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Happy New Year, Mick
And I especially want to wish Rick and Sue a Happy New Year...
I miss them.
happy new year's to all.
hi A.J. , good morning M.S's watchers.
(One of a series of stories on CIA foreknowledge of the WTC attacks.)
SUPPRESED DETAILS OF CRIMINAL INSIDER TRADING LEAD DIRECTLY INTO THE CIA’s HIGHEST RANKS
CIA EXECUTIVE DIRECTOR “BUZZY” KRONGARD MANAGED FIRM THAT HANDLED “PUT” OPTIONS ON UAL
by
Michael C. Ruppert
[© COPYRIGHT, 2001, Michael C. Ruppert and FTW Publications, http://www.copvcia.com/" target="_blank">http://web.archive.org/web/20011108221443/http://www.copvcia.com/. All Rights Reserved. – May be reprinted or distributed for non-profit purposes only.]
FTW, October 9, 2001 – Although uniformly ignored by the mainstream U.S. media, there is abundant and clear evidence that a number of transactions in financial markets indicated specific (criminal) foreknowledge of the September 11 attacks on the World Trade Center and the Pentagon. In the case of at least one of these trades -- which has left a $2.5 million prize unclaimed -- the firm used to place the “put options” on United Airlines stock was, until 1998, managed by the man who is now in the number three Executive Director position at the Central Intelligence Agency. Until 1997 A.B. “Buzzy” Krongard had been Chairman of the investment bank A.B. Brown. A.B. Brown was acquired by Banker’s Trust in 1997. Krongard then became, as part of the merger, Vice Chairman of Banker’s Trust-AB Brown, one of 20 major U.S. banks named by Senator Carl Levin this year as being connected to money laundering. Krongard’s last position at Banker’s Trust (BT) was to oversee “private client relations.” In this capacity he had direct hands-on relations with some of the wealthiest people in the world in a kind of specialized banking operation that has been identified by the U.S. Senate and other investigators as being closely connected to the laundering of drug money.
Krongard (re?) joined the CIA in 1998 as counsel to CIA Director George Tenet. He was promoted to CIA Executive Director by President Bush in March of this year. BT was acquired by Deutsche Bank in 1999. The combined firm is the single largest bank in Europe. And, as we shall see, Deutsche Bank played several key roles in events connected to the September 11 attacks.
THE SCOPE OF KNOWN INSIDER TRADING
Before looking further into these relationships it is necessary to look at the insider trading information that is being ignored by Reuters, The New York Times and other mass media. It is well documented that the CIA has long monitored such trades – in real time – as potential warnings of terrorist attacks and other economic moves contrary to U.S. interests. Previous stories in FTW have specifically highlighted the use of Promis software to monitor such trades.
It is necessary to understand only two key financial terms to understand the significance of these trades, “selling short” and “put options”.
“Selling Short” is the borrowing of stock, selling it at current market prices, but not being required to actually produce the stock for some time. If the stock falls precipitously after the short contract is entered, the seller can then fulfill the contract by buying the stock after the price has fallen and complete the contract at the pre-crash price. These contracts often have a window of as long as four months.
“Put Options,” are contracts giving the buyer the option to sell stocks at a later date. Purchased at nominal prices of, for example, $1.00 per share, they are sold in blocks of 100 shares. If exercised, they give the holder the option of selling selected stocks at a future date at a price set when the contract is issued. Thus, for an investment of $10,000 it might be possible to tie up 10,000 shares of United or American Airlines at $100 per share, and the seller of the option is then obligated to buy them if the option is executed. If the stock has fallen to $50 when the contract matures, the holder of the option can purchase the shares for $50 and immediately sell them for $100 – regardless of where the market then stands. A call option is the reverse of a put option, which is, in effect, a derivatives bet that the stock price will go up.
A September 21 story by the Israeli Herzliyya International Policy Institute for Counterterrorism, entitled “Black Tuesday: The World’s Largest Insider Trading Scam?” documented the following trades connected to the September 11 attacks:
- Between September 6 and 7, the Chicago Board Options Exchange saw purchases of 4,744 put options on United Airlines, but only 396 call options… Assuming that 4,000 of the options were bought by people with advance knowledge of the imminent attacks, these “insiders” would have profited by almost $5 million.
- On September 10, 4,516 put options on American Airlines were bought on the Chicago exchange, compared to only 748 calls. Again, there was no news at that point to justify this imbalance;… Again, assuming that 4,000 of these options trades represent “insiders,” they would represent a gain of about $4 million.
- [The levels of put options purchased above were more than six times higher than normal.]
- No similar trading in other airlines occurred on the Chicago exchange in the days immediately preceding Black Tuesday.
- Morgan Stanley Dean Witter & Co., which occupied 22 floors of the World Trade Center, saw 2,157 of its October $45 put options bought in the three trading days before Black Tuesday; this compares to an average of 27 contracts per day before September 6. Morgan Stanley’s share price fell from $48.90 to $42.50 in the aftermath of the attacks. Assuming that 2,000 of these options contracts were bought based upon knowledge of the approaching attacks, their purchasers could have profited by at least $1.2 million.
- Merrill Lynch & Co., with headquarters near the Twin Towers, saw 12,215 October $45 put options bought in the four trading days before the attacks; the previous average volume in those shares had been 252 contracts per day [a 1200% increase!]. When trading resumed, Merrill’s shares fell from $46.88 to $41.50; assuming that 11,000 option contracts were bought by “insiders,” their profit would have been about $5.5 million.
- European regulators are examining trades in Germany’s Munich Re, Switzerland’s Swiss Re, and AXA of France, all major reinsurers with exposure to the Black Tuesday disaster. [FTW Note: AXA also owns more than 25% of American Airlines stock making the attacks a “double whammy” for them.]
On September 29, 2001 – in a vital story that has gone unnoticed by the major media – the San Francisco Chronicle reported, “Investors have yet to collect more than $2.5 million in profits they made trading options in the stock of United Airlines before the Sept. 11, terrorist attacks, according to a source familiar with the trades and market data.
“The uncollected money raises suspicions that the investors – whose identities and nationalities have not been made public – had advance knowledge of the strikes.” They don’t dare show up now. The suspension of trading for four days after the attacks made it impossible to cash-out quickly and claim the prize before investigators started looking.
“… October series options for UAL Corp. were purchased in highly unusual volumes three trading days before the terrorist attacks for a total outlay of $2,070; investors bought the option contracts, each representing 100 shares, for 90 cents each. [This represents 230,000 shares]. Those options are now selling at more than $12 each. There are still 2,313 so-called “put” options outstanding [valued at $2.77 million and representing 231,300 shares] according to the Options Clearinghouse Corp.”
“…The source familiar with the United trades identified Deutsche Bank Alex. Brown, the American investment banking arm of German giant Deutsche Bank, as the investment bank used to purchase at least some of these options…” This was the operation managed by Krongard until as recently as 1998.
As reported in other news stories, Deutsche Bank was also the hub of insider trading activity connected to Munich Re. just before the attacks.
CIA, THE BANKS AND THE BROKERS
Understanding the interrelationships between CIA and the banking and brokerage world is critical to grasping the already frightening implications of the above revelations. Let’s look at the history of CIA, Wall Street and the big banks by looking at some of the key players in CIA’s history.
Clark Clifford – The National Security Act of 1947 was written by Clark Clifford, a Democratic Party powerhouse, former Secretary of Defense, and one-time advisor to President Harry Truman. In the 1980s, as Chairman of First American Bancshares, Clifford was instrumental in getting the corrupt CIA drug bank BCCI a license to operate on American shores. His profession: Wall Street lawyer and banker.
John Foster and Allen Dulles – These two brothers “designed” the CIA for Clifford. Both were active in intelligence operations during WW II. Allen Dulles was the U.S. Ambassador to Switzerland where he met frequently with Nazi leaders and looked after U.S. investments in Germany. John Foster went on to become Secretary of State under Dwight Eisenhower and Allen went on to serve as CIA Director under Eisenhower and was later fired by JFK. Their professions: partners in the most powerful - to this day - Wall Street law firm of Sullivan, Cromwell.
Bill Casey – Ronald Reagan’s CIA Director and OSS veteran who served as chief wrangler during the Iran-Contra years was, under President Richard Nixon, Chairman of the Securities and Exchange Commission. His profession: Wall Street lawyer and stockbroker.
David Doherty - The current Vice President of the New York Stock Exchange for enforcement is the retired General Counsel of the Central Intelligence Agency.
George Herbert Walker Bush – President from 1989 to January 1993, also served as CIA Director for 13 months from 1976-7. He is now a paid consultant to the Carlyle Group, the 11th largest defense contractor in the nation, which also shares joint investments with the bin Laden family.
A.B. “Buzzy” Krongard – The current Executive Director of the Central Intelligence Agency is the former Chairman of the investment bank A.B. Brown and former Vice Chairman of Banker’s Trust.
John Deutch - This retired CIA Director from the Clinton Administration currently sits on the board at Citigroup, the nation’s second largest bank, which has been repeatedly and overtly involved in the documented laundering of drug money. This includes Citigroup’s 2001 purchase of a Mexican bank known to launder drug money, Banamex.
Nora Slatkin – This retired CIA Executive Director also sits on Citibank’s board.
Maurice “Hank” Greenburg – The CEO of AIG insurance, manager of the third largest capital investment pool in the world, was floated as a possible CIA Director in 1995. FTW exposed Greenberg’s and AIG’s long connection to CIA drug trafficking and covert operations in a two-part series that was interrupted just prior to the attacks of September 11. AIG’s stock has bounced back remarkably well since the attacks. To read that story, please go to http://www.copvcia.com/stories/part_2.html" target="_blank">http://web.archive.org/web/20011108221443/http://www.copvcia.com/stories/part_2.html.
One wonders how much damning evidence is necessary to respond to what is now irrefutable proof that CIA knew about the attacks and did not stop them. Whatever our government is doing, whatever the CIA is doing, it is clearly NOT in the interests of the American people, especially those who died on September 11.
end
http://web.archive.org/web/20011108221443/www.copvcia.com/stories/oct_2001/krongard.html
LARRY STOCKETT CONVICTED ON CHARGES OF SECURITIES FRAUD AND WIRE FRAUD
The Commission announced that on December 20 Larry Stockett (Stockett)
was convicted of one count of securities fraud, one count of
interstate transportation in execution of a scheme to defraud, and two
counts of wire fraud in connection with a "pump and dump" scheme
involving Hightec, Inc. (Hightec) a former publicly traded company of
which Stockett was the sole officer and director.
The criminal violations were, in part, the subject of a successful
enforcement action brought in Las Vegas, Nevada against Stockett by
the Commission in 2002. The Commission filed a civil complaint
alleging that Stockett orchestrated a fraudulent scheme regarding
Hightec and The S.I.N.C.L.A.R.E. Group, Inc., a second former publicly
traded company he controlled, in which Stockett, among other things,
issued numerous false press releases and other public statements
concerning the companies and unlawfully sold his restricted shares of
Hightec stock in unregistered transactions. A final judgment in the
Commission's litigation was entered against Stockett on March 4, 2004,
permanently enjoining him from violating numerous provisions of the
Securities Act of 1933 and the Securities Exchange Act of 1934,
prohibiting him from acting as an officer or director of a public
company, ordering disgorgement and prejudgment interest totaling
$1,836,181.56, and ordering a civil penalty of $120,000. For further
information see SEC v. Larry A. Stockett, No. CV-S-02-1446-KJD-LRL
(USDC D. Nevada). [U.S. v. Larry A. Stockett, No. CR-S-03-0430-HDM-
PAL, USDC D. Nevada] (LR-19516)
IN THE MATTER OF PHILIP PHILLIPS
On December 28, the Commission issued an Order Instituting
Administrative Proceedings Pursuant to Section 15(b) of the Securities
Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions
(Order) against Philip D. Phillips (Phillips). The Order finds that
Phillips, age 61, has been a Commission-registered broker-dealer since
1985. On Sept. 15, 2005, a final judgment was entered against
Phillips, individually and doing business as American Heartland
Sagebrush Securities Investments, Inc., and Sagebrush Securities,
American Heartland, Inc. (Sagebrush) permanently enjoining him from
future violations of Section 10(b) of the Exchange Act and Rule 10b-5
thereunder, in the civil action captioned Securities and Exchange
Commission v. Philip D. Phillips, et al., Civil Action Number: 2:05CV-
107-J (USDC/NDTX- Amarillo Division). The Commission's Complaint
alleged that Phillips induced at least 39 investors, including certain
of his long-time brokerage customers, to invest as much as $2.5
million with Sagebrush, which he falsely portrayed as a registered
broker-dealer with accounts insured by the Securities Investor
Protection Corporation (SIPC).
Based on the above, the Order bars Phillips from association with any
broker or dealer. Phillips consented to the issuance of the Order
without admitting or denying any of the findings in the Order. (Rel.
34-53033; File No. 3-12137)
ENFORCEMENT PROCEEDINGS
SCHULTZ INVESTMENT ADVISORS, INC. AND SCOTT SCHULTZ DISCIPLINED FOR
FRADULENT MARKING-THE-CLOSE TRANSACTIONS
On December 28, the Commission issued an Order Instituting
Administrative and Cease-and-Desist Proceedings, Making Findings, and
Imposing Remedial Sanctions and a Cease-and-Desist Order pursuant to
Section 8A of the Securities Act of 1933, Sections 15(b) and 21C of
the Securities Exchange Act of 1934, and Sections 203(e), 203(f) and
203(k) of the Investment Advisers Act of 1940 against Schultz
Investment Advisors, Inc. and Scott Schultz. The Order finds that,
from at least June 2002 through December 2003, Scott Schultz,
President and founder of Schultz Investment, fraudulently engaged in
marking-the-close transactions by regularly placing large, end-of-the-
quarter trades in four thinly-traded closed-end funds within five
minutes of market close. Schultz did this to boost the closing prices
of the funds. As a result, he reported better quarterly performance
results for his clients' portfolios. Schultz Investment benefited by
collecting more management fees from its clients. Schultz Investment
also misrepresented the investment strategies of its portfolios that
it offered to clients and, as a beneficial owner of more than 5% of
two closed-end funds, failed to file the required Schedule 13G with
the Commission.
Based on the above, the Order requires Schultz Investment. and Scott
Schultz to cease and desist from future violations of Section 10(b) of
the Exchange Act and Rule 10b-5 thereunder, Sections 206(1), 206(2),
206(4) of the Advisers Act, and Rule 206(4)-1(a)(5) thereunder, and
Schultz Investment to cease and desist from future violations of
Section 13(d) of Exchange Act and Rule 13d-1 thereunder, to pay,
jointly and severally, disgorgement and prejudgment interest in the
amount of $14,534.00 and a civil penalty in the amount of $100,000,
and to comply with the following undertakings: (1) not to advertise or
distribute marketing materials for one year; (2) to retain an
independent consultant to review on a quarterly basis all trading by
Schultz Investment and submit a quarterly report to the Commission's
staff for a period of two years; and (3) to distribute the Order to
all existing and new clients for a period of two years. Schultz
Investment and Scott Schultz consented to the issuance of the Order
without admitting or denying any of the findings in the Order. (Rels.
33-8650; 34-53029; IA-2470; File No. 3-12136)
Ecuador's $800M pyramid
An investment scheme, run by a Viagra-popping, cocaine-smoking septuagenarian whose enraged victims disinterred him after he died suddenly, has rattled virtually every layer of Ecuadoran society, Jeanneth Valdivieso writes from Quito.
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Font: * * * * Jeanneth Valdivieso, The Associated Press
Published: Wednesday, December 28, 2005
A 71-year-old notary who died in a luxury hotel room left behind a teenage girlfriend, who said he'd been on cocaine and Viagra, and a crumbling $800-million U.S. pyramid scheme that has blossomed into a countrywide scandal.
Jose Cabrera's sudden death sparked panic among thousands of people who gave him a minimum of $10,000 each over two decades in exchange for up to 10-per-cent monthly interest. Most were rank-and-file police and military personnel -- more than 6,500 of them -- and residents of the port city of Machala, from which Mr. Cabrera operated.
But the scandal has spread to high-ranking current and former military officials, judges, politicians and their families. The head judge of the Machala Superior Court resigned after acknowledging that he had invested $15,000. Ecuador's former commander of the Joint Chiefs of Staff put in $45,000, and the wife of a former defence minister contributed $125,000, media have reported.
Mr. Cabrera died of an apparent heart attack on Oct. 26. His 18-year-old girlfriend of two years told police he had been smoking cocaine-laced cigarettes, drinking whiskey and popping Viagra.
Mr. Cabrera's son and daughter denied their father, a former president of the national association of notary publics, was involved in any shading dealings. They promised publicly to sort out the financial mess, before they disappeared last month. Authorities believe they are in the United States and are preparing extradition requests.
Hundreds of investors laid siege to Mr. Cabrera's notary office over three days in mid-November. They were joined by several police and soldiers assigned to guard the building.
Local television broadcast images of police and soldiers leaving the scene with cash stuffed in their pockets, shoes and protective vests.
Machala residents who invested with Mr. Cabrera dug up his grave to ensure he was truly dead and had not faked his demise to get away with their life savings.
Mr. Cabrera, who as a notary was prohibited from handling investment funds, "managed around $800 million," said Congressman Carlos Gonzalez, who is leading a legislative investigation of the case.
That represented more than the $700 million U.S. total deposits of the Bank of Guayaquil, Ecuador's second-largest bank.
BEWARE OF BIRD FLU SCAMS
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UNITED STATES: NASD warns investors about unsolicited get-rich-quick pitches.
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NASD issued an Investor Alert Dec. 28 warning investors to be wary of unsolicited faxes, spam and even text messages promising large market gains for investments that purport to capitalize on helping protect against global pandemics like the Bird Flu or Avian Influenza.
NASD’s Investor Alert, Bird Flu Stock Scam Could Be Hazardous To Your Financial Health, explains how investors can spot and protect themselves from investment scams involving companies that claim to have products and services that fight the Bird Flu. One example includes a fax stating a company “has the solution for tracking and containing the Bird Flu virus.” Citing the enormous cost of fighting the Bird Flu, the fax claimed the stock was “positioned to gain 250 percent or more Short-Term.” The fax went on to urge investors not to miss out on a stock that was “clearly missed by Wall Street.”
“This is an age-old pump-and-dump scheme with a brand new disguise,” said NASD Vice President of Investor Education John Gannon. “Unfortunately, fraudsters are quick to exploit every new crisis or catastrophe to peddle their get-rich-quick scams to unsuspecting investors.”
The Alert warns investors not to rely solely on the information in unsolicited faxes, e-mails or text messages because they often come from corporate insiders who are paid to promote the stock. Investors are advised to further investigate when unsolicited messages include predictions of exponential growth and exaggerated claims of how a possible Bird Flu outbreak would contribute directly to the company’s bottom line. NASD is the leading private-sector provider of financial regulatory services.
HealthSouth fires back at Scrushy
Firm countersues ex-CEO for $76M, calls his suit part of 'ongoing efforts to pillage HealthSouth.'
December 28, 2005: 6:59 PM EST
NEW YORK (Reuters) - Lawyers representing HealthSouth Inc. said on Wednesday the company was suing former chief executive and founder Richard Scrushy for more than $76 million and rejected a suit that Scrushy filed against the company for breach-of-contract.
In a reply to a suit filed by Scrushy earlier this month in the State Circuit Court in Jefferson County, Alabama, HealthSouth said Scrushy's attempts to recoup $100 million marks "the latest in his ongoing efforts to pillage HealthSouth."
Scrushy, who founded Birmingham, Alabama-based HealthSouth, was ousted as chairman and CEO after being accused of directing a multibillion dollar accounting scandal.
In June, Scrushy was found not guilty by a Birmingham federal jury of all criminal charges related to years of bogus accounting and fraudulent financial reporting at the operator of rehabilitation hospitals and surgical centers.
He still faces civil charges brought by the Securities and Exchange Commission in a trial not scheduled to begin until April 2007.
In answering Scrushy's suit, the company also said it was countersuing its former CEO for more than $76 million in back salary, bonuses and stock compensation and would also seek to collect millions in punitive damages.
Scrushy's lawsuit seeks recovery of accrued pay, bonuses, unreimbursed business expenses, severance pay, fringe and retirement benefits and the value of vested stock options, as well as legal fees and expenses.
Earlier this month, Scrushy also announced his resignation from HealthSouth's board. In his letter of resignation, he said the company had denied him all the powers, authority, duties and responsibilities usually attached to the position of director.
At the time, he repeated his charge that the company had no right to fire him under the terms of his employment agreement.
HealthSouth was dragged down by the accounting scandal that nearly put it into bankruptcy. But earlier this week, it mapped out a three-phase strategy that over the next four years was expected to improve operations and pay down debt, it said.
Enron Executive Agrees to Plea Deal
Prosecutors Gain Witness Against Lay and Skilling
By Carrie Johnson
Washington Post Staff Writer
Wednesday, December 28, 2005; A01
Enron Corp.'s former chief accountant agreed to plead guilty today to criminal conduct that preceded the company's collapse into bankruptcy, according to sources familiar with the negotiations, sealing a deal that gives prosecutors another key witness against former chief executives Kenneth L. Lay and Jeffrey K. Skilling on the eve of their fraud trial.
Richard A. Causey, 45, who is facing more than two dozen criminal charges, is scheduled to appear in a Houston courtroom at 3 p.m. Eastern time today, according to court records. He reported directly to Skilling for years and participated with Lay on conference calls and analyst meetings in the weeks before Enron fell apart.
All three men had been scheduled to face trial Jan. 17, and the trio long had presented a united front. But eleventh hour negotiations with the Justice Department's Enron Task Force -- and the prospect of spending decades behind bars if he gambled at trial and lost -- ultimately proved persuasive for Causey, who had rejected previous government offers, the sources said. They spoke only on condition of anonymity because of the impending trial.
The deal comes at a delicate time for Lay and Skilling, who are charged with leading a conspiracy to defraud investors by hiding debt and inflating profits at the Houston energy trading firm before its December 2001 collapse. They are the last and among the most eminent corporate executives to face trial in an era of scandal dating to the 1990s.
Defense lawyers for Lay and Skilling are almost certain to seek a delay in the trial because of Causey's plea deal, the 16th by a former Enron executive. The company cut thousands of jobs after its December 2001 bankruptcy, which also cost shareholders more than $85 billion in losses.
For more than two years, the former executives have maintained that the fraud was confined to a set of rogue employees led by former chief financial officer Andrew S. Fastow. Fastow pleaded guilty to two criminal charges in exchange for a 10-year prison term. He will be one of prosecutors' key witnesses in the upcoming trial. But Fastow's admission that he skimmed more than $60 million from the company and lied to his superiors could be used to undermine his testimony.
Former Enron executives said Causey, a likable family man who remained humble despite his corporate rank and salary, will present a far more difficult target for Skilling and Lay's defense lawyers in cross examination.
With Causey's help, prosecutors may have an easier time homing in on optimistic public statements and stock sales by Lay and Skilling, concepts that may be easier for jurors to understand than Fastow's arcane deals with names such as Raptors and Chewco.
Causey had detailed knowledge of those and other business partnerships that helped the company conceal its mounting financial troubles. It was unclear whether he retained any documents that would shed light on Enron's accounting and business practices. Lay and Skilling rarely used e-mail messages.
U.S. District Judge Simeon T. Lake III, who is known as a taskmaster when it comes to scheduling issues, will be presented with a defense request to delay the trial as early as today. He acceded to previous delays because of conflicts with the schedules of Causey's Washington-based defense lawyers, Reid H. Weingarten and Mark J. Hulkower, who maintain one of the country's busiest white-collar defense practices. Hulkower declined comment yesterday.
More than 400 potential jurors already have completed extensive questionnaires about their contact with Enron and the defendants. A long delay might mean the jury selection process would need to start afresh.
For friends of Causey, including his next-door neighbor Steve Huey, word of the advanced plea negotiations is bittersweet. They say Causey is devoted to his three children, the youngest of whom is in eighth grade, and is a devout Catholic who helped raise funds for a new church in the Woodlands, an upscale suburb of Houston.
"I don't think Rick has ever believed he did anything wrong," said Huey, who shared a Christmas Eve dinner with Causey and his wife, Elizabeth. "I think that Rick's concern is over the family and what the eventual outcome will be for the family. As you get closer to trial, you start to weigh the options and weigh the odds and the resources the federal government has."
© 2005 The Washington Post Company
http://www.washingtonpost.com/wp-dyn/content/article/2005/12/27/AR2005122701173.html
Marriott Discloses Missing Data Files
Backup Tapes Lost At Time-Share Unit
By Michael S. Rosenwald
Washington Post Staff Writer
Wednesday, December 28, 2005; D01
Marriott International Inc.'s time-share division said yesterday that it is missing backup computer tapes containing credit card account information and the Social Security numbers of about 206,000 time-share owners and customers, as well as employees of the company.
Officials at Marriott Vacation Club International said it is not clear whether the tapes, missing since mid-November, were stolen from the company's Orlando headquarters or whether they were simply lost.
An internal investigation produced no clear answer. The company notified the Secret Service over the past two weeks, and has also told credit card companies and other financial institutions about the loss of the tapes.
The company began sending letters to time-share owners and customers Saturday, and issued a press release about the loss yesterday. Company officials said they delayed making the matter public until they had researched what information was on the tapes and whom it affected, and determined the issue was sensitive enough to warrant a broad disclosure.
"At this point, we are taking all things into consideration," company spokesman Ed Kinney said. "The tapes may have been taken, but they could have been misplaced. We're still investigating the situation."
The Vacation Club has told time-share owners, customers and the division's employees to be on the alert for changes to their credit histories or accounts. So far no one has reported any misuse, Kinney said. Those affected have been offered free credit monitoring services.
"We regret this situation has occurred and realize this may cause concern for our associates and customers," said Stephen P. Weisz, president of Marriott Vacation Club International, a wholly owned subsidiary of the Bethesda hotel chain. More than 280,000 families use its time-shares worldwide.
The loss of Marriott's tapes is the latest in a series of high-profile security lapses involving data that can be used in identity theft schemes. In 2005, there were at least 134 data breaches affecting more than 57 million people, according to the Identity Theft Resource Center, a California nonprofit that helps people hurt by identity theft and lobbies on computer-privacy issues.
Last February, ChoicePoint Inc. disclosed that it had released thousands of reports containing names, addresses, Social Security numbers and financial information to people posing as officials in legitimate insurance, debt-collection and check-cashing businesses. In June, MasterCard International said that Card Systems Solutions, which processes credit card transactions, had been hacked and that forty million people had their credit card information exposed.
Even high-security defense companies have been victimized. In January, thieves stole computers from Science Applications International Corp. of San Diego that contained personal data on thousands of current and past employees, including former military and intelligence officials.
It is not clear how many cases of identity theft have been caused by the data breaches. There are about 10 million cases of identify theft a year, with total losses of $53 billion, said Robert Douglas, a Colorado privacy consultant and chief executive of PrivacyToday.com.
The costly identity theft schemes have caused state and federal lawmakers to fight for tighter protection of personal data and quick disclosures of breaches.
In 2003, California became the first state to pass a rigorous disclosure law requiring that organizations inform individuals if their personal information is compromised. More than 20 states have passed similar laws since then. Congress is considering more than two dozen bills on what companies should be required to do in data breach cases.
"For the longest time, people have said it's the consumers' fault," Douglas said. "They don't shred their bank statements at home, or what have you. But since the California law was passed now we are learning how much of this information has been breached and is floating around out there."
"We try to be proactive in cases like this," Kinney said. "We followed our own process of being open and proactive."
Kinney said the tapes, which require specialized equipment to access, were the responsibility of the company's information resources group. Citing company policy, he declined to say if anyone from the group had been dismissed or disciplined because of the disappearance of the tapes.
© 2005 The Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2005/12/27/AR2005122700959_pf.html
ENFORCEMENT PROCEEDINGS
IN THE MATTER OF BRADFORD BLEIDT
On December 27, the Commission issued an Order barring Bradford C.
Bleidt from association with any broker, dealer, or investment
adviser. Bleidt, formerly a Boston-based broker and investment adviser
who misappropriated over $31 million from investors, was convicted on
Dec. 5, 2005, of 115 counts of mail fraud and one count of money
laundering and sentenced to135 months in prison in the criminal action
entitled United States v. Bradford C. Bleidt, Crim. Information No.
05-10144-WGY, in the District of Massachusetts. The Commission
obtained a preliminary injunction against Bleidt.
For more information see Litigation Release Nos. 18972 (Nov. 16,
2004), 18993A (Dec. 15, 2004), and 19488 (Dec. 7, 2005). (Rels. 34-
53023; IA-2468; File No. 3-12135)
Law Offices Of Charles J. Piven, P.A. Announces Class Action Lawsuit Against SeraCare Life Sciences, Inc.
Tuesday December 27, 2:26 pm ET
BALTIMORE, MD--(MARKET WIRE)--Dec 27, 2005 -- Law Offices Of Charles J. Piven, P.A. today announced that a securities class action was commenced on behalf of shareholders who purchased, converted, exchanged or otherwise acquired the common stock of SeraCare Life Sciences, Inc. (NasdaqNM:SRLSE - News) between May 3, 2005 and December 19, 2005, inclusive (the "Class Period").
The case is pending in the United States District Court for the Southern District of California against defendant SeraCare and one or more of its officers and/or directors. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the Class Period, which statements had the effect of artificially inflating the market price of the Company's securities.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you are a member of the proposed class, you may move the court no later than February 20, 2006 to serve as a lead plaintiff for the proposed class. In order to serve as a lead plaintiff, you must meet certain legal requirements. To be a member of the proposed class you need not take any action at this time, and you may retain counsel of your choice.
If you acquired shares of SeraCare Life Sciences, Inc. during the Class Period indicated and want to discuss your legal rights, you may e-mail or call Law Offices Of Charles J. Piven, P.A. who will, without obligation or cost to you, attempt to answer your questions. Charles J. Piven has been involved in securities litigation for approximately 20 years. You may contact Law Offices Of Charles J. Piven, P.A. at The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202, by email at hoffman@pivenlaw.com or by calling 410/986-0036.
Contact:
CONTACT:
Law Offices Of Charles J. Piven, P.A., Baltimore, Maryland
Charles J. Piven
410/986-0036
Email Contact
--------------------------------------------------------------------------------
Source: Law Offices Of Charles J. Piven, P.A.
Thanks for the information, PB.
Sorry, olico v22.0, Captain Nemo said if it comes down to a real backstreet brawl around here, my squirrel has better odds than yours...
Investor Alert:
Stock Market Fraud "Survivor" Checklist
Investor enthusiasm for the Internet has created tremendous financial opportunities in recent years – for stock market fraudsters! That's because they often use the Internet to lure innocent investors into their scams. But you can survive stock market fraud and avoid becoming a victim if you follow these steps before you invest:
Be Skeptical When you see an offer on the Internet, consider it a scam until you can prove it's legitimate through your own independent research.
Consider the Source Remember that the people touting a stock may be company insiders or paid promoters who stand to profit at your expense.
Independently Verify Claims Don't rely solely on claims by companies or promoters about new product developments, lucrative contracts, or the company's financial health.
Beware of High Pressure Pitches Watch out for promoters who pressure you to buy before you have an opportunity to fully research an offer.
Research the Company Always ask for – and carefully read – the company's prospectus and current financial statements.
Confirm Registration Check the SEC's EDGAR database or your state securities regulator to make sure the company is properly registered or legally exempt from registration.
For more information on how to use the Internet to invest wisely and avoid fraud, visit the SEC's Internet and Online Trading www.sec.gov/investor/online.shtml web page.
http://www.sec.gov/investor/pubs/fraudsurvivor.htm
NASD warns of fake stock tips in cellphone spam
Staff and agencies
24 December, 2005
Tue Dec 13, 2:22 PM ET
NEW YORK - Brokerage regulator NASD on Tuesday warned investors against reacting to stock tips sent in unsolicited mobile phone text messages, as spam schemes aimed at hyping share prices move beyond e-mail and onto cellphones.
The so-called "pump and dump" schemes involve spam messages with false recommendations of a company‘s stock that lead the share price to rise. Fraudsters can then sell their shares, leaving investors with worthless stock, the regulator said.
There have been relatively few cases of illegal spamming to U.S. cellphones and investor-focused spam schemes have been more common in e-mail to date.
But the number of texts urging recipients to invest immediately in a particular stock has recently increased to the point that there were enough for NASD to take notice, said John Gannon, its vice president of investor education.
"We determined there were sufficient messages coming in that it needed to be brought to investors‘ attention," said Gannon, who did not reveal the quantity of spam messages or say which stocks had been involved.
Gannon said these schemes do not generally involve brokers, but NASD would refer any fraudulent text messaging cases it identified to the U.S. Securities and Exchange Commission Securities and Exchange Commission.
http://www.leadingthecharge.com/stories/news-00116414.html
hi A.J., thank you. we wish you and your family a merry christmas too.
Merry Christmas to all.
Merry Christmas Nemo.. phone home!
you are welcome. nice to chat with you.
Thank You and to YOU also .. ;))
i like to wish all in several languages
Merry Christmas
Happy Hanukkah
Frohe Weihnachten
Happy Polski Kiermasz/Wesotych Swiat
Buon Natale
Joyeux Noel
Feliz Nauidad
And A Very Happy New Year To All.
Botched Tokyo trade costs millions
December 09, 2005 15:55
The Tokyo Stock Exchange faced calls today for tighter controls after a botched trade saddled a securities firm with a loss of over $224m and briefly wreaked havoc on Asia's biggest bourse.
Mizuho Securities said an error by one of its dealers meant it accidentally tried on Thursday to sell 600,000 shares in J-Com, more than 41 times the number of the Osaka-based telecom outsourcing firm's outstanding stock.
Mizuho Securities President Makoto Fukuda said that the blunder would cost the firm 'at least' 27 billion yen ($224m) and some reports suggested it could be substantially more.
The brokerage arm of Mizuho bank 'put in sell orders for 610,000 shares at one yen instead of one share at 610,000 yen,' Fukuda said after a day of chaos. For others in the market, the error was a chance to make a quick profit.
The turmoil is also yet another embarrassment for the Tokyo Stock Exchange, which last month was forced to suspend trading in all shares for the first time ever after its computer system crashed. Although the latest problem was apparently the result of human error, many observers questioned whether the exchange's controls are adequate.
'We must take action to prevent another mistake,' Prime Minister Junichiro Koizumi said.
Japanese media said the rising popularity of online trading exacerbated the losses for Mizuho as news of the blunder quickly spread over the Internet. One investor wrote on a bulletin board: 'Do all you can to buy J-Com! I'm having fun!' Another said: 'I racked up five million yen in an instant but I feel as if I was doing something wrong.'
Risk evaluator Standard and Poor's said its credit ratings on banks in the Mizuho Financial Group would not be affected by the erroneous sell order. 'Although the loss is likely to increase as the brokerage completes share buy backs, Standard and Poor's believes it will not impact on the credit quality of the Mizuho group banks, given the group's overall health.'
It said a 27 billion yen loss would have a big impact on Mizuho Securities' net profit, which totalled 19.5 billion yen in the fiscal first half, but that the firm would probably receive support from the Mizuho group.
J-com saw its opening price of 672,000 yen fall within minutes of opening on Thurday to its limit low of 572,000 yen, before rallying up to the limit close of 772,000 yen, apparently as Mizuho tried to reverse its mistake.
Chaos ensued as the market tried to figure out what happened, bringing down shares in the brokerage sector. The benchmark Nikkei-225 index tumbled 1.95% in Thursday's trade, largely on profit-taking after recent gains.
But calm returned to the market today, when the Nikkei-225 gained 1.45% to close at 15,404. The Tokyo Stock Exchange suspended trading in J-Com shares today to prevent further chaos.
http://www.rte.ie/business/2005/1209/japan.html
Ex-Qwest boss faces fraud charges
The former chief executive of US telecoms giant Qwest Communications Joseph Nacchio has been indicted on 42 counts of insider trading.
This is the first criminal charge against Mr Nacchio in the US government's four-year-old probe.
Mr Nacchio is charged with selling more than $100m of Qwest stock after he had been warned that the firm would miss revenue targets.
Prosecutors are demanding he returns the profits he allegedly made.
"Nacchio's stock sales accelerated in January 2001 as he became aware of additional material, non-public information," the indicictment said.
Accounting probe
The government also alleged that former Qwest executives were involved in false accounting between 1999 and 2002, allowing Qwest to inflate its revenues by about $3bn (£1.56bn).
This helped it buy up regional phone rival US West, the government alleges.
Qwest was subsequently forced to revise its earnings for the period, erasing about $2.2bn in revenue and its executive soon became the target of legal action.
Six former Qwest executives have already been charged in the fraud investigation including the company's former chief financial officer Robin Szeliga.
Robin Szeliga is due to testify in the latest case, along with former sales executive Gregory Casey, who has settled charges made against him by the Securities and Exchange Commission.
Joseph Nacchio, 56, joined Qwest in 1997 from AT&T. He was ousted by the board in June 2002 but he has always said he did nothing improper.
Denver-based Qwest is the fourth largest regional phone carrier in the US.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/4547262.stm
Published: 2005/12/20 20:32:56 GMT
Nemo, I know you're out there...
Don't make me look bad now! LOL
Damn, goin back on the deal.........hmmmmmmmmm.
Looks like I have to contact Nemo, seems he took the keys with him.
Oh yeah. I like the way you git-r-done.
a little smaller pic of another, but you can see dem pipes......MOD status a comin?
WE HAVE A WINNER! Ok, where is my MOD status??
Let me see the plugs.
Will this one work?? Behind the middle one? Got a V-8 in her..
You find me a chainsaw with a V-8 and we'll talk. HEHE
Scordo imo created a board to voice his terminated POV after Matt booted his aliases without allowing him a forum to respond to Matt's post about pulling the plug. I believe he did it overnight. It's simple to run a message board but a little more complicated to run a brokerage. And for FWIW Scordo has never addressed the issues of why the partnership fell apart. He simply moved on. You really should get over it yourself.
NOOOOOOOOOOOOOOOOOOOOOOOOOOOO! I WANT SOME.
Chu has no power, IT'S ALL MINE!!! LOL
Ill take the nomination! Gimme some mod power here......
And from what I hear half the boards on PalTalk are already clients of his.
If I didn't have a reason NOT to open an account with him before this, that would do it!
What's there to respond to? He runs a non solicitation on line brokerage firm. He wants everyone as a client and he doesn't promote stocks. And from what I hear half the boards on PalTalk are already clients of his.
A bit of history. SCORE-DOUGH and MATTY were to co-operate in OCS with MATTY ultimately having some sort of equity position on OCS I ASSume. MATTY was to bring over iHubbers to OCS which would I ASSUme provide some sort of minimal customer base for OCS and he would also ASSist on the techie side. 3 sides to every story and one side is MATTY WALKED after the arrangement became untenable due to SCORDO being a freaking lunatic and management-type people walking from OCS. So now SCORDO has no way to get iHubbers. SCORE-DOUGH figures running a message board is no big deal so he sets one up on OCS in less than 24 hours. It is an unmitigated failure...lol...and is basically used by SCORE-DOUGH's wife to complain that MATTY came over for dinner on SCORE-DOUGH's birthday & didn't bring a present for SCORE-DOUGH. That tanks the message board and it kinda disappears.
Stock_analyzer sets up stockhideout.com and hustles iHubbers to join for free . Within a very short period of time, stock_analyzer announces that the Prez of OCS, one Ken SCORE-DOUGH is gonna be in chat and is offering a special deal to members of stockhideout.com. What iHubbers SCORE-DOUGH couldn't get thru the front door, he is now bascially hustling by stock_analyzer pimping for him. Is SCORE-DOUGH behind stock-hideout.com? Nothing would surprise me.
IMHO of course.
You didn't hear about Willy and Scordo?
http://www.investorshub.com/boards/read_msg.asp?message_id=8739516
Have you done a search lately on google rearding the brokerage we are talking about? Find a negative post then get back to me.
Still waiting for a response? From what I hear he's affiliated with multiple boards. But he is a brokerage firm that is a unsolicted discount on line broker.
It is affiliated with him? Pray tell.
Rather a propos that NEMO would run to a board that is affiliated with SCORE-DOUGH...HAHAHAHAHA...In that case, I nominate OLICO as MODERATOR of this board.
Continue posting the scams. Every once in a while when I see one that is totally outrageous I'll post it here. POS' like CMKX provide lots of cannon fodder.
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