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HOW WALL STREET BIGS PROTECT CORRUPTION

May 6, 2013

http://www.blackstarnews.com/

How Wall Street Bigs Protect Corruption

The letter I sent to Rep. Dingell
What if Levitt had vigorously pursued investigations of cases such as the one I have just outlined or companies such as Bear Stearns? Might not have Bear’s implosion been avoided or at least pre-empted with appropriate corrective measures?
By Edward Manfredonia
July 1st, 2009

[Policing Wall Street]

Can individuals change the course of history or significantly influence its direction?

Of course, our president, Barack Obama, is living proof.

Many Americans and foreigners have been dismayed at the incompetence of the various federal agencies, which permitted Bernard Madoff to operate a Ponzi scheme for so many years. But it is not the incompetence of the agencies that led to the success of Madoff’s Ponzi scheme.

It was the influence of Madoff’s friends, including people such as Arthur Levitt, former SEC Chair, and the protection, which they accorded Madoff that led to the success of the scheme.

There are many egregious Wall Street cases that few members of the public know anything about.

Take, for example, the refusal of federal agencies and self-regulatory institutions, specifically, the American Stock Exchange and the Philadelphia Stock Exchange, to investigate Harbor Securities for violations of federal securities laws. This refusal resulted in the murders of Al Chalem and Maier Lehmann, two stock fraud promoters.

While these gentlemen were characters of ill-repute, murders still deserve to be investigated.

Even worse was a cover up of these two murders by various federal agencies- including the Federal Bureau of Investigation; the Securities and Exchange Commission; and the United States Attorney for the Southern District of New York.

As readers of this column know, I am privy to detailed information, having been a trader on Wall Street for 10 years.

Arthur Levitt, then Chairman of the SEC and a former Chairman of the American Stock Exchange (AMEX) didn’t want knowledge of these murders widely known. Levitt’s reason: Members of the American Stock Exchange, including the Vice Chairman, were involved with the Russian Mob, the killers. So a thorough investigation would have sullied the “good name” of the AMEX.

I wrote numerous letters to city, state, and federal agencies including then New York City Mayor Rudolph Giuliani; New York State Attorney General Eliot Spitzer; Federal Reserve Chairman Alan Greenspan; the Philadelphia Stock Exchange; the American Stock Exchange; and United States Attorney for the Southern District of New York Mary Jo White.

The AMEX and the Philadelphia Stock Exchange were contacted because both were charged with regulating either Harbor Securities or the individuals, such as the Vice Chairman of the AMEX and his son, who were trading for Harbor Securities. These letters I sent were very specific and included the names of the individuals who were trading illegally while serving as specialists, and the name of the individual into whose account at Harbor Securities the illegal trades were placed.

On November 30, 1999 I wrote to Representative John Dingell; Senator Orrin Hatch, Chairman of the Senate Judiciary Committee; and other members of Congress concerning the failure of numerous regulatory agencies to investigate Harbor Securities.

Representative Dingell referred my letter to the SEC. Yet, I was informed by reliable sources at the Amex, including members and high ranking employees, that SEC Chair Levitt blocked any investigation of these reported violations.

What if Levitt had vigorously pursued investigations of cases such as the one I have just outlined or companies such as Bear Stearns? Might not have Bear’s implosion been avoided or at least pre-empted with appropriate corrective measures?

And where is Levitt now? He is an advisor to the Carlyle Group, a large private equity firm.

When I called today to get comments from him for my column, he called the office while I was away and spoke with someone else who told me he declined to provide a number where I could reach him. “I would rather not get into a dialogue with him,” he said, referring to me to the person he spoke with.

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