Friday, 19 August 2011

SEC Covering Up Wall Street Crimes?

A whistleblower claims that over the past two decades, the agency has destroyed records of thousands of investigations, whitewashing the files of some of the nation's worst financial criminals.

Imagine a world in which a man who is repeatedly investigated for a string of serious crimes, but never prosecuted, has his slate wiped clean every time the cops fail to make a case. No more Lifetime channel specials where the murderer is unveiled after police stumble upon past intrigues in some old file – "Hey, chief, didja know this guy had two wives die falling down the stairs?" No more burglary sprees cracked when some sharp cop sees the same name pop up in one too many witness statements. 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. By whitewashing the files of some of the nation's worst financial criminals, the SEC has kept an entire generation of federal investigators in the dark about past inquiries into insider trading, fraud and market manipulation against companies like Goldman Sachs, Deutsche Bank and AIG. With a few strokes of the keyboard, the evidence gathered during thousands of investigations – "18,000 ... including Madoff," as one high-ranking SEC official put it during a panicked meeting about the destruction – has apparently disappeared forever into the wormhole of history.
Many of the destroyed files involved companies and individuals who would later play prominent roles in the economic meltdown of 2008. Two MUIs involving con artist Bernie Madoff vanished. So did a 2002 inquiry into financial fraud at Lehman Brothers, as well as a 2005 case of insider trading at the same soon-to-be-bankrupt bank. A 2009 preliminary investigation of insider trading by Goldman Sachs was deleted, along with records for at least three cases involving the infamous hedge fund SAC Capital.

[Posted at the SpookyWeather blog, August 19th, 2011.]


SiriusNews said...

The President of the United States signed into LAW an EMERGENCY EXECUTIVE ORDER on July 25th, 2011 about Wall Street and not one TV station has covered this huge story
surrounding the criminal activities on Wall Street. How on Earth has CNBC, Bloomberg, Fox Business, WSJ, Time, FT and all the other news media outlets silenced on this huge story.

Deep Capture is out

chapter 21 came out tonight

please read this story. simply amazing.

SpookyPunkos said...


I had a quick look, yes there is a type of mafia pulling the strings behind a lot of the deals and trading that happens. The corruption is far reaching.

I do have concerns about the article that you have linked. From what I saw it looks like they are pointing to a legit "terrorist" network involving the Russian mafia and Islamic networks.

It makes out the US is partly the victim of this operation- as far as I can tell from a quick glance at it.

I believe this is propaganda to hide the endemic corruption within the US system. Al Qaeda is a lie, run by, or facilitated by Western Intelligence including ISI, Mossad, MI6 and Saudi (as far as can be assessed). Because the article is treating Al Qaeda, and Iran, as a serious oppenent, one must infer that the author is either misguided or a propaganda asset, in my humble opinion.

And I do agree that the media never properly covers these sorts of things (rigged markets and regulators) because they are owned via corporations that have a stake in the ongoing corruption.

Thanks for your message.

Spook !