Naked Shorts — $75,000 For Cracking the Wall Street Cover-up

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Deep Capture 1

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sourced by RoryKearney

Patrick Byrne, CEO of Overstock.com is now offering $75,000 dollars in contest prize money, if you can raise awareness of the “Deep Capture” corruption that is going on every day in the “investment” world. 

Read this true story of how hundreds of good companies are being destroyed by Wall Street, so that some unscrupulous mega rich traders can profit off of their demise.

Be prepared to meet the Sith Lord, the Easter Bunny, the pajamahadeen, a host of thugs and charlatans, and to learn what a “naked short” is. Even if you choose not to enter the contest, you won't be able to put down this terrible, true but fascinating story, of the corruption currently going on in the investment underbelly. Learn where your retirement money is really going.

Due to a captured media who refuse to report on what is happening, a self regulating Securites and Exchange Commission (SEC) who turn a blind eye as they count their loot despite thousands of complaints, and a Government so busy piling up their treasures on earth that they have no time to properly govern, you will get to meet Dr. Patrick Byrne, the most amazing CEO to ever start a publicly traded company. With his company being targeted for a take down, he goes head to head with the crooks, in what has to be the greatest story never told.

Go to Deep Capture, read the whole story, and help get the word out. (see rules)

http://www.deepcapture.com/the-story-of-deep-capture-by-mark-mitchell/

Here are 2 excerpts that will pique your curiosity

“At the end of April 2006, the Media Mob gathers for the annual conference of the Society of American Business Editors and Writers (SABEW). In response to the accusations leveled by the Easter Bunny and Patrick Byrne, the journalists hold a panel titled “High-Tech McCarthyism?: Dealing with Today’s New Business Journalist Bashers.” The panel is chaired by Herb, Herb’s friend Joe Nocera, and Dan Colarusso, who worked with Herb at TheStreet.com before he became Roddy Boyd’s boss at The New York Post.

A Deep Capture team member infiltrates this meeting, and gets it all on tape. The journalists are furious that we have this tape, and it is easy to understand their concern. It couldn’t do a much better job of exposing the arrogance and willful obstinacy of the nation’s most “prominent” financial journalists.

Colarusso sets the tone. Referring to Patrick and the Easter Bunny, he says, “The more they attack us, you know, we have barrels of ink and stacks of money, and all the resources in the world at our disposal, legal, and via our media, to crush them…””


“In 2006 a Columbia School of Journalism (CJR) editor (a seasoned journalist formerly with Time magazine in Asia, The Wall Street Journal Europe, and The Far Eastern Economic Review) called me to discuss suspicions he was forming about the US financial media. I gave him leads but warned, “Chasing this will take you down a rabbit hole with no bottom.” For months he pursued his story against pressure and threats he once described as, “something out of a Hollywood B movie, but unlike the movies, the evil corporations fighting the journalist are not thugs burying toxic waste, they are Wall Street and the financial media itself.”

His exposé reveals a circle of corruption enclosing venerable Wall Street banks, shady offshore financiers, and suspiciously compliant reporters at The Wall Street Journal, Fortune, CNBC, and The New York Times. If you ever wonder how reporters react when a journalist investigates them (answer: like white-collar crooks they dodge interviews, lie, and hide behind lawyers), or if financial corruption interests you, then this is for you. It makes Grisham read like a book of bedtime stories, and exposes a scandal that may make Enron look like an afternoon tea."

Patrick M. Byrne


How do I know? I have been involved in this story for years and doing everything I can to assist Patrick Bryne and the good guys. I am proud to say that I am invested in a company that discovered a better, non invasive, non toxic treatment for late stage prostate cancer. The Wall Street crooks are trying to keep this treatment from the public. They have delayed and destroyed other companies with better treatments. So far they have been able to co-opt the FDA to withhold licensure of Provenge for over a year, leaving 30,000 American men with late stage prostate cancer to die without hope each year.

Think it can't happen? Think again. Bear Stearns was chopped up and the public will foot the bill. And there is more devastation to come. The miscreants even managed to stop a Congressional hearing from being assembled to get answers as to why the FDA delayed this excellent immunotherapy. We were so enraged we formed a group called CareToLive and we are currently suing the FDA on behalf of the 1 in 6 men who will get prostate cancer in their lifetime. But I digress. Although these two stories have a common denominator, Wall Street corruption, you can read more about the prostate cancer connection at CareToLive.com. We are here for Deep Capture and the $75,000 dollars in prize money for raising awareness about this issue. Did I mention that Patrick is also suing several firms on Wall Street?

Stop by the Overstock Investor Village board to keep up on the minute to minute goings on. Please help us shine a light on this important issue so that we can begin to put an end to this fraudulent conduct.

http://www.investorvillage.com/smbd.asp?mb=3532&clear=1&pt=m

Thanks,

Rory Kearney
Journalist

PS
Please visit the Deep Capture site to read more, view some incredible videos, and unbelievable audios.
http://www.deepcapture.com/
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Video of Cramer throwing his United States subpoena on the floor on national tv.

http://www.deepcapture.com/jim-cramer-discusses-subpoena-with-herb-greenberg-the-worst-business-journalist-in-america/
10) The Archive

Those who would hijack the legal institutions shielding society from Wall Street perfidy must hijack the political institutions overseeing them, hijack the media’s discourse about those institutions, and hijack social media’s discussion of all of it. The capture must run deep to be stable. So deep, in fact, that records of the past become untrustworthy. Stories have disappeared from databases and video clips from websites. This chapter will serve as an archive of material to which the rest of DeepCapture may link. Those who wish to take issue with DeepCapture’s archiving and deconstruction of their copyrighted articles and videos (and, perhaps, emails) know where to find us.

Jim Cramer Discusses Subpoena with Herb Greenberg, the Worst Business Journalist in America May 24th, 2008 by Patrick Byrne

In February, 2006, Herb Greenberg joined Jim Cramer in spinning their SEC subpoenas, and Jim discards his casually. What they do not mention is that upon receiving his subpoena, Jim Cramer had immediately begun selling large amounts of TheStreet.com, without informing the public of his subpoena (according to his own lawyer, Jim Cramer had never previously sold TheStreet.com stock).

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July 12, 2008I admit I have a bone to pick with Jim Cramer. He lied about Provenge, the prostate cancer immunotherapy that is fighting for approval at the FDA, and he shills for the shorts to try to bankrupt the company, periodically trashing it on his Mad Money show.

Now ask yourself, what could he possibly know about the science, something it has taken us years to understand with the help of many brilliant and knowledgeable biologists, immunologists, oncologists and researchers.

Why did one of his hedge fund buddies whisper to Mike Huckman many years ago, that "Provenge doesn't work", and how did they get the FDA to delay approval after an FDA panel of experts voted it 17 to 0 safe and 13 to 4 efficacious (with a few of the naysayers receiving waivers to be on the panel, having many disclosed and undisclosed conflicts of interest) one of them a pathetically captured oncologist who works for an Investment firm started as a prostate cancer investment firm, as a scientific advisor. In other words, ringers were sent in, letters were leaked to the press, and arrangements were made to stop approval leaving 30,000 American men, (I don't know how many there are worldwide), to die every year without any options, while the Wall Street naked shorters, took millions in ill gotten gains.

Jim Cramer and Mark Haines actually made the only public apology I ever saw them make on TV, and it was about Dendreon, the company that makes Provenge, although I have to admit, I rarely watch any of them anymore. We go before the United States Court of Appeals on July 29.  You can find out more about this at http://www.CareToLive.com. Be prepared to enter a rat hole, where you will learn more than you ever wanted to know about who is deciding the fate of our medical treatments, and  why making money by delaying the cure for cancer is much more profitable. I will save this story for another time.

In the meantime Cramer continues to use his fancy words like "foment", but in Brooklyn, where I grew up, we called them LIARS!

Mark Mitchell, an objective reporter who comes to the table with the facts, just added another deep capture section.

http://www.deepcapture.com/a-scandal-unfolds-and-the-media-mob-scampers/
A Scandal Unfolds, and the Media Mob Scampers July 11th, 2008 by Mark Mitchell

Three years ago, Deep Capture reporter and Overstock CEO Patrick Byrne gave a famous conference call that he titled, “The Miscreant’s Ball.” His thesis was simple: Some short-selling hedge funds collude to destroy public companies by spreading misinformation, orchestrating government witch hunts, filing bogus class-action lawsuits, and, most egregiously, selling billions of dollars worth of phantom stock.

In the months that followed “The Miscreants Ball” presentation, a clique of journalists with close ties to short-selling hedge funds and CNBC’s Jim Cramer (himself a former hedge fund manager), set out to sully the reputations of Patrick and everyone else who sought to expose short-seller crimes.

Cramer pal Joe Nocera, who is the New York Times’ top business columnist, wrote that Patrick’s crusade against hedge funds that sell phantom stock was “loony beyond belief.” CNBC contributor and Marketwatch columnist Herb Greenberg, formerly an editor with Cramer’s web publication, TheStreet.com, labeled Patrick the “worst CEO in America” for taking on the shorts (ie., the same shorts who are now paying Herb for “independent” financial research). Fortune magazine’s Bethany McLean, who has yet to write a story that was not sourced from a small group of short-sellers connected to Jim Cramer, suggested in an article titled “Phantom Menace” that Patrick should be fired from Overstock for speaking out against the problem of phantom stock.

At the time, I was the editor of the Columbia Journalism Review’s online critique of business journalism. The attack on Patrick was like nothing I’d seen before, so I decided to write a story about the media’s coverage of short-sellers and phantom stock. When Herb Greenberg and Joe Nocera got word of this, they both called my editor demanding that he kill the story. Cramer sent a public relations goon to delay the story. Then a short-selling hedge fund, Kingsford Capital, appeared in my offices and offered to pay my salary.

My successor at the Columbia Journalism Review is now called “The Kingsford Capital Fellow.” One of Kingsford Capital’s managers was a founding editor of Cramer’s website, TheStreet.com. I do not believe that Kingsford’s interest in the Columbia Journalism Review is philanthropic. And I do not believe that the Columbia Journalism Review, “the nation’s premier media monitor” is capable of objectively monitoring the financial media so long as it’s chief writer on the subject is paid directly by this very controversial, Cramer-connected, short-selling hedge fund.

Perhaps facing similar pressures, or perhaps because they are unwilling to contradict Cramer’s influential Media Mob, or maybe because they’re just plain lazy, other journalists have shied away from covering the problem of illegal short-selling. Instead, reporters have incessantly repeated the party line that “short selling is good for the market. Only bad CEOs complain about short-sellers.”

In March, short-sellers destroyed Bear Stearns by spreading false information and selling millions of phantom shares. And now the shorts are going after another major investment bank. In a week of high drama, hedge funds have been circulating blatantly false and hugely damaging rumors that big institutions are pulling their money out of Lehman Brothers. If March SEC data is any indication, the shorts are also selling millions of dollars worth of phantom Lehman stock.

One of the nation’s most important investment banks is down, and another is on the brink. The American financial system wobbles.

And, suddenly, Cramer’s Media Mob is silent. Gone is all of the talk about Patrick Byrne being crazy. Nocera says nothing about the attacks on Lehman and Bear. Bethany McLean recently wrote a favorable review of a book written by David Einhorn, the most prominent short-seller of Bear Stearns and Lehman, but she dares not mention the current market predations.

Herb Greenberg, who used to sing the praises of short-sellers almost weekly, was last heard defending his hedge fund friends in April. CNBC seems to have taken him off that beat. (The network recently dispatched Herb to the San Diego State Fair, where he interviewed a vendor of deep-fried Twinkies).

But Jim Cramer is talking. No doubt to distance himself from the growing scandal, he went on CNBC today and said precisely what Patrick Byrne said three years ago. Noting that short-sellers are colluding to take down Lehman, he said the problem is “the need to be able to get a borrow and see if you can find stock….. no one is even calling to see if they can get a borrow. [In other words, hedge funds are selling stock they don’t have -- phantom stock]. It’s kind of like, well listen, let’s just knock it down. It’s very similar to what Joe Kennedy would have done in 1929 [leading to Black Monday and the Great Depression] which is get a couple of cronies together and let’s take it down…”

Too late, Jim. For three years, you, CNBC, and a clique of journalists very close to you have ignored this crime because your short-selling hedge fund cronies claimed that phantom stock is not a problem. Meanwhile, hundreds of companies have been affected. Billions of dollars of value have been wiped out. And lives have been destroyed.

It is one of the most ignominious episodes in the history of American journalism.

Click here to enter the $75,000 “Crack the Cover-up” contest.

Posted in The Mitchell Report |

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Excellent Bloomberg Phantom Shares Video Featuring Patrick Byrne
http://video.google.com/videoplay?docid=4490541725797746038

Like these roads his battle still seems uphill but Byrne says he won’t quit.

“ So it becomes like a game of chicken. And I’m putting a brick on the accelerator and take my hands off the wheel. And if they do the same thing and we crash, we crash. “
P Byrne

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http://www.marketwatch.com/news/story/goldmans-clearing-unit-draws-2/story.aspx?guid=%7B84A208A9-D4F0-48FC-BCE8-08F94AC67450%7D

excerpt
" Goldman fined $2 million for trading violations Spear Leeds arm failed to detect customers' illegal scheme By David Weidner, MarketWatch Last update: 10:29 a.m. EDT March 14, 2007 NEW YORK (MarketWatch) -- The clearing unit at Goldman Sachs Group Inc. was fined $2 million by regulators for failing to require brokers to properly mark their orders and restricting stock loans on long sales. NYSE Regulation Inc. and the Securities and Exchange Commission found in separate investigations Goldman Sachs Execution & Clearing could have discovered an illegal scheme being carried out by customers. Linda Chatman Thomsen, the SEC's enforcement director, said in a statement that the violation stemmed from automated trading procedures, which "enable brokers to execute larger volumes of trades more quickly and efficiently for their customers. "However, as this case makes clear, direct access does not obviate a broker's own responsibilities under the commission's short sale rules, and it certainly does not allow a broker to ignore apparent discrepancies indicating illegal trading by its customers.""
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July 13, 2008

Here is a comment from David Patch on the SEC's latest proposal. David Patch started InvestigateTheSec.com years ago.

July 10, 2008
Friends,
The SEC published today July 10, 2009 a memo within the Comment section of the newly proposed options market making exemption. The memo, issued by the Office of Economic Analysis is dated June 9, 2008. Because it is dated June 9, 2008 the memo is buried deep down into the reams of new comment memo's submitted since the Division of Market Trading re-opened this 2 year reform for comment on July 8, 2008.

http://sec.gov/comments/s7-19-07/s71907-562.pdf
Of concern is not only that this memo has been buried deep into the comment section for this rule, and dated not for when it was uploaded but for when the draft was issued nearly a month previously, but that the memo illustrates the callous and irresponsible nature of the SEC's rule making policies.
Consider that in June 2006 the SEC first proposed changes to the options market making exemptions. In August 2007 the SEC re-opened comments to that reform adding additional alternatives to the singular rule change proposed in 2006. One must assume that the SEC did not spend 13 months making alternatives to the 2006 proposal without the data to substantiate the changes or, for that matter, the data to support the very need for a rule change back in 2006.

In September 2007 a comment memo comes in from an Attorney working for Boston based Ropes Gray, who happens to be a committee chair at American Bar Association using the ABA letterhead for emphasis, and demands that data be presented to substantiate the needs for this change. This would be from the very same attorney who in 2006 stated the same demands so the comment memo's contents should have come as no surprise to the Commission.

Instead of publishing data used to support the proposal for change the SEC stalled.

In the Office of Economic Analysis memo published, and now available, it is understood that the time period for the data being analyzed ranged from April 9, 2007 thru March 31, 2008. So here is the issue:

1. A majority of this data is post the 2007 re-opened proposal comment period (September 2007). Didn't the SEC do their homework before the 2006 rule changes were first proposed or at least evaluate data that supported re-opening the proposal back up for comment in 2007? If not, why not? Are we to believe that nearly two years passed after a rule change was proposed to the public before the SEC actually received and/or audited the data necessary to support the changes proposed?

2. March 31, 2008 is six (6) months after closure of the comment period and six (6) months after Mr. Higgins drafted his comment memo citing a lack of empirical evidence to support a rule change. Clearly the SEC did not decide to gather the data for Mr. Higgins in September 2007 when he presented his issue. In reality the audit could have initiated no earlier than April 2008 based on the performance period of the data closing on March 31, 2008. Why is that? Why did the SEC not initiate a study when first responded to based on the polarizing nature of this issue and the potential damages that could be inflicted on millions of investors?

Being July 10, 2008 and not yet officially in the comment period, investors and issuers can assume that change is not likely to come for another six months to a year despite the clear evidence that a problem exists. Such calculated delays are inexcusable.

The Division of Market Trading, and the members of the Commission staff who have to date been non-responsive to the requests of State Regulators, the Chamber of Commerce, and Members of the US Congress to address this issue, are beyond negligent in their duties. To much of the investing public these individuals are acting in a near criminal manner (evidenced by the tone of the comment letters submitted these past 2+ years).

Securities fraud and market manipulation is destroying investors, public issuers, and our US economy and the members of the SEC who are aware of this abuse are aiding and abetting the fraud due to their inactions. Clearly the Division of Enforcement has little to work with when the Division of Market Trading allows this form of manipulative trading to exist - by law.

Confidence in the US Markets, domestic and foreign, is diminishing over this very issue and the SEC continues to take appropriate action.

It is time the SEC stopped screwing the investing public and started honoring the mission set forth upon them by Congress back in 1934 - protect the investing public as a number one priority.

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http://www.investigatethesec.com/drupal-5.5/StockgateToday
When Bad Decisions Are Made At High Levels - July 3, 2008

Front and center on the Securities and Exchange Commission web site is the mission statement for the regulatory agency.  The Mission statement reads:

‘The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.’

But what happens when rules created by the Commission, rules ill-advised by public sentiment, fail this mission?

Today, the rules pertaining to short selling are anything but rules that create market efficiencies or rules that maintain fair and orderly markets.  In fact, growth within the US capital market is suffering due to the ineffective short sale rules set in place by the agency.  While under such a cloud of public failure and ridicule, the SEC continues to fail in responding to the market abuses and manipulation taking place at the expense of public investors and public companies.

Case in point:

In 2004 the SEC ran a pilot program to test the impacts of eliminating the tick test in the short sale process.  The SEC had been lobbied that such protections against a possible bear raid were no longer necessary.  Instead, member firms insisted the tick test was merely a nuisance and an inefficiency that cost them time and money associated with the execution of a trade.

The SEC pilot program was conducted at a time where the market remained bullish, a period in time where short sales were more cautious.

In the years that followed the pilot trade data was accumulated by the SEC providing for a variety of results.   When it came time for change, the SEC was forced to decide when and how to throw caution to the wind. The pilot program highlighted that not all was equal in the elimination of the tick test and that targeted companies, smaller capitalized companies, could suffer at the hands of a rule change.  On the other hand, well capitalized companies were secure in the market trading.

Public response during the comment period of the rule change cited that the study was inconclusive.  The public questioned the methods in which the analysis was conducted cautious that the analysis was at a macro trade level and not at the micro trade level where bear raids exist.  Experience tells us that trade volatility and trade liquidity allowed for intraday raids in public markets and such events could not be detected when looking from a 10,000 ft level as the SEC analysis did.

To drive the point home that such reforms would be harmless the SEC enlisted a panel of economists to discuss the pilot study.  The panel became a who’s who of short sale apologists including Owen Lamont who has published papers on the virtues of the short seller and who has very close personal ties with recognized short seller Jim Chanos.

The economist panel concluded that bear raids could not exist in this regulatory environment.  The markets held too much liquidity and were too efficient for a bear raid to ever exist today.  The panelists even cited a lack of SEC enforcement in bear raid manipulation cases these past decades to support their claims.

The SEC passed change that eliminated the tick test in 2006.

Bulls turned Bear and markets turned sour.  Short sales were up to record levels and volatility was the new mantra.  Suddenly market efficiency was no longer a pre-requisite, trade volatility was.

Today market professionals, regulators, and federal authorities are all looking into the collapse of Bear Stearns.  The bear raid on one of the countries top five financial institutions.  The public cautions raised during the pilot program, and ignored by regulators, have surfaced into a market reality.   

The economists were dead wrong, the SEC was dead wrong, bear raids do exist at micro levels and when they occur the most fragile of companies can be destroyed under the weight.

But as swiftly as change comes, a correction is not so swift.

Today the SEC stalls on reforms to eliminate the bear raid tactics used through a loophole in the options market.  The Options Market Making exemption became a loophole that accelerated the demise of Bear Stearns and can be attributed to many other cases of public destruction. 

Today the SEC likewise fails to address the inaccuracies in their analysis regarding the elimination of the tick test rule.  

‘The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.’

Unfortunately that mission is catastrophically off course and the public investor and public companies that facilitate capital formation in the US Markets are paying the price for the SEC’s failures.  It is all about the Benjamin’s at the SEC and right now the Benjamin’s that speak are speaking on behalf of those that have access to take advantage of the SEC gaffe.

How far off were the SEC and their hand picked panel of economists regarding 21st century Bear raids?  

According to Vanity Fair this month “More than a few veteran Wall Streeters believe an investigation by the Securities and Exchange Commission will uncover evidence that Bear was the victim of a gigantic “bear raid”—that is, a malicious attack brought by so-called short-sellers, the vultures of Wall Street, who make bets that a firm’s stock will go down.”

Next target Lehman.  People close to Lehman say the bank is now convinced that it is the target of an orchestrated campaign by short-sellers to force it into the same fate of Bear Stearns.  

The real story behind the failure of the SEC to uphold it’s mission can be read at www.deepcapture.com.  

Note:  Requests for a timetable from the Commission on when they will take appropriate actions to cease further abuses were responded to with no comment.

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http://www.investigatethesec.com/drupal-5.5/ArchivedStockgateTodayhttp://www.investigatethesec.com/drupal-5.5/ArchivedStockgateToday



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http://www.investigatethesec.com/drupal-5.5/RecentPublications

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http://www.financialsense.com/Experts/2008/Burrell.html

Bud Burrell weighs in on Naked Short Selling — Audio File
Bud BurrellThe Greatest Crime in History July 12, 2008

Mr. Bud Burrell has extensive experience working with major brokerage firms on the trading desk and arbitrage desk with almost 30 years experience -- Industry authority, expert, Wall Street veteran. Love him or hate him, you will always know where he stands - his no-holds-barred style and frank honesty make his blogs a must read, from one of the originals. View his landmark correspondences in The Bud Files.

contact information
www.thesanitycheck.com

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July 13, 2008 2:25 PM

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I personally tried to edit the wiki several times a few years ago about the naked short selling issue. Whatever I wrote was immediately removed. The would not even allow me to put a link on there to TheSanityCheck which is a comprehensive site on naked short selling of counterfeit shares. They threatened to block me if I tried to post anything there, and although I did not care if I was blocked, I saw that my efforts were futile, so I stopped trying.

I am putting this link in again as this is a must hear. Get past the first 5 minutes when Bud gets his stride. This audio is damning.

http://www.financialsense.com/Experts/2008/Burrell.html

Bud Burrell weighs in on Naked Short Selling — Audio File
The Greatest Crime in History* * * * *

Now I am hearing that the SEC said they are going to open an investigation into the spreading of false rumors about companies. Pass out the bread, here comes the baloney. It sounds like more stalling tactics to me. Why should we continue to let the crooks, police themselves. The SEC is broken and needs to be investigated NOW and the crooks need to be jailed!

http://news.yahoo.com/s/nm/20080713/bs_nm/sec_examination_dc;_ylt=Ajl5Dk4ouXeO6JZzlu2RpEus0NUE

Thanks to all of you for taking an interest  in this story.  Please tell a friend. PB has to offer prize money to tell a story that the press should be falling all over themselves to do for free. Please help us spread the word. The markets are facing systemic risk.

Silence =  World Economic Meltdown

Thanks,
RK
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July 14, 2008  9:20 AM

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Judd Bagley of AntisocialMedia.net has done more to unravel this mess than just about anybody. Those of us fighting this battle are indebted to him for all his help. Here he is dismantling Gary Weiss, who seems to have dedicated a blog to trashing Patrick Byrne and Overstock.

Truth be known, I have never read Weiss's blog although the links are thrown in my face on an almost daily basis on the InvestorVillage ostk board, but the intent is conveyed, and that is, to further trash Patrick and OSTK.

Some background. Many of us fled the yahoo finance message boards due to the high volume of paid bashers, while yahoo took no action to stop them despite reams of complaints. Of couse the bashers, not content to lose their target audience, have followed us over to Investors Village, although IV does a much better job of policing them and if enough valid complaints are received they will either banish them, or limit them to 3 posts a day. Check out the yahoo OSTK finance board sometime. A virtual cesspool.

Here is part of Judd's post. He has promised us more and I will try to periodically update you.
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The Enigma

Recently, I wrote about my relationship with Roger Schneider, brother of paid stock message board basher Floyd Schneider.

At that time, I revealed that Roger had been Floyd’s boss, but fired him from the mortgage brokerage he ran in early April, 2007, when Roger discovered that Floyd had disguised payments to him from convicted securities manipulator Michelle McDonough as bogus mortgage brokerage commissions.

McDonough had paid Floyd to post internet stock message board attacks against specific public companies targeted by short selling hedge funds

Given the severity of the offense, Floyd was promptly shown the door, and it became the responsibility of Roger to clean out Floyd’s desk.

It was then that Roger discovered many dark and inexplicable things about his brother. Soon, Roger and I were in contact. Once he had the opportunity to delete (what were apparently a very small number of) work-related documents from Floyd’s computer, Roger gave it to me, asking that I scour it for information that might be of use to law enforcement.

Which I did.

What I found were thousands of Floyd’s personal emails saved to the computer’s hard drive, which Floyd sent and received between September 5, 2005 and April 2, 2007.

The contents of the computer yielded so many insights, we’ve taken to calling it The Enigma, after the German encoding device captured by the Allies in WWII.

At this time, I don’t feel comfortable publishing any of the specific emails turned over to the authorities, but I am eager to let you read the more interesting of the thousands that remain.

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Gary Weiss and his Yahoo Gnomes

What brought me into this fight in a public way was the discovery that Gary Weiss was posting to the Yahoo Finance message board as “Lamborghini751″.

I figured this out, initially, by figuring out that Gary was commenting on his own blog as “Lamborghini751″.

In response, Weiss swore that indeed, he had posted Lamborghini751’s comments, but that it had been at Lambo’s request.

Apparently it was easier for Lambo to email the comments to Weiss than to actually post them himself.

(snicker)

At the time, Weiss took the additional step of swearing that he’d never actually posted anything to Yahoo Finance.

Well…let’s see what his email to Floyd has to say on the matter.

On February 17, 2006, Floyd sent Gary Weiss a link to a story relating to securities fraud. For some reason this prompted the following reply from Gary:

(see link)

As it happens, I know precisely who Weiss’s gnomes were. But the point is, unless Weiss employs faerie-world creatures to do his dirty work for him, he was lying when he claimed that he never posted anything to Yahoo Finance.

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July 14, 2008 (cont'd) 7: 30 PM

I thought I had mentioned this earlier, but I must have inadvertently omitted it. Jim Cramer used to room with Eliot Spitzer, the NY Governor who recently resigned, after being caught with his hand in the cookie jar, the cookie jar being none other than one Miss Ashley Dupree, who has now achieved infamy as his $4000 dollar a night hooker. Now that would not be so bad to anybody but his wife and kids, except for the fact that Spitzer went around prosecuting other for doing the same thing, all puffy like, as if he had some sort of moral fiber inside.

Spitzer had no problem with Cramer writing bull on the subpoena and throwing it on the floor on national prime time tv while Spitzer was Attorney General of NY, resulting in the subpoenas being withdrawn. If I did that, I would probably be in solitary confinement right now. Yes, Cramer was feeling his oats when Spitzer was Attorney General and then Governor. He pretty much trashed whatever companies he wanted to, signaling the cabal to destroy them. Oh, he hates Dendreon, the prostate cancer immunotherapy biotech company that so many of his hedge fund buddies are short. He went as far as calling us "drunken, gambling Falstaffs", and told people to avoid it like the plague. He said it is a "battleground stock." What a pathetic little man he is.

Well, to make a long story short, Miss Ashley Dupree as it turns out, was living in the beach house James Chanos, President of Kynikos hedge fund, owns. He is interviewed in the Bloomberg video, and you can hear a little more about him the Bud Burrell radio interview.

Bloomberg Phantom Shares Video Featuring Patrick Byrne
http://video.google.com/videoplay?docid=4490541725797746038

http://www.financialsense.com/Experts/2008/Burrell.html
Bud Burrell weighs in on Naked Short Selling — Audio File

James Chanos is also being sued by Fairfax Financial Holding for trying to destroy his company.

Excerpt

Hedge Fund Hit Man Hired by Cohen, Loeb, Sender, Says Insurer
By Anthony Effinger

Aug. 24 (Bloomberg) -- One morning in 2005, an unusual letter arrived for Rev. Barry Parker at St. Paul's Anglican church in Toronto. The news: A member of his flock was out to swindle the parish.

``Dear Father,'' the note begins. ``The attached documents are being sent to you out of my concern for the Church's finances.''

The letter goes on to say that the allegedly wayward parishioner, an insurance executive named Prem Watsa, was bilking shareholders of Toronto-based Fairfax Financial Holdings Ltd.

``I am perplexed by the mystifying, spectacular rise of this insurance medusa,'' the typed letter reads. ``Be aware, Father, be skeptical and ask Mr. Watsa to make a full confession.'' The note was signed P. Fate. The return address was that of St. Patrick's Cathedral in New York.

Stranger still is what Fairfax says is the source of the letter: A cabal of hedge fund managers -- among them James Chanos, Steven Cohen, Daniel Loeb, David Rocker and Adam Sender -- hoping to profit from a slump in Fairfax stock. Fairfax, which has a history of accounting lapses, sued eight hedge fund firms for racketeering in July 2006, demanding $6 billion in damages.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aaza4TiCAtxE&refer=home

Bad Things Happen To Bad Peoplehttp://imustimes.wordpress.com/2008/03/12/bad-things-happen-to-bad-people/
March 12, 2008 by channelXRFR

Jacobs: Spitzer just picked targets of opportunity. He was very selective about it. It’s not the he sprayed the whole area with a shotgun with #7 bird-shot. Spitzer just picked his targets carefully to make sure he made a point.
____________________________________

July 15, 2008 6:30 AM

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Liz Moyers is one of the few mainstream journalists who has not been captured.

Stop Wall Street Rumors? Sure
Liz Moyer, 07.14.08, 6:35 PM ET

Excerpts

Bank stocks swooned again Monday as rumors flew around trading desks about which bank would be the next to be taken out.

But wait a minute Weren't we reassured on Sunday that the Securities and Exchange Commission was going to try to put a stop to rumormongering on
Wall Street

* * * * *

Part 1 — Naked Shorts — $75,000 For Cracking the Wall Street Cover-up
by RoryKearney | July 11, 2008 at 07:13 am | 7035 views | 33 comments
http://www.nowpublic.com/world/naked-shorts-75-000-cracking-wall-street-cover

Part 2 — Naked Shorts — $75,000 For Cracking the Wall Street Cover-up
by RoryKearney | July 18, 2008 at 08:43 am | 573 views | 1 comment
http://www.nowpublic.com/world/part-2-naked-shorts-75-000-cracking-wall-street-cover-redux

Part 3 — Naked Shorts — $75,000 For Cracking the Wall Street Cover-up REDUX
by by RoryKearney | July 19, 2008 at 06:32 am |1384 views | 3 comments
http://www.nowpublic.com/world/part-3-naked-shorts-75-000-cracking-wall-street-cover-redux

Part 4 — Naked Shorts — $75,000 For Cracking the Wall Street Cover-up REDUX
by RoryKearney | July 23, 2008 at 10:05 am | 628 views | add comment
http://www.nowpublic.com/world/part-4-naked-shorts-75-000-cracking-wall-street-cover-redux

Part 5 — Naked Shorts — $75,000 For Cracking the Wall Street Cover-up REDUX
by RoryKearney | July 23, 2008 at 10:05 am |2111 views | add comment
http://www.nowpublic.com/world/part-5-naked-shorts-75-000-cracking-wall-street-cover-redux

Part 6— Naked Shorts — $75,000 For Cracking the Wall Street Cover-up REDUX
by RoryKearney | July 26, 2008 at 08:03 am | 818 views | 2 comments
http://www.nowpublic.com/world/part-6-naked-shorts-75-000-cracking-wall-street-cover-redux

Part 7— Naked Shorts — $75,000 For Cracking the Wall Street Cover-up REDUX
by RoryKearney | July 29, 2008 at 08:13 pm | 1898 views | add comment
http://www.nowpublic.com/world/part-7-naked-shorts-75-000-cracking-wall-street-cover-redux

Part 8 — Naked Shorts — $75,000 For Cracking the Wall Street Cover-up REDUX
by RoryKearney | July 31, 2008 at 05:05 pm | 419 views | add comment
http://www.nowpublic.com/world/part-8-naked-shorts-75-000-cracking-wall-street-cover-redux

Part 9 — Naked Shorts — $75,000 For Cracking the Wall Street Cover-up REDUX
by RoryKearney | August 6, 2008 at 07:56 am | 422 views | add comment
http://www.nowpublic.com/world/part-9-naked-shorts-75-000-cracking-wall-street-cover-redux

Part 10 - Overstock CEO Patrick Byrne Carpet Bombs Wall Street & The Media on the Don Harrold Show (Video)
by RoryKearney | August 26, 2008 at 12:27 pm | 512 views | 2 comment
http://www.nowpublic.com/world/overstock-ceo-patrick-byrne-carpet-bombs-wall-street-media-don-harrold-show-video

Part 11 - I AIN'T LEAVIN' TILL THEY THROW ME OUT!
by RoryKearney | August 28, 2008 at 03:16 pm | 533 views | 2 comments
http://www.nowpublic.com/world/i-aint-leavin-till-they-throw-me-out

Part 12 - Back To Back
by RoryKearney | August 29, 2008 at 12:21 pm | 472 views | 5 comments
http://www.nowpublic.com/world/12-back-back

Part 13 - To Catch A Rat — Illegal Rumor Mongering at its Lousiest
by RoryKearney | September 2, 2008 at 10:15 am | 1330 views | 2 comments
http://www.nowpublic.com/world/catch-rat-illegal-rumor-mongering-its-lousiest

Part 14 - Are They Going To Arrest The Sith Lord
http://www.nowpublic.com/world/are-they-going-arrest-sith-lord
by RoryKearney | September 11, 2008 at 11:43 am | 452 views | 2 comments

Just Say Yes. The FDA Ties That Bind. A Saturday Morning Rant.
by RoryKearney | July 12, 2008 at 08:24 am | 270 views | add comment
http://www.nowpublic.com/health/just-say-yes-fda-ties-bind-saturday-morning-rant

#15 — No Penalties for Financial Rapists! - Overstock CEO speaks on Naked Short Selling
RoryKearney | September 17, 2008 at 03:44 pm | 390 views | 10 comments
http://www.nowpublic.com/tech-biz/no-penalties-financial-rapists-overstock-ceo-speaks-naked-short-selling

Part 16 — Got Lipstick? Some Pigs Are More Equal Than Others
by RoryKearney | September 19, 2008 at 07:39 pm | 95 views | 5 comments
http://www.nowpublic.com/world/got-lipstick-some-pigs-are-more-equal-others

Everything I write is my opinion. If I have made any factual errors, please notify me, and I will correct them.