A criminal conspiracy by any other name…

I stumbled today, on the stock broker fraud blog which apparently keeps track of all the dirt on Wall Street. After reading an article about former UBS Securities LLC Executive Director Mitchell Guttenberg, who was ordered to “forfeit $15.81 million in alleged illegal profits, as well as serve 78 months in prison” for an insider trading scheme, which also involved UBS stock analysts, a trader, a hedge fund manager, and other individuals, I wondered, why does the RICO Act not apply here?

According to this article, Guttenberg and the 12 other individuals, “mostly former employees at Morgan Stanley, Bank of America Corp, and Bear Stearns Co., Inc., were criminally charged for their involvement in the insider trading ring. Investigators say the participants tried to conceal their illegal actions by conducting meetings at restaurants, using disposable cellular phones, and coming up with coded text messages.”

Are they drug dealers or traders? To some people, money is a drug. In this case, it should be treated as such.

Were they throwaway phones, or were they stupid enough to use their own?

But it gets better.

Another article, concerning Auction-Rate- Securities, involved 12 states which banded together to form a “multi-state Task Force dedicated to finding out whether Wall Street investment firms had misled investors when persuading them to invest in the ARS market.”

I anxiously read on to see how much jail time these people would do, and discovered the answer was zero.

The punishment for this crime that involved 12 states? “11 major Wall Street investment banks have said they will buy back over $51 billion in ARS from charities, retail investors, and small companies.”

And the list of these companies, with their ARS hotlines?

Bank of America 1-866-638-4183
Deutsche Bank 1-866-926-1437
Citi 1-866-720-4802
JP Morgan 1-866-450-8470
Goldman Sachs 1-888-350-2857
Merrill Lynch 1-888-706-1381
UBS 1-800-253-1974
Morgan Stanley 1-800-566-2273
Wachovia 1-866-283-794

That was in November 2008. When did they get the first of the TARP money, and their bonuses, and their huge salaries?

Are they on the UBS list of unnamed offshore accounts?

And on the same site:

UBS Financial Services, Inc., UBS Securities, LLC, and Citigroup have reached finalized settlements with the Securities and Exchange Commission to pay tens of thousands of ARS investors almost $30 billion. The settlements will resolve SEC charges that the companies misled investors about the risks involved with auction rate securities.

The SEC’s complaint accused UBS and Citigroup of misleading customers by telling them ARS were liquid, safe investments and failing to warn them of the growing dangers when the market started to fail. When the ARS market froze in February, the SEC says both firms left tens of thousands of clients holding billions of dollars in illiquid ARS.

These finalized settlements will restore about $22.7 billion in liquidity to UBS clients who invested in ARS and some $7 billion to Citigroup investors. SEC Chairman Christopher Cox says investors will get back “100 cents on the dollar on their ARS investments.” Both firms will buy ARS from affected customers at PAR. Customers that sold their ARS under the par difference will be paid between par and the ARS sale price. This is the largest settlement in SEC history.

That was December 22, 2008……and the TARP money?

We as taxpayers, should demand equal protection under the law. They should be charged with the criminal conspiracy that this truly is and sent to prison – 20 years to life, with their assets seized and put into the TARP Rebate Fund.

No wonder they needed that TARP money to be spent so rapidly and with no accounting for where it went. No, it wasn’t spent on bonuses, IT WAS SPENT TO PAY BACK THE THOUSANDS OF PEOPLE THEY DEFRAUDED!!

And Geithner, the tax cheat, was in on that deal.

He should resign. They should all be investigated for criminal conspiracies, the whole financial sector, but most especially, the members of the Too-Big-to-Fail-Club.

They seem to be the worst offenders.

Addendum. I don’t know that this is where the money was spent, but if they didn’t loan it out, and they didn’t spend it on bonuses….well, it’s a good bet.

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The IRS has a mission

The mission of the Office of Terrorism and Financial Intelligence is to marshal the Treasury Department’s policy, enforcement, regulatory, and intelligence functions in order to sever the lines of financial support to international terrorists, proliferators of Weapons of Mass Destruction, narcotics traffickers, and other threats to our national security.  There are financial networks that underlie all of these threats, and those networks are sources of valuable intelligence and present vulnerabilities that can be exploited.

Somehow I think they should add current and former bank officers (commercial and investment), mortgage brokers, Wall Street wizards, investment firms, politicians who are willing to confirm a tax-dodger as the Secretary of the Treasury, and all other politicians because frankly, they are more of a threat to our national security than any of the other networks the IRS is protecting us from.

Please. Save us from the WCTN (White Collar Terrorist Network)…..NOW

PS. Don’t worry about Morgan Stanley, they currently get the revenue from the City of Chicago Parking Garages and now…..masquerading as Chicago Parking Meters LLC, they have the parking meter franchise and they managed to dig up $1.15 billion for the 75 year lease.  Morgan Stanley received $10 billion in TARP money which they told ABC went into a capital account. Is that how they paid Daley for the parking meters?

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