Skip to content

HOW THE SECURITIES AND EXCHANGE COMMISSION COVERED UP A HUGE INSIDER TRADING SCANDAL

June 1, 2014

CERTIFIED MAIL 7099 3400 0020 7843 2035
RETURN RECEIPT REQUESTED

Edward Manfredonia
8337 St. James Avenue
Apt. 4B
Elmhurst, New York 11373

9 May 2000

Carmen Lawrence
Northeast Regional Director
Securities and Exchange Commission
7 World Trade Center
New York, N Y 10048

Dear Ms. Lawrence:

I have received a copy of your response, dated 17 March 2000, to Congressman Dingell’s request for a response to my missive that Joseph Greenwald had not been prosecuted for violation of federal probation, when he illegally traded for FNY Corp. You have not responded to that charge, except to state that you cannot comment. There was no investigation of Joseph Greenwald prior to my missive. Greenwald, an attorney, violated federal probation and should be in federal prison. It does not require a three year investigation to send Greenwald to jail. And if you should state that the American Stock Exchange (AMEX) did not notify you of Greenwald’s misconduct, then suspend Philip Axelrod for three years. For too many years the AMEX has covered up criminal activity and this conspiracy to cover up violations of federal law-and not limited to securities law, but also included money laundering and narcotics, must be stopped with jail sentences.

In 1999 Greenwald received privileged information from his brother Jonathan Frey concerning a secondary issue of Devon Energy-a stock in which Jonathan was the specialist. Please note that Greenwald is a convicted felon and that his brother, Jonathan Frey, knew that Greenwald was not permitted by federal statute from speaking to Frey concerning a stock in which Frey was the specialist and which Greenwald was trading. This was discussed in my missive to Representative Dingell.

There was no investigation by the Department of Justice as well as by the SEC concerning insider trading in Lotus options by the specialist unit of J. Streicher & Co. How do I know? I was never contacted by either the SEC or by the Department of Justice for my sources. Of course, my sources were AMEX members to whom Barry Telsey boasted that he had received inside information concerning Lotus. Also, Jonathan Frey admitted to me that his specialist unit had received inside information in Lotus and had earned millions trading in Lotus options. Mary Jo White prosecuted individuals who had purchased five options contracts on the basis of inside information.

Furthermore, you conceded to a cover up by Arthur Levitt of criminal activity at the AMEX. Please note that several years ago, Ira Spinnler (spelling approximate) informed me that you had referred my missives to Helen Moore of the SEC in Washington. You covered up criminal activity at the AMEX at the behest of Arthur Levitt. Spinnler even utilized the speaker phone in his office so that someone else could witness his little homily to me. AMEX governors and members have boasted consistently that they shall never be prosecuted because of Arthur Levitt’s influence at the SEC. And most importantly this extends to the women whom Robert VanCaneghan raped/sexually assaulted while Levitt was Chairman of the AMEX.

The SEC has refused to order the AMEX to grant me access to my files, instead the SEC has lied to me by stating that the SEC does not have the authority to order the AMEX to release my records to me. The SEC has told me to hire an attorney and go to court. That is nonsense. It is a violation of federal law for the AMEX to refuse to release my records to me. And the AMEX should be fined and prosecuted for this. And Steven Lister and Philip Axelrod told me to go to court to obtain access to my records. Fine the AMEX $100,000 for this blatant violation of federal law!

So, please do not lie to me.

As for Motel 6, I must thank you for displaying your ignorance to the Honorable John Dingell. Jeff Green did not share an office with Joseph Greenwald. Green shared an office with Gary Rosen. Please read the following.

The offices of Wagner Stott Clearing Corporation, a subsidiary of Merrill Lynch, presently called Merrill Lynch Professional Clearing, were situated on the fifteenth floor of Two Rector Street. As one exited from the elevator, one could enter the offices of Wagner Stott only by entering through the doors facing the elevators. There were two doors one to the right of the elevators and one to the left. Both doors were locked and were used to exit from the offices of Wagner Stott to the elevator. Access was from the offices of Wagner Stott and one could not gain entry to the offices of Wagner Stott.

As one entered the offices of Wagner Stott you were greeted by a receptionist. If the receptionist did not recognize you, you could not proceed to either the right or the left to gain entrée to the offices of Wagner Stott.

If you proceeded to the left, you went through a door. Immediately you were faced with the offices of Bobby Gordon, later supplanted by Fredda Securities. You then were required to make a left. If you proceeded down the corridor, there were offices on the right of the corridor which had windows facing Trinity Place. Among these offices were those belonging to Wellmont Securities, whose criminal activity in PNF the SEC assisted in covering up as a favor to Arthur Levitt to conceal the criminal activity of Robert VanCaneghan and Louis Miceli, governors of the AMEX, the specialists in PNF; Cohen, Cohn, and Duffy; a small Susquehanna office; etc.

To the left of the corridor were perhaps ten small cubicles, including a cubicle utilized by Al Avasso to make telephone calls to his co-conspirators when he was planning the stock fraud, PNF.

When you entered the offices of Wagner Stott, if you went to the right of the receptionist you entered a small area which included a desk with a partition which included the office of the office manager of Wagner Stott. To the right were the two separate offices of Ashley Nemeroff and Frost and Sullivan. These offices did not possess an outside window and the smelly, smoky air of Frost and Sullivan entered the offices of Ashley Nemeroff through a vent-the offices were totally separate. Eventually the offices of Frost and Sullivan were moved to a window office. To the left were the offices of Al Sedita, Ralph Rao and Lou Sansivero, employees of Wagner Stott. As you left this area you entered a lounge which was available to all individuals who utilized the clearing services of Wagner Stott. The lounge was in the corner of the floor. In the lounge along the right wall were lockers where customers who did not rent office space from Wagner Stott could store their belongings.

If you made a right upon entering the lounge there was a small corridor. To the left was the kitchen, which had a sink, a coffee machine, a soda dispenser and a refrigerator. As you left this area you came upon another room. In this room were some terminals. Further down on the left were individual offices.

Now pay close attention because I shall prove that you are incorrect. At the end of this corridor on the left, was the office of Joseph Greenwald. As you entered Greenwald’s office immediately to the right was a leather couch, which was much too large for the office. Greenwald’s chair and desk was directly in front of a window. Greenwald’s desk, with a desk blotter, also was too large for the office. The desk and the couch monopolized the office There was one chair behind Greenwald’s desk-Greenwald’s chair. Directly in front of Greenwald’s desk was one chair. Above Greenwald’s desk to my right and Greenwald’s left was a sketch of his brother, whose name I believe to be Josh. On Greenwald’s desk was one Quotron, one speaker telephone, a cigar box, containing cigars from Cuba and Honduras (the Cuban cigars were the smaller ones.), etc. I believe that across from Greenwald’s office was an office utilized by Susquehanna’s AMEX traders. Note: Please ask Jeff Green concerning Greenwald’s supplications for Green to smuggle Cuban cigars from Canada into Vermont.

The office adjacent to Greenwald’s office was shared by Gary Rosen and Jeff Green. It was a spartan affair, with two desks along the wall to the left when you entered with two chairs facing the wall. I believe that there were two Quotrons and two telephones. It was in this office that Jeff Green, in the presence of Gary Rosen and Joseph Latona, informed me that Greenwald had received information from his friend, David Simon, concerning a takeover of Gulf Resources.

Note: Steven Lister, Executive Vice President of Compliance, personally took over investigations of David Simon, after AMEX Compliance investigators had determined that Simon had violated AMEX rules in trading. Please remember that Steven Lister had accepted payoffs from Al Avasso, a convicted felon and others to overlook violations of federal securities laws. And remember that it was Joseph Palmeri, a governor of the AMEX, who proudly boasted that he (Palmeri) knew that Lister had taken payoffs but that I had to prove this in court. Levitt also protected Lister because Lister was Senior Vice President of Compliance when Levitt was Chairman of the AMEX. This information was related to me by AMEX employees-and others including Greenwald. And I had informed you that Lister was taking payoffs and you did nothing. So no lies.

Note 1: When the market had a meltdown in October 1989, Green telephoned me from Vermont and asked me if Greenwald were present. Greenwald was supposed to be watching the positions of Frost and Sullivan and Jeff Green, but instead went to a luncheon at the Friar’s Club. Green left me his telephone number to call him back.

Note 2: During the October 1989 meltdow, Al Sedita telephoned me at the AMEX and asked me to rush upstairs because Heinz Grein had an overexposed position in American Airlines-a position against which I had advised him to buy approximately five hundred puts for downside protection. Latona replied: “That’s the problem with you. You have no balls!” (Latona’s emphasis) Heinz Grein and Joseph Latona were, I believe, in Hong Kong to raise more capital. Sedita wanted me to purchase puts against the AMR position, but it was too late.

Jeff Green qualified Joseph Greenwald for AMEX membership-much as I qualified Frost and Sullivan. But what you do not know is that Greenwald had asked me to qualify him for AMEX membership, splitting the cost of a lease, etc. but I declined because Frank Sci, an AMEX member with access to millions of dollars, was discussing opening a trading firm with me. Sci backed out at the last minute, but Greenwald and Green already had signed an agreement.

Frequently I would be in the offices of Jeff Green and Gary Rosen. Rosen was a former employee of John Mullheren. Rosen, among others, such as Eugene Mauro and Alan Nathan, informed me that Mullheren had parked stock and had considered the SEC to be too stupid to catch him. Everyone stated that Israel Englander had provided information concerning Mullheren’s parking of stock and other violations of federal law. But Izzy was protected by his father in law, Jack Nash of Odyssey. I believe that Rosen had received one and a half million dollars from Mullheren when Rosen left Mullheren’s employ.

Rosen would sometimes speak to me concerning his problems with his wife-including one disagreement where she complained that he had approximately five different attaché cases and would not spend one hundred dollars for one pair of sneakers for his son. If I remember correctly, Rosen lived in Belle Harbor Queens.

Once in the office shared by Jeff Green and Gary Rosen, while I was speaking to Jeff Green, Gary Rosen presented me with a superseded copy of the red book of Securities dealers.

On several occasions Greenwald walked into the office shared by Rosen and Green and excoriated Green for selling out a position too soon. Greenwald and Rosen agreed. Rosen boasted that he had maintained his position and had made more money than Green. Greenwald was always ridiculing Green for not holding his positions until the deal had been consummated. Note: Jonathan Frey and I had several conversations concerning Greenwald’s abuse of Green. Please note that it was in this office, in the presence of both Jeff Green and Gary Rosen, that Greenwald provided me with inside information concerning Motel 6.

Rosen traded on the basis of inside information provided to him by Greenwald because Rosen admitted this in my presence. And Please Note: It was Gary Rosen, who knew that Greenwald was proscribed from trading, who recommended Greenwald to FNY Corp. So why do you not discipline Rosen?

Greenwald informed his brother, Jonathan Frey, concerning the takeover of Motel 6. Please check the stock tendered to verify if Frey traded on the basis of inside information. Note: According to Jonathan Frey and Joseph Greenwald, Joel Lovett, Vice Chairman of the AMEX, boasted that Ed Manfredonia would be the only AMEX member, excluding Jeff Green, who would be convicted of trading Motel 6 on inside information-because I had qualified Frost and Sullivan for membership on the AMEX. According to Frey and Greenwald, Lovett had been assured of this by Arthur Levitt, then Chairman of the SEC. So, Carmen, you acquiesced in a cover up of insider trading. You prosecuted the cases and no AMEX member, other than Jeff Green was prosecuted for trading on inside information. You could not prosecute me because I never traded on the basis of inside information. Please remember that Greenwald had spoken to his brother, Jonathan, of the takeover in Motel 6, on the telephone while I was present in Greenwald’s office. Because you refused to investigate further the illegal trading of Motel 6, you have permitted the same individuals who violated federal law by trading on inside information to once again trade on the basis of inside information. This time it was Lotus options and Devon Energy. (And there was no investigation into the illegal trading of Lotus and Devon Energy-because Jonathan Frey told me that there was no investigation.

Joseph Greenwald also informed the officers of Wellmont Securities, Sam Gottfried and George Wellington, of Motel 6. Joseph Latona provided information to Darryl, an employee of Wellmont Securities, concerning several takeovers and Darryl thanked him for the information. Greenwald told many other individuals in the offices of Wagner Stott concerning takeovers.

And I shall once again proceed to demonstrate your mendacity and incompetence. Michael Borlinghaus informed me that he had another group of individuals based in New York to whom he provided inside information. Borlinghaus would utilize the telephone in the Wagner Stott kitchen area to contact this group. And Borlinghaus always spoke in German to them. Furthermore, Borlinghaus confided in me that most takeover information, including that of Motel 6 and emanated from his source. If you were so smart why did you not prosecute these individuals. I had informed FBI Agent Joseph Yastremski of this.

I informed Al Sedita and Ralph Rao that Greenwald was trading on the basis of inside information and that he would get everyone in trouble. Al Sedita told me not to worry. Thus, Wagner Stott permitted this illegal trading, as it did the stock fraud schemes of Al Avasso, especially the stock fraud, PNF, concerning which I had informed Sedita and Rao that Avasso was engaging in another stock fraud. I was unemployed due to Joel Lovett’s ordering me off the floor of the AMEX because I had requested an investigation into the statements by AMEX security guards that Charles Diecidue had permitted Louis Miceli, a cocaine addict, to enter the AMEX with an unregistered automatic pistol.

And once again this incident involving Charles Diecidue and Joel Lovett brings to mind your complicity, Carmen Lawrence, in covering up crime at the AMEX at the behest of Arthur Levitt.

In 1996 I began to report crime at the AMEX to you, personally. I specifically reported the thefts, totaling $500,000, by Charles Diecidue, during the reign of Arthur Levitt and the complicity of William Strauss, Louis DePasquale and Dan DiPaolo in these thefts. These individuals were forced to leave the AMEX without a mark on their record. There was no criminal prosecution on your part of Charles Diecidue for theft, because Arthur Levitt did not wish an investigation. Nor did you level either civil or criminal sanctions against these individuals for their part in the theft of in excess of five hundred thousand dollars. Incidentally, Dan DiPaolo is a moron who has threatened me with physical violence. Better than Ed Crooks, a drunk, who has conspired to have me murdered. (See enclosed letter)

Remember my missives to you concerning the illegal trading of Joseph Giamanco in stocks in which his firm, GHM, specialized for his personal account at Spear Leeds and Kellogg. You never investigated these serious violation of federal laws. And Giamanco’s illegal trading was noted in Gary Weiss’ Business Week article, Scandal On Wall Street. I provided you with the name of the executing broker, Joseph Matera; the broker, Nicholas Passiatore, a GHM specialist, who watched Joe Giamanco Sr.’s stocks on his personal Quotron and would notify Joe Sr. if his orders were complete; the names of the clerks, Suzie and Joanne Ferraro, who maintained Joe Sr.’s records. And Spear Leeds and Kellogg, the clearing agent for GHM and Giamanco’s personal accounts, knew of this illegal trading-according to Joseph Roffler and individuals close to Pat Schettino and Larry Trainor. You did nothing. You deferred to Arthur Levitt and covered up criminal activity at the AMEX. And Giamanco, like John Gotti, involved his sons, Joe Jr. and Christian in his illegal trading.

Why do you not investigate Evan Lovett, the son of Joel Lovett, former Vice Chairman of the AMEX? When he was a specialist for J Streicher & Co., Evan Lovett was illegally trading stocks for the account of Eugene Neale, an investor in Harbor Securities, at Harbor Securities. Joel Lovett was an investor in Harbor Securities and knew that his son was illegally trading stock for the account of Gene Neale. Joel Lovett knew this while he, Joel Lovett, was a member of the AMEX. This information was provided to me by Jonathan Frey and Guy Velardi, an AMEX member. And was verified by the bankruptcy filings of Evan Lovett?

Of course you remember Harbor Securities. Harbor Securities was in the news. Two men, Alain Chalem and Maier Lehmann, were murdered. (Alain Chalem was a close friend of Michael Frayler, a former member of the New York Stock Exchange, who pleaded guilty to illegal trading in federal district court. Frayler was employed by Harbor and his friend, Chalem, obtained this position for him.)

I had reported Harbor Securities to the American Stock Exchange and to the Philadelphia Stock Exchange for tax fraud and illegal trading. Neither the Philadelphia Stock Exchange nor the American Stock Exchange investigated Harbor Securities. They merely informed Mr. X, who is currently in hiding from the Russian mob, that I had reported Harbor Securities for illegal trading and that Guy Velardi had provided me with this information.

This warrants stiff disciplinary penalties against both the American Stock Exchange and the Philadelphia Stock Exchange.

You covered up Pat Schettino’s criminal activity at the AMEX. I wrote to you and stated that John Baldasare, an AMEX member had illegally traded stocks for Bullseye Securities. I informed the SEC that John Baldasare, Daniel Donner and Frank Postiglione had illegally traded AMEX listed stocks, against public orders which they were holding, for various sub-accounts at Bullseye Securities. I even provided the SEC with the account numbers and a sheet, with sub-accounts and illegal percentages, proving that Baldasare, Donner and Postiglione had traded illegally for Bullseye Securities. Furthermore, this is identical to the trading of Mark and John Savarese, who pleaded guilty to front-running at the New York Stock Exchange, and are currently serving four months in jail.

Name of AMEX two dollar broker Bullseye account number
J .Baldasare 43BC
D. Donner 43BJ
F. Postiglione 43BM

Pat Schettino embezzled a fifty thousand dollar check, and was assisted in this malfeasance by his clerk, Ken Bracer. Yet, you did not prosecute Schettino for this theft.

So don’t lie to me. And don’t play Representative Dingell for a fool.

Sincerely,

 

Edward Manfredonia

P S Heinz Grein laundered millions of dollars for Al Avasso, which Avasso earned illegally in the stock fraud, Greyhound Electronics. Avasso did not pay taxes on this sum. The money was moved to Luxembourg. The stock, 1,900,000 shares was held in the maiden name of Avasso’s wife, Rita.
Grein also boasted that, while he was employed in Germany, he moved money to Switzerland for Ferdinand Marcos. But then again what is the rape of the Philippines of hundreds of millions of dollars to you? You must protect Arthur Levitt.

Advertisements

From → Uncategorized

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: