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Gary Edwards

Major Banksters, Governmental Officials and Their Comrade Capitalists Targets of Spire Law Group, LLP's Racketeering and Money Laundering Lawsuit Seeking Return of $43 Trillion to the United States Treasury - MarketWatch - 0 views

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    "NEW YORK, Oct. 25, 2012 /PRNewswire via COMTEX/ -- Spire Law Group, LLP's national home owners' lawsuit, pending in the venue where the "Banksters" control their $43 trillion racketeering scheme (New York) - known as the largest money laundering and racketeering lawsuit in United States History and identifying $43 trillion ($43,000,000,000,000.00) of laundered money by the "Banksters" and their U.S. racketeering partners and joint venturers - now pinpoints the identities of the key racketeering partners of the "Banksters" located in the highest offices of government and acting for their own self-interests. In connection with the federal lawsuit now impending in the United States District Court in Brooklyn, New York (Case No. 12-cv-04269-JBW-RML) - involving, among other things, a request that the District Court enjoin all mortgage foreclosures by the Banksters nationwide, unless and until the entire $43 trillion is repaid to a court-appointed receiver - Plaintiffs now establish the location of the $43 trillion ($43,000,000,000,000.00) of laundered money in a racketeering enterprise participated in by the following individuals (without limitation): Attorney General Holder acting in his individual capacity, Assistant Attorney General Tony West, the brother in law of Defendant California Attorney General Kamala Harris (both acting in their individual capacities), Jon Corzine (former New Jersey Governor), Robert Rubin (former Treasury Secretary and Bankster), Timothy Geitner, Treasury Secretary (acting in his individual capacity), Vikram Pandit (recently resigned and disgraced Chairman of the Board of Citigroup), Valerie Jarrett (a Senior White House Advisor), Anita Dunn (a former "communications director" for the Obama Administration), Robert Bauer (husband of Anita Dunn and Chief Legal Counsel for the Obama Re-election Campaign), as well as the "Banksters" themselves, and their affiliates and conduits. The lawsuit alleges serial violations of the United States Patri
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    This is the first time anyone has tried to go after the Bankster class of midievil (mediæval) elites to recover theft of funds. Charges include racketeering, fraud and international money laundering. The mass tort action is now in the Brooklyn Federal Courts. Dead bodies are starting to show up as the Banksters move to shut down press coverage. Amazing stuff.
Paul Merrell

Apple could use Brooklyn case to pursue details about FBI iPhone hack: source | Reuters - 0 views

  • If the U.S. Department of Justice asks a New York court to force Apple Inc to unlock an iPhone, the technology company could push the government to reveal how it accessed the phone which belonged to a shooter in San Bernardino, a source familiar with the situation said.The Justice Department will disclose over the next two weeks whether it will continue with its bid to compel Apple to help access an iPhone in a Brooklyn drug case, according to a court filing on Tuesday.The Justice Department this week withdrew a similar request in California, saying it had succeeded in unlocking an iPhone used by one of the shooters involved in a rampage in San Bernardino in December without Apple's help.The legal dispute between the U.S. government and Apple has been a high-profile test of whether law enforcement should have access to encrypted phone data.
  • Apple, supported by most of the technology industry, says anything that helps authorities bypass security features will undermine security for all users. Government officials say that all kinds of criminal investigations will be crippled without access to phone data.Prosecutors have not said whether the San Bernardino technique would work for other seized iPhones, including the one at issue in Brooklyn. Should the Brooklyn case continue, Apple could pursue legal discovery that would potentially force the FBI to reveal what technique it used on the San Bernardino phone, the source said. A Justice Department representative did not have immediate comment.
Paul Merrell

Pepe Escobar - The real November surprise -- Puppet Masters -- Sott.net - 0 views

  • "As bad as it is the folks above the President make the decisions. They may have decided on Trump. These things do not happen by accident." Thus spoke a high-level US business mover and shaker with secure transit in rarified Masters of the Universe-related circles, amidst the utter political chaos provoked by head of the FBI James Comey's latest bombshell. It's virtually established by now that US Attorney General Loretta Lynch told Comey not to release his letter to Congress. But Comey did it anyway. If he had not, and a scandal would - inevitably - spring up after the US presidential election, Lynch would be perfectly positioned to deny she knew anything, and Comey would be on the firing line. Lynch is a certified Clinton machine asset. In 1999 then-President Bill Clinton appointed her to run the Brooklyn US Attorney's office. She left in 2002, taking the private practice revolving door. She was back to the Brooklyn office in 2010, urged by Obama. Five years later she became the 83rd US Attorney General, replacing the dodgy Eric Holder. A plausible case has been made that Comey took his fateful decision based on a serious internal revolt at the FBI - led by key people he trusts — as well as being egged-on by his wife. Yet one of the key questions that refuse to go away is why the FBI waited until 11 days before the US presidential election to supposedly "find" an email trove on certified sexting pervert Anthony Weiner's laptop.
  •      "As bad as it is the folks above the President make the decisions. They may have decided on Trump. These things do not happen by accident." Thus spoke a high-level US business mover and shaker with secure transit in rarified Masters of the Universe-related circles, amidst the utter political chaos provoked by head of the FBI James Comey's latest bombshell. It's virtually established by now that US Attorney General Loretta Lynch told Comey not to release his letter to Congress. But Comey did it anyway. If he had not, and a scandal would - inevitably - spring up after the US presidential election, Lynch would be perfectly positioned to deny she knew anything, and Comey would be on the firing line. Lynch is a certified Clinton machine asset. In 1999 then-President Bill Clinton appointed her to run the Brooklyn US Attorney's office. She left in 2002, taking the private practice revolving door. She was back to the Brooklyn office in 2010, urged by Obama. Five years later she became the 83rd US Attorney General, replacing the dodgy Eric Holder. A plausible case has been made that Comey took his fateful decision based on a serious internal revolt at the FBI - led by key people he trusts — as well as being egged-on by his wife. Yet one of the key questions that refuse to go away is why the FBI waited until 11 days before the US presidential election to supposedly "find" an email trove on certified sexting pervert Anthony Weiner's laptop.
  • The business source, although unsympathetic to the Clinton machine, especially in foreign policy, is a realpolitik practitioner, not a conspiracy theorist. He is adamant that, "the FBI reversal could not have happened without orders above the President. If the Masters [of the Universe] have changed their mind, then they will destroy Hillary." He adds, "they can make a deal with Donald just like anyone else; Donald wins; the Masters win; the people think that their voice has been heard. And then there will be some sort of (controlled) change." What's paramount in the whole soap opera is that faith in the US political system — as corrupt as it may be — must endure. That mirrors the faith in the US dollar; if confidence in the US dollar fails, the US as a hegemonic financial power is no more. The source is equally adamant that, "it is almost unprecedented to see a cover-up as extensive as Hillary's. A secret meeting between Bill Clinton and the Attorney General; the FBI ignoring all evidence and initially clearing Hillary to near rebellion of the whole of the FBI, attested to by Rudolf Giuliani whose reputation as a federal prosecutor is unquestioned; the Clinton "pay for play" foundation. The Masters are troubled that this is getting out of hand." The record shows that "the Masters do not usually have to go to such lengths to protect their own. They did manage to save Bill Clinton from the Monica Lewinsky perjury and keep him in the presidency. The Masters were not attacked in this case. They even got away with the 1987 cash settlement crash and the theft surrounding the Lehman debacle. In all these cases there were no overarching challenges to their control, as we see now open to the public by Trump. They antagonized and insulted the wrong man."
Paul Merrell

Why Does the FBI Have to Manufacture its Own Plots if Terrorism and ISIS Are Such Grave Threats? - The Intercept - 0 views

  • The FBI and major media outlets yesterday trumpeted the agency’s latest counterterrorism triumph: the arrest of three Brooklyn men, ages 19 to 30, on charges of conspiring to travel to Syria to fight for ISIS (photo of joint FBI/NYPD press conference, above). As my colleague Murtaza Hussain ably documents, “it appears that none of the three men was in any condition to travel or support the Islamic State, without help from the FBI informant.” One of the frightening terrorist villains told the FBI informant that, beyond having no money, he had encountered a significant problem in following through on the FBI’s plot: his mom had taken away his passport. Noting the bizarre and unhinged ranting of one of the suspects, Hussain noted on Twitter that this case “sounds like another victory for the FBI over the mentally ill.” In this regard, this latest arrest appears to be quite similar to the overwhelming majority of terrorism arrests the FBI has proudly touted over the last decade. As my colleague Andrew Fishman and I wrote last month — after the FBI manipulated a 20-year-old loner who lived with his parents into allegedly agreeing to join an FBI-created plot to attack the Capitol — these cases follow a very clear pattern
  • Once again, we should all pause for a moment to thank the brave men and women of the FBI for saving us from their own terror plots.
  • We’re constantly bombarded with dire warnings about the grave threat of home-grown terrorists, “lone wolf” extremists and ISIS. So intensified are these official warnings that The New York Times earlier this month cited anonymous U.S. intelligence officials to warn of the growing ISIS threat and announce “the prospect of a new global war on terror.” But how serious of a threat can all of this be, at least domestically, if the FBI continually has to resort to manufacturing its own plots by trolling the Internet in search of young drifters and/or the mentally ill whom they target, recruit and then manipulate into joining? Does that not, by itself, demonstrate how over-hyped and insubstantial this “threat” actually is? Shouldn’t there be actual plots, ones that are created and fueled without the help of the FBI, that the agency should devote its massive resources to stopping? This FBI tactic would be akin to having the Drug Enforcement Agency (DEA) constantly warn of the severe threat posed by drug addiction while it simultaneously uses pushers on its payroll to deliberately get people hooked on drugs so that they can arrest the addicts they’ve created and thus justify their own warnings and budgets (and that kind of threat-creation, just by the way, is not all that far off from what the other federal law enforcement agencies, like the FBI, are actually doing). As we noted the last time we wrote about this, the Justice Department is aggressively pressuring U.S. allies to employ these same entrapment tactics in order to create their own terrorists, who can then be paraded around as proof of the grave threat.
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  • UPDATE: The ACLU of Massachusetts’s Kade Crockford notes this extraordinarily revealing quote from former FBI assistant director Thomas Fuentes, as he defends one of the worst FBI terror “sting” operations of all (the Cromitie prosecution we describe at length here): If you’re submitting budget proposals for a law enforcement agency, for an intelligence agency, you’re not going to submit the proposal that “We won the war on terror and everything’s great,” cuz the first thing that’s gonna happen is your budget’s gonna be cut in half. You know, it’s my opposite of Jesse Jackson’s ‘Keep Hope Alive’—it’s ‘Keep Fear Alive.’ Keep it alive. That is the FBI’s terrorism strategy — keep fear alive — and it drives everything they do.
Paul Merrell

"Secret Scheme To Manipulate The Price Of Silver" - Lawsuits Against Banks Proceed | InvestmentWatch - 1 views

  • Litigation alleging that Deutsche Bank, Bank of Nova Scotia and HSBC Plc illegally fixed the price of silver were centralised in a Manhattan federal court yesterday. The banks have been accused of rigging the price of billions of dollars in silver to the detriment of investors globally. Lawsuits filed by investors since July over the allegations were consolidated yesterday in the U.S. District Court for the Southern District of New York, following an order issued last Thursday by the U.S. Judicial Panel on Multidistrict Litigation, a special body of federal judges that decides when and where to consolidate related lawsuits. The banks abused their position of controlling the daily silver fix to reap illegitimate profit from trading, hurting other investors in the silver market who use the benchmark in billions of dollars of transactions, according to the suit. Investors claim, the banks unlawfully manipulated silver and silver futures.
  • The U.S. Judicial Panel on Multidistrict Litigation ruled that the cases should be handled by U.S. District Judge Valerie Caproni in Manhattan, who is already overseeing similar litigation over alleged gold price fixing. Three lawsuits were originally filed in Manhattan, and two were filed in Brooklyn. The plaintiffs in the Brooklyn lawsuits had sought to have the litigation consolidated there. The banks had also asked that the litigation be consolidated in Brooklyn, in the Eastern District of New York. However, the multidistrict litigation panel said Manhattan made more sense because the defendants all had corporate offices there and also because the cases involved issues similar to the gold litigation. The plaintiffs allege that the banks abused their power as participants in the silver fix, a London based benchmark pricing method dating back to the Victorian era, in which banks fixed silver prices once a day by phone. In August, the system was replaced by a new benchmark system administered by the CME (Chicago Mercantile Exchange) and Thomson Reuters.
  • HSBC spokesman Neil Brazil declined to comment and representatives of the other banks did not immediately respond to requests for comment. This follows the initiation of similar actions against some bullion banks for alleged gold price manipulation earlier this year. The three named banks, Deutsche Bank, Bank of Nova Scotia, and HSBC are alleged to have abused their position at the LBMA to profit from inside knowledge. The fixing of the price of silver is a daily operation where banks on the panel of the LBMA agree on a price for the precious metals which are then used throughout the financial, jewellery and mining industries throughout the day. It is alleged that some of the banks who fix the price, position themselves advantageously in the silver market before the price is made public. “Defendants have a strong financial incentive to establish positions in both physical silver and silver derivatives prior to the public release of silver fixing results, allowing them to reap large illegitimate profits,” plaintiff Scott Nicholson told the AFP. Separately, Bullion Desk reported yesterday that JPMorgan Chase Bank is now the fifth accredited member of the silver pricing benchmark, the LBMA has confirmed, with others parties “in the pipeline”, a spokesman said.
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  • The American multinational bank which has been the subject of silver manipulation allegations by Max Keiser and others, took part in its first silver benchmarking session yesterday. A spokesperson said they had completed “strict regulatory controls” for accredited members.. JP Morgan becomes the fifth member, alongside HSBC Bank USA, Mitsui & Co Precious Metals, the Bank of Nova Scotia – ScotiaMocatta and UBS AG. Furthermore, the LBMA has confirmed that several other parties are also in the process of joining the list, subject to passing regulatory requirements. Several Chinese banks have expressed interest in participating in the new global price setting mechanism for silver, according to the head of the LBMA. The LBMA ushered in a new era of electronic benchmarking for London’s precious metals market in August when an algorithm was used for the first time to set the benchmark price for silver after recent scandals regarding price fixing and concerns about the nature of the gold and silver fix. It will be interesting to see if Chinese banks partake in the new fix process as the concern is that the fixes remain the play things of certain western banks and are not representative of global physical demand and supply of actual gold and silver bullion.
  • Manipulation of the silver market was covered in a recently released ‘Get REAL’ Special on Silver presented by Jan Skoyles. Mark O’Byrne of Goldcore.com was interviewed and the interview was an in depth look at this silver market today.
Gary Edwards

CHILDREN KILLED OF KEVIN KRIM, CHIEF EXECUTIVE OF CNBC DIGITAL, AFTER RELEASING INFORMATION ON $43 TRILLION LAWSUIT >> Four Winds 10 - Truth Winds - 0 views

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    Incredible article about the behind-the-scenes story of the nanny murder of two small children in NYC.   First, it's a staged murder meant to send a clear message to ALL media.  The children were the offspring of Kevin Krim, CEO of CNBC digital.  His website had published a story about the Spire Law Group suing an entire class of bigshot BANKSTERS for the theft of $43 TRILLION dollars of tax payer money.  Second, this involves the US Government.  The Spire allegation is that the Feds actively helped and assisted the Bankster theft. Third, the story describes the historical background of these Bankster hits, assassination and threats.  Although not covered in the article, Presidential assassinations in particular have an unmistakable link to Executive Orders that the Treasury print Silver Certificates that would compete against Bankster notes.  In one way or another, it's all about control of the money system.  This list of Presidents includes Jackson, Lincoln, Garfield, McKinley, Kennedy and Reagan. Original Press Release from the Spire Law Group:  ... http://goo.gl/ynV6O .... Wow! ................................... excerpt:: "On 10/25/2012 two corporate financial media bastions,  MarketWatch  (an affiliate of the Wall Street Journal) and CNBC, presented their readers with a bombshell.  In a too-good-to-be-true lawsuit, the top echelons of the USA's banking and civilian government had been sued for "racketeering and money laundering."  The suit requested "the return of $43 trillion to the United States Treasury."  Yes, you've read that right: 43 trillion-roughly 3 years worth of America's GDP or 3 times America's underestimate of its own national debt. The suit characterizes itself, according to these two corporate media tabloids, as the largest money laundering and racketeering lawsuit in United States History.  [It identifies] $43 trillion ($43,000,000,000,000.00) of laundered money by the 'Banksters' and their U.S. r
Paul Merrell

Barrier Breakers 2016: A Project of Correct The Record - Correct The Record - 0 views

  • Task force will help Clinton supporters push back on online harassment and thank superdelegates Anonymous online attacks, from both sides of the political spectrum, have sought to spread lies and misleading narratives about Secretary Hillary Clinton. Hillary’s supporters are more enthusiastic than Sen. Bernie Sanders’ supporters, yet oftentimes are discouraged from engaging online and are “often afraid to voice their thoughts” because of the fear of online harassment. Many of Hillary Clinton’s female supporters in particular have been subject to intense cyber-bullying and sexist attacks from swarms of anonymous attackers. Among the many Hillary Clinton supporters attacked online, superdelegates have been subject to vicious attacks for supporting her. Even the director of MoveOn, which has endorsed Sen. Sanders, denounced this harassment. In response to these attacks on supporters and superdelegates, Correct The Record is launching the Barrier Breakers 2016 digital task force. While Hillary Clinton fights to break down barriers and bring America together, the Barrier Breakers 2016 digital task force will serve as a resource for supporters looking for positive content and push-back to share with their online progressive communities, as well as thanking prominent supporters and committed superdelegates on social media.
  • ask force will help Clinton supporters push back on online harassment and thank superdelegates Anonymous online attacks, from both sides of the political spectrum, have sought to spread lies and misleading narratives about Secretary Hillary Clinton. Hillary’s supporters are more enthusiastic than Sen. Bernie Sanders’ supporters, yet oftentimes are discouraged from engaging online and are “often afraid to voice their thoughts” because of the fear of online harassment. Many of Hillary Clinton’s female supporters in particular have been subject to intense cyber-bullying and sexist attacks from swarms of anonymous attackers. Among the many Hillary Clinton supporters attacked online, superdelegates have been subject to vicious attacks for supporting her. Even the director of MoveOn, which has endorsed Sen. Sanders, denounced this harassment. In response to these attacks on supporters and superdelegates, Correct The Record is launching the Barrier Breakers 2016 digital task force. While Hillary Clinton fights to break down barriers and bring America together, the Barrier Breakers 2016 digital task force will serve as a resource for supporters looking for positive content and push-back to share with their online progressive communities, as well as thanking prominent supporters and committed superdelegates on social media.
  • Correct The Record will invest more than $1 million into Barrier Breakers 2016 activities, including the more than tripling of its digital operation to engage in online messaging both for Secretary Clinton and to push back against attackers on social media platforms like Twitter, Facebook, Reddit, and Instagram. Barrier Breakers 2016 is a project of Correct The Record and the brainchild of David Brock, and the task force will be overseen by President of Correct The Record Brad Woodhouse and Digital Director Benjamin Fischbein. The task force staff’s backgrounds are as diverse as the community they will be engaging with and include former reporters, bloggers, public affairs specialists, designers, Ready for Hillary alumni, and Hillary super fans who have led groups similar to those with which the task force will organize. Lessons learned from online engagement with “Bernie Bros” during the Democratic Primary will be applied to the rest of the primary season and general election–responding quickly and forcefully to negative attacks and false narratives. Additionally, as the general election approaches, the task force will begin to push out information to Sanders supporters online, encouraging them to support Hillary Clinton. The task force currently combats online political harassment, having already addressed more than 5,000 individuals who have personally attacked Secretary Clinton on Twitter. The task force will provide a presence and space online where Clinton supporters can organize and engage with one another and are able to obtain graphics, videos, gifs, and messaging to use in their own social spaces. Additionally, the Barrier Breakers 2016 task force hopes to embrace the creativity of Hillary Clinton’s supporters by sharing their efforts and content with other groups.
Paul Merrell

Has the NSA Wiretapping Violated Attorney-Client Privilege? | The Nation - 0 views

  • The first time Adis Medunjanin tried to call Robert C. Gottlieb in mid-2009, Gottlieb was out of the office. Medunjanin was agitated. He had to speak to an attorney. Gottlieb’s assistant told him Gottlieb would be back soon. When Medunjanin spoke to the lawyer a little later, he was told he might need legal representation. He thought he might be under investigation. Over the next six months and in forty-two phone calls, Medunjanin sought legal advice from Gottlieb. When he was arrested in January 2010 on charges that he tried to bomb the New York subway, it was Gottlieb who defended him, receiving security clearance to review government documents pertinent to the case in the process. Gottlieb was preparing Medunjanin’s defense when a federal officer in charge of information distribution e-mailed him that there was new classified information he needed to review at the US Eastern District Court in Brooklyn. “I went over to the Brooklyn Federal courthouse, went up to the secured room, gained entry with the secret security codes, opened the file cabinet that is also secure and in the second drawer was a CD,” Gottlieb told me. On that CD were recordings of every single one of his forty-two phone calls with Medunjanin before he was taken into custody and indicted on January 7, 2010.
  • Such calls are normally sacrosanct under the principle of attorney-client privilege, the ability to speak confidentially with your lawyer. But a leak to The Guardian last summer of National Security Agency (NSA) procedures that are supposed to protect privileged calls showed that some attorney-client privileged calls are not subject to internal rules that detail the instances when a wiretap should be turned off. A later version of the procedures declassified by the NSA last August contains the same language. These “minimization” procedures, as they are known, are the rules and regulations for wiretaps under the Foreign Intelligence Surveillance Act (FISA). They tell NSA agents when they can listen, and when they have to turn the tap off, when they can record and when they should not be recording. There are rules for which kinds of communications can be monitored—for example, domestic communications are off limits, although communications from agents of foreign powers and suspected terrorists don’t count as domestic—and there is a section that provides for the protection of attorney-client calls.
  • Section four of the declassified 2011 guidelines is the part of that document that governs wiretapping attorney-client calls. At first glance, it seems quite clear: when the agent realizes that he or she is monitoring an attorney-client communication, “monitoring of that communication will cease and the communication will be identified as an attorney-client communication in a log maintained for that purpose.” But given a second reading, section four doesn’t apply to all attorney-client calls. It provides only for the minimization (and protection) of the calls of “a person who is known to be under criminal indictment in the United States”—someone who has already been charged under US law. This is because indicted persons have a Sixth Amendment right to counsel. People who aren’t indicted don’t have this right, and so their calls are not minimized. When I asked an NSA press officer, Vanee’ M. Vines, how attorney-client privilege was protected, she referred me to the Department of Justice. I left several messages, but the DOJ never contacted me back.
Paul Merrell

Illicit Snowden statue put New York City officials in ironic dilemma - 0 views

  • Runners and dog-walkers in Brooklyn’s Fort Greene Park were greeted with an unusual sight yesterday morning: a 4-foot tall bust of National Security Agency whistleblower Edward Snowden. The pair of anonymous artists responsible tapped arts and culture blog ANIMAL New York to film the guerrilla installation, which was covered and eventually taken down by the city parks officials by mid-day Monday. The artists’ developed a contingency plan that involved 3-D printing “an army of mini-Snowden heads.” Although, to-date, no such back-up forces have arrived, a group of locally-based political artists known collectively as The Illuminator projected a holographic image of Snowden in the place where the bust had briefly stood last night.
  • Before dawn, the small crew donning construction attire hauled the 100-pound statue, made by a sympathetic sculptor on the West Coast, into the Prison Ship Martyr’s monument, built to commemorate the 11,000 American soldiers who died on British ships during the Revolutionary War. Snowden’s likeness was placed atop an empty column. Rather than bronze, the statue was constructed out of hydrocal, a substance often used in Las Vegas casinos to replicate castles and Romanesque statues in gaudy displays. They spared no detail, ensuring that the color of the bust and Snowden’s last name, spelled out at the column’s base, fit perfectly into the rest of the monument. The placement was not incidental. In a statement entitled “Prison Ship Martyrs 2.0,” the New York-based artists write, “We have updated this monument to highlight those who sacrifice their safety in the fight against modern tyrannies.” “All too often,” they added,” “figures who strive to uphold these ideals have been cast as criminals rather than in bronze.”
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    Nice bust. Snowden for President in 2016! 
Paul Merrell

Martin Shkreli Arrested on Securities Fraud Charges - 0 views

  • Martin Shkreli, a boastful pharmaceutical executive who came under withering criticism for price gouging vital drugs, denied securities fraud charges on Thursday following an early morning arrest, and was freed on a $5 million bond. While the 32-year-old has earned a rare level of infamy for his brazenness in business and his personal life, what he was charged with had nothing to do with skyrocketing drug prices. He is accused of repeatedly losing money for investors and lying to them about it, illegally taking assets from one of his companies to pay off debtors in another. “Shkreli essentially ran his company like a Ponzi scheme where he used each subsequent company to pay off defrauded investors from the prior company,” Brooklyn U.S. Attorney Robert Capers said at a press conference.
  • Evan Greebel, a New York lawyer, who is alleged in the federal indictment to have helped Shkreli in his schemes, was also arrested and charged. Like Shkreli, he pleaded not guilty, and he was freed on a $1 million bond. Both men and their lawyers declined to comment after their court appearance.
  • Read the full text of the indictment here In the federal indictment and a complaint by the Securities and Exchange Commission, authorities say Shkreli began losing money and lying to investors from the time he began managing money. In his mid-20s, he got nine investors to place $3 million with him and at one point he had only $331. Securities fraud is hardly unheard of on Wall Streeet and the amounts involved here are nowhere near on the scale of Bernie Madoff. But Shkreli’s case has drawn such attention because of his defiant price-gouging and his own up-by-the-bootstraps history. The son of immigrants from Albania and Croatia who did janitorial work and raised him and his brothers in working-class Brooklyn, Shkreli seemed at first to embody the American dream and then to mock it. After dropping out of an elite Manhattan high school, he worked as an intern for Jim Cramer’s hedge fund as a 17-year-old and quickly impressed with his ability to call stocks. He created hedge funds, taught himself biology and, after earning a BA at Baruch College in New York City, began hedge funds investing in biotech.
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  • He became famous within a certain world but entered public consciousness after he raised the price more than 55-fold for Daraprim in September from $13.50 per pill to $750. It is the preferred treatment for a parasitic condition known as toxoplasmosis, which can be deadly for unborn babies and patients with compromised immune systems including those with HIV or cancer. His company, Turing Pharmaceuticals AG, bought the drug, moved it to a closed distribution system and instantly drove the price into the stratosphere. He drew shocked rebukes from Congress, doctors and presidential candidates, and brought public attention to the rising prices of older drugs. Donald Trump called Shkreli a “spoiled brat,” and the BBC dubbed him the “most hated man in America.” Bernie Sanders, the Democratic presidential candidate, rejected a $2,700 campaign donation from him, directing it to an HIV clinic. A spokesman said the campaign would not keep money “from this poster boy for drug company greed.” All the criticism seemed at first to have some impact and Shkreli said he would lower the price. Then he reneged. When Hillary Clinton tried one more time last month to get him to cut the cost, he dismissed her with the tweet “lol.” At a Forbes summit in New York this month, wearing a hooded sweatshirt, he said if he could have done it over, “I probably would have raised the price higher,” adding, “My investors expect me to maximize profits.”
  • Shkreli did further damage to his public image with other acts and boasts. He spent millions on the only copy of a Wu-Tang Clan album that music fans are desperate to hear and then told Bloomberg Businessweek that he had no immediate plans to listen to it. He takes often to Twitter and message boards, bragging about his business strategies, musical tastes and politics; he live-streams from his office for long stretches. The SEC complaint and federal indictment lay out a series of schemes and cover-ups carried out by Shkreli. Capers said authorities began investigating him as early as 2014.
  • Barely 23, he was managing hedge fund Elea Capital in New York and lost it all in 2007. Around then, a trade with Lehman Brothers ended with a $2.3 million judgment against him, prosecutors said. In 2010, he lost his clients’ $3 million investment in his new fund, MSMB Capital. In 2011, he bet that shares of Orexigen Therapeutics Inc. would fall and wound up owing $7 million to his broker, Merrill Lynch, authorities said. He couldn’t pay, and he, an unnamed accomplice and MSMB Capital eventually extinguished the debt with a $1.35 million settlement, they said. Part of that money came from his next firm, authorities said. After the collapse of MSMB Capital, Shkreli launched MSMB Healthcare with about $5 million from 13 investors. He paid himself “far in excess” of the agreed-upon 1 percent management fee and 20 percent profit incentive, according to the SEC.
  • Shkreli then used cash from MSMB Healthcare to invest in Retrophin, the pharmaceutical company he founded in 2011, even though it “had no products or assets,” prosecutors said. Later, he used the assets of Retrophin to repay angry investors in his hedge funds, prosecutors said. Shkreli is confident that he will be cleared of the charges, according to a statement on his behalf. Shkreli is particularly disappointed that his litigation with Retrophin has become a government enforcement matter, according to the statement. He also denied the charges regarding the MSMB entities, which he said involve complex accounting matters that prosecutors and the SEC fail to understand, according to the statement. “It is no coincidence that these charges, the result of investigations which have been languishing for considerable time, have been filed at the same time of Shkreli’s high-profile, controversial and yet unrelated activities,” according to the statement. “The government suggested that Mr. Shkreli was involved in a Ponzi scheme. Ponzi victims do not make money, yet Mr. Shkreli’s investors enjoyed strong results.”
  • As Shkreli’s losses mounted, so did his lies. He fabricated portfolio statements and, with his lawyer’s help, deceived the SEC and outside accountants. He backdated records, manufactured a phony loan agreement between Retrophin and a hedge fund, and created sham consulting agreements with Retrophin as a way to route the company’s cash to his earlier investors. Greebel, the arrested lawyer, made sure Retrophin’s outside accountants were unaware of Shkreli’s financial maneuvers and helped him concoct the consulting agreements used to repay the hedge fund investors, the U.S. said. The cases mirror a lawsuit brought by Retrophin. Shkreli blithely dismissed his old company’s claims, saying, “The $65 million Retrophin wants from me would not dent me. I feel great. I’m licking my chops over the suits I’m going to file against them.” Earlier, he had denied wrongdoing in a post on InvestorsHub after Retrophin disclosed it had received a subpoena from federal prosecutors and the preliminary findings from its own investigation of Shkreli. He called the company’s allegations “completely false, untrue at best and defamatory at worst.”
  • “Every transaction I’ve ever made at Retrophin was done with outside counsel’s blessing,” he said on the investment blog in February, without identifying the lawyers. When Shkreli was working for Cramer’s firm, he was still a teenager. After recommending successful trades, Shkreli eventually set up his own hedge fund, quickly developing a reputation for trashing biotechnology stocks in online chatrooms and shorting them, to enormous profit. Widely admired for his intellect and sharp eye, he set up Retrophin to develop drugs and acquire older pharmaceuticals that could be sold for higher profits. Turing, which is less than a year old and has raised $90 million in financing, has followed a similar strategy with the purchase of drugs, including Daraprim. Shkreli recently bought a majority stake in KaloBios Pharmaceuticals Inc. after Turing received a warning from the New York attorney general that the distribution network for Daraprim may violate antitrust laws. State officials made their concerns known to Turing and Shkreli in an Oct. 12 letter obtained by Bloomberg.
  • KaloBios recently acquired the license for benznidazole, a standard treatment for Chagas, a deadly parasitic infection most common in South and Central America. The firm announced plans to increase the cost from a couple hundred dollars for two months to a pricing structure like that for hepatitis-C drugs, which can run to nearly $100,000 for 12 weeks.
  • With the federal charges and regulatory actions, Shkreli could be banned from running a public company, which could put the future of KaloBios into question. Trading in KaloBios shares was halted after the stock fell 53 percent. It’s less clear what the impact could be on Turing, which is closely held.
  • Federal authorities will have to ask a judge to impose an asset freeze if they want to guarantee Shkreli doesn’t dispose of ill-gotten gains. The charges suggest that a small group of health-care firms—ones that acquire the rights to drugs and significantly increase their prices—is drawing the scrutiny of regulators and prosecutors, with a possible chilling effect on aggressive drug-pricing strategies. Legislators are already paying attention. A hearing of the Senate Special Committee on Aging on Dec. 9 scrutinized such tactics. Before Shkreli started Turing, Retrophin raised the price of Thiola, used to treat a rare condition causing debilitating recurrences of kidney stones, from $1.50 a pill to $30. “Some of these companies seem to act more like hedge funds than traditional pharmaceutical companies,” said Senator Susan Collins, a Maine Republican who ran the recent hearing. George Scangos, CEO of biotechnology giant Biogen Inc., went further, saying in an interview, “Turing is to a research-based company like a loan shark is to a legitimate bank.”
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    Couldn't happen to a nicer guy.
Paul Merrell

At Comverse, Many Smart Business Moves and Maybe a Bad One - New York Times - 0 views

  • Mr. Alexander transformed a communications software company, Comverse Technology, from a start-up to a market leader with annual sales of more than $1 billion.That made Mr. Alexander, known as Kobi, a pioneer and hero in Israel’s emerging high-tech industry. These days, though, Mr. Alexander is also referred to by another title: fugitive. Mr. Alexander, 54, is believed to have fled the United States after he and two other former Comverse executives were charged earlier this month with securities, mail and wire fraud by federal prosecutors in Brooklyn. A warrant has been issued for his arrest.Yet the odds are that it will be a long time before Mr. Alexander explains himself in a courtroom, if ever.
  • Mr. Alexander is an Israeli citizen and is a former military officer there. And in late July, according to prosecutors, Mr. Alexander wired $57 million to an account in Israel.While the United States has an extradition treaty with Israel, it is unclear whether the treaty covers the crimes that Mr. Alexander is accused of, law professors said. Furthermore, given Mr. Alexander’s stature and record of military service, Israel may be reluctant to readily hand him over, they add.
  • Another Comverse subsidiary, Verint Systems, which provides more than 25 percent of Comverse’s revenues, is also looking into its options practices.
Paul Merrell

D.N.C. Says Russian Hackers Penetrated Its Files, Including Dossier on Donald Trump - The New York Times - 0 views

  • Two groups of Russian hackers, working for competing government intelligence agencies, penetrated computer systems of the Democratic National Committee and gained access to emails, chats and a trove of opposition research against Donald J. Trump, according to the party and a cybersecurity firm.One group placed espionage software on the committee’s computer servers last summer, giving it unimpeded access to communications for about a year. The committee called in CrowdStrike, a cybersecurity firm, early last month after the Democratic Party began to suspect an intrusion.A senior government official said Hillary Clinton’s presidential campaign, based in Brooklyn, also appeared to have been targeted, but it was not clear whether it lost any data. The breach at the Democratic committee was first reported on Tuesday by The Washington Post.The committee’s systems appeared to have had standard cyberprotections, which are no challenge for determined state-sponsored hacking groups. The attackers were expelled last weekend with CrowdStrike’s help, the committee said. It did not provide a detailed account of what had been copied from the systems, and it may never know.
Paul Merrell

U.S. judges limit Trump immigration order; some officials ignore rulings | Reuters - 0 views

  • U.S. judges in at least five states blocked federal authorities from enforcing President Donald Trump's executive order restricting immigration from seven Muslim-majority countries.However, lawyers representing people covered by the order said some authorities were unwilling on Sunday to follow the judges' rulings.Judges in California, Massachusetts, Virginia and Washington state, each home to international airports, issued their rulings after a similar order was issued on Saturday night by U.S. District Judge Ann Donnelly in New York's Brooklyn borough.
Paul Merrell

The Pentagon's slush fund is arming a War Zone on Main Street. Let's end the local-cop addiction to backyard battle | Sadhbh Walshe | Comment is free | theguardian.com - 0 views

  • What many other communities across America have learned since is that we're living in what the writer Radley Balko calls the age of the "warrior cop". And when warrior cops want a straight-outta-Baghdad toy, it's increasingly and unnecessarily simple for them to use a federally enabled slush-fund to wreak havoc – particularly against minorities, and even at a pumpkin festival. It's also pretty simple to start accounting for all the high-tech violence."Before another small town's police force gets a $700,000 gift from the Defense Department that it can't maintain or manage," Rep Hank Johnson of Georgia told me this week, "we need to press pause and revisit the merits of a militarized America."
  • The ACLU released a devastating report this week examining more than 800 incidents of Swat team deployments conducted by 20 law enforcement agencies between 2010 and 2013. It's a small sample of the estimated 45,000 deployments that occur in the US each year (up from 1,400% from the '80s), but the report reveals a picture of law enforcement as flash-bang assault unit, with hardly an actual suspect in harm's way: pandemonium in a baby's crib; a grandfather of 12 killed by a discharged gun; Swat officers gunning down a mother as she died, child in her arms. According to the ACLU study, 79% of the incidents surveyed involved a Swat team searching a person's home, and more than 62% of the cases involved searches for drugs. That's not what Swat teams were made for.America is winding down wars abroad – depending on what the hell happens in Iraq, of course – but we are fueling an addiction to armed conflict here at home.As Balko notes in his book, The Rise of the Warrior Cop, "America's cops have increasingly come to resemble ground troops."
  • But the federal government has been enabling even more localized branches of law enforcement to get its hands on heavy-duty artillery for the last 20 years, when the Reagan administration formalized the Pentagon's so-called 1033 Program. It sends "excess" military equipment to local police departments, and combined with the Homeland Security operation that provides grants to purchase such equipment, we've got a veritable firearms sale funnelling from Washington on down to the local station house. And when local law enforcement is making hundreds of thousands of dollars off seized drug money – sometimes illegally – you've got the makings of a War Zone on Main Street.Rep Johnson has plans to introduce a bill that would reform the 1033 Program, which donated at least $500bn per year in military gear to virtually every police department in the country. "We not only lack serious oversight and accountability," Johnson wrote me in an email on Tuesday, "but we need some parameters put in place for what is appropriate." His legislation would put limitations on the transfer of certain kinds of military-grade equipment, and require the Pentagon to account for transfers of all such equipment in an annual report to Congress.
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  • The ACLU also made several recommendations in its report – state laws to restrain Swat teams, plus transparency and strict oversight – that all make sense, as do training sessions for more of our trigger-happy "rescue" officers. But this was perhaps the most endemic part of that report:Overall, 42% of people impacted by a Swat deployment to execute a search warrant were black and 12% were Latino. This means that of the people impacted by deployments for warrants, at least 54% were minorities.Whether this is by accident or design, the racial reality of America's militarized law enforcement offers yet another compelling reason why the dangerous trend of warrior-style policing needs to be re-examined – and then reversed.When the first Swat team was deployed in the late '60s, its target was a single remaining cell of the Black Panthers. Nearly half a century later, all the nation's a theater, and we are merely the pumpkin eaters – with half a million bucks worth of smashing, exploding, high-artillery gear for the taking.
Paul Merrell

Renditions continue under Obama, despite due-process concerns - The Washington Post - 0 views

  • The secret arrests and detentions came to light Dec. 21 when the suspects made a brief appearance in a Brooklyn courtroom. The men are the latest example of how the Obama administration has embraced rendition — the practice of holding and interrogating terrorism suspects in other countries without due process — despite widespread condemnation of the tactic in the years after the Sept. 11, 2001, attacks. Renditions are taking on renewed significance because the administration and Congress have not reached agreement on a consistent legal pathway for apprehending terrorism suspects overseas and bringing them to justice.
  • “In a way, rendition has become even more important than before,” said Clara Gutteridge, director of the London-based Equal Justice Forum, a human rights group that investigates national security cases and that opposes the practice. Because of the secrecy involved, it is not known how many renditions have taken place during Obama’s first term. But his administration has not disavowed the practice. In 2009, a White House task force on interrogation and detainee transfers recommended that the government be allowed to continue using renditions, but with greater oversight, so that suspects were not subject to harsh interrogation techniques, as some were during the George W. Bush administration.
Paul Merrell

The al Qaeda Files: Bin Laden Documents Reveal a Struggling Organization - The Intercept - 0 views

  • Palm oil cultivation in West Africa, climate change, and how to kill Americans more effectively than cigarettes. These were the issues on Osama bin Laden’s mind in his final years as he struggled to direct the terrorist group’s activities from his hideout in Pakistan, according to newly released files retrieved from the compound where he was killed. Direct communications between the al Qaeda leader and his inner circle were entered as evidence in a terrorism trial recently concluded in Brooklyn, New York, effectively doubling the amount of publicly available documents recovered from bin Laden’s final hideout. Together the newly disclosed documents paint a picture of a man who, despite being holed up for years in his high-walled compound in the garrison town of Abbottabad, Pakistan, maintained a hands-on role managing al Qaeda in the face of a crippling “espionage war” and mounting bureaucratic obstacles. The emergence of the documents marks just the second time since the historic 2011 raid, which ended in the death of bin Laden, that documentary evidence recovered from his compound has been made public; 17 other documents were declassified and released to West Point’s Combating Terrorism Center in 2012.
  • The new documents were entered as evidence in the federal trial of Abid Naseer, a Pakistani national convicted of plotting with al Qaeda to carry out a bomb attack in Manchester, England between 2008 and 2009; Naseer is not mentioned in the documents. U.S. attorneys used the recovered documents to support the testimony of an FBI agent who was present when a team of U.S. Navy SEALs returned bin Laden’s body and the materials they recovered from his compound to a U.S. base in Afghanistan.
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    But are the docs real or forgeries? The evidence that the Abbotabad raid killed bin Laden is beyond thin. 
Paul Merrell

"Crisis At The Border" Is Yet Another Example Of "Blowback." - 0 views

  • If you’re reading this, you probably follow the news. So you’ve probably heard of the latest iteration of the “crisis at the border”: tens of thousands of children, many of them unaccompanied by an adult, crossing the desert from Mexico into the United States, where they surrender to the Border Patrol in hope of being allowed to remain here permanently. Immigration and Customs Enforcement’s detention and hearing system has been overwhelmed by the surge of children and, in some cases, their parents. The Obama Administration has asked Congress to approve new funding to speed up processing and deportations of these illegal immigrants. Even if you’ve followed this story closely, you probably haven’t heard the depressing backstory — the reason so many Central Americans are sending their children on a dangerous thousand-mile journey up the spine of Mexico, where they ride atop freight trains, endure shakedowns by corrupt police and face rapists, bandits and other predators. (For a sense of what it’s like, check out the excellent 2009 film “Sin Nombre.”) NPR and other mainstream news outlets are parroting the White House, which blames unscrupulous “coyotes” (human smugglers) for “lying to parents, telling them that if they put their kids in the hands of traffickers and get to the United States that they will be able to stay.” True: the coyotes are saying that in order to gin up business. Also true: U.S. law has changed, and many of these kids have a strong legal case for asylum. Unfortunately, U.S. officials are ignoring the law.
  • The sad truth is that this “crisis at the border” is yet another example of “blowback.” Blowback is an unintended negative consequence of U.S. political, military and/or economic intervention overseas — when something we did in the past comes back to bite us in the ass. 9/11 is the classic example; arming and funding radical Islamists in the Middle East and South Asia who were less grateful for our help than angry at the U.S.’ simultaneous backing for oppressive governments (The House of Saud, Saddam, Assad, etc.) in the region. More recent cases include U.S. support for Islamist insurgents in Libya and Syria, which destabilized both countries and led to the murders of U.S. consular officials in Benghazi, and the rise of ISIS, the guerilla army that imperils the U.S.-backed Maliki regime in Baghdad, respectively. Confusing the issue for casual American news consumers is that the current border crisis doesn’t involve the usual Mexicans traveling north in search of work. Instead, we’re talking about people from Central American nations devastated by a century of American colonialism and imperialism, much of that intervention surprisingly recent. Central American refugees are merely transiting through Mexico.
  • “The unaccompanied children crossing the border into the United States are leaving behind mainly three Central American countries, Honduras, El Salvador and Guatemala. The first two are among the world’s most violent and all three have deep poverty, according to a Pew Research report based on Department of Homeland Security (DHS) information,” reports NBC News. “El Salvador ranked second in terms of homicides in Latin America in 2011, and it is still high on the list. Honduras, Guatemala and El Salvador are among the poorest nations in Latin America. Thirty percent of Hondurans, 17 percent of Salvadorans and 26 percent of Guatemalans live on less than $2 a day.” The fact that Honduras is the biggest source of the exodus jumped out at me. That’s because, in 2009, the United States government — under President Obama — tacitly supported a military coup that overthrew the democratically elected president of Honduras. “Washington has a very close relationship with the Honduran military, which goes back decades,” The Guardian noted at the time. “During the 1980s, the US used bases in Honduras to train and arm the Contras, Nicaraguan paramilitaries who became known for their atrocities in their war against the Sandinista government in neighbouring Nicaragua.”
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  • Honduras wasn’t paradise under President Manuel Zelaya. Since the coup, however, the country has entered a downward death spiral of drug-related bloodshed and political revenge killings that crashed the economy, brought an end to law, order and civil society, and now has some analysts calling it a “failed state” along the lines of Somalia and Afghanistan during the 1990s. “Zelaya’s overthrow created a vacuum in security in which military and police were now focused more on political protest, and also led to a freeze in international aid that markedly worsened socio-economic conditions,” Mark Ungar, professor of political science at Brooklyn College and the City University of New York, told The International Business Times. “The 2009 coup, asserts [Tulane] professor Aaron Schneider, gave the Honduran military more political and economic leverage, at the same time as the state and political elites lost their legitimacy, resources and the capacity to govern large parts of the country.” El Salvador and Guatemala, also narcostates devastated by decades of U.S. support for oppressive, corrupt right-wing dictatorships, are suffering similar conditions.
  • Talk about brass! The United States does it everything it can to screw up Central America — and then acts surprised when desperate people show up at its front gate trying to escape the (U.S.-caused) carnage. Letting the kids stay — along with their families — is less than the least we could do.
Paul Merrell

Judge rules in favor of Apple in key case involving a locked iPhone - The Washington Post - 0 views

  • A federal judge in New York ruled in favor of Apple on Monday, saying that an obscure Colonial-era law did not authorize him to force the firm to lift data from an iPhone at the government’s request. The ruling is not binding in any other court, but it takes on an outsize importance as the U.S. government battles Apple in a separate case in California over whether the tech firm should help unlock a phone used by one of the shooters in the San Bernardino terrorist attack in December. The two cases involve different versions of iPhone’s operating system and vastly different requests for technical help, but they both turn on whether a law from 1789 known as the All Writs Act can be applied to cases in which the government cannot get at encrypted data stored on suspects’ devices. Magistrate Judge James Orenstein in Brooklyn, who sits in the Eastern District of New York, has become the first federal judge to rule that the act does not permit a court to order companies to pull encrypted data off a customer’s phone or tablet.
  • In a 50-page opinion disdainful of the government’s arguments, Orenstein found that the All Writs Act does not apply in instances where Congress had the opportunity but failed to create an authority for the government to get the type of help it was seeking, such as having firms ensure they have a way to obtain data from encrypted phones.
  • He wrote that the government’s interpretation of the 200-year-old law was “absurd” in that it would authorize what they were seeking even if every member of Congress had voted against granting such authority. It would, he added, undermine “the more general protection against tyranny that the Founders believed required the careful separation of governmental powers.” [Read the magistrate’s order in favor of Apple] He also found that ordering Apple to help the government by extracting data from the iPhone — which belonged to a drug dealer — would place an unreasonable burden on the company. None of the factors he reviewed in the case, Orenstein said, “justifies imposing on Apple the obligation to assist the government’s investigation against its will.”
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