hedge funds must first locate more stock to borrow, and then sell it. But sometimes there is simply no more stock available for short sellers to borrow.

    Now, suppose the share price has already been significantly hammered, so the company can no longer raise money through the stock market. The hedge funds know this. And the hedge funds are important clients of an investment bank. So the hedge funds and the investment bank hatch a plan.

    It works like this: the investment bank tells the victim company that it can resolve the company’s cash problems by brokering a convertible bond offering. If the company agrees, the investment bank says, “great, but there’s just one hitch – you, the company, have to lend us, the investment bank, the shares that the company would normally keep on hand in case the bond holders convert.

    To assuage any fears, the investment bank might promise the company that it will not re-lend those shares to short sellers, but will merely sell them to long buyers – people who want to invest in the company. The company says, “fine,” and issues, say, $100 million worth of debt convertible to 10 million shares. The company also agrees to that “hitch” — so now the investment bank has wangled a “stock loan” agreement that gives it exclusive rights to borrow those 10 million shares until such time as the bond holders convert.

    Meanwhile, the investment bank returns to that group of hedge funds, who agree to buy the convertible bonds as a means to extricating those 10 million shares from the company. Once the investment bank is in possession of those shares, it cannot (at least according to its agreement with the company) lend them to the hedge funds for purposes of short selling. But it can do one better. It can broker swap contracts that oblige counterparties to pay the hedge funds a certain amount of money in the event that the company’s stock price decreases in value.

    Then, the investment bank dumps those 10 million shares into the market all at once, causing the stock price to further collapse. Meanwhile, the hedge funds and the investment bank might be engaging in naked short selling – selling stock that has never been borrowed by anybody (i.e. stock that does not exist).

    If anyone asks about this illegal naked short selling, the hedge funds say they thought they had “a locate” on stock that they could borrow and deliver. If anyone asks the hedge funds to be more specific, the hedge funds say that they had “located” and planned to borrow those 10 million shares that the investment bank had borrowed from the victim company. If the SEC notes that the investment bank had an agreement not to lend those shares to short sellers, the hedge funds say they didn’t know about that.

    Of course, the SEC rarely asks any of these questions, but the convertible bonds provide some immunity, just in case.

    As the stock price hits rock bottom, the company depletes the cash it raised from the bond offering. And the only way for the company to receive new funding is to issue more convertible bonds to the hedge funds, or do one of those dreaded “death sprial” PIPE deals.

    If this were a game of chess, it would now be “check” for the hedge funds. The company knows that its stock price and its financing depend entirely on the hedge funds, which are put in the position of being able to drive (and trade ahead of) the company’s business decisions. This scheme might even allow a set of hedge funds to take control of, say, a $700 million company, for a $100 million loan.

    With the exception of the naked short selling, most of this scheme’s elements can be found in the standard PowerPoint presentations that some banks deliver to their hedge fund clients behind closed doors. The investment banks market the scheme as a way to profit from volatility in the stock. When the stock crashes, the hedge funds make money from the swaps and their short selling. If the stock subsequently increases in value, the hedge funds can convert their bonds and use some of the proceeds to pay the counterparties to the swaps.

    But sometimes the hedge funds intend to fully destroy the company. They make plenty on their short positions and swaps, and their bonds pull in some money during the bankruptcy proceedings. Sometimes, during bankruptcy, the hedge fund lenders get their hands on company assets (such as blockbuster medical treatments) that are actually worth considerably more than what they spent on their bonds.

    At other times, the ultimate goal is not to destroy the company outright, but to crash the stock, and then accumulate shares, giving the hedge funds still more influence over company decisions, and perhaps paving the way for a hostile takeover.

    I do not know for certain the motivations of the hedge funds that bought Dendreon’s convertible bonds. I do not know if they engaged in naked short selling. After all, the identities of the naked short sellers and the real amount of failed trades they are generating are, as far as the SEC is concerned, still a big secret. Remember that the SEC says that releasing information about (illegal) naked short sales would reveal the (criminal) hedge funds’ “proprietary trading strategies.” And the SEC cannot have that.

    I do know, however, that nearly every one of Dendreon’s convertible bond holders are connected in important ways to Michael Milken or the seven affiliated hedge fund managers who held large numbers of put options in Dendreon prior to the strange occurrences of March 2007. This raises the suspicion that the convertible bond holders were not typical investors (that is, investors who put in capital hoping that the company would prosper).

    Instead, the fact that the buyers of the converts were part of the same network that was placing large bets against Dendreon (and taking steps, with help from Milken’s “philanthropy”, to derail Dendreon’s treatment for prostate cancer) raises the possibility that these bond investments were made as part of a strategy to manipulate Dendreon’s stock price down,  during which time members of this network would (with help from Milken’s Prostate Cancer Foundation) pump up the stock prices of Dendreon’s “competitors” – the companies controlled by Milken and his friends.

    In the two years that these shenanigans were going on, 60,000 American men died of prostate cancer, which seemed to be of no concern to this particular network of miscreants. But once the competing, Milken-connected companies had been thoroughly pumped, and then dumped (on the news that their treatments were worthless), it would perhaps be time to exert greater control over the one company–Dendreon–that actually had a treatment that could extend lives.

    As we will see, members of the Milken network – some of the hedge funds that bought the convertible bonds, and some of the seven hedge funds that were betting big against Dendreon in 2007 – have, as a group, recently become the company’s largest shareholders. Their precise intentions, however, remain a mystery.

    While we do not have photo-perfect pictures of what was going on behind the scenes of Dendreon’s bizarre trading (the SEC does not let that get public), we do know that this paradoxical play of participating in a convertible bond in order to further a manipulative scheme against a company, is in fact a standard play on Wall Street. Given this, we would be remiss  not to name the colorful hedge funds that bought Dendreon’s convertible bonds.

    * * * * * * * *

    As we have covered, Milken crony Carl Icahn founded the options department at Gruntal & Company, which owed its existence to Michael Milken and was one of the more disreputable trading houses on the Street. Ultimately, Gruntal was found to have employed several traders with ties to the Mafia, and soon after, it was charged with a massive fraud and forced to pay what was then one of the largest fines in Wall Street history.

    Many of Gruntal’s former employees ended up working for White Rock Capital, which was run by the alleged Russian mobster, Felix Sater, the fellow who was allegedly behind the threat to have Deep Capture reporter Patrick Byrne murdered if he did not end his crusade against naked short selling and the “deep capture” of important institutions.

    As we also know, when Icahn left Gruntal, he handed over direction of the options department to Milken crony Ron Aizer. The first trader Aizer hired was Steve Cohen, who was reportedly investigated by the SEC for trading on inside information provided by Milken’s shop, and later became “the most powerful trader on Wall Street” — the fourth of those seven hedge fund managers prescient enough to bet big against Dendreon before Milken’s other cronies derailed the company in 2007.

    The second trader hired by Aizer was a man named Andrew Redleaf, who later went on to co-found two hedge funds — Deephaven Capital Management and Whitebox Advisors.  According to a media account posted on Whitebox’s website, Redleaf’s family kept its investment accounts at Drexel Burnham Lambert, where Michael Milken was then running his stock manipulation and junk bond empire. Redleaf was recommended to Aizer by Andy Stillman, who was then managing Drexel’s propriety options trading.

    In later years, Redleaf became well-known for investing in Sun Country Airlines in partnership with Tom Petters, who was recently arrested at gunpoint amid allegations that he had orchestrated a massive Ponzi fraud in cahoots with a fellow named Michael Catain. Catain’s father, Jack Catain, was a Genovese Mafia enforcer and loan shark who had been involved, along with Michael Milken, in ZZZZ Best, a fraudulent carpet cleaning company run by Barry Minkow.

    Minkow was eventually imprisoned for the ZZZZ Best fraud, and when he was released, he began a career as a self-described “fraud investigator.” He works in partnership with Sam Antar, the convicted felon who masterminded a massive fraud in the 1980s at an appliance retailer called Crazy Eddie. Antar, who is close to Milken and his network (members of which once tried to help Antar seize control of Crazy Eddie) now spends most of his time on the Internet, smearing and threatening people who work to expose the crime of naked short selling.

    For example, Antar once posted on the Internet the names and address of Deep Capture reporter Judd Bagley’s young children. Antar writes with almost daily regularity that Deep Capture reporter Patrick Byrne is running a fraudulent company (Overstock.com), though he has produced nothing to support his claims, and every reputable person who has examined his arguments has concluded that they are absurd.

    Meanwhile, Antar has littered the Internet with all manner of falsehoods about me—stating, for example, that I’m a drug addict and was fired from my last job. Ever the charmer, Antar has also let it be known that he is friendly with violent people, including those who once ambushed me, punched me in the face, and suggested that I should stop working with Patrick Byrne.

    It is interesting to note that, these facts notwithstanding, in 2008 Fortune magazine saw fit to grace its pages with a highly flattering 2,738 word profile of Antar (“It Takes One to Know One”). Fortune did this even as it acknowledged that, “As would-be fraudbuster, Sam E. [Antar] has yet to notch his first kill. (Although in fairness he doesn’t hold himself out to be a full-time 10-Q detective. ‘I don’t have 40 people working for me like the SEC,’ he says.) He hasn’t brought any companies down or caused any regulators to open any investigations.”

    That is, concerning a notorious swindler and convicted felon who threatens little girls, smears other journalists, is denounced by public officials, and who has not actually been the source of any credible investigation that Fortune can cite, Fortune published a perfectly complimentary puff piece.

    As for the above-mentioned Andrew Redleaf, I noted that he is a founding partner in Deephaven Capital Management. In 2006, Deephaven was sanctioned by the SEC for short selling 19 public companies (almost all biotech firms) on inside information that his hedge fund colleagues were giving the companies “death spiral” PIPEs finance.

    As you will recall, similar schemes have involved Milken crony Carl Icahn (the founder of Gruntal’s options department); Jeffrey Thorp (son of the Mafia-linked card counter who was the most important figure in Milken’s stock manipulation network during the 1980s); Milken crony Lindsay Rosenwald (who used to run the Mafia-linked D.H. Blair, the president of which was Milken’s former national sales manager); and Gryphon Partners (which was tied to the Mafia-linked, nine-fingered Anthony Elgindy, a naked short seller who is now serving an 11 year sentence for stock manipulation schemes and bribing two FBI agents).

    My apologies for the repetition, but there are some who are new to this, and it is difficult for even the well initiated to keep track of so many miscreants, so permit me to remind the reader that Gryphon’s founder and Lindsay Rosenwald were among the seven colorful hedge fund managers who bet big against Dendreon in March 2007, just before the company was derailed by strange occurences engineered by Milken’s cronies. Also among those seven hedge fund managers was Steve Cohen, who was, earlier in his career, investigated for trading on inside information provided by Milken’s shop, and was the first trader hired at Gruntal by Milken-crony Ron Aizer.

    Andrew Redleaf, the second trader hired by Aizer at Gruntal, is, remember, not just a co-founder of Deephaven Capital (sanctioned for short selling on inside information that companies were to receive dubious financing), but also the proprietor of Whitebox Advisors.

    And Whitebox Advisors is among those hedge funds that bought convertible bonds issued by Dendreon, a company that suffered a two-year, sustained naked short selling attack while trying to bring to market a treatment for dying cancer patients.

    * * * * * * * *

    A hedge fund called DKR Management also bought convertible bonds issued by Dendreon. DKR was founded by Barry L. Klein and Gary S. Davis. Previously, Klein worked for Michael Milken as the President of Drexel Burnham Lambert Trading. Davis also worked for Milken at Drexel.

    In later years, Klein and Davis founded the predecessor to AIG Trading Group, a unit of American International Group. AIG Trading Group was later run by Joseph Cassano, who had also been a Milken employee at Drexel.

    While at AIG, Cassano sold tens of billions of dollars worth of credit default swaps (contracts that pay out if a company defaults on its debt) to hedge funds and investment banks.

    Rolling Stone magazine’s Matthew Taibbi, who is one of the mainstream media’s finest journalists, was among the first to establish that AIG Trading Group and Milken crony Cassano destroyed AIG, which ultimately had to be nationalized by the U.S. government – greatly contributing to the collapse of the financial system last fall. Since then, several reports have also implicated Cassano’s Milken-tied predecessors, Klein and Davis.

    Meanwhile, various government investigations are seeking to know whether short sellers acquired and manipulated the prices of AIG’s credit default swaps as a way to weaken their target companies – including Lehman Brothers and Bear Stearns.  The question that remains unanswered is whether the short sellers that bought credit default swaps from Milken cronies Cassano, Klein and Davis were also members of the Milken network (which would mean that some members of the Milken network wrecked the world while the other members of the network bet that they would).

    Another highly significant factor in the collapse of the financial system – as can be discerned from statements by countless officials and by reports in virtually every newspaper in the land, though the newspapers seem content not to investigate the matter or state this explicitly – was the naked short selling of AIG, Bear Stearns, Lehman Brothers, Fannie Mae, Freddie Mac, and hundreds of other companies.

    In the years leading up to the financial cataclysm (and during the time when Dendreon was under attack by naked short sellers), certain hedge funds orchestrated an effective public relations campaign aimed at covering up the crime of naked short selling. As part of this public relations campaign, the hedge funds would regularly trot out a certain Yale professor, who would do his utmost to defend the criminals.

    This professor’s favorite stratagem was to divert discussion away from illegal naked short selling, and repeat, over and over, that legal short selling was good for the markets–a fact that was never in dispute. The professor’s capacity for obfuscation was unmatched, but he nonetheless became a favorite source for some members of the media. He appeared regularly on CNBC and was quoted in dozens upon dozens of articles – all of which communicated the non sequitor that illegal naked short selling is not bad for the markets because legal short selling is good for the markets. Of course, this is like arguing that sexual harassment is not bad because sex is good.

    The name of this professor is Owen Lamont. To this day, the professor is still sought out by the press, which dutifully regurgitates his baloney. But the professor does not work for Yale anymore.

    Now he works for the above-mentioned DKR Management, one of the Milken-connected hedge funds that bought Dendreon’s convertible bonds while Dendreon was brutally attacked by criminal naked short sellers.

    * * * * * * * *

    There are interesting stories to be told about most every hedge fund that bought Dendreon’s convertible bonds. One of them, Eagle Rock Capital, run by an Iranian fellow named Nadir Tavakoli, was once a controlling investor in the International Fight League, a promoter of ultimate fighting matches. The other controlling investor in the International Fight League (which went bankrupt amidst allegations of ultimate fighting’s connections to the Japanese Yakuza and stories that fighters were committing suicides and murders at alarming rates) was a “Russian whiz kid” (according to the media) named Dmitry Balyasny.

    The first things to know about Dmitry Balyasny are that he is closely affiliated with Steve Cohen and he is the seventh of those seven hedge fund managers who were betting big against Dendreon by holding put options on the company’s stock, after the FDA advisory panel had recommended that Provenge be approved, and before Milken’s cronies successfully lobbied the FDA to ignore that recommendation. So I will return to Balyasny soon.

    But first, let’s continue with our list of hedge funds that held Dendreon’s convertible bonds.

    One was GLG Partners. As we know from emails acquired in a lawsuit, GLG Partners received updates on Steve Cohen’s attack on Canadian insurer Fairfax Financial, so it would be unsurprising if GLG was also clued in to Cohen’s attack on Dendreon.

    Recall also that (shortly before GLG bought Dendreon’s convertible bonds) French authorities fined GLG  for being part of an insider trading ring that included UBS O’Conner (a unit of UBS investment bank, which, until March, 2007, was led by former Milken employee Ken Moelis) and Meditor Capital, a hedge fund (also, of course, with ties to Steve Cohen) that had just made a large investment in Novacea, the prostate cancer company that was then being promoted (by Milken’s fund and Milken’s “philanthropy”) as a competitor to Dendreon. In short, GLG was “in the mix.”

    Another outfit that bought lots of Dendreon’s convertible bonds (shortly after it was caught running an insider trading ring with Meditor and GLG Partners) was…UBS O’Conner.

    Then there was Quattro Partners, which bought Dendreon bonds convertible into a more than a million Dendreon shares. The founding partner of Quattro is named Michael Baldock. He had a long career in biotech investing after spending time as an investment banker at Michael Milken’s Drexel Burnham Lambert.

    * * * * * * * *

    Another of the big investors  in Dendreon’s convertible bonds was Forest Investment Management, a hedge fund controlled by a man named Michael Boyd. Prior to founding Forest, Boyd was a partner in an outfit called Forum Capital Markets. Boyd’s co-founder in Forum was C. Keith Hartley, yet another of Milken’s disciples from Drexel, Burnham Lambert.

    Boyd was also the co-founder of a brokerage called McMahan Securities. One of his partners in that operation was Santo Maggio, who later became chief executive officer of Refco Securities, the brokerage that was allegedly processing the phantom stock sales of Rhino Advisors, which illegally naked shorted companies after providing them with finance brokered by Milken crony Carl Icahn’s Ladenburg Thalmann. When Refco was found to be fraudulently hiding $400 million worth of liabilities (liabilities that many believe were related to naked short selling), Maggio pled guilty to two counts of securities fraud, one count of conspiracy, and one count of wire fraud.

    Another of Michael Boyd’s many accomplishments is his son, Roddy. Refco employed Roddy as a trader, perhaps as a favor to his father’s former partner, the criminal Santo Maggio.

    But Roddy soon abandoned the securities business to become a business journalist – first at the New York Post and now at Fortune magazine. Roddy Boyd is a key figure among the small coterie of journalists who turn up repeatedly in Deep Capture‘s analyses.

    Like all members of the coterie, Roddy has spent several years trying to cover up the naked short selling scandal, ridiculing anyone who mentions the crime or the remarkable coincidence of companies appearing on the Reg Sho list (the SEC’s list of companies suffering from naked short selling) when those companies are the targets of a select group of hedge funds whose names will be familiar to the reader who has made it this far.

    In addition to covering up naked short selling crimes, Roddy writes hatchet jobs on the public companies targeted by this same select group of short selling hedge funds. The sources of the information in Roddy’s stories are, of course, the short sellers themselves, and most of the short sellers are, as has been explained over and over, tied to Michael Milken or his close associates.

    For example, Roddy spent a great deal of time working with a soon-to-be arrested criminal named Spyro Contogouris, who had been hired by a subsidiary of Steve Cohen’s SAC Capital, to sabotage, harass, and trash Fairfax Financial.

    As mentioned, we have obtained a great number of emails between Cohen, Jim Chanos of Kynikos Associates, and others in the network that was attacking Fairfax. In one email, hedge fund manager Chanos writes to journalist Roddy Boyd, “your courtesy was a boon to me. Thank you!”

    With the exception of Roddy’s particular clique of journalists, it is not typical for reporters to receive thank you notes for the “courtesies” that they have extended to help hedge funds make money.

    Another holder of Dendreon’s convertible bonds was CNH Partners, run by Todd Pulvino, who used to work for Grosvenor Capital. Grosvenor is managed by Scott Lederman, who was the grad school roommate of Steve Cohen and later the chief operating officer of Cohen’s SAC Capital. While Pulvino was presenting himself as a legitimate investor in Dendreon’s debt, was he in touch with Steve Cohen, who had bet big against Dendreon right before Provenge was derailed by the unprecedented lobbying effort of Milken’s other cronies?

    We can’t say. And we can’t say who was illegally naked short selling Dendreon’s stock. That, remember, is a big secret – “proprietary trading strategies.”

    * * * * * * * *

    On October 12, 2007, Dendreon, still desperate for capital to continue clinical trials that might eventually help its cancer treatment receive FDA approval, signed the paperwork on its first PIPE deal. A dreaded PIPE – the sort of deal that dilutes equity and tends to attract naked short selling that sends a company’s stock into a “death spiral.”

    The provider of this PIPE finance was the Azimuth Opportunity Fund, managed by an outfit called Acqua Wellington Asset Management.

    Acqua Wellington is controlled by a “prominent” investor named Isser Elishis. In an otherwise flattering article, Herb Greenberg – a journalist whose entire career was devoted to granting “courtesies” to hedge funds in the Milken network – described Elishis as the “banker of last resort.”

    Herb, who disappeared from public sight after he was exposed by Deep Capture,  now owns a company that ostensibly sells financial research to hedge funds in the Milken network (or, arguably, merely receives payment from them for the extensive string of “courtesies” that Herb extended while working as a journalist).

    Among Azimuth’s first forays into the markets was an investment in a company called SulphCo, which claimed to have a method for turning sulphrous crude into clean-burning oil. Elishis collaborated on this deal with SulphCo’s principal investor, Zev Wolfson, who, you will recall, was the investor who financed Milken cronies Carl Icahn, Saul Steinberg, John Mulheren, and various brokerages tied to the Mafia, naked short selling, or both.

    SEC data shows that on the day that Dendreon signed its PIPE deal with Azimuth, naked short sellers flooded the market with more than 2 million phantom shares. During the following week, more than a million Dendreon shares “failed to deliver” every day, despite (or perhaps because of) the news that Dendreon had enrolled 500 patients in a trial to confirm its earlier positive results, putting Provenge back on the track to FDA approval.

    * * * * * * * *

    In the late 1980s, a fellow named Jeffrey Yass and his two friends, Eric Brooks and Kenneth Brodie, set up a partnership to place bets at horse racing tracks across the country. On one single day at Sportsman Park in Chicago they pulled in winnings of more than $600,000. This seemed somewhat excessive, so Sportsman Park banned the three friends from its premises. The punters filed a lawsuit claiming that Sportsman Park had violated their rights to visit a public facility.

    At any rate, Jeffrey Yass and Eric Brooks eventually abandoned the business of betting on horse races and instead pursued careers on Wall Street. Now they are “prominent” investors, the proprietors of a mid-sized investment and trading house called Susquehanna International.

    In the spring of 2008, Susquehanna was introduced to Dendreon by a placement agent, Lazard Capital Markets. It is not clear why Dendreon would want to do business with Lazard. After all, Lazard was home to the singing Joel Sendek, who had been busily trashing Dendreon in his research reports.

    Sendek had also been trumpeting Dendreon’s competitor, Cougar Biotechnology, as the next big thing in cancer treatment. In turn, Cougar Biotechnology (the company then controlled by Milken crony Lindsay Rosenwald, formerly of the Mafia-affiliated pump-and-dump shop D.H. Blair) had been quoting Sendek in its SEC filings.

    Sendek’s endorsement, Cougar seemed to be suggesting, was evidence that the company was making progress toward bringing its prostate cancer treatment to market. This was odd, because most pharmaceutical companies use data collected from clinical trials to demonstrate this, not quotes from singing Wall Street analysts.

    Meanwhile, it was widely understood that Lazard’s stock loan department was one of the go-to shops for hedge funds looking to short sell Dendreon’s shares. We cannot say that Lazard was loaning phantom stock to the short sellers (if it were, that would be a big secret), but Lazard’s coziness with short sellers ought to have given Dendreon pause.

    There was also the fact that Lazard Capital had only recently been spun off from Lazard Ltd. Given that the two operations remained closely affiliated (sharing business and so forth), it might have been of some concern that the chairman of Lazard Ltd. was Bruce Wasserstein, a close associate of Michael Milken.

    In “Den of Thieves,” James Stewart, the Pulitzer Prize winning author, quotes a criminal named Denis Levine as saying that Wasserstein was “owned” by Milken’s famous co-conspirator, Ivan Boesky. Given that Denis Levine was indicted for participating in Boesky’s insider trading schemes, one would think he knew of what he spoke, but there is no hard evidence to support his allegation.

    In any case, Dendreon followed Lazard’s advice, and did a “registered direct offering” with Capital Ventures International, an affiliate of Susquehanna, the firm founded by Yass and Brooks. A “registered direct offering” is similar to a PIPE, the difference being that the securities sold to the investor are registered with the SEC and immediately tradable.

    For most of March 2008, naked short sellers were failing to deliver less than 500,000 shares per day. As negotiations for the “registered direct offering” were underway, the amount of phantom stock gradually increased. And on the day the deal was signed, April 3, at least 1.6 million phantom shares had been sold into the market and remained undelivered.

    For the next two months, more than one million Dendreon shares remained “failed to deliver” every day. This despite (or perhaps because of) the fantastic news, on March 12, 2008, that the FDA had agreed to an amended “Special Protocol Assessment,” which would enable the company to release, one year ahead of schedule, the results of an “IMPACT” trial that seemed likely to confirm the company’s Phase 3 trials showing substantial evidence that Provenge was safe and effective.

    As Dendreon’s enemies must have known, it would soon be impossible to stymie the company with arguments about data, but stock manipulators were not yet ready to end their campaign against the company.

    * * * * * * * *

    To be continued….Click here for Chapter 13.

    If this article concerns you, and you wish to help, then:
    1) email it to a dozen friends;
    2) go here for additional suggestions: “So You Say You Want a Revolution?

    This post was written by:

    - who has written 87 posts on Deep Capture.

    Contact the author

    82 Responses to “Michael Milken, 60,000 Deaths, and the Story of Dendreon (Chapter 12 of 15)”

    1. Jim Hall says:

      This is fantastic reporting – I hope there’s a Pulitzer for you.

    2. huck says:

      Will you be exposing the corrupted watchdogs, and other public servants, next Mark? Will that be the focus of a follow up? I won’t bother to state my thoughts on what address that portion of the web of deceit ends. 1,600, something, somewhere…..

    3. Tiny Tim says:

      Roddy Boyd’s father is part of the cabal? That makes sense, given his reporting slant. Didn’t he spend a lot of time breaking the purported identity of Bob Obrien while at the Post, after the WSJ and AP backed off? Now it makes sense as to why he constantly attacked Byrne and Mitchell too. He was pointed at the targets most cramping the gang’s style and drawing unwanted attention to their RICO theft scheme.

      Absolutely brilliant reporting all around. It’s tragic you can unearth all this but mainstream media can’t find its ass with both hands. No wonder many now turn to this kind of site for the straight dope. Kudos.

    4. rick says:

      Great job, Mark!

      This story is so convoluted, I don’t know how you keep it straight in your head. Must be quite the spaghetti diagram that delineates the associations.

      You’re an Ace for doing this.


    5. ginger says:

      Good comments on Mark’s articke from the I/V Dendreon Board:


      “…Mark Michell’s 15 chapters on Wall Street’s stock manipulation and naked short selling using Dendreon as its focus HAS placed a skull and cross bones billboard next to the road to getting a drug approved in the United States by small business. And there are 7 vultures sitting atop the billboard staring expectantly at me, the investor….”


    6. n-tres-ted says:

      Here are several of my favorite quotations from Chapter 12:

      After all, the identities of the naked short sellers and the real amount of failed trades they are generating are, as far as the SEC is concerned, still a big secret. Remember that the SEC says that releasing information about (illegal) naked short sales would reveal the (criminal) hedge funds’ “proprietary trading strategies.” And the SEC cannot have that.
      As we will see, members of the Milken network – some of the hedge funds that bought the convertible bonds, and some of the seven hedge funds that were betting big against Dendreon in 2007 – have, as a group, recently become the company’s largest shareholders. Their precise intentions, however, remain a mystery.
      That is, concerning a notorious swindler and convicted felon who threatens little girls, smears other journalists, is denounced by public officials, and who has not actually been the source of any credible investigation that Fortune can cite, Fortune published a perfectly complimentary puff piece.
      We cannot say that Lazard was loaning phantom stock to the short sellers (if it were, that would be a big secret), but Lazard’s coziness with short sellers ought to have given Dendreon pause.

    7. , Reciprocity says:

      This spiral deathtrap orchestrated by MICHAEL MILKEN killed 60,000
      people in the last 2 years. That is MASS MURDER by any definition. How much money did he pass around to keep our POLITICIANS, LAW ENFORCEMENT, REGULATORS, MEDIA and JUDICIAL SYSTEM quiet.

      Outside of the 60,000 people he killed, hundreds of companies,and many thousands of people have been negatively affected by his schemes.

      This pain is on a grand scale!

      Is there a Doctor in the house?

      Scher there is!

    8. crash says:

      Milken is not considered a mass murderer, SEC sees him as a conquerer.

    9. Solomon MacKay says:

      Someone really screwed up when they decided to hire a feral animal (Milken) to do the dirty work. The whole thing is so bad and so obvious I think it was done on purpose.

    10. Anonymous says:

      Patrick & Mark are Sheep Dogs

      William J. Bennett, in a lecture to the United States Naval Academy on November 24, 1997 said: “Most of the people in our society are sheep. They are kind, gentle, productive creatures who can only hurt one another by accident.” We may well be in the most violent times in history but violence is still remarkably rare. This is because most citizens are kind, decent people who are not capable of hurting each other except by accident or under extreme provocation. They are sheep.
      Then there are the wolves and the wolves feed on the sheep without mercy. Do you believe there are wolves out there who will feed on the flock without mercy? You’d better believe it. There are evil men in this world and they are capable of evil deeds. The moment you forget that or pretend it is not so, you become a sheep. There is no safety in denial.
      Then there are sheepdogs and I’m a sheepdog. I live to protect the flock and confront the wolf. If you have no capacity for violence, then you are a healthy productive citizen, a sheep.
      If you have a capacity for violence and no empathy for your fellow citizens, then you have defined an aggressive sociopath, a wolf. But what if you have a capacity for violence and a deep love for your fellow citizens? What do you have then? A sheepdog – a warrior – someone who is walking the uncharted path – someone who can walk into the heart of darkness, into the universal human phobia, and walk out unscathed.

    11. mhelburn says:

      The associations of Milken and the Mob reveal the mindset of those who are willing to profit from the most base concepts. These people are disconnected from humanity. Milken using a non-profit as a front for his corruption is so typical of people who will do anything for money. He didn’t redeem himself, he just continued his corruption in a more grandiose way.

      Milken’s spin on his achievements is really inspiring.. up is down, black is white… http://www.mikemilken.com/

      “Mike Milken’s career has mirrored his three main professional passions: medical research, education and finance. In each, he has been uniquely successful in creating value, whether measured in lives saved (Fortune magazine called him “The Man Who Changed Medicine”), students inspired or jobs created.”

      There is no mention of his felony record. At least Antar admits to his felonies. “Creating value”…. for whom? While destroying lives and opportunities for those outside the network of manipulators.

      Will this story be referenced on Wikipedia? Is there still a problem with a bias there? Are certain IPO’s still banned from access to Wiki edits?

      • Anonymous says:

        Not a chance. Take a look at the edit history of Michael Milken’s profile at Wikipedia. You can tell a group of editors are protecting his profile 24/7. The profile now is locked for “vandalism” after someone keep trying to add that he is an “ex-white collar convict.” It is the same group of ‘editors’ that are active on protecting entries of “naked shorting” and of some other colorful Wall St. characters. The editors consider the “Deep Capture” reports as blogs and personal opinion – meaning no factual value! Wikipedia is a corrupted organization. Eventually it will go the way of the DMOZ directory. I know many people are fed up with its entries – the only reason it still receives so many visits is because all the search engines give it preferential treatment. DMOZ uses to be the same and look where it is now. Give Wikipedia another 2-3 years of fame and it will just become a footnote on the History of Internet!

    12. clearthinker says:

      O M G

      is there anyone hone at the DOJ?

    13. Feedchipper says:

      Okay, I think it’s official, “Anonymous” is repeating the William Bennett sheep dog story in each comments section as some sort of slam or insult against Mark and Patrick. IMO these posts should be removed.

    14. summer says:

      Can’t we get some DOJ or IRS or SEC bulldogs who are sophisticated enough to understand what is going on and they would be willing to put and end to this criminal activity? Has anyone had a meeting or tried to have a meeting? We have a new head of SEC and Justice. Does anyone have the pull to have a sit down with someone in any of these department and explain the situation to someone intelligent in these matters? Then like in the Madoff case there would be someone who called for these bureaucracies to do their job, and they would be on notice that not only money was at stake so were peoples lives, Surely someone in these departments has/had a loved one with prostate cancer? Surely someone bet the farm on what should have been a slam dunk and is now living in dire circumstances, or someone who lost a loved one to prostate cancer in the right time frame that would be willing to be the face and the story for this campaign?revolution? The same old same old is no longer good enough. I am disabled and becoming more so or I would be up in DC getting anyone I could get to listen and to agree to take action. Patrick and Tommy have done more than their fair share. Someone else needs to stand up and just do it!

    15. Jim Hall says:

      The sheep dog crap is getting old.

    16. sean says:

      Feedchipper and Jim, remember I called these posters out several times before and asked that something be done about them. Please also note the ones that agree with him right after the posts. They are probably one in the same. This is a direct attempt to change the dialogue and bury posts. It has been going on for a while now. I am hoping this is being reviewed by Judd et al. when it comes to the money these criminals steal they will come at you in ways you could not imagine. No lets see who attacks this post!!LOL!!

    17. Anil says:

      Hi Mark –
      Have been following this story (and the Deep Capture sight) for some time now. Would like to understand better some of the statements in this particular Chapter 12.
      For instance,
      In the case of a convertible bond, are the underlying shares for the conversion primary shares or secondary shares ? Am not able to follow the rest of the subsequent two paragraphs as a result of not understanding this.
      Please advise.
      Best wishes,

    18. Roddy Boyd says:


      Wow. That’s a pretty amazing bit of misleading and error-ridden reporting you did on my family and background.

      First off, I will not comment on what you think of me professionally.

      As to my family and background, however, let me set you straight.

      My father worked at McMahan Securities with Sandy Maggio, who left the firm in late 1984, when McMahan began clearing trades through another, larger firm. Sandy, who sat on a different floor and worked in a different area than my Dad, was responsible for stock borrow-stock loan along with two other men. Sandy was not a partner in the firm and after he left, had no dealing with my dad personally or professionally.

      I worked at Refco in the summers of 1986 and 1987 for about six weeks each. I was responsible for light clerical functions for a small equity trading desk and (obviously) traded nothing. More importanly, when you asked me about this in the fall of 2005, I explained this to you in detail and you indicated you were satisfied. Not only did you get the facts wrong, but you have since embellished it.

      Keith Hartley was a former Drexel banker hired by my Dad’s firm, Forum Capital Markets, in 1996 or so. He left prior to the firm’s sale to Wachovia Securities in 2000. He has had no dealings with my father since then. No one I know who worked with him ever heard him say anything about Mike Milken.

      My Dad’s fund, if they had a position in Dendreon bonds, almost certainly got into the position not because of any Sith Lord type activities, but because of quantitative factors like volatility and the premium of the embedded equity. Again, rather different to a master scheme to kill off 60,000 men. For my Dad, i imagine that something that could help mitigate prostate cancer would be an attractive development, since it killed his brother, and my Godfather, several months ago.

      Here’s one thing to contemplate when you weigh the nefarious and shadowy world of Drexel alumni who are doing whatever it is they do: they all do not love Milken. Guys like Hartley and hundreds of others were old line Drexel, based in New York, many of whom pre-dated Milken and stuck around until the very end, after Milken’s operation began its eclipse in the late 80s. They lost millions of dollars when Drexel collapsed in early 90, and few that I have met have any reservations on fingering Milken and his crimes for the reason behind their misfortune.

      No doubt Milken made many of them rich, and many of them dealt with him, perhaps frequently, but I have a hard time believing that they are at his beck and call in 2008 and 2009. Obviously, you do. Still, a serious reporter would weigh this, as well as the other facts above, before he went into print.

      Roddy Boyd

      • Solomon MacKay says:

        Things go well and people are the “best of friends”, things look bad and people “never really met”. Go figure.

      • huck says:

        Getting worried roddy boy? You ought to be. The “peasants” have your number now. You can run, but you will be found. You are going down. Standing in the way of the hoards, at the gate, is not wise. If you stop defending your masters, you might be able to sneak out the sewer. You continue fighting, and you will be gone. Not a threat here, advice. Just look at anytime in history when the peasants had finally had enough. When the masses are intent of deposing the tyrants anyone in the way is gone……. Sleep well.

    19. Roddy Boyd says:

      Mark, a final thing.

      At Refco, I did not work with Sandy Maggio and I did not get the job there because of him.

      Just so you know.

      Carry on, Roddy

      • Solomon MacKay says:


      • Nonymoussurfer says:

        Wow! It’s like we’ve been graced by the presence of a rock star. I’m not sure if I should sing the stars & stripes or vomit.

        Let me get this straight… The ethically deficient NY Post employee Roddy Boyd expects Mark Mitchell, an actual journalist to heed his advice on how to go about being “a serious reporter”??? I have to laugh at that one. I keep a NY Post around but only as emergency toilet paper.

        Glad to see you haven’t broken ranks from your buddies… yet. Being the scaramouche that you are, I expect you will be the first to flip to save yourself from federal pound-me-in-the-ass prison. On the outside chance you don’t flip, might I suggest you use “Lewinski” as your prison nickname…

        Just continue to deny, deny, deny, deny, deny… It’ll do you no good. No one believes your lies.

    20. Don says:

      Lazard was loaning shares out and charging 15% per mth to do so period…

    21. Anonymous says:

      To Mr. Boyd,

      I would like to get an understanding of this statement you made above.

      “No doubt Milken made many of them rich, and many of them dealt with him, perhaps frequently, but I have a hard time believing that they are at his beck and call in 2008 and 2009.”

      In love and war among criminals, doesn’t it all boil down to who “made many of them rich?”

      How rich did you get for writing hatchet jobs for the above milkcreants allowing them to ANSS companies into oblivion? ?

      When it comes to “the love of money,” I hardly think that you have to love anyone that aids in your getting rich , your silence of knowledge or participation in wrongdoing is sufficient. Those who cross that line, well, errrr, dead men don’t talk when that make a deal with the devil and sell their souls.

    22. Roxie says:

      Yo Roddy…For a purveyor of false story after twisted story for years and years you now question Mark Mitchell? You should take your own advice and clean up your biased and misleading stories. You pumped out twisted tale after tale for your demented hedge fund buds who profited on your distortions and out right lies. I recall you once bragged after you published an especially tainted piece how you would now be able to suddenly buy a foosball table for your kids for Christmas. Go figure.

    23. sean says:

      This is precious, what has just occurred is that we now have certification and verification that if this was/is in fact Roddy Boyd posting here, that the miscreants are aware of these accusations and story. This is about to get real and real good. I was wondering how come he did not dispute much else of the 12/15 part saga. Hard to dispute the truth huh? Tell Roddy this “ain’t about him” we are in the process of frying the “Whale” not the guppy!!!

    24. al says:

      Milken, Chanos, Rocker, Cohen, Einhorn, etc etc et al… individually, they are each more abominable and responsible for more despair than Adolf Hitler. Together, and including their miscreant counterparts in regulation & journalism, they represent the absolute lowest form of life that humanity has to offer. I am against the death penalty, and yet I say “KILL THEM NOW, BEFORE THEY CAUSE MORE HARM!”

    25. al says:

      I would also add; “Forcibly sterilize their offspring to prevent the proliferation of their sick & diseased parasitic gene-pools amongst the rest of us.”

      They obviously hate humanity and we outnumber them… regardless of how smart they may be (or think they are), brute force can squash their mightmarish vision.

    26. dan says:

      TY for this and keep up the good work. Why cant we get the NY Times and WSJ to write something like this?

    27. sean says:

      Get ready guys, it coming..

      OK, I just proofread Chapter 13. I bet you didn’t think it was possible, but the story gets worse.
      Mark was going to hold it for next week, but I’m figuring that people have time on the weekend to read more closely, savor the nuances, etc.

      I’ll see if he can publish it now.


    28. For those who missed it, Roddy Boyd (who refuses to answer any direct questions) has appeared here and, in a peevish tone that he apparently thinks sounds like rebuttal, confirmed just what Mark Mitchell wrote about him, namely:

      1) Roddy’s father worked at McMahan with Santo (“Sandy”) Maggio (who went on to become the criminal CEO of Refco);

      2) Roddy worked at Refco before becoming a “journalist”.

      Roddy then goes on to give a defense (summary: That’s outrageous! The idea that a group of people would work together to steal!?!?! That’s outrageous! Did I mention how outrageous it is? A group of people? Working together? Stealing?) normally reserved for 1st time Perp Walkers.

      And to those who say that this confirms that folks are reading this series with some concern… I could have confirmed that long ago, baby. Trust me, every article here is being studied and re-studied by hedge funds, law firms, and MSM.

      For those of you who are new to this fine example of journalistic integrity, please read “Roddy Boyd Sucks It Like He’s Paying the Rent” ( https://www.deepcapture.com/roddy-boyd-sucks-it-like-hes-paying-the-rent ). If I do say so myself, it is one of my finer pieces.


      • Solomon MacKay says:

        Why only deal with the cut-away?

      • Jeff says:


        You said “And to those who say that this confirms that folks are reading this series with some concern… I could have confirmed that long ago, baby. Trust me, every article here is being studied and re-studied by hedge funds, law firms, and MSM.”

        Is it not possible to add FBI, DOJ, Congress, BHO to that list?

    29. sean says:

      Dr. Byrne my apologies, I stand correctly..but never so gladly!!LOL!!

    30. sean says:

      “stand corrected” not “correctly”!!I was laughing to hard and could’nt type straight after reading your response to the Rodmeister!!

    31. sean says:

      From a post on ragingbull!!The case of the vanishing evidence!!POOF!!!

      Reality, if you will note, in the link you provided, there is another link to the “article”, which you will see points to the Novacea (novacea.com) website that showed the conflict of interest of Dr. Howard I. Scher. Novacea is a Milken company and Dr. “I” had financial interest in it, as well as another Milken competitor of Dendreon called Cougar Biotechnology.

      Link described.

      Well, isn’t that strange? The incriminating information has been removed. How do you explain that if there was no criminality?

    32. iStandUp says:


      The URL you supplied got tangled up with the preceding and following punctuation.

      Here it the UNTANGLED URL to the article on Roddy Boyd – Roddy Boyd Sucks It Like He’s Paying the Rent:


    33. mhelburn says:

      The founder of Refco spent a couple years in jail for selling bad chickens to the military… The stench goes back years. http://www.usatoday.com/money/industries/brokerage/2005-11-08-refco-usat_x.htm

      I was curious as to the corporate culture there before they went public.

    34. iStandUp says:


      Is the information below what you noted was missing at the link which no long works:

      “Novacea Reports Fourth Quarter and Year End 2006 Financial Results
      Company Provides Review of 2006 Highlights

      SOUTH SAN FRANCISCO, CA, Mar 26, 2007 (MARKET WIRE via COMTEX News Network) — Novacea, Inc. (NASDAQ: NOVC) today reported a net loss for the fourth quarter of 2006 of $7.8 million or $0.34 per common share. As of December 31, 2006, cash, cash equivalents and marketable securities totaled $64.6 million.

      Company Highlights

      Pipeline Development

      * Asentar — Initiated ASCENT-2 Phase 3 trial In the first quarter of 2006, Novacea began enrolling patients in its Phase 3 ASCENT-2 trial. ASCENT-2 is scheduled to enroll 900 patients at over 200 clinical sites in the United States, Canada and Europe.

      Dr. Howard Scher, Chief, Genitourinary Oncology Service, and the D. Wayne Calloway Chair in Urologic Oncology of Memorial Sloan-Kettering Cancer Center, New York, USA, is serving as study chair. Dr. Ronald De Wit of Erasmus University, Rotterdam, The Netherlands, and Dr. Kim Chi of Vancouver Cancer Centre, Vancouver, British Columbia, Canada, are serving as co-chairs. ”

      ( http://phx.corporate-ir.net/phoenix.zhtml?c=175681&p=irol-newsArticle_print&ID=978064&highlight )

    35. Anonymous says:

      RODDY: You and your ilk fall into that category of CAUSE. And many now experience the EFFECT. Thus you can attempt to defend and deflect but there is NO DEFENSE! Thus, you and your ilk will continue to be exposed and at some point in time experience the conseuences. You can run but you can not hide. TOO much data out there. Mark/Judd/Patrick/ and others have your number. I suggest you redeem yourself while you can and flip. Will YOU? Probably not for unfortunately it’s your nature!

    36. tkalantzis says:

      Roddy .. Patrick wipes his ass with you .

    37. Jim Hall says:

      Roddy, better pass the word to the other so-called journalists.

      You are under a bright light and have been found lacking (or is that licking?).

    38. Roddy,

      1. Mark never said that Miliken had these individuals at his beck and call in 2008 or 2009. He merely describes their associations and their actions based on fact.

      2. Unlike you, “belief” does not enter the picture in Mark’s piece. Mark has proof as to what these individuals did. His claims are not based on “belief”. Of course you may choose to “believe” or “not believe” whatever you want. But the facts are what they are, like it or not.

    39. sean says:

      From a post on Investorsvillage…

      Justice Dept.?……Hmmm?
      The deepcapture story paints a compelling picture of MASSIVE fraud & corruption.

      If deepcapture allegations are untrue where are the libel lawsuits?

      If deepcapture allegations are true where are the regulators & law enforcement agencies? SEC? FDA? DOJ? AG? Where? Where?

      Guess they must be looking for next Martha Stewart….Hmmm?

      • tom waits says:

        And just think the DOJ is representing Scher in the CTL lawsuit against the FDA! What a joke! They need to be investigating him! Not defending the dirty bastard!

    40. harveydawabbitt says:

      patrick i really really really really really really really really really really really like this part of your post

      “And to those who say that this confirms that folks are reading this series with some concern… I could have confirmed that long ago, baby. Trust me, every article here is being studied and re-studied by hedge funds, law firms, and MSM.”

      this tells me that the clock is tickin fer the miscreants.

      how awesome is that??


    41. iStandUp says:

      New letter to the SEC…
      “The House Is On Fire” & We Need U.S. SEC To Act

      DATE: 16 July 2009

      TO: Honorable Madam Chairman Mary L. Schapiro

      CC: SEC Commissioners, Selected Members of Congress, New Jersey Attorney General

      FROM: Reza Ganjavi

      SUBJECT: “The House Is On Fire” & We Need U.S. SEC To Act

      Dear Honorable Madam Chairman Mary L. Schapiro:


      Beacon Power Corp. has just won the endorsement of the U.S. Dept. of Energy, and manipulators have stepped up their attacks in order to maintain control of the company’s stock which is heavily manipulated and there is sufficient reasons to believe illegal activity is conducted by traders and short sellers. Some detail is provided herein and the SEC is urgently requested to investigate the trading of Beacon Power (BCON) specially by the clients of ISE (“International Securities Exchange”) stock exchange based in Jersey City, NJ.

      ( http://home.datacomm.ch/rezamusic/SEC_Investigate_Manipulators.html )

      More calls for the SEC to ACT AGAINST their Fraternity Brothers who run the Wall Street Counterfeit Machine!!

    42. Patchie says:

      Roddy, it is great that you come here as defender now that you are mentioned but where was your reporting prior to being mentioned? worse yet, where have you been in dealing with anything that challenges those hat feed you info?

      forget Chapter 12, lets talk about 1 – 11 and where are you in those details or are you just ignorant of what was being presented?

    43. sean says:

      Our blog here has been infiltrated, but they (the posters/bashers and miscreants) have not been censored and for good reason, I presume. But a poster on Investorsvillage has succintly put their efforts in prospective way better than I ever could so I thought that I would share it with you.

      Re: You lose the bet, Medchal–Your Handlers Have Overreached This A.M.
      As a rule, I do not respond to our resident bashers–not one time in ten. But this attack on Patrick Byrne is beyond the pale (to draw on an old Irish aphorism).

      It’s a necessary activity for hedgefund manipulators (who ominously have been increasing their presence here over recent weeks). Medchal is rather ineptly and belatedly doing his job with this ad hominem attack on Mr. Byrne. Who really cares whether Patrick ghost wrote, edited or financed the writing of the deep capture reports? It is the reports themselves that here are being blackened by Medchal.(with contemptuous indirection, I should add).

      Patrick has been hard pressed to get his story–our story–into the MainStream Media (MSM). (I went after my hometown paper—for whom I am a sometimes paid contributor—only to slam into a stone wall from on high.)

      Disseminating the truth is not a present goal for the captured portion of the MSM. Suppressing it seems more their wish and plan. As for hedgefund miscreants, their financial plan is more overt. Attack the truth tellers and discredit them. Tuora, Zonk, medchal, tweets (toura/tuora, whom we “affectionately” call “toots,” is also tweets IMO), and several others who, if named, would distract from the purpose of this counter-argument by screaming their fool heads off. All are birds of a feather. So you figure out who they are by what they rec and by what they say in their individual accumulated “contributions.” (Just call up their last 50 posts and read a few.)

      For years their ever-returning presence on this board with a succession of multiple IDs has been kept at a minimum by Investor Village management. But that recently has changed. Indeed, hedgefund boiler-room posters like Medchal have been slipping under the tent again while Blue has been distracted with recession-generated financing matters. It has busied him out. Trying to finance his IV business to maintain for us a decent forum for investor (as opposed to manipulator hedgefund spokespersons) discourse, has been a full time job for him.

      So here you are, Medchal, with innuendo and invective bashing Patrick Byrne, the one demonstrably righteous entrepreneurial executive with the cajones to take on an international cartel of murderers and thieves who collectively are working 24/7 to destroy all that has made America the envy of the world.

      With a high-premium call girl your inspired associates took down a politically ambitious Eliot Spitzer, who was attacking them for their corrupt financial misdeeds in New York. Patrick has so far not been susceptible to that traditional Mafia method, so they send you, Medchal ,to try another approach—right here on this rather well-regarded message board.

      Make no mistake, Patrick Byrne and Mark Mitchell and others who speak out effectively—”effectively” is the governing word—are risking everything in the same brave sense that signers of the Declaration pledged their “lives, fortunes, and sacred honor” to bring down a tyranny no greater than the one we face today.

      Medchal’s friends, associates and handlers seek nothing less than a death knell for America as a haven of liberty and as the nurturer of an economic engine built on ethical free enterprise by an industrious, educated and well-intentioned middle class.

      You medchal, and your ilk, are the antithesis of all that you seek so blatantly to destroy. For the Fundamentalists among us, I say, “Get thee hence, Satan.” For myself and for others less constrained to Biblical exhortations, I say “bug off.” Your transparent efforts here will only fix more of us in our resolve to see you and your handlers upended and destroyed like the vermin you are.


    44. Piper Down says:

      Max Keiser – why is he not already a DeepCapture.com reporter?

      He’s got the balls to stand up on French TV and call G-Sachs for what it is. Please add him to the DC stable asap.

    45. harveydawabbitt says:

      मैं अध्याय तेरह के लिए यह सब जल्दी ही नियुक्त किया जा day.will इंतज़ार कर रहे हैं?

    46. Anonymous says:

      Sean thanks for posting the post from Investors Village. And to the VIllage POSTER…. AMEN!!!!!

    47. Anonymous says:

      It must be sad for kids with abusive parents, but I doubt the letter to grandpa would be the right approach.

      Dear Grandpa,

      I was so upset when Dad beat me. I know you beat him, but I’m hoping you can have him arrested and I promise he won’t say anything bad about what you did to him.


      Is it possible a letter writing campaign to grandpa would be unsuccessful? Would it matter how many friends and neighbors wrote similar letters?

      If you don’t understand that the chairman of the SEC and down, the owners of the media and down, Obama / Bush and down, Fox Beck and down, etc. will go to jail if they help you arrest Milkman, Herb Greenberg, Cramer, etc., then you won’t understand how ridiculous it is to beg for the system to help you.

      Pleeeeeease grandpa, I promise you I won’t tell how you beat my Dad if you only save meeeeeeeeeeee.

      We need to take this into our own hands and that means simple things like getting our friends to demand they get their certificates for every share they own and to sue their brokerage if the brokerage refused delivery.

      That one thing would solve this problem over night.

      Oh, wait a minute, I hear some good news. Grandpa just sent me news that Daddy agreed to stop beating me unless he could get away with it.

      Oh, wait a minute, I hear some good news. Some congressional hearing is going to arrest the people that funded their election campaign.

      Come on people, you’re not little kids. Grab some kahunas and decide that the millions of people that pay taxes are going to stop bailing the dozens of people that control wallstreet out of bankruptcy.

      You’ve always had the power if only you wake the f’ up and take the power back from these animals.

    48. You don’t have to request your certificates to keep them out of the hands of the stock loan department. Just put in a good-till-canceled order to sell the stock at, say, $500 a share for DNDN. If there is a pending limit order, the shares cannot be loaned out. The CEOs and managements of every heavily shorted company in America should do this, because usually every share of their stock has been loaned out to shortsellers. Quite a bit of fun to watch the reaction when stock loan calls them to tell them they have to cover their short, because their shares have been taken back, there are none available to borrow, and Mark Mitchell has put too much heat on shorting naked.

      • akcje says:

        Michael Murphy, CFA > If there is a pending limit order, the shares cannot be loaned out.

        You are a CFA?!
        This is a typical nonsense spawned on bulletin boards.
        There is no rule which makes this true. You should read more SEC and less bulletin boards for the source of your opinions 🙂

    49. Anonymous says:

      Anonymous. You mean WE THE PEOPLE? I must agree with you. It’s always been in the hands of the masses but the masses have been too apathetic/lazy and fearful to do anything about it. That is why I recognized a long time ago there’s just too much dialogue. We’ve got all the data needed. JUST FIX IT! Unfortunately, the reality is: DAD and MOM both KNEW that GRANDPA had been beating us. They don’t give a hoot. We need a few champions with the visibility to stir the masses. The problem though is similar to the days of Sodom and Gormorrah sp?. Can you find me just one righteous person? HMMM they were not able to do it back then what makes us thing we can do it now?

    50. bbhindyou says:

      Anonymous the american people need to be removed from the custody of their abusive guardians.
      The abuse goes back to before we were all born to the civil war.
      After the civil war the killing of the president allowed those who were seeking to take over financial fortunes of america to bully their way into our lives and wallets.
      Income tax was something the founders of this country would have died before submitting to.
      The country was founded by those who understood the fact that to control a countrys currency is to rule it.
      The federal reserve is against all the principals this country was founded on and we as a people should have rebelled at its inception.
      Well now the guardians of the child I will call the american people has promised the bad man that for every dollar this child earns in their life you get one third, the child is now a wage slave to you.
      THAT is income taxes.
      After generations of being wage slaves the bad man has decided thats not enough he wants everything the child has home,savings and future.
      Instead of stopping the bad man daddy signed into law that all our belongings are now the bad mans, the bailout bill,whether we wanted it or not.
      What does the bad man want next,why does daddy give everything to the bad man and not stand up for his own child.
      Easy the bad man placed the child in ‘daddys’ custody the child never was his and the fact of the matter is daddys a strung out addict hooked by what the bad man has been supplying him with and he exists to make it easy to manipulate us the child.
      We need to realize we dont need daddy any more.
      He never was our daddy our daddy got shot fighting the bad man.
      We owe nothing to a father figure who exists to allow us to be abused.
      So before ‘daddy ‘decides we need to bend over and die in our own best interest we better GROW UP.
      Is there a psychologist in the house!

    51. Anonymous says:

      Stranger things have happened. Not too far from the truth !!


      POSTED July 16, 2009
      Goldman Sachs in Talks to Acquire Treasury Department
      Sister Entities to Share Employees, Money

      In what some on Wall Street are calling the biggest blockbuster deal in the history of the financial sector, Goldman Sachs confirmed today that it was in talks to acquire the U.S. Department of the Treasury.

      According to Goldman spokesperson Jonathan Hestron, the merger between Goldman and the Treasury Department is “a good fit” because “they’re in the business of printing money and so are we.”

      The Goldman spokesman said that the merger would create efficiencies for both entities: “We already have so many employees and so much money flowing back and forth, this would just streamline things.”

      Mr. Hestron said the only challenge facing Goldman in completing the merger “is trying to figure out which parts of the Treasury Dept. we don’t already own.”

      Goldman recently celebrated record earnings by roasting a suckling pig over a bonfire of hundred-dollar bills.

      Elsewhere, conspiracy theorists celebrated the 40th anniversary of NASA faking the moon landing.

      And in South Carolina, Gov. Mark Sanford gave his wife a new diamond ring, while his wife gave him an electronic ankle bracelet.

      Email This Story to a Friend

      • taxmantoo says:

        A person who wagers on horse races is not a “bookie”, he’s a “gambler”. A bookie is somebody who takes illegal bets, not somebody who places legal bets.

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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.

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