Post by jannikki on Apr 12, 2007 17:12:56 GMT -4
STOCKGATE TODAY
An online newspaper reporting the issues of Securities Fraud
Chairman Cox Please Say it Ain't So, More SEC cover-ups? - April 12, 2007
David Patch
Explosive cannot even begin to describe the lawsuit filed this week in the Broward County Courthouse in Florida [Case Number: CACE07007880].
Imagine having your company being systematically destroyed by members of organized crime and having Wall Street aid them in such destruction. Making matters only worse, how about having the SEC witness it all without taking appropriate steps to protect the company, their employees, or the investors who invested their personal savings into this business. At least that is what Eagletech CEO Rodney Young has laid out in a well-detailed and irrefutable lawsuit against a who's who of Wall Street firms.
The only ones excluded from this lawsuit, but who I see most responsible for the destruction, is the Securities and Exchange Commission. After all, the irrefutable evidence Young has against the members of Wall Street was provided as part of more that 50,000 pages of documents handed over by the Commission to Young during his appeal of the SEC's 2006 decision to terminate Eagletech's registration for failing to maintain SEC filings.
Yea that's right, the SEC actually sought out and kicked the victim after the victim lay beaten and immobilized by the street thugs better known as Wall Street.
In testimony taken by the SEC and provided to Young, the SEC questioned witness John Serubo of Bryn Mawr Investments about the mob related stock manipulation scheme against Eagletech.
Q: So Dorocki as an Executive Vice President at Salomon Smith Barney had no problem whatsoever dealing with mob people in his business.
A: No. He had no problem with dealing with - I only can tell you from my perspective he had no problem dealing with our firm or our deal.
Q: Okay, when Dorocki asked you to hold the stock price up, is that a form of market manipulation?
A: Absolutely.
Q: And your guy at Bank of New York knew that as far as volume goes that Bryn Mawr Investment Group was the holder of a significant number of shares and the remaining shares were restricted at Eagletech? Is that true?
A: Yes, not only did they know that. They also - when we told them sit on the bid at $12.00, a market maker is supposed to go into the market and if the next bidder was at eleven fifty he really should be, you know, a little above that instead of $12.00. But, you know, we told them $12.00. So, you know, they were - they were manipulating the stock as much as we were.
Q: When you were holding up the stock at 12, ten, and eight, who did those trades clear through?
A: Bank of New York . Their market maker actually sat on - you know, who ever they sold it to, Knight or whatever, sat on the bid for us on my end.
The amazing thing here is that in February 2005 the SEC charged John Serubo and 15 other Bryn Mawr and Valley Forge individuals for kickbacks in a stock manipulation scheme [Civil Action No. 05-CIV-852]. Never charged by the SEC were any individuals at Bank of New York, Knight Securities, or Mr. Dorocki of Solomon Smith Barney. Why not with the direct testimony of one of the accused and evidence in place to support the accusations?
The 51-page lawsuit filed by Eagletech has more tasty morsels of similar quality and kind exposing members of Wall Street to counterfeiting of shares, money laundering, and bribery. Each dish appropriately served up by the members of the Securities and Exchange Commission who, along with the US Attorney uncovered all this evidence during an investigation into organized crime and stock manipulation.
Which all leads me to my question up front - Why wasn't the SEC included in this lawsuit since clearly they witnessed the fraud and failed to take the appropriate steps to protect the company, company employees, and investors from such abuses? In leaving these distinguished members in the game it certainly allowed for other unnamed victims to be equally abused.
I hear that in some cases the SEC records obtained by Young do not even show the efforts of the commission to follow through on some of the bribery charges alleged by some of the accused. The SEC set up a speed trap but decided that only 1 in 10 would actually be charged with speeding. Quotas were set so as to not disrupt the general status quo of how the industry would operate.
As for Mr. Young and Eagletech, according to SEC documents there were 1218 retirement accounts that had held this security during the time it was being manipulated. Likewise there were 429 trust funds holding the security during the time of manipulation. And finally there are the unknown quantities of individual shareholders who purchased or sold securities during this scheme to manipulate. Certainly the commission should be responsible for explaining to each why their rights were not properly respected.
Please Mr. Cox, tell me it ain't so. Tell me that the Securities and Exchange Commission did not sit on evidence that documented a well-oiled manipulation scheme involving our most prestigious Wall Street Institutions working hand in hand with organized criminal enterprises. Tell me that the Commission, under your tenure, did not shut down the registration of this public company while holding the evidence that documented that the company was manipulated out of business by the very members of Wall Street the Commission failed to take action against.
Did the Commission really shoot the messenger here?
Rod Young lawsuit argues that the 5 major organized crime families were successful in conducting this scheme against his company and others because Wall Street firms aided them in the manipulation. SEC evidence of Bank of New York, Citigroup and others actually conducting the money laundering transfers offshore that made this scheme profitable to these criminal enterprises. How does the commission thus justify taking actions against the organized crime members and not the banks that aided them in conducting this scheme? Is there no accountability on Wall Street?
The more than 50,000 documents you provided cannot be called back. They are the documents that will expose the very prejudicial and vindictive environment that makes up the Securities and Exchange Commission. Shoot the defenseless little guys while allowing the institutional criminals to wreak havoc on small public companies and their investors.
A copy of the full Eagletech Lawsuit can be found at the links below (large .pdf file so give it time to download)
<http://www.internationalshareholdersgroup.com/pdf/Eagletech_v_Citigroup_Complaint_Filestamped.pdf>
<http://www.spinoffz.com/forums/EagletechComplaint.pdf>
Maybe SEC Inspector General Walter Stachnik can find something here to look into. Lord knows he gets lost without a road map and a few gas station attendants to help him get home from work each night but this is rather damaging evidence against the federal agency he is commissioned to oversee.
For more on this issue please visit the Host site at www.investigatethesec.com (posted with permission)
Copyright 2007
An online newspaper reporting the issues of Securities Fraud
Chairman Cox Please Say it Ain't So, More SEC cover-ups? - April 12, 2007
David Patch
Explosive cannot even begin to describe the lawsuit filed this week in the Broward County Courthouse in Florida [Case Number: CACE07007880].
Imagine having your company being systematically destroyed by members of organized crime and having Wall Street aid them in such destruction. Making matters only worse, how about having the SEC witness it all without taking appropriate steps to protect the company, their employees, or the investors who invested their personal savings into this business. At least that is what Eagletech CEO Rodney Young has laid out in a well-detailed and irrefutable lawsuit against a who's who of Wall Street firms.
The only ones excluded from this lawsuit, but who I see most responsible for the destruction, is the Securities and Exchange Commission. After all, the irrefutable evidence Young has against the members of Wall Street was provided as part of more that 50,000 pages of documents handed over by the Commission to Young during his appeal of the SEC's 2006 decision to terminate Eagletech's registration for failing to maintain SEC filings.
Yea that's right, the SEC actually sought out and kicked the victim after the victim lay beaten and immobilized by the street thugs better known as Wall Street.
In testimony taken by the SEC and provided to Young, the SEC questioned witness John Serubo of Bryn Mawr Investments about the mob related stock manipulation scheme against Eagletech.
Q: So Dorocki as an Executive Vice President at Salomon Smith Barney had no problem whatsoever dealing with mob people in his business.
A: No. He had no problem with dealing with - I only can tell you from my perspective he had no problem dealing with our firm or our deal.
Q: Okay, when Dorocki asked you to hold the stock price up, is that a form of market manipulation?
A: Absolutely.
Q: And your guy at Bank of New York knew that as far as volume goes that Bryn Mawr Investment Group was the holder of a significant number of shares and the remaining shares were restricted at Eagletech? Is that true?
A: Yes, not only did they know that. They also - when we told them sit on the bid at $12.00, a market maker is supposed to go into the market and if the next bidder was at eleven fifty he really should be, you know, a little above that instead of $12.00. But, you know, we told them $12.00. So, you know, they were - they were manipulating the stock as much as we were.
Q: When you were holding up the stock at 12, ten, and eight, who did those trades clear through?
A: Bank of New York . Their market maker actually sat on - you know, who ever they sold it to, Knight or whatever, sat on the bid for us on my end.
The amazing thing here is that in February 2005 the SEC charged John Serubo and 15 other Bryn Mawr and Valley Forge individuals for kickbacks in a stock manipulation scheme [Civil Action No. 05-CIV-852]. Never charged by the SEC were any individuals at Bank of New York, Knight Securities, or Mr. Dorocki of Solomon Smith Barney. Why not with the direct testimony of one of the accused and evidence in place to support the accusations?
The 51-page lawsuit filed by Eagletech has more tasty morsels of similar quality and kind exposing members of Wall Street to counterfeiting of shares, money laundering, and bribery. Each dish appropriately served up by the members of the Securities and Exchange Commission who, along with the US Attorney uncovered all this evidence during an investigation into organized crime and stock manipulation.
Which all leads me to my question up front - Why wasn't the SEC included in this lawsuit since clearly they witnessed the fraud and failed to take the appropriate steps to protect the company, company employees, and investors from such abuses? In leaving these distinguished members in the game it certainly allowed for other unnamed victims to be equally abused.
I hear that in some cases the SEC records obtained by Young do not even show the efforts of the commission to follow through on some of the bribery charges alleged by some of the accused. The SEC set up a speed trap but decided that only 1 in 10 would actually be charged with speeding. Quotas were set so as to not disrupt the general status quo of how the industry would operate.
As for Mr. Young and Eagletech, according to SEC documents there were 1218 retirement accounts that had held this security during the time it was being manipulated. Likewise there were 429 trust funds holding the security during the time of manipulation. And finally there are the unknown quantities of individual shareholders who purchased or sold securities during this scheme to manipulate. Certainly the commission should be responsible for explaining to each why their rights were not properly respected.
Please Mr. Cox, tell me it ain't so. Tell me that the Securities and Exchange Commission did not sit on evidence that documented a well-oiled manipulation scheme involving our most prestigious Wall Street Institutions working hand in hand with organized criminal enterprises. Tell me that the Commission, under your tenure, did not shut down the registration of this public company while holding the evidence that documented that the company was manipulated out of business by the very members of Wall Street the Commission failed to take action against.
Did the Commission really shoot the messenger here?
Rod Young lawsuit argues that the 5 major organized crime families were successful in conducting this scheme against his company and others because Wall Street firms aided them in the manipulation. SEC evidence of Bank of New York, Citigroup and others actually conducting the money laundering transfers offshore that made this scheme profitable to these criminal enterprises. How does the commission thus justify taking actions against the organized crime members and not the banks that aided them in conducting this scheme? Is there no accountability on Wall Street?
The more than 50,000 documents you provided cannot be called back. They are the documents that will expose the very prejudicial and vindictive environment that makes up the Securities and Exchange Commission. Shoot the defenseless little guys while allowing the institutional criminals to wreak havoc on small public companies and their investors.
A copy of the full Eagletech Lawsuit can be found at the links below (large .pdf file so give it time to download)
<http://www.internationalshareholdersgroup.com/pdf/Eagletech_v_Citigroup_Complaint_Filestamped.pdf>
<http://www.spinoffz.com/forums/EagletechComplaint.pdf>
Maybe SEC Inspector General Walter Stachnik can find something here to look into. Lord knows he gets lost without a road map and a few gas station attendants to help him get home from work each night but this is rather damaging evidence against the federal agency he is commissioned to oversee.
For more on this issue please visit the Host site at www.investigatethesec.com (posted with permission)
Copyright 2007