According to a Bloomberg report here; the venerated securities watchdog agency has received complaints about more failures and various conflicts of interest issues. This time its own internal watchdog - the SEC Office of Inspector General (SEC OIG). Bloomberg's story title is self explanatory. It is entitled "SEC Hires Investigator to Probe Complaints About Watchdog".
For nearly a decade now, yours truly has claimed that "SEC" is an anacronym for "Selective Enforcement Commission". That is to say, the SEC "selectively" abuses its discretion on who to prosecute and who Not to prosecute. Previously, it was disclosed that conflict of interest issues transpired. Like the one of the SEC 's own General Counsel David Becker. was permitted to work on the SEC's policies concerning the Bernie Madoff case. Mr. Becker had a clear conflict of interest in the issue when he inhereted profits from Bernie Madoff. He should have immediately recused himself and failed to do so.
David Becker's remaining involved in the Madoff debacle compromised the integrity of any SEC investigation. Especially given the fact that we have NOW all been made publicly aware that the SEC has been secretly destroying case files of Goldman Sachs, Lehman Brothers and more. Most notably, the SEC destroyed the Markopolos reports on Madoff. Markopolos denotes in his book "No One Would LISTEN" - that the SEC always turned a deaf ear or seemed to intentionally go the wrong way for a decade. Here is a link to the Scribd on Markopolos's 2005 report. Markopolos states that the SEC is incapable or understanding complex frauds. This is why it is appropriate to seek an outsider to review the SEC's OIG.
Rolling Stone's Matt Taibbi on SEC Destruction of Case Files
Apropos still, are the questions and issues posed by Rolling Stone's guerilla investigative journalist Matt Taibbi. In Taibbi's previous article of August 2011, again we have a title of the story getting directly to the point. It is entitled "Is the SEC Covering Up Crimes?". Unequivocally, the answer is a resounding YES. As Taibbi's story denotes the fact that we are in the age of Cover Ups. Where Matt states that;
This is a different world, one far friendlier to lawbreakers, where even the suspicion of wrongdoing gets wiped from the record.
That, it now appears, is exactly how the Securities and Exchange Commission has been treating the Wall Street criminals who cratered the global economy a few years back. For the past two decades, according to a whistle-blower at the SEC who recently came forward to Congress, the agency has been systematically destroying records of its preliminary investigations once they are closed
Read more: http://www.rollingstone.com/...
Matt Taibbi denotes the fact that the SEC is in violation of federal regulations in an Orwellian manner. As his article continues by reporting upon the proper protocol that the SEC had worked out with the National Archives. It is now public knowledge that the SEC has confessed it violated these ethical mandates.
Under a deal the SEC worked out with the National Archives and Records Administration, all of the agency's records – "including case files relating to preliminary investigations" – are supposed to be maintained for at least 25 years
Anti Taibbi Matt Levine of DealBreaker Concedes Taibbi is Right This Time
In a rare concession, a man who claims that Matt Taibbi can only "coincidently" get the facts straight; has conceded that Taibbi may have it right "this" time. DealBreaker's reporter - Matt Levine - had this to say about Rolling Stone's Matt Taibbi's report on the SEC destruction of case files;
Matt Taibbi may actually be right that it breaks the law – he has, on occasion, been right about facts in the world, though it’s often a coincidence. Here he suggests that some SEC staffers were worried about personal criminal liability for not archiving records of preliminary inquiries, which sounds a little far-fetched but possible. And there are some more interesting accusations here – including some suggestive coincidences where SEC enforcement execs squashed investigations and then left for the firms that were being investigated.
SEC OIG "H. David Kotz" Criticized the SEC's Handling of Madoff & more
One of the reasons that Mary Schapiro - the head of the SEC - is seeking to appoint an outside investigator; is that there are complaints that the watchdog of the SEC - the OIG - is doing wrong still. They are also looking into the affairs of the former SEC inspector General - H. David Kotz. Purportedly, Mr. Kotz received some sport event tickets that he reimbursed the guy $95 each for and the team's office states they are really worth $240 each. Amazing, considering the fact that David Becker's millions in Madoff profits is not an issue, but tickets of arbitrary value are a national case.
Mr. Kotz is the very same SEC OIG chief who openly criticized the SEC and suggested changes to policy. This Blogger believes that is why H. Davit Kotz is being put under the microscope - instead of David Becker. The Department of Justice ruled that David Becker's conflict of interest issue is not worthy of any furhter review. Thus you have the DOJ selectively choosing not to prosecute the SEC guy who selectively played both sides of the fence for the "Selective Enforcement Commission".
In this Fraud Magazine's interview with H. David Kotz (here), it verifies what Mr. Markopolos alleged to Congress in the Youtube video above. That the SEC failed miserably in cases like Madoff. The Fraud Magazine quotes Mr. Kotz as stating;
“The SEC did take substantive action [after the complaints] in that they conducted numerous examinations and investigations of Madoff’s firm,” Kotz said in a recent Fraud Magazine interview. “However, we determined that these examinations and investigations were not conducted in a thorough and competent manner and were, therefore, unable to uncover the Ponzi scheme.”Any person who generally cares about how the integrity of our systems of justice is making America lose its soul, should read the entire Fraud Magazine interview of H. David Kotz. This is in 2010. We are now a couple of years later and have heard absolutely nothing about the SEC destroyed case files and who was the slick genius at the SEC for instructing everyone to destroy case files. Including our own eToys case that we had direct correspondence with the SEC on - many a time. But, fret not, they are going to have a Nationally Significant investigation into the sport tickets of Mr. Kotz!
SEC Enforcement Head Khuzami Denotes SEC Inadequacies in Enforcements
We've been told that the SEC has seen the error of its ways. As a matter of fact, the SEC wants more money; around $270 million more dollars this year. To increase their ability to do their job. However, is money the answer - or is the SEC simply looking to staff up more and fend off the possibility that the new Consumer Fraud Protection Bureau (CFPB) - is a clear alarm bell that the current watchdog's are failing?
Even the 2011 SEC head of enforcement, Mr. Robert S. Khuzami said the SEC has problems with doing their job. As he states in a June 2011 report (here) - that:
There is an “epidemic of perjury and false statements occurring at the highest levels of business, politics, sports and culture.” Our own Jim Comey, former Deputy Attorney General, describes perjury and obstruction as “nearing crisis [levels].”
We Personally Know 1/2 Dozen Cases the SEC Is Failing To Investigate
This "Outside" investigation is long overdue. As are many other issues at the SEC. We have contacted them tons of times. With evidences over and over. Getting back paltry responses at best. Even when we contact the new protocol offices set up to make sure Madoff-esque cases never happen again.
Unfortunately, that is - thus far - a false contention. Though our prodding did finally get results in the Marc Dreier case, the Tom Petters case and Okun 1031 Tax Group (Dreier doing 20 years - Petters 50 years - Okun 100 years).
They are ONLY small parts of the Organized Criminal empire. Goldman Sachs and Mitt Romney's Bain are the BIG criminal conspirators. Bain, Goldman Sachs, Adelphia, Kmart, Enron, eToys, Dreier, Petters and Okun all have 1 common connection - PAUL TRAUB.
Because Traub Bonacquist & Fox partner (Harold Bonacquist) works for the United States Government in Istanbul and Paul Traub also works for Wells Fargo, Bank of America and now [illegally] owns Polaroid. Our federal government continues to turn a blind eye to his organized criminal efforts.
Our story was finally going to break by Business Week in 2008. Paul Traub being connected to all those criminal acts - including being a partner to Marc Dreier & Tom Petters was a BIG story until another one of Traub's associated persons very own sons rushed to head of the Paul Traub story - by being rats on their father - Bernie Madoff.
Yes, Mr. Traub is linkedto Madoff too. Mr. B will want more on that issue, I presume (as if we need 143 crimes - instead of 112). It was the best way to Kill the story on him and Romney (after all - Mitt had totally lost in 2008). Madoff comes out, who cares about Marc Dreier and Tom Petters? The plot & ploy succeeded. Not only did Business Week kill the story. The reporter left and went to Reuters.
So, we continued our email, letters, FedEx's etc - to various persons at the highest levels of Goverment. Their responses emails are the same twisted slight of hand attorneys try to use here, to dodge the real issues. Such as this email from the SEC April 19, 2010.
Dear Laser Steven Haas,
Thank you for submitting your online contact to the Securities and Exchange Commission's Office of Investor Education and Advocacy. A representative of the Office of Investor Education and Advocacy will respond to you shortly.
Office of Investor Education and Advocacy
That email transpired after many ludicrous repsonses from our federal agencies. Including this one from the Dept of Justice Criminal Division November 1, 2011. NOTE: My birthday just so happens to be Oct 31; so I sent them more crimes I had learned about and they sent back this paltry, arbitrary & capricious logic of why they won't get involved;
Received: from 127.0.0.1 (EHLO mailsc29.usdoj.gov) (18.104.22.168)
by mta1106.mail.bf1.yahoo.com with SMTP; Tue, 01 Nov 2011 12:26:25 -0700
Received: from emsagent1.doj.gov ([10.222.4.19])
by mailsc29 (8.14.4/8.14.4) with ESMTP id pA1JQFaR021075
for ; Tue, 1 Nov 2011 15:26:15 -0400
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Tue, 1 Nov 2011 15:26:07 -0400
Dear Laser Haas:
Thank you for your letter dated November 1, 2011, regarding your court documents. Please understand that the Department of Justice can assume jurisdiction only when there has been a possible violation of a federal criminal statute. Your letter refers to a State case, and neither the Attorney General nor the Department has jurisdiction over State cases prosecuted by State and local authorities.
We regret not being able to assist you any further.
This is the same snow job we have been getting from the SEC and DOJ for 11 years.
See this email from the SEC
From OIG Fri Jun 27 06:13:50 2008
X-Apparently-To: firstname.lastname@example.org via 22.214.171.124; Fri, 27 Jun 2008 06:13:51 -0700
Authentication-Results: mta397.mail.re4.yahoo.com from=SEC.GOV; domainkeys=neutral (no sig)
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Fri, 27 Jun 2008 09:13:50 -0400
X-MimeOLE: Produced By Microsoft Exchange V6.5
Subject: RE: Why does no one care that the DE Dept of Justice is acting corruptively
Sent: Friday, June 27, 2008 6:13:50 AM
Dear Mr. Haas,
Thank you for your email below regarding allegations of corruption within the Department of Justice. We appreciate your bringing the information contained in your email to our attention.
Please be advised that the SEC Office of Inspector General’s ( OIG 's) primary functions are to perform audits of SEC operations, programs, activities, functions, and organizations, and to conduct investigations of alleged misconduct by SEC staff (and contractors). In order to determine which matters raised in your email are within the OIG ’s jurisdictional purview, we request that your provide us with evidence of misconduct by any SEC employee, official, or contractor, including the (1) identity of the employee(s), official(s), or contractor(s) involved, (2) the approximate date of the conduct in question; (3) the specific nature of the improper conduct; and (4) the rules, regulations or statues you believe the conduct or violated.
Providing us with this information will assist us in being able to address this matter. As the SEC OIG has no jurisdiction over Department of Justice staff, you may also wish to contact the Department's Office of Professional Responsibility at http://www.usdoj.gov/....
On behalf of the Office of Inspector General
of the U.S. Securities and Exchange Commission
Finally, the SEC is starting to feel the pressure. No one knows what is going to happen with their "Outside" Investigations. One thing for sure - that you can count on - is that this Blogger will send proof to that person, law firm or entity; on the cronyism and cover ups in our more than 1/2 dozen cases. Either the cover ups will continue or they won't. You never know what straw will break the camels back. For Mr. Markopolos never did get the SEC to investigate Madoff - Paul Traub motivated Madoff's sons to do that. Now one of them is dead.
Can the SEC actually be turning a new leaf? Should we rush to RE Send them the 100 plus crimes that we have documented to them - more than 1 dozen times already? Can we really trust watchdogs to HAND pick their own watchdog? I mean really? If it were our good Demcrat Senate picking the "Outside" investigator, we might have a chance.We must continue to press these cases and point out the reasons why our federal agencies are failing to handle one of the largest criminal conspiracies of all time. I wish some news reporter would have the chutzpah to ask Mitt Romney how he will handle the failures to investigate white collar frauds.
That would set up a classic, proverbial sticking of Mitt the pitts between a rock and a hard place. If he answers that they must be fixed - then we can lead into Bain. If he dodges the question with something like it is already fixed, we can ask him if Bain has ever been investigated. Surely, no one actually is silly enough to believe that Mitt Romney would ever have Bain investigated! Wouldn't he have to see to it that such a case, if Romney was to become President - have its own "Outside" investigator?
If Romney's Bain & Goldman Sachs can enjoy a willfully blind SEC & DOJ even before he has become President; what will happen after he owns the DOJ. Maybe an Attorney General of the United States Paul Traub or Harold Bonacquist?
Personally, I think I missed my chance to get the cases to the national stage. Romney lives in La Jolla and I've been to his house 1/2 dozen times. As you can see in the picture, anyone - prior to his GOP run - could have simply walked right up and kicked him in the ass. After all - there's a news van parked in front every day. Now, you can go to jail for tossing glitter at him. I've been civil to he and his criminal empire this long - I guess I can wait longer. I believe in our Constitutions. It is those who are handling it that we need to remove.
Perhaps the straw that would break the back on Paul Traub is to reverse the logic Paul Traub himself created. If Dreier/ Petters / Traub story can be nixed by a Bernie Madoff story coming out. Would Romney himself cut Paul Traub loose and hang him out to dry (maybe even literally) - if Bain & Goldman Sachs were about to be investigated? There are only 2 people that can prove what Mitt Romney and Paul Traub have done together; which one do you think is at risk - should things heat up?
In the immortal words of Jack
"Don't think you can come here, flash a badge and make me nervous"
Well - Goldman Sachs must be getting nervous. T'aint 'bout Laser Haas's badge either. They never EVER spend more than 2 seconds on my websites. Today, they were looking me up EveryWhere;
Domain Name gs.com ? (Commercial)
IPAddress 12.47.208.# (GOLDMAN SACHS COMPANY)
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Time of visit May 9 2012 ---- redact
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