Scandals

This is probably one the best collections of market scandals online right now, but it might not be around for long, so take advantage while it lasts. A fair degree of thought has gone into the selection; only the best is included.

This is the work of 100’s of hours (at least) of digging, and although many of these stories are well known in the world of finance, they are still not easily found. Extra care was taken to organize relevant material together — although it is not perfect.

I hope you can learn as much as I have from studying this long labyrinth of financial scandals, but if you do intend on reading all these stories, I think it is only fair that I leave you with this warning: after thorough analysis, you will not come out the same person (seriously). Enter at your own risk (not joking)

If some of the archived links do not load properly, just repost the link into the search bar and reload it that way.

Just to reiterate: all of the links work!

Rating Brokerage Firms by Their Complaint Histories

The Big Takeover
“The global economic crisis isn’t about money – it’s about power. How Wall Street insiders are using the bailout to stage a revolution”

EXCLUSIVE: Ex-AIG unit head Cassano back in U.S.

The Perfect Example of Related Party Transaction Abuse.

Catalyst Capital Vs The Wolfpack. Short and Distort Litigation, Arch Rivals

Rigging The Municipal Bond Market
“”The “simple fraud” Waszmer described centered around public borrowing. Say your town wants to build a new elementary school. So it goes to Wall Street, which issues a bond in your town’s name to raise $100 million, attracting cash from investors all over the globe. Once Wall Street raises all that money, it dumps it in a tax-exempt account, which your town then uses to pay builders, plumbers, the chalkboard company and whoever else winds up working on the project.But here’s the catch: Most towns, when they raise all that money, don’t spend it all at once. Often it takes years to complete a construction project, and the last contractor isn’t paid until long after the original bond is issued. While that unspent money is sitting in the town’s account, local officials go looking for a financial company on Wall Street to invest it for them.To do that, officials hire a middleman firm known as a broker to set up a public auction and invite banks to compete for the town’s business. For the $100 million you borrowed on your elementary school bond, Bank A might offer you 5 percent interest. Bank B goes further and offers 5.25 percent. But Bank C, the winner of the auction, offers 5.5 percent”.

Bid Rigging Treasury Bonds

Rigging of Foreign Exchange Market Makes Felons of Top Banks, NYT

Settlements in Foreign Exchange and Interest Rate Cases, NYT

In FX rigging: ‘If you ain’t cheating, you ain’t trying’, Reuters

Once-Unthinkable Criminal Pleas by U.S. Banks Get Investor ‘Meh’, Bloomberg

2019, The Nations Largest Banks Rigged The Government Sponsored Housing Bond Market….Too….

The Man Who Crashed the World (Joseph Cassano, AIG)

List of largest corporate profits and losses, Wikipedia

Visium Asset Management Inflates Asset Prices

In the Matter of Visium Asset Management, LP Admin. Proc. File No. 3-18473

“Visium’s Sanjay Valvani found dead in apparent suicide after insider trading charge”

Hedge fund suing Sanjay Valvani’s widow to recover the millions he earned at firm

Apollo architect of Caesars deal quits bankrupt unit’s board -documents

“Pharmaceutical Enron”. Plaintiff TIMBER HILL LLC
(Interactive Brokers) Vs Defendant Valeant Pharma

Initial Public Offering Securities Litig(laddering scandal)

U.S. Underwriters Face Losses on B.P. Offering

Citigroup structures, markets and sells billions in CDO’s to investors then shorts them immediately preceding the financial crisis (SEC litigation release)

Non-Profit organization attempts to block the settlement of the above Citigroup CDO Litigation

“Goldman Sachs created what is referred to as the “Abacus deal,” which became notorious for the conflicts of interest it exposed at Goldman Sachs. In the Abacus deal, Goldman Sachs constructed a CDO whose failure was all but guaranteed. Goldman constructed the CDO with the help of one of its clients, who picked the mortgages that would make up the CDO. That client shorted the deal at the same time that Goldman was selling interests in the CDO to another client”.

Here’s the staggering amount banks have been fined since the financial crisis, Marketwatch

DOJ Will Not Prosecute Goldman Sachs in Financial Crisis Probe

Goldman’s Abacus lies

Veteran Goldman Sachs Executive Leaves The Company Due To Ethical Concerns
“What are three quick ways to become a leader? a) Execute on the firm’s “axes,” which is Goldman-speak for persuading your clients to invest in the stocks or other products that we are trying to get rid of because they are not seen as having a lot of potential profit. b) “Hunt Elephants.” In English: get your clients — some of whom are sophisticated, and some of whom aren’t — to trade whatever will bring the biggest profit to Goldman. Call me old-fashioned, but I don’t like selling my clients a product that is wrong for them. c) Find yourself sitting in a seat where your job is to trade any illiquid, opaque product with a three-letter acronym”.

During the summer and fall of 2007, Defendant Citigroup Inc. (“Citigroup”) made a series of material misstatements about its investment bank’s exposure to sub-prime mortgages..Citigroup made these misstatements at a time of heightened investor and analyst interest in public company exposure to sub-prime mortgages. Citigroup represented that it had reduced its investment bank’s sub-prime exposure from $24 billion at the end of 2006 to $13 billion or slightly less than that amount. In fact, however, in addition to the approximately $13 billion in disclosed subprime exposure, the investment bank’s sub-prime exposure included more than $39 billion of “super senior” tranches of-sub-prime collateralized debt obligations and related· instruments called “liquidity puts” and thus exceeded $5~ billion.

“The story of how this works begins in 27 industrial warehouses in the Detroit area where a Goldman subsidiary stores customers’ aluminum. Each day, a fleet of trucks shuffles 1,500-pound bars of the metal among the warehouses. Two or three times a day, sometimes more, the drivers make the same circuits. They load in one warehouse. They unload in another. And then they do it again.

This industrial dance has been choreographed by Goldman to exploit pricing regulations set up by an overseas commodities exchange, an investigation by The New York Times has found. The back-and-forth lengthens the storage time. And that adds many millions a year to the coffers of Goldman, which owns the warehouses and charges rent to store the metal. It also increases prices paid by manufacturers and consumers across the country”NYT

The $9 Billion Witness: Meet JPMorgan Chase’s Worst Nightmare

The SEC’s Internal Battles over Goldman Sachs Probe(Paywall, but good)

In Financial Crisis, No Prosecutions of Top Figures

The Magnetar Trade: How One Hedge Fund Helped Keep the Bubble Going (Single Page)

“The trader known as the London Whale lost more than $6.2 billion for JPMorgan Chase & Co. last year. That’s a lot of money until you remember that it didn’t stop the bank from earning a record profit of $21.3 billion”. Bloomberg

FRONTLINE investigates why Wall Street’s leaders have escaped prosecution for any fraud related to the sale of bad mortgages. (no pending investigations — at all)

The Carmen Segarra Tapes

Inside the New York Fed: Secret Recordings and a Culture Clash

NY Fed Fired Examiner Who Took on Goldman

Before she could formalize her findings, Segarra said, the senior New York Fed official who oversees Goldman pressured her to change them. When she refused, Segarra said she was called to a meeting where her bosses told her they no longer trusted her judgment. Her phone was confiscated, and security officers marched her out of the Fed’s fortress-like building in lower Manhattan, just 7 months after being hired.

“They wanted me to falsify my findings,” Segarra said in a recent interview, “and when I wouldn’t, they fired me.”

Tower Financial Corp. and Jeffrey Epstein Ponzi Scheme Complaint

Andrew Madoff, Who Told of His Father’s Swindle, Dies at 48

Bonventre, the Director of Operations at Bernard L. Madoff Investment Securities LLC (Complaint)

The Bernie Madoff Chronicles – Detailed Exposé By Vanity Fair

JPMorgan and Madoff Were Facilitating Nesting Dolls-Style Frauds Within Frauds

JPMC FINES AND PENALTIES, QUICK SUMMARY

JPMADOFF:THE BOOK

How High Up Did the London Whale Criminality Go at JPMorgan?

Will Jamie Dimon Finally Lose His Job Over Racketeering Charges?

How The Fed Creates Money

Libor Scandal: Why the N.Y. Fed Must Be Investigated, Eliot Spitzer

The New York Fed is the most powerful financial institution you’ve never heard of. Look who’s running it. Eliot Spitzer

Fed Minutes Reveal a Dangerous Power Grab by New York Fed

(Strangely This Was Removed???) They must have known people would archive it. Shows desperation. “A.G. Schneiderman Calls For New Efforts To Eliminate Unfair Advantages Provided By Trading Venues To High-Frequency Traders”.

After Charges of Running a Price Fixing Cartel on Nasdaq in the 90s, Wall Street Banks Are Now Trading Their Own Stocks in Darkness

J.P. Morgan to Pay $267 Million for Disclosure Failures

The Craziest Video You’ll Ever Watch on JPMorgan’s Jamie Dimon

Banking Deaths: Why JPMorgan Stands Out

Police Begin Search After Danske’s Ex-CEO in Estonia Goes Missing

Body of Danske Bank’s former Estonian chief found

Mark Pittman, Reporter Who Challenged Fed Secrecy, Dies at 52

SEC staff saw Madoff as a voice of authority

Frank DiPascali (key lieutenant of Bernard Madoff for three decades)

How Bernie did it, Special Report.

Madoff Client Jeffry Picower Netted $5 Billion—Likely More Than Madoff Himself

Jeffry Picower

Thierry Magon de La Villehuchet

Imprisoned Felon Was Adviser to Madoff Investor

The story of MAK, the flamboyant Khan from Wall Street

Was He Wiser Than the Wise Guys?

SEC short-selling focus snares Millennium over lapse in simple rule

Stock Picking Skills of SEC Employees

Pequot Capital Management

Undue Influence at the SEC?
Part 1

Undue Influence at the SEC?
Part 2

Lynn Turner Wants to Break up the Big Four

Dangerous Liaisons, Sec Revolving Door

Is the SEC Covering Up Wall Street Crimes?

Securities and Exchange Commission v. Pequot Capital Management, Inc. and Arthur J. Samberg

Securities and Exchange Commission v. Guillaume Pollet

Samuel Israel III

Bayou Fund, LLC Complaint

Full text of “Robert Booth Nichols Deposition – Sam Israel Case”

Hedge fund fraudster disappears on way to prison

Missing Hedge Fund Chief Sam Israel’s Girlfriend Arrested

Ivan Boesky

Michael R. Milken

NO TARGET SEEMED TOO BIG, MILKEN

Keating Five, Senators Involved In S&L Crisis

John A. Mulheren

Drexel Burnham Lambert – Wikipedia

Selling PIPE Securities Short, Then Covering With Those Same Securities After Registration, SEC Complaint

This case involves a serial insider trading scheme perpetrated by a group of stock traders that generated over $4.4 million in profits. The primary component of their scheme was the systematic misappropriation of material non-public information from investment banks confidentially marketing secondary stock offerings by publicly traded issuers. The individuals who participated in this aspect of the scheme – Fishoff, Petrello, Chernin and Costantin – together made over $3.2 million by obtaining advance knowledge of the offerings from the investment banks and then, after tipping other members of the group, selling short the issuers’ stock before the offerings were publicly announced. The confidential offering information obtained by these defendants was material because the offering shares were sold by the issuers at a discount to the market price and diluted the holdings of existing shareholders. As a result, the issuers’ stock prices dropped substantially after the offerings were announced, thus enabling the defendants who shorted the stocks to cover their short sales at a hefty profit

Detailed Notes On Short Selling Ahead of an Offering (KEY)

In re REFCO, INC. SECURITIES LITIGATION

AMR ELGINDY, and JEFFREY ROYER TRANSCRIPT OF TRIAL

Martin Shkreli kept hedge-fund investor in dark about botched short trade, misled him on auditors: testimony

Merrill Lynch salesman describes shock, anger after Shkreli lost $7 million for Merrill on short trade and then threatens firm if it tries to collect

A Real Life Example Of A Short Sale Fail To Deliver, Also Known As A “Naked Short”. Courtesy, From Everybody’s Favorite Villain, Martin Shkreli

Nanopierce Technologies, Inc vs .Southridge Capital Mgmt

The Commission alleges in its complaint that Langley Partners and Thorp, after agreeing to invest in a PIPE transaction, typically sold short the issuer’s stock, frequently through “naked” short sales in Canada. Among other things, the Commission’s complaint alleges that: Once the Commission declared the resale registration statement effective, Thorp used the PIPE shares to close out the short positions ? a practice Thorp knew was prohibited by the registration provisions of the federal securities laws. To avoid detection and regulatory scrutiny, Thorp employed a variety of deceptive trading techniques, including wash sales and matched orders, to make it appear that he was covering his short sales with legal, open market stock purchases. In fact, the covering transactions were not open market transactions because Thorp was on both sides of the trades.

In re Adler, Coleman Clearing Corp.

Journalist Sues For Further Disclosure

Gary J. Aguirre Gives Damning Testimony About Regulatory Capture In 2006

MASTERS OF THE UNIVERSE:BID RIGGING BY PRIVATE EQUITY FIRMS IN MULTIBILLION DOLLAR LBOS
“After nearly seven years of litigation, in 2014, a shareholder class of investors settledtheir antitrust claims against some of the world’s largest private equity (“PE”) firms – BainCapital Partners, Blackstone Group, Carlyle, Goldman Sachs, Kohlberg Kravis Roberts & Co.,Silver Lake Technology Management, and TPG Capital – who agreed to pay $590.5 million”

Drug researchers leak secrets to Wall St.

At the core of this scheme was defendants’ perpetration of a massive and fraudulent disinformation campaign attacking the stock of Biovail and other targeted publicly traded companies, including the preparation of ostensibly objective, but in fact biased, analyst reports; defendants’ accumulation of short positions in the stock of those companies, i.e., bets that the stock prices would decline; and defendants’ subsequent unleashing of the disinformation campaign and biased

Biased Research (Sworn Testimony)

“Executive Hedging”
” One shareholder avoided much of that drop: the CEO. On June 19, the day the stock peaked, Olsen contracted with an investment bank to hedge 150,000 shares—a quarter of his stock in the company—against losses if the price fell below 18. As part of the complex maneuver, he agreed to sell his shares to the bank one year later and got an advance of $2.2 million. Olsen, who disclosed his hedging in public filings, declined to comment for this story”. To facilitate this transaction, the banker would immediately short the stock, then buy a call to protect themselves from further appreciation. They make money by charging a fee, while also potentially attracting new customers.

“Billionaire Anschutz Loses Big Tax Case” (Executive Hedging)

SHORT SALE ANTITRUST LITIGATION, 2007
“ETG also claims that since brokers are not required to report the identities of Purchasers or Short Sellers to regulators and because two of the Defendants generally act as Seller’s Broker and Purchaser’s Broker, Defendants conspired not to enforce delivery of shorted securities, allowing persistent FTDs. ETG claims that instead of forcing delivery, Defendants maintain running IOU tallies among themselves with the Seller’s Broker debiting Short Seller’s account and Purchaser’s Broker crediting Purchaser’s account so as to make it appear as though the securities were delivered. Accordingly, a given Short Seller and Purchaser will not know whether the securities they sold and purchased were ever borrowed or delivered”.


For a hard to borrow security, borrow rates go anywhere from 20-100 percent per year. The rates can go much higher though sometimes. For instance, for a short period of time, TLRY had a borrow rate of over 900%. Small cap pump and dump average about 100%. Charging these rates on fictitious loans is the most brazen and shameless form of fraud — obviously. Here is an example of a “hard to borrow” stock. They are the usual suspects, everybody knows them; usually have poor business models, way overvalued, bad press, pump and dumps, over-hyped etc

“Testifying recently in a lawsuit that is unrelated to Copper River’s closing, Mr. Cohodes maintained that actions taken in the fall of 2008 by Goldman in the handling of trades for Copper River had done irreparable damage to the fund. His testimony, which has not been made public, was obtained by The New York Times. Goldman has sought to seal the transcript of Mr. Cohodes’s deposition, which is part of a case brought by Overstock.com, an Internet retailer, against two of the biggest Wall Street firms. Overstock contends that the firms — Goldman Sachs and Merrill Lynch — failed to borrow company shares that they or their clients sold short, a practice known as naked shorting. Overstock says that the firms essentially evaded rules intended to prevent stock manipulations, and that its stock came under outsize selling pressure as a result”. NYT

“Marc Cohodes Highly Confidential – Attorneys’ Eyes Only”.

Orange County Bankruptcy

Initiating analyst coverage on companies they indirectly control..““I’ve never seen a firm that needs to raise a lot of capital acquire a brokerage for that purpose,” said Benjamin Edwards, an associate professor of securities law at the University of Nevada, Las Vegas, echoing nearly a dozen other experts in corporate finance and securities law whom Reuters interviewed for this article”.

Wall Street’s self-regulator blocks public scrutiny of firms with tainted brokers
“Last year, a FINRA official told Reuters, the regulator identified 90 firms as posing the highest risk to investors and flagged them internally for higher scrutiny. But FINRA declined to name the firms publicly or to release statistics showing the concentration of brokers with a history of FINRA flags within each firm”.

The American Stock Exchange: Scandal on Wall Street (Copy, Paste Into Search bar, Scroll Down To Find Text)

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THE OCTOPUS

Riggs Bank

Dimples Diapers

A scheme to flood the market with counterfeit stocks helped kill Bear Stearns and Lehman Brothers, Taibbi

CMKX SHAREHOLDERS COALITION VS. THE SEC, Trillion Dollar Lawsuit(Real)

JP MORGAN CHASE FINES/SETTLEMENTS FROM 2010 TO DATE

”  During the period from at least in or about September 1996 through October 1996, *****(name redacted) offered to pay, and orchestrated the payment of, undisclosed compensation to person(s) whom he believed to be registered representative(s) or registered principal(s), to induce such registered representatives, registered principals or persons to purchase the common stock of GRAY for the accounts of customers. For example, on or about September 26, 1996, *****, directly or indirectly, transferred or caused to be transferred, 15,000 shares of GRAY stock to a broker-dealer which was undisclosed compensation for a previous purchase of 50,000 shares of GRAY at approximately $0.375 per share by the broker-dealer. Accordingly, ***** willfully violated, and committed and caused violations of, Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder”. Not linking to the original report. Just thought this was a good example of market manipulation

Harbor Securities

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PwC investigation finds $7.4 billion accounting fraud at Steinhoff, company says

OVERVIEW OF FORENSIC INVESTIGATION Steinhoff International Holdings N.V.

Bank of America’s $292m charge said to be tied to Steinhoff turmoil

Securities and Exchange Commission v. Revelation Capital Management Ltd. et al, No. 1:2014cv00645 – Document 51 (S.D.N.Y. 2016)

US Banks Lose Over $1 Billion On Steinhoff Collapse

Insolvencies in UK building firms rise 20% after Carillion collapse

HK suspends UBS sponsor license, fines it and others $100 million for IPO failures

UBS could have curbed losses to $500 million

SEC Charges Former Chairman/CEO of Schnitzer Steel for Authorizing Cash Bribes to Foreign Officials

SEC SUES UBS WARBURG FOR RESEARCH ANALYST CONFLICTS OF INTEREST FIRM TO SETTLE WITH SEC, NASD, NYSE, NY ATTORNEY GENERAL, AND STATE REGULATORS

Trading error could cost UBS Warburg millions

CSFB SHARED PROFITS FROM HOT INITIAL PUBLIC OFFERINGS (“IPOS”)

SEC probes IPO of VA Linux
“GLG and Chelsey received 35,000 shares and 15,000 shares, respectively, of the VA Linux deal, a person on Wall Street says, giving them stakes that by the end of the company’s first trading day generated one-day paper gains of $7.3 million and $3.1 million, respectively, for GLG and Chelsey. It is unclear whether the funds later sold their VA Linux shares.

By comparison, some of the largest U.S. mutual-fund groups — including Alliance Capital Management and AIM Management Group, which oversee equity assets that dwarf those of GLG, the larger of the two funds — received 60,000 to 75,000 shares of the Linux deal, the same person said”.

Defendant engaged in acts and practices that created and/or maintained inappropriate influence by investment banking over research analysts,

South Florida Securities Lawyer Convicted by Jury of Conspiracy, Securities Fraud, Wire Fraud, and Money Laundering in Connection with Shell Factory Stock Swindle

A.R. Baron 

SEC Settles Fraud Charges with Bear Stearns for Late Trading and Market Timing Violations

Bear Stearns Suit by S.E.C. Said to Be Near

How the secret currency traders’ club devised the world’s biggest market’s rates

JPMorgan, NY, federal government in $13 billion settlement

Lehman Lending To Itself, Uses Collateral To Finance Repo Borrowing

Repo and The S&L Crisis

Justice Department, Federal and State Partners Secure Record $13 Billion Global Settlement with JPMorgan for Misleading Investors About Securities Containing Toxic Mortgages

IRS to help financially distressed taxpayers

Special Report: How the U.S. cracked open secret vaults at UBS

Bank of America to Pay $16.65 Billion in Historic Justice Department Settlement for Financial Fraud Leading up to and During the Financial Crisis

Countrywide Fin. Corp. Derivative Litigation

SPENCER ROLAND BUENO vs CBOE GLOBAL MARKETS, INC

Countrywide’s Mozilo to pay $67.5 million settlement

Heidi Loeb Hegerich $TRTC lawsuit

War of Words Between Terra Tech, Investor Heidi Loeb Hegerich Heats Up

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UBS Won’t Keep Gains From Mizuho’s $342 Million Error

UBS Japan mistakenly places $31 billion bond trade

Bristol-Myers Squibb Company Agrees to Pay $150 Million to Settle Fraud Charges, 2004

RBC Analyst Faces Insider Case Year After Undergrad B-School

List of corporate collapses and scandals

S.E.C. Sues Stifel Nicolaus Over Wisconsin School Investments

Securities and Exchange Commission v. Friedman, Billings, Ramsey & Co., Inc. [“FBR”], Emanuel J. Friedman and Nicholas J. Nichols,

In the Matter of Spinner Asset Management, LLC & Spinner Global Technology Fund Ltd,

CumEx-Files

THE BELZBERGS: THEY LIKE TO KICK THE TIRES

GROUP IN ACCORD WITH CRAZY EDDIE

Crazy Eddie’s Insane Odyssey

Digging In for Tough Times at Crazy Eddie

SEC vs UBS WARBURG LLC: Analyst Scandals

“Cases alleging one of the most pervasive Wall Street insider trading rings since the days of Ivan Boesky and Dennis Levine.

What is so alarming about the conduct alleged in the SEC’s case isn’t just the scope of the scheme – fourteen defendants, five years of illegal trading, hundreds of tips, and well over $15 million in illegal trading profits – but, sadly, who is at the center of it”.

GLG Partners hit by second fine for insider dealing

“This case involves two insider trading schemes in which Wall Street professionals serially traded on material, nonpublic information tipped — in exchange for kickbacks — by insiders at UBS Securities LLC (“UBS”) and Morgan Stanley and Co., Inc. (“Morgan Stanley”). In the first scheme, which has been ongoing since 2001, at least eight securities industry professionals, three hedge funds, two broker-dealers, and a daytrading firm, made thousands of illegal trades and millions of dollars in profits using”

“One day in 2003, Sam Childs, a compliance officer at Assent, noticed Tavdy’s unusual trading patterns: large positions on a single stock the day before it happened to be upgraded by UBS. Childs didn’t turn him in. Instead, according to an FBI recording, he merely warned Tavdy, telling him he needed to start losing a few hundred dollars so his remarkable winning streak didn’t look so suspicious. (Tavdy’s lawyer disputes this.)”

JB Oxford Holdings, Inc., National Clearing Corporation, James G. Lewis, Kraig L. Kibble, and James Y. Lin: Lit. Rel. No. 19641 / April 5, 2006

Securities and Exchange Commission v. Hilary L. Shane

Organized Crime on Wall Street

The Biggest Stock Scams Of All Time

2003 mutual fund scandal – Wikipedia

Matrix Capital Group | Rex Securities Law BLOG

Ninth Circuit Cover-Up of Court Corruption – Judicial Corruption

Past Issues Archive Index | Fraud Magazine

ZZZZ Best

Dan Loeb Was Mr.Pink On Silicon Investor

More On The Above Link

Reed Slatkin

NASD Charges Peter Kellogg with Fraudulent Wash and Matched Trades

The First MLA Physically Thrown from the Legislature | The Tyee

David Beckham’s former brother-in-law jailed after boiler room scam | Daily Mail Online

Fraud police smash ‘boiler room’ ring in raids in London and Spain | Daily Mail Online

Regulators are probing possible manipulation in short-sellers’ attack on Organogenesis

The Commission alleges in its complaint that Langley Partners and Thorp, after agreeing to invest in a PIPE transaction, typically sold short the issuer’s stock, frequently through “naked” short sales in Canada. Among other things, the Commission’s complaint alleges that: Once the Commission declared the resale registration statement effective, Thorp used the PIPE shares to close out the short positions ? a practice Thorp knew was prohibited by the registration provisions of the federal securities laws. To avoid detection and regulatory scrutiny, Thorp employed a variety of deceptive trading techniques, including wash sales and matched orders, to make it appear that he was covering his short sales with legal, open market stock purchases. In fact, the covering transactions were not open market transactions because Thorp was on both sides of the trades.

Silicon Investors thread gives further detail on the above story

2 Wall Street banks made millions selling the collapsing shares of MoviePass’ parent company, as their analysts kept ‘buy’ ratings on the cratering stock

The Secrets of Eddie Stern If you think you know how bad the mutual fund scandal is, you’re wrong. It’s worse. By Peter Elkind Reporter associates Christopher Tkaczyk and Doris Burke.
April 19, 2004

Holding U.S. Treasurys? Beware: Uncle Sam Can’t Account For $21 Trillion

Regulator ‘stunned and terrified’ after causing PG&E stock surge | Reuters

Elgindy Unsealed Testimony (search keyword 911)

United States of America v. Anthony Elgindy and others; Superseding Indictment

Montreal Mafia lawyer going to prison for becoming one of the gangsters he defended | National Post

A Mafia Acquittal Is the Latest L for Quebec Law Enforcement – VICE

Montreal’s underworld: Mafia, Hells Angels, street gangs worked in concert | Regina Leader-Post

CalPERS Severs Ties With Pacific Corporate Group Over Pay-to-Play | Chief Investment Officer

2 charged in alleged CalPERS ‘pay-for-play’ – SFGate

Florida Board of Health suspends hundreds of health care licenses over student loan defaults | News | wtxl.com

DANGEROUS DEALS: A special report.; Penny Stock Fraud Is Billion-Dollar Game

Testimony Concerning
The Involvement of Organized Crime
on Wall Street

Overland Storage may acquire Tandberg • The Register

Barry C. Honig, et al. (Release No. LR-24262; Sep. 7, 2018)

Former Wells Fargo Financial Advisor John Schmidt Charged with $1 Million Ponzi Scheme – Erez Law

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Hector May Pleads Guilty to Fraud · White Securities LawWhite Securities Law | Securities Fraud Attorneys and FINRA Arbitration Lawyers

OSC staff allege Caldwell Investment broke rules, misled investigators | Financial Post

Bo Dietl On Jordan Belfort – Business Insider

D.H. Blair

THE MEDIA BUSINESS; D.H. Blair and Executives Indicted in Fraud Case

BUSINESS PEOPLE; D.H. Blair Picks Doctor As Director of Finance

BUSINESS PEOPLE; Ex-Drexel Executive Heads Blair Brokerage

Members of Blair management, together with the broker groups, took steps to increase the prices of Blair stocks in the early aftermarket for those stocks. Before the deals went effective, there were trading agreements between members of management, at times including Stahler, and the leader or leaders of the broker group for that particular deal.

With Humor and Wisdom, Legendary Investment Guru J. Morton Davis and Accomplished Author, Ruki Renov, Collaborate On New Book, “Happiness Guaranteed or Your Misery Back”

A. S. Goldmen & Company

J.W. BARCLAY & CO., INC.

F.N. Wolf & Co., Inc.

Gruntal & Co

Another Colts Neck murder mystery: Who shot stock promoters nearly 20 years ago?

“***” on the Street Story – NY Post

New clues in killings of stock promoters Divorce case sheds light on’99 slayings in manse

Dizzying deals raise questions about California’s fast-growing Osicom Technologies

https://www.siliconinvestor.com provides further detail on the above story.

How a tiny software outfit fell victim to an illegal but unrestrained practice known as naked short-selling.(Sedona Corp) 2007

Hedge funds are posting nice returns from deals that may involve ex-cons, stock scammers. (PIPES)

This action involves fraudulent and manipulative trading in the common stock of Sedona Corporation (Sedona), a Pennsylvania software company.

“Dairy farmers who saw a $1.5 million portfolio incur $1.3 million in trading costs in a single year”.
“It’s a hollow victory because the award is probably not worth the paper it’s printed on,” said Andrew Stoltmann, president of the Public Investors Arbitration Bar Association.

Jack Abramoff Indian lobbying scandal

Telling elderly and naive customers that pipes are “safe riskless investments”

“enabled two financiers to run a “pump and dump” scheme while earning approximately $493,000 in commissions from facilitating these illegal penny stock sales“.

Mob Ties Seen on Wall St. – The Washington Post

Alleged mob ties of S.F. brokerage probed

SEC Testimony: Organized Crime on Wall Street (R. Walker)

NASD Regulation Bars John Fiero, Expels Fiero Brothers, Inc., and Imposes $1 Million Fine For Illegal Short Sales, Market Manipulation and Extortion | FINRA.org

Historic Second Circuit Decision Finds FINRA Can’t Collect Disciplinary Fines

SUIT: SEX HARASS HORROR 3 WOMEN SEEK 100M FROM L.I. BROKERAGE – NY Daily News

Embattled Securities Promoter Steps Down – tribunedigital-orlandosentinel

Former Broker Charged in Fraud Against Gambinos

Jonathan Lebed’s Extracurricular Activities – The New York Times

HSBC to pay $30 million to settle bond rigging lawsuit in U.S. | Reuters

China used prisoners in lucrative internet gaming work | World news | The Guardian

Angus Energy chairman resigns over shares transfer – DRILL OR DROP?

Automated background checks are deciding who’s fit for a home – The Verge

US Bank pays $613 million over money laundering charges | Financial Post

Statement of Allegations: In the Matter of Caldwell Investment Management Ltd. – soa_20180612_caldwell.pdf

Jean-Claude Duvalier – Wikipedia

Former MUHC exec Yanaï Elbaz sentenced to 39 months in prison | Montreal Gazette

KPMG making a fortune off the backs of Canadians | West Prince Graphic | peicanada.com

Sticker Shock: $23.7 Trillion Bailout? – ABC News

Will TARP cost taxpayers $23.7 trillion?

Barofsky on Bailouts – Econlib

Article: BoA Dumps $75 Trillion In Derivatives On Taxpayers, Super Committee Looks Away. Seize BoA Now. | OpEdNews

TARP Top Cop Neil Barofsky on Drug Lords and Mortgage Fraud – YouTube

Neil Barofsky on UBS Criminal Charges for LIBOR and HSBC Money Laundering Wrist Slap – YouTube

UK press shows little sympathy at death of South Africa’s “Dr Beetroot”

Deposition: Sackler embraced plan to conceal OxyContin’s strength – STAT

Analysts posing as doctors with leukemia patients to get information on clinical trials

Canadian banker cops to $90M international fraud scheme that hit NYers

Entertainment Art Inc (EERT) – research report – now Biozoom Inc (BIZM) – Promotion Stock Secrets

Losses Seen at Client Firms Of Bankrupt Adler Coleman – The New York Times

Bear Stearns trader Howie Rubin ‘raped and beat women’ | Daily Mail Online

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10 Tragic Facts About the Downfall of Anne Boleyn – CrimeViral.com

Howard Rubin Complaint | Jurisdiction | Racketeer Influenced And Corrupt Organizations Act

Betting on Bear’s Bust – The Big Picture

The Bear Stearns Conspiracy | The Nation

DATELINE NBC Sells Out, Covers up Counterfeiting | CMKX United Shareholders Board

City Money to the Mob? Manhattan D.A. Targets Giuliani’s Garbage Guy | Observer

CARTING AWAY NEW YORK CITY’S GARBAGE CARTEL – May 27, 1996

FEDS SMASH HUGE STOCK SCHEME – MOB LINK TO BIGGEST SCAM IN U.S. HISTORY

Organized Crime Wall Street, Sep 13 2000 | Video | C-SPAN.org

Naked shorting: The curious incident of the shares that didn’t exist | Euromoney

MARKET SCAMS: CLEARING HOUSE PRACTICES

07-1006_cert_rep.pdf

WHISTLER INVESTMENTS INC v. DEPOSITORY TRUST AND CLEARING CORPORATION | FindLaw

The Suitcase Murder Tearing the U.S. and Japan Apart

SLUSSER v. COMMODITY FUTURES TRADING COMMISSION

A Troubled Chinese Company Is Seeking a Lifeline From U.S. Investors – Barron’s

GE’s Investment in Kidder Finally Pays Off – TheStreet

Stealing from the Dead – Plante Moran Accounting Malpractice Post

Medytox files US lawsuit alleging BTX theft

Cases of money laundering linked to cryptocurrency in Japan up tenfold in 2018 | The Japan Times

These Are the Banks Caught Up in the Russia Money-Laundering Scandal – Bloomberg

Browder Says Europe May Be Looking at $1 Trillion in Dirty Money – Bloomberg

The Danske Bank Scandal Is the Tip of the Iceberg – Foreign Policy

Regime Cash Machine | Global Witness

Former Texas regulator is out as CEO at biblically oriented oil firm – News – Austin American-Statesman – Austin, TX

Glencore Fights Transparency On One Continent, Pays $22m On Another

Italy probes mystery death of Berlusconi sex trial witness

Congo’s former president awarded oil block in UNESCO heritage site | Reuters

The Financial Bailout in 2008 Was a Trillion-Dollar Mess – Rolling Stone

Gregory Lemelson, Lemelson Capital Management, LLC, and The Amvona Fund (Release No. LR-24267; Sep. 13, 2018)

Short & distort? The ugly war between CEOs and activist critics | Reuters

Funds scurrying to cut off future pay-to-play action – Pensions & Investments

Securities & Exchange Commission v. Nagaicevs: ORDER GRANTING MOTION FOR DEFAULT JUDGMENT by Judge Jon S. Tigar; granting re {{26}} Motion for Default Judgment.

Settlement Reached With Five Specialist Firms for Violating Federal Securities Laws and NYSE Regulations; Firms Will Pay More Than $240 Million in Penalties and Disgorgement

BATS Admits CEO Lied About HFT On CNBC

American Realty Capital Properties Just One Problem for Chairman Schorsch – TheStreet

High-profile Houston attorney John O’Quinn was one of two killed in wreck on Allen Parkway | ABC13 Houston Archive | abc13.com | abc13.com

Hedge funders’ suit claims money went to porn investment, swingers’ resort – New York Daily News

SEC.gov | SEC Charges Company Officers and Penny Stock Promoters in Kickback and Market Manipulation Schemes

Caring for Aging Parents, With an Eye on the Broker Handling Their Savings – The New York Times

Detroit SWAT team assaults African American mom who refused to medicate her daughter with antipsychotic drugs – NaturalNews.com

U.S. Suggests, Without Proof, Stock Adviser Knew of 9/11 – The New York Times

Janice Shell Ihub Civil Complaint #1 by Adam S. Tracy – issuu

Kent R.E. Whitney, David Lee Parrish, The Church for the Healthy Self a/k/a CHS Trust, and CHS Asset Management Inc. (Release No. LR-24426; Mar. 18, 2019)

The “Old Boys Network” of Virginia Doing it Again – with the collusion of Judges and Lawyers – Ensuring they DRAIN the Estate & Destroy a Family

The Opioid that Made a Fortune for Its Maker — and for Its Prescribers – The New York Times

Massive, corrupt B.C. cannabis, crypto, mining and energy shares scheme alleged by BCSC | Burnaby Now

CalPERS Cuts Ties With PCG – PE Hub

SEC Charges Against Phillip Frost Might Just Be the Tip of the Iceberg – Barron’s

IPRS Vs ***

2 charged in alleged CalPERS ‘pay-for-play’ – SFGate

B.C. man fined $4.5 million for defrauding investors | Advisor

Inside the Biggest-Ever Hedge-Fund Scandal | The New Yorker

Martoma convicted in insider trading case

Scammers Used SeekingAlpha for Bogus Stock Promotions, SEC Says – Bloomberg

Ernst & Young Reported to Police for Role in Danske Scandal – Bloomberg

GE to pay $1.5 billion U.S. fine over crisis-era subprime mortgages – Reuters

Swedbank Hit by Criminal Probe in Growing Laundering Crackdown – Bloomberg

60 doctors charged for illegally dispensing painkillers

The Dark Knight: Blood Oath Billionaire Banker – YouTube

Bernie Ecclestone – Wikipedia

Bank Leu – Wikipedia

Guinness share-trading fraud – Wikipedia

Panama scandals – Wikipedia

Kitimat Daily: HAS THE MOB TAKEN OVER BC? – PREDICTED IN 88 BY GEORGE PEDEN

Scams Scum and Boiler rooms Message Board – Msg: 17990515

Illegal shortsheller JS

XYBR – Xybernaut Message Board – Msg: 18356248

Turbodyne Files Multibillion-Dollar Antitrust Action Against Honeywell

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IN VANCOUVER, IT’S ADVENTURE CAPITAL – The Washington Post

BBC NEWS | Programmes | Panorama | Archive | The Billion Dollar Don December 6 1999

Nasdaq gives questionable stock the boot » The Windmill news articles » goDutch

Former bank manager held for ransom by kidnappers? » The Windmill news articles » goDutch

$250K investment mystery: Accountant admits in recorded call he doesn’t know where money is | CBC News

Fiero Bros. expelled from NASD for naked short selling

The mystery of Southridge Enterprises and its ‘ghost’ executives who were supposedly murdered in Mexico | Business | Dallas News

The Scary Rise of Internet Stock Scams On the Net, no one can tell who’s a crook. Fleecing investors is easy, despite the efforts of the SEC and a new breed of online vigilantes. – October 26, 1998

Former Charity CEO Pleads Guilty To Multi-Million-Dollar Political Corruption Scheme | OPA | Department of Justice

Former Bank President Sentenced to Prison and Ordered to Pay $137 Million | Federal Deposit Insurance Corporation Office of Inspector General

Scanned Document – Milrud, Aleksandr Complaint.pdf

SEC.gov | SEC Charges Canadian Man With Conducting Fraudulent Trading Scheme

Stock promoter pleads guilty in $30 million pump-and-dump case | Sharesleuth.com

Four Canadians charged in massive $140M international penny stock fraud scheme | National Post

FBI Arrests “Mailman” for Penny Stock Scalping Scheme | PubCoCEO™

Pump and dump – Wikipedia

8 Men Sentenced To Prison For $39 Million Penny Stock Fraud | Cleveland, OH Patch

Stock Promoter Sentenced To 21 Mos; Eight Others Charged – MarketWatch

Tucsonan convicted in $95 million penny-stock scheme | News About Tucson and Southern Arizona Businesses | tucson.com

Scammer Gets 18 Years for Penny-Stock Fraud Hatched From Prison – Bloomberg

Canadian involved in penny stock fraud scheme gets six-and-a-half years in U.S. prison – Reuters

B.C. penny stock promoter sentenced in New York – Economy, Law & Politics | Business in Vancouver

California man sentenced to over two years in prison for penny stock fraud – Reuters

Reverse Takeover: How Fraudulent Chinese Companies are Deceiving U.S. Investors

After China fraud boom, Nasdaq steps up scrutiny of shady listings – MarketWatch

Has Any Penny Stock Become a Big Company? – The New York Times

Who is the Canadian linked with a series of reverse-merger failures? – The Globe and Mail

LOOK OUT MSFT–HERE COMES (BB:CHPP) @ 2.00 | Stock Discussion Forums

Marquette Bank Minneapolis – Wikipedia

Salomon Smith Barney – Securities Fraud Case – Impact Law

Salomon to Pay Phony-Bid Fine Of $290 Million – The New York Times

Analyst scandal costs Wall St $1.4bn | Business | The Guardian

WALL STREET SETTLEMENT: THE OVERVIEW; 10 WALL ST. FIRMS REACH SETTLEMENT IN ANALYST INQUIRY – The New York Times

Spoofers Tricked High-Speed Traders by Hitting Keys Fast – Bloomberg

The Six Greatest Penny Stock Scams of All Time

Mark Nordlicht, Uri Landesman, Platinum employee emails to flee US – Business Insider

Massive Italian anti-mafia operation results in scores of arrests | News | DW | 14.11.2018

A crackdown in Amsterdam | Maclean’s | JANUARY 28, 1985

Washington Monthly | When Romney sought (and received) a bailout

When Mitt Romney Came to Town – YouTube

Raj Rajaratnam – Wikipedia

Big banks in $1.865 billion swaps price-fixing settlement – Reuters

Ardent Productions – an industry laughing stock | Media | The Guardian

Controversial drug CEO was accused of serious ‘harassment’

Martin Shkreli to speak at Harvard about healthcare | Daily Mail Online

Donald Trump trashes Martin Shkreli – Business Insider

‘Bro, I’m Going Rogue’: The Wall Street Informant Who Double-Crossed the FBI – Bloomberg

SUIT SEES MISUSE OF $224 ‐ MILLION IN MUTUAL FUNDS – The New York Times

A Last Vanishing Act for Robert Vesco, Fugitive – The New York Times

Robert Vesco – Wikipedia

Exclusive: American Realty Capital facing criminal probe over accounting – sources

Offshore leaks: Tax avoidance bigger than U.S. economy | Financial Post

Canada: sucker nation for tax cheats | Financial Post

Facebook admits it could owe $5bn if IRS proves they have been avoiding taxes | Daily Mail Online

Amazon UK pays $3.7 million tax on $6.5 billion sales – Reuters

Facebook leaks reveal unethical global lobbying strategies

10 Notorious Tax Cheats: Queen Of Mean Leona Helmsley Proved Little People Can Put You In Jail

Financial Secrecy Index

How Cheney’s firm routed $132m to Nigeria via Tottenham lawyer | The Independent

Second British man sentenced over Nigerian government bribes | World news | The Guardian

Unaoil: THE COMPANY THAT BRIBED THE WORLD

Court condemns Blair for halting Saudi arms inquiry | The Independent

Rabobank NA Sentenced for Conspiring to Impair, Impede, and Obstruct Its Primary Regulator | OPA | Department of Justice

Rabobank agrees to pay $368 million over processing illicit funds – Reuters

GlaxoSmithKline fined $490m by China for bribery – BBC News

Exclusive: Allegations of GSK corruption spread to Syria – Reuters

GlaxoSmithKline Agrees to Pay $3 Billion in Fraud Settlement – The New York Times

J.&J. to Pay $2.2 Billion in Risperdal Settlement – The New York Times

UK firm tried HIV drug on orphans | World news | The Guardian

Glaxo faces drug fraud lawsuit | Business | The Guardian

Global Analyst Research Settlements – Wikipedia

Chinese bank chairman pleads guilty to bribes – The Globe and Mail

Final Synthes ex-exec gets prison time for illegal human trials

Legal troubles for local billionaire

Scaife demands documents from Post-Gazette

The assassination of a Panama Papers journalist in Malta – Business Insider

Journalist Pelin Ünker sentenced to jail in Turkey over Paradise Papers investigation | News | The Guardian

Bárcenas affair – Wikipedia

Daphne Caruana Galizia: The fight for justice for murdered Maltese journalist Daphne Caruana Galizia | In English | EL PAÍS

Scaife children seek details on drained trust | Pittsburgh Post-Gazette

Howard Rich’s Dot-Com Deal – Center for Public Integrity

States sue to learn why Trump changed IRS donor-reporting rules | Accounting Today

WhatsApp Bans 100,000 Accounts Before Brazilian Election, Which Is Still a Real Mess

Dennis Levine – Wikipedia

 

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