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THE CORRUPTION OF THE FBI AND AMERICA

March 25, 2017

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF NEW YORK

____________________________________________________X

 

Edward Manfredonia,

 

Plaintiff,

COMPLAINT

                  

                                                                   JURY TRIAL DEMANDED

 

-against-

 

 

Securities and Exchange Commission of the United States,

Department of Justice of the United States,

Federal Bureau of Investigation

 

________________________________________________________________x

 

                                   

                                                VERIFIED COMPLAINT

 

_________________________________________________________________X

 

Edward Manfredonia, the plaintiff herein, being duly sworn, deposes and says:

 

Parties in this complaint are listed below:

 

  1. Plaintiff:

Edward Manfredonia

c/o McCormick

8337 St. James Avenue

Apt. 4B,

Elmhurst, NY 11373.

Telephone Number:  718-457-8135

 

B  Defendants:

 

  1. Department of Justice

One Saint Andrew Plaza

New York, NY 10007

212 637 2200

  1. Federal Bureau of Investigation

26 Federal Plaza

New York, NY 10278

212 384 1000

  1. Securities and Exchange Commission

3 World Financial Center

4th Floor

New York, NY 10281

212 336 1100

 

II   Basis for Jurisdiction:

 

Jurisdiction is based on Freedom of Information Act and Constitutional Issues involving the First Amendment, the Fourth Amendment, Fifth Amendment, and the Fourteenth Amendment.

 

The basis for Federal Jurisdiction related to Constitutional Issues is based the Fourth Amendment, which guarantees the right of a citizen against unlawful search; the Fifth Amendment, which guarantees due process in these words: “No person shall be … deprived of life, liberty, or property without due process of law,” and the Fourteenth Amendment, which provides for equal protection under the law regardless of ethnicity and color.

 

The basis for Federal Jurisdiction related to the Fourth Amendment is that Plaintiff Manfredonia has been subject to illegal search.  According to FBI Special Agents, Plaintiff Manfredonia has been placed under surveillance by members of the Federal Bureau of Investigation- including electronic surveillance of Plaintiff’s home and telephone by the FBI.   Plaintiff Manfredonia can only state that this is what Plaintiff has been told- even though an illegal wire tap was found on Plaintiff Manfredonia’s telephone and then removed.

 

The basis for Federal Jurisdiction for the Fifth Amendment, due process clause:  “No person shall be … deprived of life, liberty, or property without due process of law …”  Plaintiff has been deprived of due process.  Plaintiff has been illegally had his movements monitored by the Federal Bureau of Investigation and the Federal Bureau of Investigation permitted, while Plaintiff Manfredonia, was assisting the Federal Bureau of Investigation with investigations into money laundering, narcotics smuggling, serial rape, illegal trading, involvement of the Italian Mafia on Wall Street, etc., the life of Plaintiff Manfredonia to be threatened by individuals, such as the Peter Orloff, a cocaine abuser; Ken Bracer, a cocaine abuser; Edward Segal, a drug abuser; Steve Peter, a cocaine abuser; etc.- all involved with the American Stock Exchange.  Furthermore, the Securities and Exchange Commission, the Department of Justice and the Federal Bureau of Investigation have covered up the murders of Al Chalem and Maier Lehmann and the involvement of the Russian Mob in the murders of Al Chalem and Maier Lehmann.

 

The basis for Federal Jurisdiction related to Freedom of Information Act is that Plaintiff Edward Manfredonia was wired by the Federal Bureau of Investigation in 1993.  Plaintiff Edward Manfredonia has written numerous letters, which have detailed criminal activity and violations of federal law, to the Federal Bureau of Investigation; Internal Revenue Service; Department of Justice (United States Attorney for the Southern District of New York, Attorney General of the United States); Securities and Exchange Commission; and other federal agencies.

 

Plaintiff Edward Manfredonia apologized for the length of the complaint, but this excess was necessary to assure the court that Plaintiff Manfredonia has not dissembled concerning the gravity of the situation.  The length was necessary to prove that Plaintiff Edward Manfredonia has proof that federal laws were violated and that a conspiracy existed to cover up violations of federal securities laws at the American Stock Exchange and Goldman Sachs.

 

Furthermore, Plaintiff Manfredonia has included his Freedom of Information Act Request and his explanation of the violation of Plaintiff’s civil right in this complaint.  Plaintiff is entitled to his records at the American Stock Exchange, the Federal Bureau of Investigation, the Securities and Exchange Commission and the Department of Justice under the Freedom of Information Act and under the Securities Exchange Act of 1934.

 

Plaintiff Manfredonia is a resident of the County of Queens of the State of New York and the jurisdiction for Plaintiff Manfredonia is Federal District Court of the Eastern District of the State of New York.

 

The amount sought in damages exceeds $75,000.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

III:  STATEMENT OF CLAIM

 

Edward Manfredonia, the Plaintiff herein, being duly sworn, deposes and says:

 

Plaintiff Edward Manfredonia is a private individual.  Plaintiff Manfredonia is not a public figure.  Plaintiff Manfredonia is not a limited public figure.  Currently, Plaintiff Manfredonia writes occasional articles for The Black Star News, a weekly investigative newspaper that is located in New York City.  Plaintiff Manfredonia has authored several articles about Goldman Sachs and the American Stock Exchange.  These articles proved violations of the Securities Exchange Act of 1934.

 

In 1993 Plaintiff Manfredonia was wired by the Federal Bureau of Investigation.  (Exhibit 1)  The Assistant United States Attorney, who signed the FBI wire order, is listed as AUSA Frances Fragos, better known as former Presidential Advisor to President George W. Bush on Homeland Security and Counter-Terrorism, Frances Fragos Townsend.  Plaintiff’s affidavit to President Bush, which affidavit described Plaintiff’s meetings and contacts with Assistant United States Attorney Frances and with FBI Special Agent Joseph Yastremski.  (Exhibit 2)

 

The Federal Bureau of Investigation is the investigatory arm of the Department of Justice.  The duty of the FBI is to investigate criminal activity, which violates federal law.

 

The Department of Justice is charged with enforcing the laws of the United States.  The Department of Justice is headed by a political appointee, the Attorney General of the United States.

 

The Securities and Exchange Commission is charged with enforcing federal securities laws, in particular the Securities Exchange Act of 1934, which created the Securities Exchange Commission and gave the SEC civil power to enforce the Securities Exchange Act of 1934.

 

Plaintiff Edward Manfredonia files this action under the Provisions of the Freedom of Information Act with respect to Plaintiff’s files, communications to, and communications received about Plaintiff.

 

Plaintiff Edward Manfredonia charges the Department of Justice and the Federal Bureau of Investigation with violations of Plaintiff’s Fourth Amendment Rights because Plaintiff has been informed by FBI Agents that he was the subject of surveillance, both electronic and physical, by the Federal Bureau of Investigation.

 

Plaintiff Edward Manfredonia charges the Federal Bureau of Investigation, the Department of Justice, and the Securities Exchange Commission with violation of Plaintiff Edward Manfredonia’s rights to “due process of law.”  By their wanton disregard for the most basic tenets of the Constitution, the Federal Bureau of Investigation, the Department of Justice and the Securities Exchange Commission have put in harm’s way, the life, liberty and property of Plaintiff Manfredonia.

 

Plaintiff Manfredonia had been portrayed as a whistle-blower in the seminal 26 April 1999 BusinessWeek cover story “Scandal On Wall Street.”  (Exhibit 3)  Plaintiff Manfredonia had published several articles in The Black Star News, which articles exposed criminal activity at Goldman Sachs- including “Goldman’s Obscene Bonuses,” “Rip-Off:  Wall Street Price Fixing,” and “Goldman’s CMO Liabilities.”  (Collectively Exhibit 4)

 

Please remember that Plaintiff Manfredonia had been wired by the FBI in 1993 and that the FBI had discovered serious crime at the American Stock Exchange- including narcotics smuggling; money laundering; serial rape; involvement of the Italian Mafia in stock frauds at the American Stock Exchange; laundering of $10 billion, which sum Ferdinand Marcos had stolen from the Philippines (actually from the United States), and that Heinz Grein had placed this $10 billion in Swiss Banks; etc.

 

And let us have justice- because this is the most grievous violation of the United States Constitution- far worse than Watergate.  In Watergate there was no rape.  Nor were there two murders in Watergate, as there are in this instance- the murders of Al Chalem and Maier Lehmann.

 

Plaintiff Edward Manfredonia is so honest that Plaintiff was the only individual, associated with the firms mentioned in the article, “The System Was Almost Perfect,” or in any article that appeared in The New York Times, who did not trade Motel 6 and other issues on the basis of inside information.  (Exhibit 5)  Plaintiff was also the only individual not subpoenaed by the Securities and Exchange Commission- because not only did Plaintiff not trade Motel 6 and other issues on the basis of inside information- Plaintiff knew numerous individuals, who did trade on the basis of inside information.  And the Securities and Exchange Commission, on orders from Arthur Levitt, Chairman of the SEC, direly wished to limit the scope of its investigation.

 

Plaintiff Edward Manfredonia is categorically honest.  Plaintiff Manfredonia’s honesty is unimpeachable.  Plaintiff Manfredonia represented the firm of Frost & Sullivan on the floor of the American Stock Exchange.  Heinz Grein, President of Frost & Sullivan, masterminded the insider trading ring in Motel 6 and other issues.

 

Plaintiff is currently authoring articles for The Black Star News, an African-American weekly newspaper.  The topic of these articles is criminal activity on Wall Street.  Plaintiff Manfredonia has published several articles, which have exposed violations of federal securities laws by Goldman Sachs- and other member firms of the American Stock Exchange and the corruption of the American Stock Exchange in covering up major financial crime.  I shall mention several of these articles.

 

In “Goldman’s Obscene Bonuses,” which was published on 1 March 2007, Plaintiff proved that Goldman Sachs was guilty of accounting fraud and had covered up a write-off of $4 billion, which has since ballooned to $7 billion.  Thus, Goldman’s oversized bonuses to its executives have been a violation of federal securities laws.

 

In “Rip-Off:  Wall Street Price Fixing,” which was published on 17 May 2007, Plaintiff exposed illegal trading and price fixing in the Exchange Traded Funds at the American Stock Exchange.  It is important to note that Plaintiff quoted from his missives, which were dated 26 October 2000 and 26 November 2000 that were addressed to Judge Lawrence McKenna and copies of which missives were provided to the American Stock Exchange.  These letters proved that from 1999-2006 the American Stock Exchange permitted price fixing in Exchange Traded Funds and that the amount of the price fixing was approximately $350 million per annum.  The Amex finally decided to discipline the specialist firms involved for a little more than $1 million.  More than $1 billion stolen and fines of a little more than $1 million.

 

In “USA:  Billionaire’s Welfare State,” which was published on 22 August 2007, Plaintiff proved that the Federal Reserve is interested in protecting only major financial institutions.  This has been proved by the bailout of Bear Stearns and other multi-billion dollar financial institutions by the Federal Reserve.

 

In “AIG and Stock Manipulation,” which was published on 5 November 2007, Plaintiff exposed illegal price fixing by Goldman Sachs in the stock of AIG, a Dow Jones Industrial component.

 

In “Goldman’s Toxic CMOs,” which was published on 4 January 2008, Plaintiff proved that Goldman Sachs knowingly sold worthless Collateralized Mortgage Obligations to its customers, while simultaneously selling short these same securities.

 

In “Goldman’s CMO Liabilities,” (Exhibit ____) which was published on 5 February 2008, Plaintiff Manfredonia proved that Goldman Sachs is liable for the value of the CMOs that Goldman Sachs sold.  Plaintiff proved Goldman’s liability via case law- namely, the precedent of Goldman’s liability for the worthless commercial paper of Penn Central, which Goldman Sachs had sold to its customers prior to the bankruptcy of Penn Central in 1970.

 

It has been proved that Plaintiff Edward Manfredonia is a decent individual.  Let the lawsuit be commenced.

 

Please let the Court remember that Justice Brandeis stated:  “Sunlight is the best disinfectant.”

 

 

 

 

 

 

 

 

 

COMPLAINT FBI

 

Plaintiff repeats and re-alleges each and every previous allegation in this Complaint.  Plaintiff must also state that this part of the Complaint is almost inseparable from other parts of the Complaint- and all issues, which are raised in this complaint, must be viewed as a whole.

 

If Plaintiff Edward Manfredonia should willfully and knowingly commit perjury in this complaint, a sworn affidavit, Plaintiff Edward Manfredonia should be sentenced to prison for perjury.

 

Plaintiff sues under the provisions of the Fourth Amendment, which states:

“The rights of the people to be secure in their persons, houses, papers and effects, against unreasonable searches and seizures, shall not be violated…”  Plaintiff Manfredonia states that he has been informed that Plaintiff’s Fourth Amendment Rights have been violated in that Plaintiff Manfredonia has been subject to unreasonable search and surveillance by the Federal Bureau of Investigation.

 

Plaintiff Edward Manfredonia also sues under the Fifth Amendment, which states:  No Person shall be deprived of life, liberty, or property without due process of law ….” and Plaintiff states that Plaintiff Manfredonia’s Fifth Amendment Rights have been violated.  James Kallstrom, former Assistant Director of the Federal Bureau of Investigation, violated the “due process of law” clause of the Fifth Amendment by providing the American Stock Exchange and the Italian Mafia with copies of Plaintiff Manfredonia’s correspondence with FBI Special Agent Joseph Yastremski- most notably Plaintiff Manfredonia’s 3 December 1993 missive to Yastremski, which described a death threat upon the life of Plaintiff Manfredonia, which death threat was made by Alan Umbria, a front man for the Italian Mafia at the American Stock Exchange.

 

The FBI has also permitted death threats to be made against Plaintiff and the inaction of the FBI against criminal activity at the American Stock Exchange led to the solicitation of Plaintiff’s murder by Edwin Crooks, a governor of the American Stock Exchange.

 

Plaintiff Manfredonia sues under the Freedom of Information Act and Plaintiff demands that all records and files, including transcripts of conversations and notes of Plaintiff’s movements, etc. and all records of criminal activity, which are discussed in this complaint, be provided to Plaintiff Manfredonia.  This includes all notes and surveillance that were submitted by the FBI Agent, who resides in Plaintiff Manfredonia’s working class apartment house and on the same floor, the fourth floor.

 

The only document that Plaintiff Manfredonia has ever received from the FBI in response to Plaintiff’s numerous requests for Plaintiff’s FBI files was the FBI wire order, which was signed by Assistant United States Attorney Frances Fragos, later known as Frances Fragos Townsend, personal advisor to President George W. Bush on Homeland Security and Counter-Terrorism.

 

Plaintiff Manfredonia wishes to state that Plaintiff’s Fourth Amendment rights have been violated.  Plaintiff has been informed that Plaintiff had been under the surveillance of the FBI for many years.  Plaintiff was also informed that the FBI had used electronic surveillance upon Plaintiff.  Also, Plaintiff was informed that the FBI had placed an FBI Special Agent in the cooperative apartment building where Plaintiff resides in the cooperative apartment of his 1966 college roommate.  Plaintiff has been informed that Plaintiff’s telephone had been tapped.  Note:  The telephone belongs to Plaintiff’s roommate, who owns the coop.  Plaintiff has never committed a crime so any surveillance of Plaintiff has been illegal.

 

In 1993 through 1994 Plaintiff Manfredonia assisted the Federal Bureau of Investigation in its investigation of heinous crimes, which had been perpetrated at the American Stock Exchange, including such crimes as narcotics smuggling by Louis Miceli; money laundering by Robert VanCaneghan and Louis Miceli; the stock fraud, PNF; tax fraud; serial rape by Robert VanCaneghan; the theft of $10 billion from the Philippines by Ferdinand Marcos, of which sum at least 50% was money stolen from the United States of America and placed ins Swiss Banks by Heinz Grein, the engineer of the Motel 6 insider trading scandal; and lesser crimes such as the insider trading scandal in Motel 6; etc.

 

Plaintiff Manfredonia has been told by an FBI Special Agent that the Federal Bureau of Investigation would never grant Plaintiff Manfredonia complete access to his FBI files.

 

The FBI has violated federal statute by not permitting Plaintiff Manfredonia complete and unfettered access to his FBI files.  In violation of federal law and the Freedom of Information Act Plaintiff Manfredonia has been denied the right to have access to his files by the FBI.  The only information, which the FBI has provided to Plaintiff Manfredonia, has been the document that proves that Plaintiff Manfredonia had been wired by the FBI.

 

Plaintiff Manfredonia has requested access to his FBI files on many occasions.  In a letter, dated 21 July 1993 to J. Kevin O’Brien, Plaintiff Manfredonia wrote “concerning my request to view my records.”  (Exhibit 6)    In a letter, dated 19 March 1994, to Mr. J. Kevin O’Brien Plaintiff Manfredonia made reference to his FOIPA NO:  375,318 and asked to view his FBI records.

 

On 15 October 1996 Plaintiff Manfredonia sent a letter, certified mail P 397 542 208, to Mr. Kevin J. O’Brien, Chief, Freedom of Information and Privacy Act Sections, and requested Plaintiff’s files.  (Exhibit 6)

 

On 14 December 1998 Plaintiff addressed a letter, certified mail Z 055 653 268, to Mr. Kevin O’Brien, FOIPA Section, and requested letters and documents, concerning Plaintiff. (Exhibit 6)

 

The FBI has consistently refused Plaintiff’s requests for his records.  The FBI never granted Plaintiff Manfredonia access to his records- in direct violation of the Freedom of Information Act.

 

The Federal Bureau of Investigation has masterminded a cover up to deny Plaintiff Manfredonia access to his records.

 

Plaintiff Manfredonia has been under FBI surveillance for many years- especially since 1995, when an FBI Special Agent moved into the apartment building where Plaintiff Manfredonia resides.

 

This action began with a cover up, by the Federal Bureau of Investigation and the Department of Justice, of serial rape, narcotics smuggling, money laundering, stock fraud, etc. at the American Stock Exchange.  These crimes were perpetrated by two members of the Board of the American Stock Exchange, Louis Miceli and Robert Van Caneghan (VanCaneghan).

 

Plaintiff Edward Manfredonia seeks his complete, unabridged, and unedited FBI files.  Plaintiff Edward Manfredonia seeks the complete and unedited FBI files pertaining to the events and crimes discussed below, but not restricted only to the events and crimes discussed below.  Plaintiff Edward Manfredonia is entitled to these files by federal law, under the Freedom of Information Act.

 

Plaintiff Edward Manfredonia was wired by the FBI in 1993.  Plaintiff has included the FBI wire order, which was signed by AUSA Frances Fragos, as proof that he had been wired by the Federal Bureau of Investigation.  Assistant United States Attorney Frances Fragos was later known as Frances Fragos Townsend, Personal Advisor on Homeland Security to President Bush.

 

Plaintiff Edward Manfredonia met with FBI Special Agent Joseph Yastremski several times in 1993.  Plaintiff seeks all notes and files relating to these meetings- and the notes and files, which pertain to all subsequent meetings, conversations, and letters, which Plaintiff Manfredonia had sent to the Federal Bureau of Investigation pertaining to the incidents listed below.  Plaintiff Manfredonia also had contact with FBI Special Agents Michael Degnan and Andre Cicero.  Plaintiff Edward Manfredonia knew FBI Special Agent Andre Cicero from the American Stock Exchange.

 

It was FBI Special Agent Andre Cicero, who in 1993 informed Plaintiff Manfredonia that the American Stock Exchange, its members and employees, were smearing the name of Plaintiff Edward Manfredonia.  FBI Special Agent Andre Cicero told Plaintiff that members and employees of the American Stock Exchange had contacted FBI Special Agent Cicero and had stated that Plaintiff Manfredonia was crazy.  Plaintiff seeks all records of contacts between FBI Special Agent Cicero and members and employees of the American Stock Exchange- pertaining to Plaintiff Manfredonia.

 

Plaintiff Manfredonia requests the release of all correspondence, which the Federal Bureau of Investigation possesses, pertaining to Plaintiff Edward Manfredonia, not only from the American Stock Exchange, its members and employees, but all other agencies and employees of  federal, local and state agencies, including the Securities and Exchange Commission, the Internal Revenue Service, the Securities and Exchange, the Treasury Department, the Department of Justice, etc. and all state (Office of the Manhattan District Attorney, etc.) and all local (Police Department of the City of New York, etc.)- in other words anything pertaining to Plaintiff Edward Manfredonia and the criminal activity of the American Stock Exchange, which is described in the entire complaint.

 

At the first meeting with FBI Special Agent Joseph Yastremski, which was held in the offices of the Federal Bureau of Investigation at 26 Federal Plaza, in 1993, Plaintiff Edward Manfredonia provided information to FBI Special Agent Joseph Yastremski concerning the involvement of Al Avasso, a former member of the American Stock Exchange, in the stock fraud, PNF, and Greyhound Electronics.  Plaintiff also told FBI Special Agent Joseph Yastremski that Avasso had earned in excess of $20 million in the stock fraud, Greyhound Electronics.

 

On 13 September 1993 Plaintiff Edward Manfredonia met with AUSA Frances Fragos in her offices at One Saint Andrew Plaza.  FBI Special Agent Joseph Yastremski, AUSA Frances Fragos and Plaintiff Edward Manfredonia were present.

 

As background information it must be stated that Plaintiff Edward Manfredonia, an independent American Stock Exchange market maker, had represented Frost & Sullivan, a trading firm on the floor of the American Stock Exchange.  Heinz Grein Chairman of Frost & Sullivan masterminded the insider trading scandal in Motel 6.

 

In August 1992 BusinessWeek published an article, “The System Was Perfect,” a copy of which is attached and includes Plaintiff Manfredonia’s American Stock Exchange Identification Card, which proves that Plaintiff Manfredonia had been the representative of Frost & Sullivan on the floor of the American Stock Exchange.  (Exhibit 7)

 

This article, “The System Was Perfect,” exposed the insider trading scandal involving Frost & Sullivan; Michael Borlinghaus and Heinz Grein, the principals in Frost & Sullivan; Joseph Latona, an employee of Frost & Sullivan; Joseph Greenwald, a trader; and Jeff Green, an independent American Stock Exchange Market Maker, who represented Joseph Greenwald on the floor of the American Stock Exchange.

 

Plaintiff Manfredonia provided FBI Special Agent Joseph Yastremski with information that Michael Borlinghaus was trading on the inside information through another trading firm unknown to Heinz Grein and the other members of the insider trading conspiracy.

 

At this 13 September 1993 meeting, AUSA Frances Fragos asked Plaintiff Edward Manfredonia, to repeat what Joseph Greenwald, who had pleaded guilty to insider trading in Motel 6 and other issues, had told Plaintiff Edward Manfredonia concerning Motel 6.  Plaintiff Manfredonia stated that he had not traded Motel 6 at all.  AUSA Frances Fragos told Plaintiff that she (AUSA Frances Fragos) knew that Plaintiff Manfredonia had not traded Motel 6.  AUSA Frances

Fragos told Plaintiff to state what Greenwald had told Plaintiff Manfredonia with respect to Motel 6.  Plaintiff Manfredonia told AUSA Fragos that Greenwald had told Plaintiff with regard to Motel 6:  “Buy it.  It’s guaranteed.”  (This alone is sufficient to prove the integrity of Plaintiff Edward Manfredonia.)

 

Joseph Greenwald sought to place Plaintiff Manfredonia in jeopardy because Plaintiff Manfredonia possessed information concerning the widespread illegal trading of Motel 6.  One reason is personal:  Plaintiff Manfredonia was present when Joseph Greenwald passed along this insider information in Motel 6 to Greenwald’s brother, Jonathan Frey, a principal in the American Stock Exchange specialist firm, J. Streicher & Co.  The other reason centered on Greenwald’s passing along information to other individuals, who were involved in trading on the basis of inside information:  Darryl Hirsch, George Wellington, and other individuals associated with Wellmont Securities, etc.

 

Gary Rosen, who traded Motel 6 and other issues on the basis of inside information, shared an office with Jeff Green.  Joseph Greenwald brought Gary Rosen into this illegal conspiracy involving insider trading in Motel 6 and other issues.  Rosen made millions in this illegal trading and was never charged, even though Plaintiff had informed the FBI that Rosen had traded on the basis of inside information.  Rosen even boasted to Plaintiff Manfredonia that he had earned more money than Jeff Green on Greenwald’s information because Jeff Green had sold out his positions too soon and Rosen had held onto his positions.  Joseph Greenwald and Joseph Latona, who pleaded guilty to trading Motel 6 and other issues on the basis of inside information, were present when Rosen boasted of his trading prowess.  (Plaintiff has explicated upon this matter in his personal website, http://www.wallstreetscandals.com.)

 

At this meeting on 13 September 1993 Plaintiff Edward Manfredonia was told by FBI Agent Joseph Yastremski in the presence of AUSA Frances Fragos that Al Avasso, a front man for the Italian Mafia, had bribed Steven Lister, then Senior Vice President of Compliance at the American Stock Exchange.  Plaintiff Edward Manfredonia stated that Avasso had informed Plaintiff of this fact and that Avasso had paid off other members of the American Stock Exchange, including Louis Miceli, Robert Van Caneghan, and Steven Lister.  This was confirmed by FBI Agent Joseph Yastremski.  These bribes were paid during the time that Arthur Levitt was Chairman of the American Stock Exchange- and continued to be paid up to the time of the stock fraud, PNF.

 

AUSA Frances Fragos told Plaintiff Edward Manfredonia that Arthur Levitt, then Chairman of the Securities and Exchange Commission, had opposed an investigation into the American Stock Exchange.  AUSA Frances Fragos told Plaintiff Edward Manfredonia that Mary Jo White, United States Attorney for the Southern District of the State of New York, had to go to Washington, DC and speak to high officials at the Department of Justice to investigate criminal activity at the American Stock Exchange.

 

AUSA Frances Fragos told Plaintiff Edward Manfredonia that Arthur Levitt, then Chairman of the Securities and Exchange Commission and previously Chairman of the American Stock Exchange, had ordered the Securities and Exchange Commission to forward all correspondence, which Plaintiff Manfredonia had sent to the Securities and Exchange Commission, to the American Stock Exchange.  AUSA Frances Fragos also stated that Arthur Levitt had ordered the staff attorneys for the Securities and Exchange Commission not to investigate any reports of criminal activity that were reported by Plaintiff Edward Manfredonia.  Please note that after the appearance of the article, “Scandal On Wall Street” in April 1999, Plaintiff met several staff attorneys for the SEC.  These staff attorneys told Plaintiff Manfredonia that Arthur Levitt had ordered the SEC staff attorneys not to investigate violations of federal securities laws at the American Stock Exchange.  During the preparation of the article, “Scandal On Wall Street,” an SEC staff attorney told Gary Weiss that Arthur Levitt had ordered him not to pursue an investigation involving the American Stock Exchange and front running in Beta Well Services and Conversion Energy.  This illegal conduct has continued to the present day under Chairman Christopher Cox, who has refused to investigate any violations of federal securities laws that have been reported by Plaintiff Edward Manfredonia.

 

During this meeting on 15 September 1993 Plaintiff Edward Manfredonia informed AUSA Frances Fragos that Al Avasso, a front man for the Italian Mafia and stock fraud artist, that Avasso had stated to Plaintiff Edward Manfredonia that he (Avasso) had bribed a federal postal inspector.  Plaintiff Edward Manfredonia also told AUSA Frances Fragos that Al Avasso, a front man for the Italian Mafia, had stated to Plaintiff that he (Avasso) would have this postal inspector and several Mafia members speak to Louis Miceli.  Plaintiff Edward Manfredonia also told AUSA Frances Fragos that Avasso wished Plaintiff Edward Manfredonia to point out Louis Miceli, a cocaine abuser and former Senior Floor Governor (Vice Chairman) of the American Stock Exchange, to several of his Italian Mafia associates and one United States Postal Inspector.  Note:  In a previous stock fraud, Greyhound Electronics, Al Avasso, who had a permanent ban from the Securities Industry due to Avasso’s entering of fictitious option trades at the American Stock Exchange, had illegally earned in excess of $20 million, which money Avasso had hidden in the maiden name of his wife.  It is important to remember this $20 million.

 

At this meeting Plaintiff Edward Manfredonia told AUSA Frances Fragos that there was no swastika on the blackboard, when Rudy Giuliani was United States Attorney for the Southern District of the State of New York.  This fictitious incident was reported in The New York Post as factual.

 

AUSA Frances Fragos stated that she knew that there had been no swastika on the blackboard.  AUSA Frances Fragos asked Plaintiff Edward Manfredonia how Plaintiff Edward Manfredonia knew that there had been no swastika.  Plaintiff Edward Manfredonia stated that Gene Vorhand had told Plaintiff Edward Manfredonia.

 

AUSA Frances Fragos asked Plaintiff Edward Manfredonia:  Who is Gene Vorhand?

 

Plaintiff Edward Manfredonia told AUSA Frances Fragos that Gene Vorhand was an Orthodox Jew, whose daughter was married to the son of a Reichmann of Olympia & York fame.  Gene Vorhand told Plaintiff that the Reichmanns believed that Giuliani was like a Nazi because Giuliani had prosecuted so many prominent Jews, such as Michael Milken, Denis Levine, Pincus Green, Marc Rich, etc.  AUSA Frances Fragos was astounded at the depths of Plaintiff Edward Manfredonia’s knowledge.  Plaintiff Edward Manfredonia told AUSA Frances Fragos that most of Plaintiff Manfredonia’s friends on Wall Street were Jewish, including many Orthodox Jews.

 

AUSA Frances Fragos told Plaintiff Manfredonia that it was extremely unusual for an individual, who was not involved in a crime, to come forward and report a crime.

 

Plaintiff Manfredonia told AUSA Frances Fragos that he had come forward because Robert Van Caneghan (VanCaneghan) had sexually assaulted/raped his female employees and that the American Stock Exchange had covered up these rapes and sexual assaults.

 

AUSA Frances Fragos told Plaintiff that she would convict Robert VanCaneghan (VanCaneghan), Louis Miceli, and Al Avasso for the stock fraud, PNF.  AUSA Frances Fragos also instructed FBI Special Agent Joseph Yastremski to state to Plaintiff Edward Manfredonia that she had records of Al Avasso’s payoffs to Robert VanCaneghan and Louis Miceli.

 

On 13 September 1993 after Plaintiff Edward Manfredonia had left the office of AUSA Frances Fragos, Plaintiff Manfredonia went to the Blimpies, which was situated on Trinity Place near Rector Street.  It was there that Plaintiff Manfredonia met Jeff Green, who at that time was being investigated for insider trading in Motel 6 and other issues.  Jeff Green told Plaintiff that Robert Van Caneghan had admitted that he had sexually assaulted/raped his female employees, who were employees of Bear Stearns.

At the time when VanCaneghan had perpetrated several of these rapes, Violeta, Lori, Stacy, etc., Robert VanCaneghan (Van Caneghan) was a managing director of Bear Stearns.  VanCaneghan was a senior managing director of Bear Stearns because Bear Stearns had entered into a joint book arrangement with the specialist firm of Miceli-VanCaneghan.  This joint book arrangement provided that Bear Stearns pay the expenses of the specialist firm of Miceli-VanCaneghan.  Bear Stearns financed the trading positions of Miceli-VanCaneghan; paid the employees of Miceli-VanCaneghan; provided legal assistance; etc.

 

Plaintiff Edward Manfredonia telephoned AUSA Frances Fragos; and informed AUSA Frances Fragos that Robert Van Caneghan had admitted to sexual assault/rape.  AUSA Frances Fragos asked Plaintiff Edward Manfredonia where Steven Lister, Senior Vice President of Compliance at the American Stock Exchange, kept the records of PNF.  Plaintiff Manfredonia responded that Steven Lister, who had accepted payoffs from Al Avasso, kept in Lister’s office the records of PNF and the involvement of Louis Miceli, Robert Van Caneghan and Al Avasso in the stock fraud, PNF.

 

On 15 September 1993 FBI Special Agent Joseph Yastremski entered the office of Steven Lister with a subpoena for the records of PNF.  Lister provided the subpoenaed material, which he had kept in his office.

 

Prior to these incidents of 1993, Plaintiff Edward Manfredonia had written to Alan “Ace” Greenberg, Chairman of Bear Stearns.  Plaintiff Manfredonia stated that Robert Van Caneghan (VanCaneghan) had sexually assaulted/raped his female employees.  Plaintiff Edward Manfredonia had written to Alan Greenberg because at that time, Bear Stearns had “a joint book” with the eponymous specialist American Stock Exchange specialist firm of Miceli-VanCaneghan, which made all employees of Miceli-VanCaneghan employees of Bear Stearns- the employees were paid by Bear Stearns.

 

Greenberg contacted Ed Guttman, at that time the senior managing director of Bear Stearns who was in charge of the operations of Bear Stearns at the American Stock Exchange.  Ed Guttman went to the offices of Miceli-VanCaneghan, which were located at 74 Trinity Place.  Guttman excoriated Robert VanCaneghan; and VanCaneghan promised not to rape his female employees in the future.  This was reported to Ace Greenberg.  The sources for this information were numerous and included most importantly Jonathan Frey, Joseph Greenwald’s brother and at that time the son-in-law of Alan “Ace” Greenberg, and by Paul Karp, Guttman’s aide de camp.

 

In 1993 Paul Volcker, former Chairman of the Federal Reserve and at that time a member of the Board of the American Stock Exchange, led the charge of the American Stock Exchange Board to cover up the serial rapes to which Robert Van Caneghan had confessed.  To his credit Robert Van Caneghan assuaged the fears of the AMEX Board if he should be apprehended while pursing his passion of rape, so Van Caneghan promised Paul Volcker and other members of the Board of the American Stock Exchange that he (VanCaneghan, Van Caneghan) would no longer rape women- in the United States.  VanCaneghan continued his passion of travel so that he could rape women in countries, such as Thailand and India, which he visited in the 1980’s.

 

Lewis Lowenfells, a securities attorney and a member of the Board of the American Stock Exchange, resigned rather than cover up the rapes of VanCaneghan.

 

Denis Goin, a member of the Board of the American Stock Exchange, voiced outrage over the cover up of the rapes, but remained on the Board.

 

Arthur Levitt, then Chairman of the Securities and Exchange Commission and former Chairman of the American Stock Exchange, ordered the Securities and Exchange Commission to cover up all criminal activity at the American Stock Exchange.

 

All other members of the Board of the American Stock Exchange signed a nondisclosure agreement and engaged in a conspiracy to cover up the serial rapes of Robert VanCaneghan.  Some of the members, who signed this nondisclosure agreement, are Paul

Volcker; Richard Ravitch; Burton Malkiel; Philip Frost; Harvey Silverman; Denis Goin (who informed Plaintiff of the nondisclosure agreement and the fact that VanCaneghan admitted to the rapes); Joel Lovett; Bevis Longstreth, an attorney for Debevoise and Plimpton; Alan Quasha, a personal friend of President George W. Bush and the individual who bailed out President Bush by purchasing President Bush’s oil company; etc.  Bevis Longstreth, a former SEC Commissioner and partner in Debevoise and Plimpton, agreed to cover up the rapes and drafted the non-disclosure agreement.  Longstreth also told the members of the Board that the American Stock Exchange would pay their fines and their legal fees, if they incurred any, as a result of covering up the rapes of Robert VanCaneghan and the money laundering of Louis Miceli and Robert VanCaneghan.  Longstreth stated that VanCaneghan should remain as a member of the Board of the American Stock Exchange until VanCaneghan’s term expired.

 

Several years later Joseph Palmeri became a Governor of the American Stock Exchange (member of the Board of the American Stock Exchange).  Palmeri boasted to Stanley Silverberg and others that he (Palmeri) became a member of the Board of the American Stock Exchange to protect his investment in the American Stock Exchange.

 

Later Edwin Crooks supplanted Denis Goin as a member of the Board of the American Stock Exchange because Denis Goin desired to report Robert VanCaneghan to the police for rape and sexual assault- and Crooks desired a cover up of VanCaneghan’s rapes.

 

On 3 December 1993 Plaintiff Edward Manfredonia was standing outside the rear entrance of the American Stock Exchange, which is situated on Greenwich Street, when Plaintiff Manfredonia was threatened with murder by Alan Umbria, a friend of Louis Miceli and a self-proclaimed front man for the Italian Mafia.

 

Plaintiff Manfredonia immediately telephoned AUSA Frances Fragos at her office.  Plaintiff left a message.  Plaintiff telephoned Federal Bureau of Investigation Special Agent Joseph Yastremski.  Plaintiff also had a witness leave a message for FBI Agent Joseph Yastremski and AUSA Frances Fragos.  Plaintiff Manfredonia went home

and typed a letter to FBI Special Agent Joseph Yastremski.  In this letter to Yastremski Plaintiff named the witness, who left the message.  There was another witness, who witnessed Umbria’s death threat but Plaintiff Manfredonia did not wish this individual to be named.  It was this letter to FBI Special Agent Yastremski that James Kallstrom presented to the American Stock Exchange and to the Italian Mafia.

 

Note:  This other witness to Umbria’s death threat signed an affidavit, which appears on Plaintiff Manfredonia’s personal website, WallStretScandals.com. (Exhibit 8)  The affiant listened to Plaintiff Manfredonia and FBI Special Agent Joseph Yastremski discuss the money laundering, which was perpetrated by Robert VanCaneghan and Louis Miceli via the broker dealer account of their eponymous specialist firm, Miceli-VanCaneghan.

 

When Plaintiff Manfredonia telephoned AUSA Frances Fragos concerning this incident, AUSA Frances Fragos instructed Plaintiff Manfredonia to go to the New York City Police Department.  Plaintiff Manfredonia went to the First Precinct.  When Plaintiff Manfredonia informed the officer at the desk that he had been referred to the NYPD by Assistant United States Attorney Frances Fragos, the Sergeant told Plaintiff to wait.  The Sergeant spoke to a Lieutenant, who refused to take any action.  This Lieutenant told Plaintiff to go to the FBI with his complaint.

 

FBI Special Agent Yastremski went to the premises of the American Stock Exchange.  FBI Special Agent Yastremski went to the office of AMEX Security.  Louis DePasquale, Diecidue’s replacement as AMEX Director of Security, then paged Umbria.  Umbria refused to answer his page.

 

Plaintiff Manfredonia spoke to FBI Special Agent Yastremski.  Plaintiff Manfredonia informed FBI Special Agent Joseph Yastremski that Umbria had refused to answer his page.  Plaintiff Manfredonia told FBI Special Agent Yastremski that AMEX Security Director DePasquale had arranged for Umbria to meet with FBI Special Agent Joseph Yastremski.

 

Then a strange incident occurred.  On a Friday in January 1994, perhaps the third Friday, a farewell party was held for Louis Miceli at Umbria’s restaurant, The Court Of The Three Sisters.  Miceli had been forced to resign from the American Stock Exchange for his misconduct.  On this date, Miceli’s last day on the floor of the American Stock, Miceli showed a copy of the letter, dated 3 December 1993, which letter Plaintiff Manfredonia had sent to FBI Special Agent Joseph Yastremski, to the AMEX employee who had witnessed Umbria’s death threat.  And this is extremely important.

 

It must be here noted that Plaintiff Manfredonia telephoned FBI Special Agent Joseph Yastremski and informed FBI Special Agent Joseph Yastremski that Louis Miceli was meeting with several members of the Italian Mafia at this party.  One of Plaintiff Manfredonia’s sources, an employee of Miceli-VanCaneghan, overheard Miceli discussing this meeting on the telephone.  FBI Special Agent Yastremski was furious that Plaintiff Manfredonia insisted that the Federal Bureau of Investigation monitor this meeting.

 

Plaintiff Manfredonia reported this to FBI Special Agent Joseph Yastremski.  Yastremski stated that it could not be the letter, which Plaintiff Manfredonia was dated 3 December 1993 and which was addressed to Yastremski.  But several years later Plaintiff Manfredonia was told what had occurred.

 

And this is so egregious that it must be noted.  Federal Bureau of Investigation Assistant Director James Kallstrom had provided a copy of this document, Manfredonia’s letter of 3 December 1993 to Yastremski, to the American Stock Exchange.

 

But there are even more egregious offenses.  Several years later Kallstrom was discovered to have provided Citibank and Bank Of New York, which were being investigated by the FBI and charged by the Department of Justice, with copies of documents, names of cooperating witnesses, names of confidential informants, etc.  The Federal Bureau of Investigation and the Department of Justice covered up these egregious violations of federal laws by James Kallstrom.

 

Thus, when in 1994 Plaintiff Edward Manfredonia reported Ken Silverman for laundering drug money for drug gangs from the Island of Jamaica, as distinct from Jamaica, Queens, NYC,   a copy of Plaintiff Manfredonia’s missive was provided to the American Stock Exchange.  The American Stock Exchange then provided Ken Silverman, a money launderer, with a copy of Plaintiff Manfredonia’s letter.

 

It is important to note that Ken Silverman told Plaintiff Manfredonia in the presence of Gene Weissman, a member of the American Stock Exchange, that he (Silverman) was laundering Jamaican drug money.  Silverman was so proud of this illegal money laundering that Silverman even boasted to several other AMEX members, including Steve Peter, that he was laundering Jamaican drug money and investing the money in the United States.

 

Ken Silverman informed Plaintiff Manfredonia that the American Stock Exchange had provided him (Silverman) with a copy of Plaintiff’s letter.

 

On 5 September 2000 Plaintiff Manfredonia sent a letter, certified mail 7099 3400 0018 4270 5696 to Mr. Barry Mawn, Assistant Director of the Federal Bureau of Investigation.  In this letter Plaintiff stated that Plaintiff had seen Ken Silverman in New York City.  Plaintiff stated:  “Last week I believe that I saw Ken Silverman, a self-proclaimed money launderer, in lower Manhattan.  I mentioned this to several members of the AMEX.  Everyone agreed that Silverman had boasted of money laundering- and the FBI permits Silverman to roam the streets of New York.”

 

Money launderers, who specialize in the drug trade, are accorded better treatment by the FBI than Plaintiff Edward Manfredonia.  Drug smugglers and money launderers keep their money thanks to the FBI.

 

Under the leadership of Assistant Director James Kallstrom the New York City Office of the Federal Bureau of Investigation regularly provided information to the Italian Mafia.

It is here that I must prove the absolute corruption of the Federal Bureau of Investigation and the Department of Justice.  Heinz Grein, the mastermind of the Motel 6 insider trading scandal, was a money launderer.

 

When Plaintiff Manfredonia represented Frost & Sullivan on the premises of the American Stock Exchange, Heinz Grein told Plaintiff Manfredonia an interesting fact.  Grein stated that when he was a trader in Germany, he had placed $10 billion, which Ferdinand Marcos had looted from the Philippines, into Swiss Banks.

 

Plaintiff believed that Grein was exaggerating.  But Plaintiff Manfredonia was wrong.

 

Plaintiff had always doubted Al Avasso’s boast that he had earned in excess of $20 million in the stock fraud, Greyhound Electronics.  But Grein told Plaintiff Manfredonia in the presence of Joseph Latona and Joseph Greenwald that he (Grein) had placed Avasso’s earnings in Greyhound Electronics into a Luxembourg Bank.

 

And Grein explained why he had placed Marcos’s money into Swiss Banks and Avasso’s purloined money into Luxembourg Banks.

 

Grein stated that he had placed the $10 billion, which Ferdinand Marcos had looted from the Philippines, into Swiss Banks because it was the money of a dictator.  Grein also elaborated and stated that much of this money was American money stolen from the Agency for International Development, from military assistance, etc. and from the World Bank- of which the United States supplied in excess of 33% of the budget.  Grein stated that most of the money was diverted from bank accounts of the Philippine government.

 

But Grein stated that he could not launder Al Avasso’s Italian Mafia money into Swiss Banks.  Grein stated that the law governing Swiss Banks had changed due to pressure from the American government and that the Swiss would notify the United States of Mafia money going into Swiss Banks.  So, Weiss laundered money into Luxembourg accounts.  Frost & Sullivan was a Luxembourg company- and Grein could easily launder money into Luxembourg.

 

After Plaintiff informed the Federal Bureau of Investigation of Avasso’s laundered money in Luxembourg Banks, the Department of Justice seized Avasso’s money.

 

But the American government never seized the $10 billion, which Ferdinand Marcos had stolen from the United States and placed in Swiss Banks.

 

Seventy million people of the Philippines are in misery because the United States supported a dictator, Ferdinand Marcos, who stole billions of America’s money.

 

Plaintiff gradually became disgusted with the misconduct by the Federal Bureau of Investigation.  The FBI took absolutely no steps to investigate the serial rapes, which had been perpetrated by Robert VanCaneghan- even though Robert VanCaneghan had admitted to the Board of the American Stock Exchange that he had sexually assaulted/raped his female employees.  Robert VanCaneghan could have been charged with violating the civil rights of the women, whom he had sexually assaulted/raped.  But the FBI made a willful decision to protect a confessed serial rapist.

 

In 1994 while attending the memorial service for Peter Campbell, a former member of the American Stock Exchange, Robert VanCaneghan, a confessed serial rapist and money launderer, and Peter Orloff, a thief and cocaine abuser, pointed imaginary guns at me and made as if they were firing at me.

 

Disgusted with the FBI sanctioning death threats against Plaintiff, Plaintiff told the FBI that Plaintiff would act on his own behalf.  After all, the FBI had covered up the rapes, which Robert VanCaneghan had perpetrated, and the money laundering, which VanCaneghan masterminded via his American Stock Exchange specialist firm, Miceli-VanCaneghan.

 

While standing near the premises of the American Stock Exchange, Plaintiff was continually harassed and threatened by members and employees of the American Stock Exchange.  Thus, when Plaintiff wrote to the American Stock Exchange concerning the arrest and conviction of two members of the AMEX, Edward Segal and Richard DiGiacomo, for assault and drug possession the American Stock Exchange informed Edward Segal that Plaintiff had written to the AMEX about Segal’s misconduct- which included breaking the leg of a security guard, an African immigrant, at Two Rector Street with a garbage receptacle.

 

Plaintiff was also threatened with physical violence by Ken Bracer, a cocaine abuser and an employee of Spear Leeds and Kellogg (now Goldman Sachs), who was closely affiliated with Pat Schettino.  Pat Schettino traded stocks illegally for the account of Bullseye Securities and received a lifetime ban from the Securities Industry.

 

It was revealed in several depositions that Ken Bracer had in violation of federal securities laws parked trades in American Express options in the account of Bullseye Securities.

 

Thus in a missive, certified mail Z 530 812 769, dated 2 May 1999, to the Honorable Louis B. Freeh, Director of the Federal Bureau of Investigation, Plaintiff enumerated the refusal of Mary Jo White, United States Attorney for the Southern District of the State of New York, to indict members of the American Stock Exchange for violations of federal securities laws.  Plaintiff specifically stated that Joseph Giamanco traded illegally stocks in which he was the specialist in personal accounts- a violation of federal securities laws.  This included the illegal short sale of Micron on a minus tick by Pat Schettino.

 

In Plaintiff Manfredonia’s 2 May 1999 missive to Freeh, Plaintiff also discussed White’s refusal to indict Pat Schettino, Robert Lewis, John Baldasare, Daniel Donner, and Frank Postiglione- all American Stock Exchange floor brokers- for illegally trading for the account of Bullseye Securities.  This illegal trading was identical to the illegal trading for which Mary Jo White indicted the officers of Oakford Corp. and the New York Stock Exchange Floor brokers, who illegally traded for accounts at Oakford Corp.  Plaintiff also discussed the illegal trading of Seth Halpern, an AMEX floor broker, for his father’s account and after the death of his father for his mother’s account.

 

In a missive, dated 10 August 2000, certified mail Z 214 438 126, which missive was addressed to Barry Mawn, Assistant Director of the FBI in charge of the New York Office, Plaintiff discussed James Kallstrom’s criminal actions.  Plaintiff stated:

 

“I am writing this missive to you to inform you that there exists major corruption in the Federal Bureau of Investigation; the Department of Justice and the Securities and Exchange Commission.

 

“In 1994 and 1995, under one of your predecessors, James Kallstrom, sensitive information concerning illegal trading money laundering and alleged narcotics smuggling involving members of the American Stock Exchange was made available to the American Stock Exchange. I had provided Special Agent Joseph Yastremski with some of this information.

 

“Most specifically I was threatened by Alan Umbria, a Mafia associate.  The enclosed missive, dated 3 December 1993, which had been sent to Joseph Yastremski, appeared in the hands of Louis Miceli, a cocaine abuser who currently suffers from Parkinson’s syndrome induced by his abuse of cocaine, on approximately the third Friday of January 1994.  Miceli displayed this copy to Livingston Strachan, one of the witnesses to Umbria’s death threat.”

 

Now let us turn to a more recent example of the corruption of the FBI.  On 24 October 2007 Plaintiff sent a letter to Assistant FBI Director in Charge of the New York Office, Mark Mershon.  In this missive Plaintiff explicated the criminal activity, money laundering, by Eddie Antar and the Antar family.   This money, the illegal proceeds of the Crazy Eddie stock fraud, was being laundered via Israeli banks into the United States.  Plaintiff stated:

 

“I have enclosed a copy of my missive, dated 26 May 2007, certified mail 7007 2560 0001 4998 1324, which missive was addressed to Attorney General Alberto Gonzales of the Department of Justice.  In this missive I have stated that “Crazy” Eddie Antar has illegally kept in excess of $30 million, which money was stolen from the American public in the stock fraud of Crazy Eddie, an electronics retailer.

 

“This sum of money, in excess of $30 million and possibly as much as $100 million, resides in Israeli Banks- and is being laundered into the United States.

 

“This information was provided to me by a cousin of Eddie Antar and his friend.  I met these two individuals in New York City during September 2005.

 

“Furthermore, these two individuals provided me with an interesting lacuna of information, which I did not understand at that time.  These two sources, a cousin of Eddie Antar and his friend who had accompanied him, stated that the attorneys had permitted Eddie Antar and his relatives to keep this money.”

 

The FBI has refused to investigate the money laundering of perhaps a hundred million dollars because Plaintiff Manfredonia has reported the crime.

 

Plaintiff has proved the corruption of the FBI.  Let us have the files.

 

Plaintiff Edward Manfredonia demands that the Court order the Federal Bureau of Investigation to produce all records, files, transcripts, all transcripts of eavesdropping and electronic surveillance, etc.-  everything that pertains to Plaintiff Manfredonia including all letters, notes and memos from other federal agencies and from other employees of the federal government.  This is Plaintiff’s Constitutional Right.

 

 

 

DEPARTMENT OF JUSTICE

 

Plaintiff Edward Manfredonia repeats, reaffirms and re-alleges each and every allegation and charge in the previous paragraphs of this complaint.

 

Plaintiff Manfredonia has initiated this court action under the provisions of the Freedom of Information Act to obtain Plaintiff’s complete and unexpurgated files and records that are maintained by the Department of Justice.  This includes all communications and letters by Plaintiff or concerning Plaintiff.

 

Plaintiff Manfredonia states that the Department of Justice has thoroughly violated the Fourth Amendment rights of Plaintiff Manfredonia in that the Department of Justice has maintained surveillance and has maintained records of the activity of Plaintiff Manfredonia.  This includes the placement of an FBI Special Agent in the same apartment building, where Plaintiff Manfredonia resides- even on the same floor,- this in a working class neighborhood, largely comprised of immigrants.

 

Plaintiff Manfredonia sues under the Freedom of Information Act and Plaintiff demands that all records and files, including transcripts of conversations and notes of Plaintiff’s movements, etc. and all records of criminal activity, which is discussed in this complaint, be provided to Plaintiff Manfredonia.  This includes all notes and surveillance by the FBI Agent, who resides in Plaintiff Manfredonia’s working class apartment house and on the same floor, the fourth floor.

 

Plaintiff Manfredonia also states that his Fifth Amendment rights have been violated by the Department of Justice and that Plaintiff Manfredonia has been denied “due process of law” as is stated in the Fifth Amendment:  “No person shall be deprived of life, liberty, or property without due process of law ….”  The Department of Justice has deprived Plaintiff Manfredonia of “due process of law” by permitting members of the Board of the American Stock Exchange to commit crimes, such as rape, narcotics smuggling, money laundering, permitting the Italian Mafia to operate at the American Stock Exchange, etc. and then conspiring with the American Stock Exchange to deprive Plaintiff Manfredonia of his life, liberty, and property.

 

Plaintiff Manfredonia emphatically wishes to state that there exists no prosecutorial discretion concerning a confessed serial rapist, Robert VanCaneghan- that Mary Jo White, then United States Attorney for the Southern District of the State of New York refused to indict Robert VanCaneghan for violating the civil rights of the women, who were sexually assaulted/raped by Robert VanCaneghan, heinous acts of rape and sexual assault to which Robert VanCaneghan admitted to the members of the Board of the American Stock Exchange.

 

Please note that the members of the Board of the American Stock Exchange have been informed of the rapes that were perpetrated by Robert VanCaneghan and have hid behind a non-disclosure agreement and have conspired to cover up these rapes and sexual assaults.  Bevis Longstreth, a partner of Mary Jo White, drew up the nondisclosure agreement.  Bevis Longstreth of Debevoise and Plimpton supplanted Robert Carswell of Shearman and Sterling as outside counsel for the American Stock Exchange as a payoff to Mary Jo White for not investigating and for not indicting members of the Board of the American Stock Exchange for rape, narcotics smuggling, money laundering; stock fraud; conspiring with the Italian Mafia in stock frauds, etc.

 

It is at this juncture that Plaintiff Manfredonia would like to discuss Plaintiff Manfredonia’s meeting with AUSA Frances Fragos and FBI Special Agent Joseph Yastremski on 13 September 1993 in the offices of the United States Attorney for the Southern District of the State of New York.

 

Let the Court note that it was on 13 September 1993 in the office of Assistant United States Attorney Frances Fragos that FBI Special Agent Joseph Yastremski stated to Plaintiff in the presence of AUSA Frances Fragos that Al Avasso, a convicted front man for the Italian Mafia who perpetrated the stock frauds, PNF and Greyhound Electronics, had paid off Steven Lister, Senior Vice President of Compliance at the American Stock Exchange, so that Avasso’s permanent ban from the American Stock Exchange could be rescinded and Avasso could be readmitted as a member of the American Stock Exchange.  FBI Special Agent Joseph Yastremski possessed records of payments to Robert VanCaneghan and Louis Miceli, members of the Board of the American Stock Exchange, by Al Avasso and records of business dealings between Avasso and VanCaneghan.

 

When Plaintiff Manfredonia stated that he had volunteered freely to come to the offices of the United States Attorney because Robert VanCaneghan had raped his female employees, AUSA Frances Fragos promised that she would have VanCaneghan and Miceli indicted- for the stock fraud, PNF, and money laundering.

 

Plaintiff Manfredonia requests the records of money laundering by Robert VanCaneghan and Louis Miceli and the records of payments by Al Avasso to Steven Lister, Robert VanCaneghan and Louis Miceli.

 

It must here be noted that Avasso had boasted to Plaintiff that in the 1980’s when Avasso was suspended by the American Stock Exchange for falsifying options trades, that he (Avasso) had made payments to Steven Lister to have his punishment be a suspension for one year.  It was Louis Miceli, who demanded that Avasso be given a lifetime suspension.  In 1991 when Plaintiff Manfredonia informed Avasso of Miceli’s intervention, Avasso sought to have Plaintiff point out Miceli to Avasso’s friends.

 

Having been informed of the corruption of Steven Lister, the American Stock Exchange promoted Lister to Executive Vice President and provided Lister with a sinecure.  Joseph Palmeri, who one night was observed by Plaintiff kissing some Italian Mafia friend of Umbria outside the Amex, told Plaintiff:  “So what Lister took payoffs.  You have to prove it in court.”

 

The American Stock Exchange permitted payoffs to AMEX officials in violation of the Securities Exchange Act of 1934.  Thus, when Plaintiff Manfredonia was a clerk at the American Stock Exchange specialist firm of Berkman Leff, Norman Leff, a named partner in Berkman Leff, directed Al Schlesinger, a minor partner in Berkman Leff, to pay off Schlesinger’s friend Jules Winters, Director of Trading Analysis, so that the specialist firm of Berkman Leff could exceed the limits, which had been mandated by the Amex, on options positions in Tandy.  Leff even specified the account from which the funds were to be taken- Plaintiff believes that it was the Five Way Account.

 

Thus, the specialist firms of Miceli-VanCaneghan and GHM regularly paid off Jules Winters for exchange violations- exceeding limit positions, not printing orders, disadvantaging the public, etc.

 

The American Stock Exchange not only tolerated these payoffs but permitted these payoffs because it was to the benefit of powerful members.

 

Many of these payoffs occurred during the tenure of Arthur Levitt when Levitt served as Chairman of the American Stock Exchange.  In his position as Chairman of the Securities and Exchange Commission Levitt conspired to cover up these violations of federal securities laws at the American Stock Exchange.  And the SEC under its Chairman Christopher Cox has permitted this cover up to the present day.

 

Jon Rucker was a retired policeman.  Rucker also served as a chauffer at the American Stock Exchange and as a personal chauffer to Arthur Levitt.  It was while serving as a chauffer for Arthur Levitt, then Chairman of the Securities and Exchange Commission that Jon Rucker gave Arthur Levitt copies of letters that Plaintiff had authored.  These letters detailed the rapes of Robert VanCaneghan, the money laundering activities of Robert VanCaneghan and Louis Miceli; the narcotics smuggling of Louis Miceli; the involvement of the Italian Mafia at the American Stock Exchange; the stock frauds, PNF and Greyhound Electronics, etc.   Plaintiff Edward Manfredonia must here relate the words Arthur Levitt said to his chauffer, Jon Rucker:  “Some things are better left unknown.”  And Levitt began the cover up of the rapes, narcotics smuggling, money laundering, etc. at the American Stock Exchange.  Arthur Levitt orchestrated the cover up of serial rape to protect the American Stock Exchange- after all it was not Levitt’s daughter, who had been raped by Robert VanCaneghan.

 

Under the Freedom of Information Act the complaint of Plaintiff Manfredonia must stand.

 

Plaintiff Edward Manfredonia states that he is entitled to all records, notes, memoranda pertaining to Plaintiff Manfredonia and to the events, criminal actions, lack of prosecution, etc. stated in this complaint and to all criminal activity to which Plaintiff Manfredonia has referred throughout this complaint.

 

On 3 May 1994 Plaintiff Manfredonia sent a registered letter to Mr. Benjamin Burrell, Director, Justice Management Division of the Department of Justice.  Plaintiff requested his records, thus: “I wish to have access to my records.”(Exhibit 9)

 

The Department of Justice never granted Plaintiff Manfredonia access to his records.

 

On 9 April 2001 Plaintiff met with two representatives of the Anti-Trust Division of the Department of Justice, Hayes Gorey and George Baranko, in the 40 Exchange Place offices of a corrupt attorney Bill T. Singer.  Plaintiff Manfredonia proved in a five and a half hour discussion, replete with blackboard demonstration, proved that the prices of the Exchange Traded Funds were price fixed to the amount of $350 million per annum at the American Stock Exchange.

 

Several weeks later, Bill T. Singer contacted Plaintiff Manfredonia.  Singer stated that he had been informed by Baranko and Gorey that Baranko and Gorey had been told that they could not utilize any information that Plaintiff Manfredonia had provided.  Gorey and Baranko were told that if their investigation were the result of information, which had been provided by Edward Manfredonia, the investigation must be dropped.  Plaintiff demands to know why Plaintiff’s information could not be utilized!

 

Bill T. Singer later informed Plaintiff Manfredonia that Arthur Levitt had utilized his influence to smear Plaintiff Manfredonia.  It must here be noted that Plaintiff Manfredonia had agreed to provide Singer with this information so that Singer could initiate a class action lawsuit against the American Stock Exchange and the specialist firms (Goldman Sachs and Susquehanna) in the Exchange Traded Funds.  Singer estimated that he could receive between $20 and $30 million for initiating this class action lawsuit.

 

The quid pro quo was that Bill T. Singer would initiate a lawsuit to obtain copies of Plaintiff Manfredonia’s records at the Securities and Exchange Commission, Federal Bureau of Investigation, and the Department of Justice.  Plaintiff Manfredonia sought no money- just his records.  Bill T. Singer not only reneged, but then lied about Plaintiff Manfredonia.

 

The Department of Justice, specifically the Office of the United States Attorney for the Southern District of the State of New York under Mary Jo White and then in a policy to which her successors have adhered, has placed the life, liberty and property of Plaintiff Edward Manfredonia at risk by refusing to grant Plaintiff Manfredonia due process under the Fifth and Fourteenth Amendments.

 

And let Plaintiff Manfredonia remind the learned Judges- there is no prosecutorial discretion for a confessed serial rapist, unless this is Iraq under Saddam Hussein- as President Bush widely condemned.

 

Plaintiff Manfredonia also seeks all records held by the Department of Justice concerning the illegal trading of Oakford Corp.; the involvement of Richard Grasso in this illegal trading by Oakford; the refusal of the Department of Justice to investigate further instances of illegal trading as was stated in the affidavit of Angelo Meneghello, which was provided to Judge Jed Rakoff; etc.  Plaintiff’s demands for these records is two-fold.

 

First, Plaintiff Manfredonia provided extensive information concerning illegal trading at the New York Stock Exchange.

 

Second, Plaintiff Manfredonia knows that William Killeen, Ed Muegger, Angelo Meneghello and other individuals, who pleaded guilty to illegal trading at the New York Stock Exchange, provided information concerning illegal trading by Goldman Sachs, Spear Leeds and Kellogg, the collusion of Richard Grasso in the illegal trading of Oakford, etc. and that Mary Jo White dumped these cases so that Mary Jo White could earn in excess of $10 million per annum as partner in charge of litigation at Debevoise and Plimpton.

 

Mary Jo White, then United States Attorney for the Southern District of the State of New York, dropped the investigation by the Federal Bureau of Investigation into narcotics smuggling by Louis Miceli, money laundering by Louis Miceli and Robert VanCaneghan, and serial rape by Robert VanCaneghan, members of the Board of the American Stock Exchange,  a payoff in the form of the American Stock Exchange hiring Debevoise and Plimpton and its partner Bevis Longstreth to represent the American Stock Exchange.

 

As Plaintiff Manfredonia has repeatedly stated there is no prosecutorial discretion when a prosecutor such as Mary Jo White permits a confessed serial rapist, Robert VanCaneghan, to go free because of the influence of the American Stock Exchange.

 

And Plaintiff Manfredonia painfully repeats that Plaintiff Manfredonia is entitled to all his records under the Freedom of Information Act so Plaintiff Manfredonia’s complaint cannot be denied.

 

Plaintiff Manfredonia must now relate the cover up of violations of federal law by the Department of Justice.

 

In 1994 Plaintiff wrote several missives to Ms. Joanne Harris.  (13 June 1994, certified mail Z 282 188 889; 14 June 1994, certified mail Z 282 188 892; and, 7 August 1994, certified mail Z 306 464 541)   In these missives Plaintiff requested that the FBI investigate the rapes perpetrated by Robert VanCaneghan and the cover up of these rapes by James Jones who had been informed of these rapes by Joel Lovett, the Vice Chairman of the American Stock Exchange.

 

On 6 July 1994, Plaintiff Manfredonia received a telephone call from an individual purporting to be Assistant Attorney General Joanne Harris.  This individual stated that FBI Agent Joseph Yastremski was investigating the rapes by VanCaneghan of his clerks.  (Plaintiff’s telephone number is unlisted and is registered in the name of Plaintiff’s 1966 former college roommate.  This suggests a familiarity with Plaintiff’s telephone.)

 

Several weeks later Plaintiff Manfredonia questioned FBI Agent Yastremski concerning his investigation of the rapes.  Yastremski informed Plaintiff that there was no investigation into the rapes perpetrated by VanCaneghan.

 

The FBI never investigated this leak.  Several years later, Plaintiff Manfredonia was informed that James Kallstrom, Assistant Director of the FBI and in charge of the FBI’s New York office, provided information to the American Stock Exchange concerning Plaintiff Manfredonia’s letters to Assistant Attorney General Joanne Harris.

 

Unfortunately, Mary Jo White, United States Attorney for the Southern District of the State of New York refused to investigate and prosecute any criminal activity at the American Stock Exchange.

 

Plaintiff Manfredonia has provided evidence ranging from admissions of criminal misconduct by the perpetrators to hard evidence, sufficient documentation in some instances to demand a guilty plea.

 

The AMEX, specifically the governors such as Biddle Worthington, Mark Greenberg, Joseph Palmeri, Edwin Crooks, Andrew Schwarz, Anthony Boglioli and Joel Lovett, boasted to Plaintiff that the influence of Arthur Levitt and the AMEX was so great that no one from the AMEX would ever be indicted.

 

Plaintiff had sent many missives to Mary Jo White detailing criminal conduct at the AMEX.  (Samples of some missives are provided on Plaintiff’s personal website, http://www.WallStreetScandal.com)  Plaintiff shall broadly outline some of this endemic criminal activity below.

 

Crimes covered up by Mary Jo White:

 

  1. Counterfeit Money. The distribution of counterfeit money at the Amex.  In March 1991 an Amex broker, Cliff Segal, was removed from the Amex because he was apprehended with a counterfeit twenty.  Cliff stated that he had received this money as payment for his winnings from the John Boasi, the personal bookie of Louis Miceli and Robert VanCaneghan.

 

  1. Money Laundering. Plaintiff informed FBI Special Agent Joseph Yastremski that Heinz Grein, who cooperated with the federal authorities in its investigation of the insider trading ring involving Motel 6 and other issues, had boasted that, while employed in Germany by a German bank, he had moved money for Ferdinand Marcos into a Swiss Bank.  This could not be dismissed as mere braggadocio.  Heinz Grein stated that he had laundered in a Luxembourg bank a sum in excess of twenty million dollars for Al Avasso.  This sum, in excess of twenty million dollars, was the proceeds from the stock fraud, Greyhound Electronics.  Al Avasso had registered approximately 2 million shares of stock in Greyhound Electronics in his wife’s maiden name.  (Avasso had informed Plaintiff of this matter in the presence of Sam Gottfried.)  The proceeds from the sale of this stock were moved offshore.

 

FBI Agent Yastremski informed Plaintiff that no taxes were paid by Avasso on this money.  White refused to indict Al Avasso for tax fraud because Avasso threatened to go public with his payoffs to Lister, VanCaneghan and Miceli.

 

Mary Jo White refused to investigate Avasso for his role in the stock fraud, Greyhound Electronics.  White also refused to investigate the proceeds which Avasso boasted that he had received from the sale of this stock.

 

  1. PNF, a stock fraud. As a personal favor to Arthur Levitt and White’s former partners at Debevoise and Plimpton, Mary Jo White halted an investigation into the stock fraud, PNF.

 

White’s raison d’ etre for halting a federal investigation into a stock fraud was that if the investigation were to be pursued, evidence of massive criminal activity at the AMEX would be exposed.

 

FBI Agent Yastremski informed Plaintiff Manfredonia that Al Avasso had paid off Steven Lister, Senior Vice President of Compliance, and that Lister had invested in a partnership with Al Avasso.  Avasso had informed Plaintiff that he “had paid off” several AMEX employees as well as Robert VanCaneghan and Louis Miceli by having them invest in partnerships which he controlled and then paying them a high rate of return.  Avasso stated that he had pursued this form of bribery to insure that he would be re-admitted as a member of the American Stock Exchange.

 

VanCaneghan, a governor of the AMEX, and Miceli, a former senior floor governor of the AMEX, vigorously pushed for the inclusion of PNF in the emerging market place listings and used their influence to have PNF listed over the objections of the marketing staff.  (Lister also fought for the listing of PNF.)

 

Furthermore, there was a simple accounting error in the annual report of PNF whereby the earnings were inflated by a factor of ten.  This is, in itself, prima facie evidence that the fix was in.

 

And of course, In January 1992 Plaintiff Manfredonia had informed three AMEX Compliance attorneys (Steven Lister, Phillip Axelrod, and Suzanne Johnson, who is currently employed by the SEC- a favor from Arthur Levitt for covering up the rapes, money laundering, etc.) that Avasso was pursuing another stock scam.  Lister assured Plaintiff that he knew of this.

 

  1. U S Equity Management. Brain McCahery pleaded guilty to several counts of fraud, embezzlement, etc. in Federal District Court of the Southern District of the State of New York.  Plaintiff was the first individual to inform the FBI (Agent Joseph Yastremski) and the Department of Justice (SEC Investigator Steven Beck) concerning this matter.

 

The Broker Dealer of U S Equity had been suspended in November 1994 by the Securities and Exchange Commission, yet the AMEX continued to permit U S Equity to trade, until April 1995, on the premises of the AMEX.  This is impossible- unless someone accepts an illegal bribe.  Once the SEC notifies a stock exchange that a member of that exchange’s broker dealer is suspended, the exchange automatically suspends the trading privileges of that firm.  The exchange then notifies the clearing house to close out the positions.

 

Mary Jo White was informed by Brian McCahery that he (McCahery) had bribed two AMEX employees including Steven Lister, Senior Vice President of Compliance, with a payment of $50,000 to permit him to continue to trade while the broker dealer of U S Equity Management had been suspended.  Mary Jo White refused to prosecute the individuals who had accepted these bribes and referred their names and the information concerning the pay-offs to the AMEX. The AMEX merely suspended these two crooks, who permitted the embezzlement of three million dollars, for one month.

 

Mary Jo White refused to indict Steven Lister for taking payoffs from McCahery.

 

  1. Greyhound Electronics. Plaintiff Manfredonia had informed Mary Jo White that Al Avasso was responsible for the fraud, Greyhound Electronics-that Avasso had convinced Carmine Ricci that he could earn a substantial sum of money by introducing Greyhound.  The same brokerage house, Wellmont Securities, whose principals were George Wellington and Sam Gottfried, was utilized by Avasso in both Greyhound and PNF.

 

Yastremski later used knowledge gained from the principals of Wellmont Securities to set up a sting operation.  This sting operation resulted in the arrest of forty five individuals.

 

  1. Money Laundering. FBI Agent Joseph Yastremski requested Plaintiff’s assistance in uncovering for whom Louis Miceli and Robert VanCaneghan, two members of the Board of the American Stock Exchange, were laundering money via an account in the Cayman Islands.  James Kallstrom leaked this information to the American Stock Exchange- as Plaintiff was later told by James Orfe, a member of the American Stock Exchange and a confidant of Richard Cranmer, a member of the Board of the AMEX.

 

  1. The Italian Mafia. In January 1994, Plaintiff believes the date to be the third Friday of the month, a farewell party was being held at Alan  Umbria’s restaurant, The Court of the Three Sisters.  Plaintiff Manfredonia informed Yastremski that Umbria and Miceli had boasted on the floor of the AMEX that they, Umbria and Miceli, were arranging for members of the Italian Mafia to meet with AMEX members.  When Plaintiff Manfredonia informed Yastremski that he should monitor this party, Yastremski replied:  “Don’t tell me what the fuck to do.”

 

  1. Tax Fraud. Plaintiff Manfredonia has provided numerous instances of tax fraud to Mary Jo White.  In one instance Plaintiff provided her with pages from the deposition of Thomas Bretz.  In this deposition, David Rosenstein, AMEX Compliance Counsel, asked Bretz questions concerning whether Joseph Roffler provided 1099’s or W2’s to his employees.  Bretz replied in the negative.  Rosenstein’s questioning of Bretz demonstrates that he, Rosenstein, was aware that taxes were not paid by Roffler and his employees.  Furthermore, after Bretz’s reply that he was not provided with either 1099’s or W2’s, it became apparent that massive tax fraud had been uncovered.

 

Several months later, Plaintiff Manfredonia asked Joseph Roffler if the clearing house in this instance, Spear Leeds and Kellogg, would audit its accounts to ensure that taxes were paid and 1099’s and W2’s issued.  Roffler replied in the negative and stated that many AMEX firms do not issue 1099’s to their employees.

 

Having learned that Joseph Roffler did not issue tax forms to his employees, Plaintiff Manfredonia  reported this matter to both Mary Jo White and to Damon C. Asper, Chief Investigator of the Internal Revenue Service, Holtsville, New York.  Mary Jo White did nothing.

 

In 1998, Plaintiff spoke to Alan Miller concerning taxes.  Miller informed Plaintiff that he owed $280,000 in federal taxes.  Miller stated that he was assured by Pat Schettino that the IRS could not determine if either he or Viking Securities had paid taxes.  Miller stated that Schettino stated that many firms which clear through Spear Leeds and Kellogg do not pay taxes-and have never been caught.  This is tax fraud by Spear Leeds and Kellogg- tax fraud, which was confirmed by the Oakford Case.

 

Plaintiff has written several missives to the Internal Revenue Service and the Department of Justice (Mary Jo White) concerning the tax frauds perpetrated by other AMEX member firms.  Mary Jo has refused to investigate and has permitted widespread tax fraud.

 

  1. Illegal Trading. The corruption of Mary Jo White could never have been proved more easily than with this illustration.  Eight members of the New York Stock Exchange were indicted in federal district court for having traded illegally in off floor accounts established at Oakford Securities.  Money was paid to these individuals based upon a percentage of their successful trading against public orders which they were executing.  Yet, approximately 300 NYSE floor brokers were involved in this illegal trading.  This was known to Richard Grasso, then Chairman of the New York Stock Exchange.

 

William Killeen provided the Department of Justice with the names of approximately 100 NYSE floor brokers, who had traded illegally for Oakford.

 

Most notably, William Johnston, at the time of the indictment President of the New York Stock Exchange, had John Ruane, a NYSE floor broker illegally trade for his illegal account at Spear Leeds and Kellogg.  Even more notable, when Johnston was a partner in LaBranche Securities, and while serving as a specialist for LaBranche Securities at the NYSE, Johnston illegally traded the stock of AT&T and other stocks in which Johnston specialized for an illegal account at Spear Leeds and Kellogg.  The Court must understand that while serving as a specialist in AT&T for LaBranche, Johnston illegally traded for his personal illegal account at Spear Leeds and Kellogg.  Johnston’s illegal trading of the stock of AT&T for Johnston’s personal account was an egregious violation of federal securities laws.  On 2 December 2000 Plaintiff wrote to Dick Grasso, Chairman of the New York Stock Exchange, concerning Johnston’s illegal trading.  Grasso covered up Johnston’s illegal trading.  Plaintiff also wrote to White concerning Johnston’s illegal trading.

 

Killeen also offered for a reduction in charges, proof of illegal trading by Goldman Sachs NYSE floor brokers, but Mary Jo White was looking toward her future compensation and refused to indict any NYSE floor brokers from Goldman Sachs.

 

And here is proof of the corruption of Mary Jo White.  Christine Beyer, a NYSE floor broker was indicted as part of the Oakford case.  Beyer refused to plead guilty.  So, the United States Attorney, Doug Jensen, threatened to indict the father of Christine Beyer, Frank Beyer who was a partner in Henderson Brothers, for illegally trading stocks in which Frank Beyer was the specialist for the Oakford account of his daughter, Christine.  That illegal trading by Frank Beyer was an egregious violation of the Securities Exchange Act of 1934- yet, Mary Jo White refused to indict Frank Beyer.  Mary Jo White always concentrated on the small fish.

 

And this is what the crux of the ruling of the Supreme Court should have been when it decided the NYSE Specialists case:  The NYSE was and is a Racketeering Influenced Corrupt Organization and should be indicted under the provisions of RICO.  Furthermore, RICO entities, such as the American Stock Exchange and the New York Stock Exchange, cannot claim immunity from prosecution because the Securities and Exchange Act provides partial immunity as a self-regulatory organization.  In other words, when the self-regulatory organization, such as the American Stock Exchange or the New York Stock Exchange, use their self-regulatory powers to permit criminal activity the self-regulatory organization must be indicted under RICO.

 

  1. Illegal Trading of Baldasare, Donner and Postiglione. These three individuals (John Baldasare, Daniel Donner and Frank Postiglione) were AMEX two dollar brokers.  While executing public orders in AMEX listed stocks, these three AMEX two dollar brokers, who were not registered to trade AMEX listed stocks, illegally traded AMEX listed stocks in off-floor accounts at Bullseye Securities.

 

John Baldasare illegally traded stocks, in which Spear Leeds and Kellogg was the specialist, for Bullseye account 43BC, an off-floor account.  Baldasare traded these stocks while he was executing public orders in these stocks, thus effectively front running his public orders.  Baldasare received checks totaling several thousand dollars drawn on account 43BC.  The percentage of illegal profit received by Baldasare was 70% with 30% being retained by Bullseye Securities.  Baldasare received payment of several thousand dollars for his illegal trading.

 

Daniel Donner illegally traded Viacom A, Viacom B, and the derivative issues of Viacom for Bullseye account 43BJ, an off floor account, while executing public orders in these stocks-another example of front running as defined in Mary Jo’s indictment of the NYSE members.  Donner received checks totaling in excess of ten thousand dollars for his illegal trading.  These checks were drawn on Bullseye account 43BJ.  The percentage of profit retained by Donner was 50%.  The other 50% of the profit was retained by Bullseye

 

Frank Postiglione illegally traded AMEX listed stocks, such as InterDigital Communications, IDC, in which Joel Lovett was the specialist, for Bullseye account 43BN, an off-floor account.  Postiglione executed public orders in these stocks while he was trading these stocks, thus front running his public orders.  The percentage of profit retained by Postiglione was 50%.  The other 50% was retained by Bullseye Securities.

 

Plaintiff must draw the Court’s attention to the gravaman of this illegal trading.  Schettino was in charge of Spear Leeds and Kellogg’s AMEX accounts, both specialist and trader.  Schettino knew that these individuals were trading illegally for off floor accounts at Bullseye Securities and front running public orders.

 

Pat Schettino’s attorney, Eric Levine, produced these account numbers and the names of these individuals in a document during the deposition of Joseph Roffler.  Levine drew the noose tighter around Schettino’s neck by producing this document.  This document displayed the account numbers, names of these illegal traders, and the percentage of profit which each was to receive for his illegal trading.

 

This document shows that Schettino set up these illegal trading accounts for Robert Lewis, John Baldasare and Daniel Donner.  Joseph Roffler set up the account for Frank Postiglione.

 

The profit earned through this illegal trading was disguised as commission payments.  This was known to the AMEX Compliance attorneys, through the depositions of Tom Bretz and others.

 

Thus, the corporate veil of limited immunity from prosecution as a self-regulatory organization was pierced, nay renounced, when the American Stock Exchange, and the New York Stock Exchange, utilized their limited immunity as a self-regulatory organization to violate federal securities laws in violation of the RICO Act.

 

Mary Jo White, United States Attorney for the Southern District of the State of New York, refused to investigate the illegal trading of Bullseye Securities-even though she indicted eight members of the New York Stock Exchange for trading in precisely this manner.

 

  1. In 1993 Plaintiff Manfredonia described to FBI Agent Joseph Yastremski how Peter Orloff, a two dollar broker in the XMI pit, illegally traded by stealing trades for an off-floor account at the clearing house of FOC, which was at Nomura Securities. Orloff would utilize another account to trade XMI options.  Orloff would also steal trades exceeding twenty thousand dollars in value.

 

Plaintiff Manfredonia was aware of several trades, which had been purloined from other traders, and placed in this account. and these trades were individually valued at a profit in excess of twenty thousand dollars apiece.  FBI Agent Yastremski knew of these stolen trades, as well as the front running in the error account.

 

The information concerning this specific incident involving Peter Orloff, was provided by Ira Koondel, currently a member of the Board of the American Stock Exchange and an attorney.  The defalcation which Ira Koondel described was in excess of twenty thousand dollars.  Ira Koondel did not suffer any loss because his clerk, John Slocum, knew into which account this purloined trade had been placed.  Peter Orloff returned the trade to Koondel.  According to Koondel, the give up of this trade, the acronym of the clearing house was FOC.  Koondel also stated that the trade was executed for Nomura Securities.

 

Mary Jo White refused to investigate these instances of wire fraud because she wished to protect the reputation of Arthur Levitt and the American Stock Exchange.  Thus, AMEX brokers were free to steal from the public

 

  1. Money Laundering: Drugs. In the summer of 1994, Plaintiff Manfredonia was walking along West Broadway with Gene Weissman, a principal in Lieber and Weissman and at the time an AMEX member.  Plaintiff and Weissman spoke to Ken Silverman, a former AMEX member.  Silverman informed Weissman and Plaintiff that he was moving “hot money” (from drug trade) from Jamaica into the United States.  Silverman stated that he was looking for legitimate investments into which he could place this money.

 

Silverman stated that he was seeking legitimate investments for this money.  An AMEX member referred Silverman to Al Avasso and PNF.

 

Silverman also spoke of moving hot money to Steve Peter, an AMEX member.

 

Plaintiff Manfredonia informed Yastremski concerning Silverman’s statements.

 

On 5 September 2000, Plaintiff sent a letter, certified mail 7099 3400 0018 4270 5696, to Barry Mawn, Assistant Director of the Federal Bureau of Investigation in charge of the New York Office.  Plaintiff stated:

 

“I wrote to you on 10 August 2000, certified mail,  Z 214 438 126, concerning a cover up of criminal activity by the FBI.  You have not responded.

 

“Last week I believe that I saw Ken Silverman, a self-proclaimed money launderer, in lower Manhattan.  I mentioned this to several members of the AMEX.  Everyone agreed that Silverman had boasted of money laundering- and the FBI permits Silverman to roam the streets of New York.”

 

Silverman is enjoying life in Negril, Jamaica.  His waterside home has a swimming pool.

 

Americans die from drugs and Silverman swims in a pool.

 

  1. Laundering money for Ferdinand Marcos. Heinz Grein always boasted that while employed by a German bank in Germany, he had moved $10 billion into Swiss Bank Accounts for Ferdinand Marcos, Dictator of the Philippines.  Mary Jo White did not seize the money.

 

  1. Marking Positions-Joseph Manna. Joseph Manna, a partner in Manna, Paolillo, Bader Katz & C. was a specialist in the PXQ option in 1995.  During the two month period 3 January 1995 through 3 March 1995, Manna effected a total of 310 quote changes in various PXQ options series after the close of options trading.  Two hundred and eighty seven of these quote changes benefited the mark of various positions which Manna maintained in PXQ options series.  Manna was suspended from AMEX membership for sixty days and was fined thirty thousand dollars.            Manna performed the same actions in Phelps Dodge option- and the specialist, who took over the option, was required to write down the value of the options by $250,000.  But the AMEX refused to discipline Manna for this transgression.  It must here be noted that Ivan Boesky was sentenced to federal prison for fewer transaction that violated the net capital rule- the same rule violated by Manna.

 

  1. Specialist trading for an off floor account. On the day on which Schettino acted as a specialist in Hanover Direct, Schettino traded Hanover Direct for Bullseye Securities account 43AC while Schettino served as a specialist in Hanover Direct.  Schettino actively traded Hanover Direct while he was acting as a specialist.  The AMEX knows of this and refused to charge Schettino.

 

Plaintiff Manfredonia wrote to Alan Quasha, Chairman of Hanover Direct and a governor of the AMEX.  This is the same Alan Quasha, who bailed out President George W. Bush when Bush had problems with Harken Energy.  Plaintiff informed Quasha that Schettino had traded the stock of Hanover Direct for the account of Bullseye Securities.  Spear Leeds and Kellogg is the specialist in Hanover Direct.  Quasha preferred to ignore the illegal trading of Schettino-even though the stock of Hanover Direct was marked on the close by Roffler.  It is a violation of federal securities law to mark a stock on the close.  It is a violation of the net capital rule- and this served as the basis for the conviction of Ivan Boesky- and not insider trading.  It is a violation of federal securities law to act simultaneously as agent and principal.

 

Quasha chose to cover up this manipulation of the price of Hanover Securities, because Schettino and Bullseye Securities were attempting to support the price of Hanover Securities with the assistance of the specialist in Hanover Securities.

 

  1. Illegal trading-Evan Lovett. While Evan Lovett was acting as a specialist for J. Streicher & Co., a firm in which his father Joel Lovett, Vice Chairman of the AMEX, was a partner, Evan Lovett traded for another securities firm, Harbor Securities, without registering with the SEC as a trader for Harbor.  Evan Lovett traded for Harbor Securities and Gene Neale, a character with a shady history on the AMEX, who had an account at Harbor Securities.  (Neale had been investigated by the AMEX for illegal trading and fraud.  But the AMEX struck a deal.  If Neale and John Grazzioli were to leave the AMEX, they would not be officially disciplined.)  Joel Lovett was an investor in Harbor Securities while he was Vice Chairman of the AMEX and a partner in J. Streicher & Co.  Joel Lovett was aware of the illegal trading of his son, Evan Lovett, and protected Evan’s illegal trading from scrutiny by the AMEX.  (This information came from Gene Weissman, Jonathan Frey, Guy Velardi and others.)

Evan Lovett had losses totaling $220,000 for Gene Neale and $15,000 for Harbor Securities.  These sums were announced in his bankruptcy filing.

 

14..  Violation of the civil rights of the rape victims of Robert VanCaneghan.  Plaintiff Manfredonia provided FBI Agent Joseph Yastremski with the names of the women who would cooperate with the FBI.  Every woman to whom Plaintiff spoke knew that the District Attorney had been paid off by the AMEX.  Because of this political payoff, it was incumbent upon the Department of Justice to charge VanCaneghan with the violation of the civil rights of his victims.  (Plaintiff knew of seven victims and Plaintiff has been informed that VanCaneghan had raped women for fifteen years.)

 

After Plaintiff met with Tom Wornom, Assistant District Attorney, Wornom telephoned the American Stock Exchange. The pronouncement by Assistant District Attorney Tom Wornom to the AMEX that Plaintiff Manfredonia had not spoken to the victims and that no penetration had occurred shows that the District Attorney has been bought.  Plaintiff would never have provided Robert Morgenthau’s Office with information after Evan Lovett had boasted to Plaintiff that “The Amex didn’t even have to pay Morgenthau to pick you up.  He did it as a favor.”  Morgenthau’s Office has been covering up crime at the American Stock Exchange and Wall Street for years.

 

Assistant United States Attorney Frances Fragos knew that the SEC and the DA had been bought.  Now we know that United States Attorney Mary Jo White had been bought.

 

As the Court can determine from Plaintiff’s description of illegal trading at the AMEX, illegal trading is pandemic on Wall Street.

 

The members and staff of the American Stock Exchange have conspired to cover-up, and obstruct investigations into, serious violations of federal securities law.  Even more important is the fact that the members of the American Stock Exchange, the officers of the American Stock Exchange, and the legal staff of the American Stock Exchange have conspired to protect Robert VanCaneghan, a confessed serial rapist, from prosecution.  Robert VanCaneghan has admitted to the governors of the AMEX and to its legal staff that he had sexually assaulted/raped his female clerks.

 

The members of the Board of the American Stock Exchange have signed a non-disclosure agreement, which these members say has prevented them from speaking of the rapes to which Robert VanCaneghan had confessed.  Paul Volcker, Joel Lovett, Richard Ravitch, Arthur Levitt, Alan “Ace” Greenberg, Edward Guttman, Burton Malkiel, Alan Quasha, etc. have all agreed to cover up the rapes.  Every member signed the non-disclosure agreement.  Only Lewis Lowenfells, an attorney refused to sign the non-disclosure agreement, and resigned in protest.  Much of this information came from Denis Goin, who encouraged Plaintiff Manfredonia to continue exposing crime at the American Stock Exchange- the serial rapes to which Robert VanCaneghan confessed.

 

The members of the AMEX, floor governors and legal staff have conspired to protect Robert VanCaneghan.  By disseminating false and malicious stories concerning Plaintiff Manfredonia and having Plaintiff illegally harassed by both the New York City Police and the Manhattan District Attorney, the AMEX has violated Plaintiff’s civil rights to protect VanCaneghan, a confessed rapist.  While Joel Lovett, Steven Lister, Phillip Axelrod, Robert VanCaneghan, Louis Miceli, Biddle Worthington, Andrew Schwarz, Edwin Crooks, Jonathan Frey, Donald Mollen, were smearing Plaintiff’s name by stating that plaintiff was crazy, they covered up the fact that Richard Syron, the Chairman of the American Stock Exchange had been institutionalized.  Also, at that time Plaintiff was informed that Syron had continued to see a psychiatrist.  Edwin Crooks referred to Syron as “Psycho Dick.”

 

Plaintiff wished to illustrate the corruption of the AMEX.  A friend of Joseph Palmeri asked Palmeri why he chose to be a governor of the AMEX when Plaintiff was stating that women had been raped and that criminal activity was endemic.  Palmeri replied that he had an investment to protect.  Palmeri further elaborated that the AMEX had promised him that he would be reimbursed for any expenses which arose from civil or criminal suits.  This included reimbursement of fines and legal fees.  Palmeri was thus assured of financial salvation if he should be sued for his criminal acts:  The AMEX would pay.

 

Plaintiff Manfredonia shall now prove that the Office of the United States Attorney for the Southern District of the State of New York was so totally corrupt under Mary Jo White- that Philip Axelrod, Vice President of Compliance at the American Stock Exchange boasted to Plaintiff that Mary Jo White would not investigate any criminal activity at the American Stock Exchange .

 

On 6 April 1998, Plaintiff wrote a letter, certified mail Z 121 258 553, to United States Attorney Mary Jo White.  In this letter Plaintiff enclosed copies of four letters, which Plaintiff had sent to Philip Axelrod, Vice President of Compliance at the American Stock Exchange.  These letters detailed illegal trading by various Amex members.  In this letter Plaintiff wrote:

 

“On Friday, 27 March 1998, at approximately 3:20 p m (I believe), I met Philip Axelrod, on Greenwich Street.  Axelrod informed me that he had received the aforementioned four letters, dated 23 March 1998, from me.  Axelrod informed me that he would take no action concerning the subjects of my missives.  When I asked Axelrod if the Securities and Exchange Commission would take any action regarding my letters concerning the illegal trading in Bullseye accounts, Axelrod replied: No.  When I further inquired if Arthur Levitt were responsible for the lack of action taken against the AMEX by the SEC, Axelrod replied:  Yes.  This is evidence of corruption and warrants action by the Department of Justice against Arthur Levitt and the Securities and Exchange Commission.  (Should I write to Attorney General Janet Reno and request that an Independent Counsel be appointed to investigate this illegal activity?)

 

“I also wish to note that it was Philip Axelrod, who, in 1997, laughed at me and stated that the reason the AMEX had not found Schettino guilty of marking stock positions on the close  etc. was because the AMEX wanted me to lose my case in court.  (Schettino sued me for defamation because I had stated that he had traded, illegally, stocks for account 43AC 1209 of Bullseye Securities.)  Axelrod even taunted me concerning my ability to pay an attorney for my defense.

 

“On 16 March 1998 I visited the offices of Lieber and Weissman, which are situated at 45 Broadway.  Gene Weissman provided much detail concerning his missive to C. Curtis Richmond of Sage Clearing.  In this missive Weissman stated that Schettino had demanded ten thousand dollars from Weissman.  This sum was the investment which Alan Miller had made in Lieber and Weissman.  Schettino told Weissman that the money was his (Schettino’s) because he  (Schettino) had provided the capital with which Miller traded.  Weissman stated that Richmond had visited Philip Axelrod at the AMEX and had presented Weissman’s letter to Axelrod.  Axelrod took no action against Schettino for this violation of federal securities law.  Weissman said that Compliance never interviewed him (Weissman) concerning this violation of Reg T.  This is evidence of a conspiracy at the AMEX to cover up criminal activity.”

 

Mary Jo White took no action.

 

On 26 May 1998 Plaintiff Edward Manfredonia sent a letter, certified mail Z 037 468 769, to Mary Jo White, United States Attorney for the Southern District of the State of New York.  In this letter Plaintiff Manfredonia explicated the illegal trading by Joseph Giamanco in the stock of HEB- a stock in which Giamanco was the specialist.  Plaintiff wrote:

 

“This did not preclude Joseph Giamanco from actively trading stock in which his firm specialized in his personal account at Spear Leeds and Kellogg- in direct violation of federal securities law.”

“I have recently been informed that Giamanco is trading HEB, Hemispherx Biopharma Inc. in his personal account at Spear Leeds and Kellogg.”

 

On 24 August 1998 Plaintiff again notified via certified mail Z 010 865 281 to United States Attorney White concerning the illegal trading of Joseph Giamanco in HEB.

 

“HEB is the symbol of a stock, Hemispherx BioPharma, which is listed on the American Stock Exchange.  The specialist firm in HEB is the specialist firm of GHM.  Joseph Giamanco, Sr. is the senior partner in this firm.  His son, Joseph Giamanco, Jr. is the specialist in HEB.  Joseph Giamanco, Sr. illegally trades the stock of HEB for his off floor account at Spear Leeds and Kellogg.  The give up of this account is LXE.  Joseph Giamanco, Jr. apprises his father of the movement of this stock and other stocks in which he specializes.”

“I must report that Joseph Giamanco, Sr. has continued to trade stocks in his personal account at Spear Leeds and Kellogg with the permission of the Compliance Division of the American Stock Exchange.  Phillip Axelrod, Vice President of Compliance, continually laughs at me and states that he shall not investigate any of my charges of illegal trading at the AMEX, including the illegal trading of Joseph Giamanco.”

 

Plaintiff wrote to Mary Jo White on 1 December 1998 via certified mail and stated:

 

“On Tuesday, 24 November 1998, at 12:10 p.m., I spoke to Philip Axelrod, Vice President of Compliance.  (Axelrod is an attorney in charge of the attorneys in AMEX Compliance.)

 

“I asked Axelrod when he would investigate Joseph Giamanco for illegally trading HEB and other equities in which Giamanco’s firm is the specialist.

 

“Axelrod stated that he did not know when he would investigate Giamanco, but stated that he “might get around to it.”

 

Axelrod liked to play tough guy with Plaintiff and told Plaintiff that he wanted Schettino to win his defamation suit against Plaintiff.

 

In a letter, dated 8 February 1999, which was addressed to United States Attorney Mary Jo White, Plaintiff Manfredonia provided information that Larry Trainor, a managing director of Spear Leeds and Kellogg, the clearing firm for Joseph Giamanco, knew of Giamanco’s illegal trading in HEB for his own account and permitted this illegal trading.

 

In reality the entire managing board of Spear Leeds and Kellogg knew of the illegal trading of Joseph Giamanco because of net capital rules for the firm of GHM, which Giamanco controlled, and because of the net capital rules of the accounts, which Giamanco manipulated that were nominally held by his friends.  The Court must understand that Giamanco could not have manipulated HEB without being subjected to the net capital rule- so the partners at Spear Leeds and Kellogg were aware of this manipulation of HEB- as was told to me by Joseph Roffler, a former partner in Spear Leeds and Kellogg in charge of professional margin.

 

These letters proved the corruption of Philip Axelrod, Vice President of Compliance at the American Stock Exchange, and the total contempt that Mary Jo White had for the Securities Exchange Act because Mary Jo White permitted this illegal trading.

 

Plaintiff Manfredonia must state that the seminal BusinessWeek article, “Scandal On Wall Street,” devoted one entire section to Giamanco’s illegal trading of HEB.  Yet, Mary Jo White never investigated the illegal trading of Joseph Giamanco.  It was only after the article, “Scandal On Wall Street,” had been published that the American Stock Exchange began an investigation into Giamanco’s illegal trading.  Eventually Giamanco was fined and subjected to a lifetime ban from the securities industry.  But Giamanco’s sons continue to manipulate stocks via a brokerage firm in New Jersey.  As for Schettino, after the publication of “Scandal On Wall Street,”  Schettino received a lifetime ban.

 

The Department of Justice never investigated Giamanco’s illegal trading.

 

If the Court should not believe Plaintiff Edward Manfredonia concerning the corruption of the United States Attorney for the Southern District of the State of New York, Plaintiff would like to point out one egregious example.  On 6 December 1998, Plaintiff Manfredonia sent a letter, certified mail P 311 835 415, to Mary Jo White, United States Attorney for the Southern District of the State of New York.  In this missive Plaintiff Manfredonia stated that Joseph Greenwald, who had pleaded guilty to insider trading in Motel 6 and other issues, had illegally invested in First New York Securities.  Greenwald was a convicted felon and was forbidden to trade as a professional trader and to invest in a brokerage firm.

 

Mary Jo White took no action.  Yet in FNY Corp., the American Stock Exchange disciplined FNY (First New York Corp) for permitting Joseph Greenwald to trade as a professional trader- a profession from which Greenwald was statutorily disqualified.

 

The American Stock Exchange Disciplinary Decision for FNY, dated November 5, 1999, reads

“On August 6, 1995 the District Court sentenced Greenwald to three years probation….”  “On September 30, 1997 Greenwald consented to the entry of an SEC Order Instituting Proceeding Pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934, pursuant to which he was barred from association with any broker, dealer, investment company, investment advisor, or municipal securities dealer. (Stip. Par.3.4)”

 

The disciplinary action stated:  “Friedman hired Greenwald on the recommendation with or approval of a person in FNY’s office.”  It was Gary Rosen, who traded Motel 6 and other issues on the basis of inside information, who recommended and assisted Greenwald in obtaining a trading position at FNY.  Rosen illegally earned millions and Mary Jo White permitted Rosen to keep those millions of dollars, which wee earned by illegally trading on the basis of inside information.

 

Joseph Greenwald is a crook and a convicted felon.  Greenwald was prosecuted by Mary Jo White, yet Mary Jo White permitted Greenwald to trade illegally.  Furthermore, it was known to Mary Jo White that Greenwald had cheated on his taxes- and that Greenwald had boasted of cheating on his taxes.

 

But that is nothing.  Even after Plaintiff Manfredonia reported Joseph Greenwald for illegal trading, Joseph Greenwald illegally traded the stock of Devon Energy and obtained confidential information from his brother, Jonathan Fey, the senior partner in J. Streicher & Co. Jonathan Frey was the specialist in Devon Energy.  Joseph Greenwald would telephone his brother, Jonathan Frey, to obtain privileged information concerning the trading of Devon Energy and other issues in which Devon Energy was the specialist.  Mary Jo White refused to investigate Greenwald and Frey because Plaintiff Manfredonia had provided information concerning criminal activity involving the American Stock Exchange.

 

On 15 February 2001, Plaintiff Manfredonia wrote to Larry Nichols, Chairman of Devon Energy.  Plaintiff stated that Jonathan Frey, the specialist in Devon Energy, had illegally traded the stock of Devon Energy.  Plaintiff also stated that Jonathan Frey had provided his brother Joseph Greenwald, a convicted felon, with privileged information concerning the trading in Motel 6.

 

Larry Nichols then demanded that the illegal trading of Devon Energy be investigated.  So, the American Stock Exchange was forced to investigate because Larry Nichols, a member of the Board of Governors of the American Stock Exchange, had demanded an investigation.

 

In 2004 Jonathan Frey and his specialist firm, J Streicher & Co., were disciplined by the American Stock Exchange for illegally trading and manipulating the price of the stock of Devon Energy and 20 other stocks in which Frey served as specialist.  But Mary Jo White once again refused to investigate Joseph Greenwald for violating the terms of his plea- and once again Plaintiff Manfredonia was placed in harm’s way.

 

But once a crooked specialist, always a crooked specialist.  In 2007 Frey and J Streicher & Co. were once again disciplined by the American Stock Exchange for manipulating the price of and illegally trading approximately 20 stocks.

 

It must here be stated that Ivan Boesky was sentenced to federal prison for two years for fewer violations of the Securities Exchange Act of 1934 than Joseph Giamanco and Jonathan Frey.

 

Mary Jo White, United States Attorney for the Southern District of the State of New York, had nothing but contempt for Plaintiff Manfredonia- and she probably felt that it would be permissible for Plaintiff to be murdered.

 

It is always the same.  The crooks can steal.  And Plaintiff Manfredonia, an honest and decent American, is put in harm’s way.

 

Crime pays on Wall Street.  Because the criminals can pay the law firm of the Untied States Attorney for the Southern District of the State of New York.

 

Thus, when on 5 April 2000 Plaintiff Manfredonia sent a letter, certified mail 7099 3400 0002 9582 8273, to Joel Klein. Assistant Attorney General Anti-Trust Division,  and provided proof of price fixing and illegal trading in the options of Chase Manhattan Bank, the Department of Justice took no action.  This despite the fact that a market maker at the American Stock Exchange, Matthew Trinh, had tape recorded conversations of the price fixing.  The specialist unit that fixed the prices was Spear Leeds and Kellogg.  The specialist, who led the conspiracy to fix prices in the options of Chase Manhattan Bank, was Penelope Collins.  Neither was ever disciplined.  And the Anti-Trust Division refused to investigate.  Please remember that earlier, Plaintiff Manfredonia has asseverated that George Baranko and Hayes Gorey had stated that they were told that they, attorneys at the Anti-Trust Division in Washington, could not use any information that Plaintiff Manfredonia had provided.  The fix was in by Arthur Levitt.

 

Plaintiff Manfredonia has deliberately provided extensive proof of the lies and cover ups of federal securities laws by Mary Jo White and the Department of Justice.

 

And the corruption of the Department of Justice has continued to the present.  Thus, when on 26 May 2007, Plaintiff Manfredonia wrote to the Honorable Alberto Gonzales, Attorney General of the United States, and informed the Department of Justice about Eddie Antar illegally laundering money into the United States, the Department of Justice took no action.  The Department of Justice sent Plaintiff a letter and instructed Plaintiff to inform the Federal Bureau of Investigation about the money laundering activities of Eddie Antar.  The Department of Justice did not even forward Plaintiff’s letter to the FBI.

 

Plaintiff Manfredonia demands all his records and the records of all crimes explicated in this complaint.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SECURITIES AND EXCHANGE COMMISSION

 

Plaintiff Edward Manfredonia repeats, reaffirms and re-alleges each and every allegation and charge in the previous paragraphs of this complaint.

 

Plaintiff Manfredonia has filed this action under the provisions of the Freedom of Information Act.  Plaintiff Edward Manfredonia seeks his complete and unexpurgated files at the Securities and Exchange Commission and all proceedings at the Securities and Exchange Commission involving Plaintiff Manfredonia, his letters, letters and communications received by the SEC from others, etc.- Plaintiff’s complete and unexpurgated files.

 

Plaintiff Edward Manfredonia seeks all information and all records pertaining to Plaintiff Manfredonia and copies of all correspondence pertaining to Plaintiff Manfredonia and all correspondence to and concerning Plaintiff Manfredonia.  This is guaranteed by the Freedom of Information Act.

 

Plaintiff Manfredonia wishes to state that the Securities and Exchange Commission violated the Fifth Amendment of the Constitution “due process of law” clause and endangered the life and property of Plaintiff Manfredonia by refusing to investigate criminal activity at the American Stock Exchange and by passing along copies of Plaintiff Manfredonia’s correspondence to the American Stock Exchange so that Plaintiff Manfredonia could be deprived of due process under the Fifth Amendment of the Constitution.

 

The due process clause of the Fifth Amendment reads:  “No person shall … be deprived of life, liberty, or property without due process of law …”  The Securities and Exchange Commission violated the Fifth Amendment.  The SEC knew that Plaintiff Edward Manfredonia had been threatened with murder by Alan Umbria, a front man for the Italian Mafia at the American Stock Exchange.  The Securities and Exchange Commission also knew that its refusal to investigate violations of federal securities laws at the American Stock Exchange was endangering the life of Plaintiff Manfredonia.  The Securities and Exchange Commission endangered the life of Plaintiff Manfredonia by providing copies of Plaintiff Manfredonia’s letters, which Plaintiff Manfredonia had mailed to the Securities and Exchange Commission with the expectation that these letters would be confidential and the crimes therein be investigated by the SEC, to the American Stock Exchange so that Plaintiff Manfredonia could be harassed and physically threatened.  The letters of Plaintiff Manfredonia to the SEC explicated numerous violations of federal securities laws at the American Stock Exchange and the SEC knew that providing copies of these Plaintiff’s letters to the American Stock Exchange would endanger the life, liberty and property of Plaintiff Manfredonia.  The Securities and Exchange Commission knew that the American Stock Exchange, its members and staff, were frequently harassing Plaintiff Manfredonia and threatening Plaintiff Manfredonia with violence- and that Edwin Crooks, a member of the Board of the American Stock Exchange, had solicited the murder of Plaintiff Manfredonia (Exhibit 10).

 

It must here be asseverated most strongly that the Securities and Exchange Commission knew that the American Stock Exchange had covered up serial rape, narcotics smuggling, money laundering, solicitation of murder, etc.- all violent crimes perpetrated by members of the Board of the American Stock Exchange.  The Securities and Exchange Commission endangered the life, liberty, and property of Plaintiff Manfredonia by cooperating with the American Stock Exchange in covering up these crimes.

 

On numerous occasions Plaintiff Manfredonia has written to the Securities and Exchange Commission and has requested his records.  On 26 January 1993, Plaintiff Manfredonia wrote to Richard Breeden, Chairman of the Securities and Exchange Commission and requested his files.

 

Plaintiff Manfredonia had written to the Securities and Exchange Commission on other occasions and has requested to view his records.  On 6 July 1993 Plaintiff Manfredonia wrote to Arthur Levitt, Chairman of the Securities and Exchange Commission, and requested permission to “view my dossier.”  On 10 January 1993 Plaintiff Edward Manfredonia wrote to William McLucas, Director, and requested:  “Would you please reply to my request to view my file at the SEC?”

 

ON 17 February 1993 Plaintiff wrote to Ms. Hanna Hall, FOIA/Privacy Act Branch Chief at SEC headquarters and requested his files.  (Exhibit 11)

 

On 24 January 1993 Plaintiff Manfredonia wrote to Arthur Levitt and requested that the SEC:  “order the American Stock Exchange to grant me access to my records.”

 

On 27 July 1993 Plaintiff Manfredonia wrote to Arthur Levitt and requested that Levitt “order the AMEX to grant me access to my files.”

 

On 23 August 1993 Plaintiff Manfredonia received a response from the SEC from GayLa D. Sessoms and was told that the Securities and Exchange Commission could not order the American Stock Exchange to grant Plaintiff access to Plaintiff’s records.  When Plaintiff Manfredonia met with AUSA Frances Fragos on 13 September 1993, AUSA Frances Fragos told Plaintiff Manfredonia that this was a lie.

 

Plaintiff Manfredonia shall now quote from the letter, dated August 27, 1993, which GayLa D. Sessoms sent to Plaintiff:

 

“Your letters dated July 26 and July 27, 1993 addressed to Mary Shapiro, Acting Chairman and William McLucas, Director of Enforcement, respectively, were referred to this office for a response.  You requested the Commission to direct the American Stock Exchange (“AMEX”) to permit you access to your files under the Commission’s rules and regulations.

 

“The AMEX is a self-regulatory organization subject to the Commission’s oversight under the Securities Exchange Act of 1934.  However, the Commission does not have the authority to compel the AMEX to produce records to you.  Therefore, you may wish to consult an attorney to discuss any legal alternatives for securing copies of your records directly from the AMEX.”

 

Now the Court, and every first year law student, knows that Sessoms lied- and Sessoms lied with the approval of Mary Shapiro and William McLucas.  But who told Sessoms to lie?

 

In 1977 the Securities and Exchange Commission was dissatisfied with the American Stock Exchange investigating and disciplining members of the American Stock Exchange for printing fictitious trades.  Thus, the Securities and Exchange Commission in S.E.C. Release No. 17361, Release NO. 34-17361, S.E.C. Docket 845, 1980 WL 22091 (S.E.C. Release No.); Securities Exchange Act of 1934 IN the Matter of WEISSKOPF, SILVER & co., Administrative Proceeding File NO. 3-5982 December 10, 1980.  ORDER INSTITUTING PROCEEDINGS PURSUANT TO SECTION 15(b)(4) OF THE SECURITIES EXCHANGE ACT OF 1934 AND FINDINGS AND ORDER OF THE COMMISSION.

“The attempt by the Bally Specialist to influence the prices on the CBOE and draw them closer to the Amex opening prices violated the Bally Specialist’s obligation and duty under Section 11(b) of the Exchange Act and Rule 11b-1 to effect trades for its own account only for the purpose of maintaining a fair and orderly market for Bally options on the Amex.”

 

Bill Silver was the named partner of Weisskopf Silver, who manipulated the trades and prices of the options of Bally stock options.  That is no impediment to Bill Silver’s advance at the American Stock Exchange.  Currently, Bill Silver is a member of the Board of the American Stock Exchange.

 

In 1977 the Securities and Exchange Commission also overruled the Amex and instituted disciplinary proceedings against approximately 20 AMEX members, including several, whom in this complaint Plaintiff has stated have violated federal securities laws in the 1990’s and 2000’s- namely, Joseph Giamanco, Al Merendino, Robert VanCaneghan, Louis Miceli, etc.

 

So how can any response from the Securities and Exchange Commission and the American Stock Exchange objecting and denying Plaintiff Manfredonia’s statement of facts be believed, when the SEC and the Amex have repeatedly lied to Plaintiff?

 

Plaintiff Manfredonia was never granted access to his files.  This is a violation of federal securities laws

 

The Securities and Exchange Commission throughout the years has refused to permit Plaintiff Manfredonia to view his records.  Plaintiff Manfredonia has been informed that Arthur Levitt, former Chairman of the Securities and Exchange Commission, has ordered that the Securities and Exchange Commission not permit Plaintiff Manfredonia to view his records.  Levitt also ordered that the Securities and Exchange Commission not act upon information provided by Plaintiff Manfredonia and not investigate the American Stock Exchange- which proves a conspiracy to violate federal securities laws.

 

The Securities and Exchange Commission is so corrupt that it has permitted the American Stock Exchange to return Plaintiff’s mail and to refuse Plaintiff access to Plaintiff’s records- as well as to public records, such as disciplinary decisions, composition of the Board of Governors, etc.  This is legacy of Arthur Levitt- as well as a violation of federal securities laws.

 

Plaintiff Manfredonia wishes to state that there is no prosecutorial immunity nor is there any prosecutorial discretion when criminal activity and violations of federal securities laws, such as net capital rule, willfully, knowingly and maliciously have aided and abetted a cover up of serial rape by Robert VanCaneghan; narcotics smuggling by Louis Miceli; money laundering by Robert VanCaneghan and Louis Miceli; the murders of Al Chalem and Maier Lehmann; stock fraud; involvement of the Italian Mafia in criminal activity at the American Stock Exchange; the laundering by Heinz Grein of  the billions of dollars that Ferdinand Marcos had looted from the Philippines into Swiss Bank accounts; etc.  The Securities and Exchange Commission cannot claim prosecutorial immunity when the Securities and Exchange Commission has refused to prosecute civil violations of federal securities law so that heinous violations of the laws of HaShem, such as rape, murder (more of that later), etc. can be permitted.

 

Please note that money laundering via a broker dealer is a violation of the Securities and Exchange Act.  Also, Section 32 of the Securities and Exchange Act provides for criminal penalties for violations of the Securities Exchange Act- the prosecution of which lies with the Department of Justice.

 

The Securities and Exchange Commission has permitted narcotics smuggling, money laundering and serial rape because it refused to investigate and discipline Robert VanCaneghan and Louis Miceli; the proprietors of the eponymous American Stock Exchange specialist firm, Miceli-VanCaneghan, for violations of the net capital rule and for laundering money through the specialist firm of Miceli-VanCaneghan.

 

On 13 September 1993 in the office of Assistant United States Attorney Frances Fragos, FBI Special Agent Joseph Yastremski stated to Plaintiff Manfredonia that Al Avasso, a convicted front man for the Italian Mafia who perpetrated the stock frauds, PNF and Greyhound Electronics, had paid off Steven Lister, Senior Vice President of Compliance at the American Stock Exchange.  FBI Special Agent Joseph Yastremski had records of payments to Robert VanCaneghan and Louis Miceli, past and present members of the Board of the American Stock Exchange, by Al Avasso and records of business dealings between Avasso and VanCaneghan.

 

It must here be noted that Avasso had boasted to Plaintiff in 1990 that he (Avasso) had made payments to Steven Lister to have his punishment be a suspension for one year.  It was Louis Miceli, who demanded that Avasso be given a lifetime suspension.  In 1991 when Plaintiff Manfredonia informed Avasso of Miceli’s intervention, Avasso sought to have Plaintiff point out Miceli to Avasso’s Italian Mafia friends.  (Plaintiff provided this information to FBI Special Agent Joseph Yastremski.)

 

Having been informed of the corruption of Steven Lister, the American Stock Exchange promoted Lister to Executive Vice President and provided Lister with a sinecure.  Joseph Palmeri, who one night was observed by Plaintiff kissing some Italian Mafia friend of Umbria outside the Amex, told Plaintiff:  So what Lister took payoffs.  You have to prove it in court.

 

The American Stock Exchange permitted payoffs to officials of the American Stock Exchange, whose statutory duty was to monitor and discipline violations of American Stock Exchange Rules and Regulations and Federal Securities Laws- especially the Securities and Exchange Act of 1934.  Thus, the immunity of a self regulated organization can never apply.  Thus, when Plaintiff Manfredonia was a clerk at the American Stock Exchange specialist firm of Berkman Leff, Norman Leff, a named partner, directed Al Schlesinger to pay off his friend Jules Winters so that the specialist firm of Berkman Leff could exceed trading limits in Tandy options.  Leff even specified the account from which the funds were to be taken- Plaintiff believes that it was the Five Way Account.

 

The specialist firms of Miceli-VanCaneghan and GHM regularly paid off Jules Winters for exchange violations- exceeding limit positions, not printing orders, disadvantaging the public, etc.

 

The American Stock Exchange not only tolerated these payoffs but permitted these payoffs because it was to the benefit of powerful members.

 

Many of these payoffs occurred during the tenure of Arthur Levitt as Chairman of the American Stock Exchange and Arthur Levitt, the Securities and Exchange Commission, and the American Stock Exchange conspired to cover up these violations of federal securities laws.  And the SEC under its Chairman Christopher Cox has permitted this cover up to the present day.

 

The Court must remember the uproar when it was stated that Saddam Hussein employed a professional rapist.  Here we have the Securities and Exchange Commission protecting Robert VanCaneghan, a member of the Board of the American Stock Exchange, who admitted to the Board of the American Stock Exchange that he had raped his female employees and had laundered drug money.  The SEC has jurisdiction because of violations of net capital rule, the involvement of Robert VanCaneghan and Louis Miceli in the stock fraud PNF and illegal trading by Robert VanCaneghan.

 

When in 1988 Louis Miceli praised Hitler’s extermination of the Jews at Auschwitz, and Miceli referred to Plaintiff as a “fuckin’ Jew,” “a Jew bastard,” etc.  Plaintiff personally reported this to Arthur Levitt, then Chairman of the American Stock Exchange.  Levitt only upbraided Miceli.  Levitt refused to fine Miceli.

 

When Miceli slapped Arnulfo Peat, an AMEX employee and Vietnam Veteran, and told Peat to “Get your black ass over here,” Levitt took no action.  Neither did Joel Lovett, Mark Greenberg or any other member of the Board.

 

Nor did Levitt promote any African-Americans, who were qualified.  Levitt always permitted unqualified drug addicted whites, such as John Boasi, to receive promotions and permanent status over African-American college graduates.

 

Plaintiff Manfredonia seeks to obtain all records pertinent to the violations of federal securities laws by staff members of the Securities and Exchange Commission.  Plaintiff Manfredonia seeks all records relating to Plaintiff Manfredonia and all records pertaining to the letters, describing violations of federal securities laws, which letters Plaintiff Manfredonia had sent to numerous employees of the Securities and Exchange Commission, including but not limited to Arthur Levitt, Richard Breeden, William McLucas, Mary Schapiro, Carmen Lawrence, Helen Moore, Christopher Cox, Cynthia Glassman, Anne Nazareth, Roel Campos, etc.  Note:  If Plaintiff Manfredonia has misspelled a name, please be aware that Plaintiff Manfredonia seeks the deliberations by the Securities and Exchange Commission Chairman and the Commissioners of all letters, several hundred, which Plaintiff Manfredonia has sent to the Securities and Exchange Commission.

 

Plaintiff has been informed that Arthur Levitt, former Chairman of the Securities and Exchange Commission and prior to that office Chairman of the American Stock Exchange, had ordered the Securities and Exchange Commission to disregard all letters by Plaintiff Manfredonia and not to utilize any information that Plaintiff Manfredonia provided to the Securities and Exchange Commission.

 

Plaintiff Manfredonia was further informed that many missives, if not all missives, which Plaintiff Manfredonia had sent to the Securities and Exchange Commission, were forwarded to the American Stock Exchange so that the American Stock Exchange could determine the sources for Plaintiff Manfredonia’s information.  Plaintiff Manfredonia demands copies of all missives, which Plaintiff had sent to the Securities and Exchange Commission, and  which missives were then forwarded by the Securities and Exchange Commission to the American Stock Exchange.

 

Plaintiff Manfredonia wishes to provide a major example of the lack of morality of Arthur Levitt.  Jon Rucker was a retired policeman.  Rucker also served as a chauffer at the American Stock Exchange and as a personal chauffer to Arthur Levitt.  It was while serving as a personal chauffer for Arthur Levitt, then Chairman of the Securities and Exchange Commission that Jon Rucker gave Arthur Levitt copies of letters that Plaintiff Manfredonia had authored.  These letters detailed the rapes that had been perpetrated by  Robert VanCaneghan; the money laundering activities of Robert VanCaneghan and Louis Miceli; the narcotics smuggling of Louis Miceli; the involvement of the Italian Mafia at the American Stock Exchange; the stock frauds, PNF and Greyhound Electronics, etc.   Plaintiff Edward Manfredonia must here relate the words of Arthur Levitt to his chauffer, Jon Rucker:  “Some things are better left unknown.”  And Levitt began the cover up of the rapes, narcotics smuggling, money laundering, etc. at the American Stock Exchange.  Arthur Levitt orchestrated the cover up of serial rape to protect the American Stock Exchange- after all it was not Levitt’s daughter, who had been raped by Robert VanCaneghan.

 

There can be no better example of the malfeasance of Arthur Levitt than the SEC’s refusal in 1994 to investigate Ken Silverman for laundering drug money from Jamaica into the United States.  Ken Silverman enjoys fronting for drug dealers on the sunny island of Jamaica.  Silverman can be found in Negril, Jamaica sunning himself at his home on the side of his pool.  Silverman also has citizens of Jamaica front for him and his drug dealing associates in legitimate businesses, such as renting motorcycles, etc.  Plaintiff verified this information with natives of Jamaica, who knew Silverman, and Silverman’s friends on the Amex to whom he boasted of laundering drug money.

 

No action was ever undertaken against Silverman for endangering the lives of the police of Jamaica and for illegally laundering drug money into the United States.

 

For many years beginning in 1991 Plaintiff Manfredonia has written letters, which detail violations of federal securities laws, to the Securities and Exchange Commission.  The Securities and Exchange Commission has acted in concert with the American Stock Exchange to cover up these violations of federal securities laws.

 

The 26 April 1999 BusinessWeek cover story, “Scandal On Wall Street,” detailed numerous violations of federal securities laws, both civil and criminal.  Also at issue was the fact that it was known to the Securities and Exchange Commission that the American Stock Exchange had not only known about these violations of federal securities laws, but had covered up these violations of federal securities laws.

 

The American Stock Exchange acted upon the illegal trading of Pat Schettino and Bullseye Securities- only after Bullseye Securities had gone out of business and Joseph Roffler, the proprietor of Bullseye Securities, had sought to extort the sum of $400,000 from Pat Schettino.  Schettino was a managing director (partner) in Spear Leeds and Kellogg.  Schettino had illegally traded for the account of Bullseye Securities.

 

When Plaintiff Manfredonia was informed of the illegal trading of Schettino, Plaintiff Manfredonia wrote to the chief executive officers of approximately 10 of the firms whose stock had been illegally traded by Pat Schettino.

 

Pat Schettino with the aid and consent of the American Stock Exchange sued Plaintiff Manfredonia for millions of dollars alleging that Plaintiff Manfredonia had defamed Schettino in these letters.  Jonathan Frey had provided copies of these letters to Schettino at the behest of Joel Lovett.   The 26 April 1999 BusinessWeek cover story, “Scandal On Wall Street,” put an end to the lawsuit because it proved that Plaintiff Manfredonia had spoken the truth about Schettino’s illegal trading.

 

The corruption of the Securities and Exchange Commission is so great that when Plaintiff Manfredonia was being sued by Pat Schettino, a member of the American Stock Exchange who had engaged in wire fraud, illegal trading, violations of the net capital rule, etc., Plaintiff Manfredonia presented to the Securities and Exchange Commission information and copies of documents that proved that there were widespread violations of federal securities laws at the American Stock Exchange- by other members of the American Stock Exchange, who had traded illegally for accounts at Bullseye Securities including Daniel Donner (43BJ), John Baldasare (43BC), Frank Postiglione (43BN) and others.

 

The Securities and Exchange Commission refused to investigate these civil and criminal violations of federal securities laws- a refusal that has continued to the present day.  And it must be most forcibly stated that no action has been undertaken by either the Securities and Exchange Commission or the American Stock Exchange against the American Stock Exchange floor brokers (Baldasare, Postiglione, Donner, etc.) who traded illegally for Bullseye Securities.

 

But let us examine even more concrete proof that the Securities and Exchange Commission permitted Steven Lister, Executive Vice President of Compliance, to accept illegal payoffs to not investigate violations of the Securities Exchange Act of 1934.  Thus on 29 September 1997 Plaintiff Manfredonia mailed a letter, certified mail P 091 320 901, to Helen Moore, an SEC attorney with the office of SRO Inspections, the division of the SEC, which theoretically is to monitor the American Stock Exchange.  Plaintiff wrote:

 

“Through independent research, which was confirmed by the FBI and the United States Attorney, I determined that Steven Lister had been taking payoffs to drop investigations into criminal activity at the American Stock Exchange.  Lister invested in a partnership with Al Avasso.  Avasso described this investment to me as a payoff to enable him to return to the AMEX as a member.  In January 1992, I informed Steven Lister and Phillip Axelrod that Al Avasso had initiated a new stock fraud, Port a Fone.  Lister stated that he was aware of it and that he had taken steps to block Avasso.

 

“Joseph Palmeri, a governor of the AMEX, has acknowledged that Lister took payoffs and has stated that I must prove this in court.”

 

Thus, the SEC was aware that Steven Lister, Executive Vice President of Compliance at the American Stock Exchange, had taken payoffs from the Italian Mafia so that a stock fraud could be perpetrated at the American Stock Exchange.

 

But then something even more unusual occurred after the debacle of Bullseye Securities.  The Compliance Division of the American Stock Exchange, specifically Steven Lister who was Executive Vice President of Compliance, contacted William Killeen, the Chairman of Oakford Corp.  Lister told Killeen that Oakford Corp. could no longer have American Stock Exchange floor brokers trade illegally for illegal accounts at Spear Leeds and Kellogg.  Thus, it was known to the American Stock Exchange that Oakford Corp. had approximately 30 American Stock Exchange Floor brokers illegally trading for illegal accounts, which Oakford maintained at Spear Leeds and Kellogg.  Killeen informed me that his trading operation at the American Stock Exchange had accounted for 5% of the total volume of the Amex.

 

Arthur Levitt, the Commissioner of the Securities and Exchange Commission, ordered the staff attorneys of the Securities and Exchange Commission not to investigate violations of federal securities laws at the American Stock Exchange.  This information was proved to Gary Weiss, a currently disgraced reporter for BusinessWeek, who was informed by an SEC staff attorney that Arthur Levitt had ordered SEC staff attorneys not to investigate the front running and illegal trading by an American Stock Exchange specialist in two American Stock Exchange listed stock frauds, Conversion Energy (Industries) and Beta Well Services.

 

But should this court ever doubt the corruption of the Securities and Exchange Commission, Plaintiff Manfredonia shall presently provide incontrovertible proof that the Securities and Exchange Commission conspired with the American Stock Exchange to cover up violations of federal securities laws.

 

On 3 October 1996 Plaintiff Manfredonia sent a letter, certified mail Z 226 603 039, to Ms. Carmen Lawrence, Northeast Regional Director of the Securities and Exchange Commission.  In this missive Plaintiff Manfredonia stated that Pat Schettino, a member of the American Stock Exchange, had illegally traded several stocks, which were controlled by John Hatsopoulos, a member of the Board of Governors of the American Stock Exchange.  Plaintiff Manfredonia stated:  “I find it incredulous that Hatsopoulos did not possess knowledge of this illegal trading.”  Hatsopoulos was Chairman of Thermo Electron, the parent company of what were referred to as the “T-Stocks,” such as Thermo Fibertek, Thermo BioAnalysis and Thermo Ecotek.

 

On 14 October 1996 Plaintiff Manfredonia sent a letter, certified mail P 397 542 201, to Ms. Carmen Lawrence, Northeast Regional Director of the Securities and Exchange Commission.  In this missive Plaintiff Manfredonia stated that “(Joseph) Giamanco trades, for his own account, the stocks in which GHM specializes.”  Plaintiff further stated:  “The Securities and Exchange Commission must investigate this illegal trading involving GHM, Joseph Giamanco and John Hatsopoulos.”  Plaintiff explicated thus:

 

“Joseph Giamanco has a close personal relationship with John Hatsopoulos, Chairman and Chief Financial Officer of Thermedics, a stock in which GHM is the specialist.  John

Hatsopoulos is also a governor of the American Stock Exchange-a public governor, i.e., one who represents the public.

 

“Through Thermedics, Hatsopoulos controls several other AMEX listed companies-collectively referred to as the “T” stocks.

 

“Giamanco’s specialist unit, GHM, is the specialist in the “T” stocks.

“Giamanco trades the “T” stocks in his personal account at Spear Leeds and Kellogg, giving up LXE.

 

“Giamanco and Hatsopoulos have jointly conspired to manipulate the price of the “T” stocks.

 

“If a seller appears in the “T” stocks, Giamanco will telephone Hatsopoulos and inform Hatsopoulos that a seller has appeared in a “T” stock.  Hatsopoulos will either place orders for himself or his firm to purchase the stock.  Sometimes Hatsopoulos will find purchasers other than himself or entities, which he controls, to purchase the stocks.  Other times, Giamanco will purchase the stocks for his personal account or GHM’s account.”

 

Now fast forward to 16 December 2004, 8 years later.  The American Stock Exchange published a Disciplinary Decision, Case Numbers 99-06, 00-32, 01-42 and 01-43:  In the Matter of Alfred Merendino, Ronald Menello and GHM, Inc.  GHM and Merendino were fined for manipulating the price of Thermo Ecotek (TCK).  GHM and Menello were fined for manipulating the price of Thermo BioAnalysis (TBA).  GHM and Menello were fined for manipulating the price of Thermo Fibertek (TFT).  Remember that Ivan Boesky and Michael Milken were convicted for perpetrating the same crime- and were sentenced to federal prison.

 

It only took the American Stock Exchange, actually NASD, until 2004 before GHM was investigated for manipulating the price of stocks, which Plaintiff Manfredonia had stated were being manipulated in 1996.  And this was only accomplished because of the publication of the seminal article, “Scandal On Wall Street,” in April 1999.

 

But it is most important to note that in Plaintiff Manfredonia’s letter of 14 October 1996, to Carmen Lawrence, Plaintiff Manfredonia stated:  “The Trading Analysis Department under the aegis of both Jules Winters (many years ago) and Tom Brown with Richard Robinson as his deputy, have ordered its investigators not to investigate the illegal trading practices of GHM and Joseph Giamanco.  This I know to be true.”

 

But there is more proof of the corruption of the American Stock Exchange.

 

The American Stock Exchange has been permitted by the Securities and Exchange Commission and the Department of Justice to engage in illegal conduct.  Witness this 5 April 2000 letter, which was sent certified mail 7099 3400 0002 9582 8273, to Joel Klein, Assistant Attorney General for Antitrust, the same Joel Klein, who refused to permit Plaintiff Manfredonia’s information to be utilized by the Department of Justice for an investigation into price fixing in the Exchange Traded Funds.  Plaintiff shall quote liberally from this letter:

 

“The AMEX, its specialists, and traders continued to fix prices even after the article in Business Week and the filing of the class action lawsuits alleging price fixing in options.

 

“The most notable occurrence was on 22 June 1999, when Matthew Trinh, an AMEX trader, delivered cassette tapes to the Market Surveillance Division of the American Stock Exchange.  Trinh was emboldened to record the price fixing because of the Business Week article, “Scandal On Wall Street,” and the fact that I had recorded individuals on tape admitting to a crime.  These tapes proved price fixing in option pricing in the options of Chase Manhattan Bank.  The specialist in Chase options was Penelope Collins.  The specialist unit was Spear Leeds and Kellogg.  Penelope Collins was never disciplined for price fixing in the options of Chase Manhattan.  Spear Leeds and Kellogg was never disciplined for price fixing in the options of Chase Manhattan. The American Stock Exchange market makers were never disciplined for price fixing in the options of Chase Manhattan.  The tapes proved a conspiracy by the traders and specialist to fix options.  And the Department of Justice, the Securities and Exchange Commission and the American Stock Exchange have covered up these crimes.

 

“Richard Robinson called the traders upstairs to investigate.  Aaron Rolley, a former specialist and trader and currently an AMEX employee in Market Surveillance, spoke to the traders, whose voices were recorded, and advised them to conspire and lie to disprove the evidence on the tapes.

 

“The result:  No action was undertaken even though Market Surveillance proved that the tapes proved a conspiracy to fix prices in options.

 

“And it must here be stated that Aaron Rolley continued to be employed by the American Stock Exchange- precisely because Aaron Rolley covered up crime at the American Stock Exchange.

 

“A second story, demonstrates the total contempt in which AMEX specialists and traders hold the Department of Justice.  In late September, Marvin Farbowitz was trading the SPDR’s.  Farbowitz was being cheated and Farbowitz noted that customer orders which arrived on the automatic trading system were being cheated by the specialist.  Farbowitz complained mightily that the public was being cheated and that the division of orders was favoring the traders who went along with the bids and offers of the specialist (Spear Leeds and Kellogg).  He was greeted with cries of derision by Nick Giordano, the Spear Leeds specialist in the SPDR’s, and by Todd Clayton, badge 991-L (I believe).  The remarks were the usual:  Fuck you.  But there was an even more telling outcry from Nick Giordano and seconded by Todd Clayton and the crowd:

We’re not here for the public.

We’re here to make money.

 

“The result:  Aaron Rolley once again entered the fray, agreed to cover up for Spear Leeds and Kellogg-and Farbowitz was fired by his firm Rosenthal and Collins because a phone call was received by Rosenthal and Collins.  (From Spear?  I think so.)

 

“Please note that Spear Leeds and Kellogg was involved in these two instances of price fixing and cheating.”

 

Plaintiff’s 5 April 2000 proved that price fixing had continued and was so blatant that the employees of Spear Leeds and Kellogg could boast of fixing prices in Exchange Traded Funds.

 

On 26 October 2000 Plaintiff Manfredonia wrote a missive, certified mail 7099 3220 0000 6715 6036, to Judge Lawrence McKenna, who was presiding over class action lawsuit involving the American Stock Exchange.  In this letter Plaintiff Manfredonia explicated in detail the illegal trading in various Exchange Traded Funds (ETFs).  In one instance Plaintiff detailed an illegal trade on 21 September 2000 in the SPY:  “Aaron Rolley, an AMEX employee of Trading Analysis and a former AMEX specialist and trader, was in the SPY crowd and refused to do anything.  Aaron Rolley and his supervisor, Richard Robinson, are shills for covering up crime and illegal trading at the AMEX.”  A copy of this letter was provided to the attorneys, who represented the American Stock Exchange.

 

On 26 November 2000 Plaintiff Manfredonia wrote a missive, certified mail 7099 3400 0005 1955 6593, to Judge Lawrence McKenna.  Once again Plaintiff detailed illegal trading in the Exchange Traded Funds.  Plaintiff stated:  “The AMEX and in particular Richard Robinson, actively permit this illegal front running so that the AMEX can collect its fees and state that a large quantity of option orders are trading on the AMEX.”  Plaintiff later stated in this letter:  It must be stated that both Trading Analysis and Compliance have refused to investigate this illegal trading.”  A copy of this letter was sent to the attorneys, who represented the American Stock Exchange.  Both letters can be found in Part II of Plaintiff’s personal website:  http://www.wallstreetscandals.com.

 

Richard Robinson was in charge of Trading Analysis and Robinson continued his illegal cover up of violations of federal securities laws. Plaintiff wrote to the Chairman and the Commissioners of the SEC concerning the theft of $10 million from the American Stock Exchange.  The SEC refused to investigate the theft of $10 million and Roel Campos, a Commissioner of the SEC, forwarded Plaintiff’s letter to NASD.  T. Grant Callery, Executive Vice President of NASD then wrote to Plaintiff and asked Plaintiff concerning the purloined $10 million.  It is important to note that NASD discovered that $10 million had been purloined when NASD performed an audit on the American Stock Exchange- prior to walking away from the AMEX.

 

On 3 September 2004, in a missive, certified mail 7003 3110 0005 2181 1195, which missive was addressed to T. Grant Callery, Executive Vice President of NASD, Plaintiff Manfredonia discussed the theft of $10 million which sum was stolen from the American Stock Exchange.  But we must maintain our focus and discuss violations of federal securities laws and Richard Robinson- as Plaintiff wrote:

 

“From its inception as specialist in the QQQ, Susquehanna violated every possible securities law.  From 1997 to 2002 (actually should be 1999) Susquehanna earned $80 million per annum violating federal securities laws in the QQQ.  Susquehanna:

  1. Front ran public orders in the QQQ
  2. Refused to display public orders in the QQQ
  3. Illegally granted itself larger quantities in trades that it was entitled
  4. Put up quotes that did not accurately reflect public orders
  5. Refused to print trades, which it had secretly traded

 

The AMEX and Richard Robinson knew of these illegal trades.”

 

Let us look examine a more recent document.  Securities and Exchange Commission, Release No. 555081, March 22, 2007

Administrative Proceeding File NO. 3-12595

In the Matter of Richard Robinson, Respondent

“The Commission found that Robinson was a cause of the Amex violations by failing to oversee properly the Amex’s surveillance program for derivatives and options.”

 

So it is readily apparent that Plaintiff Manfredonia knew of violations of federal securities laws by Richard Robinson and the Securities and Exchange Commission refused to investigate Plaintiff Manfredonia’s letters.  The question is why has the Securities and Exchange Commission refused to investigate Plaintiff Manfredonia’s accurate description of violations of federal securities laws?

 

After the publication of “Scandal On Wall Street” in April 1999 Plaintiff Manfredonia was told by several staff attorneys for the Securities and Exchange Commission that Arthur Levitt, Chairman of the American Stock Exchange, had ordered the SEC staff attorneys not to investigate violations of federal securities laws at the American Stock Exchange.  Furthermore, Arthur Levitt had ordered Carmen Lawrence, Director of the New York Office of the Securities and Exchange Commission, to refer Plaintiff’s correspondence to the Securities and Exchange Commission in Washington, DC.  There an incompetent SEC staff attorney, Helen Moore, refused to investigate violations of federal securities laws at the American Stock Exchange.

 

Let us view this matter form the perspective of the American Stock Exchange specialist firms, which violated federal securities laws in the numerous Exchange Traded Funds.

On 26 October 2000 Plaintiff Manfredonia sent a letter, certified mail 7099 3220 0000 6715 6036, to the Honorable Lawrence McKenna, who was presiding over a class action lawsuit involving price fixing in options at the American Stock Exchange.  On 26 November 2000 Plaintiff Manfredonia sent a second letter, certified mail 7099 3400 0005 1955 6593, to Judge McKenna.  In these two missives, which can be viewed on Plaintiff’s website, www.wallstreetscandals.com,  Plaintiff Manfredonia proved that there were massive violations of federal securities laws in the Exchange Traded Funds, most notably the QQQ and the SPY, which Exchange Traded Funds were listed on the American Stock Exchange.   Plaintiff delineated numerous violations of federal securities laws and violations of the Securities and Exchange Act of 1934 including: pandemic price fixing; illegal trading; the refusal to display better bids and offers in the various Exchange Traded Funds; not printing the proper quantities traded in the ETFS; etc.

 

As Plaintiff Manfredonia has stated copies of this letter were provided to the American Stock Exchange and to the Securities and Exchange Commission.

 

Thus, the Securities and Exchange Commission knew of and approved the illegal trading at the American Stock Exchange.

 

On 18 June 2002, Plaintiff Manfredonia sent a letter, certified mail 7001 1940 0006 8312 6015, to Judge Lawrence McKenna.  In this missive Plaintiff quoted from a conversation, which Plaintiff overheard involving Chris Meeks. Chris Meeks, a Goldman Sachs specialist in the Exchange Traded Funds, was speaking to another Goldman Sachs employee.  And Plaintiff shall quote from that letter:

 

“…. that Chris Meeks, the specialist in the IVV, had made statements in my presence (I was standing behind him as he spoke) concerning the front running by Goldman Sachs in the IVV and various other ETFs.

 

“I do not remember when these statements were made, except that these statements were made prior to June 2001, and possibly prior to 9 April 2001, but I do remember that the statements were made after Chris Meeks had left a meeting at Goldman Sachs.  According to Chris Meeks, the individual in charge of trading the ETFs at Goldman Sachs, had stated that Goldman Sachs would cross customer orders on ECNs and not on the American Stock Exchange.  Meeks stated that this was going to be done to facilitate the front running by Goldman Sachs of its customer’s orders.  Note:  Front running of public orders is a violation of federal securities laws.  According to other employees of Goldman Sachs, Meeks stated that Goldman Sachs boasted that nothing would ever happen to Goldman Sachs for front running.”

 

Copies of this missive were sent to the attorneys, who represented the American Stock Exchange in this class action lawsuit.

 

On 21 December 2001 Plaintiff Manfredonia addressed a letter to the Securities and Exchange Commission concerning price fixing and illegal trading in the Exchange Traded Funds- and enclosed copies of the aforementioned letters.

 

On January 24, 2002 Plaintiff received a response from Herbert Brooks, Chief of Operations, Office of the Director.  Plaintiff Manfredonia shall quote the letter in its entirety to prove that the Securities and Exchange Commission has done nothing but lie to Plaintiff Manfredonia and that the Securities and Exchange Commission by its refusal to investigate criminal activity at the American Stock Exchange has violated the “due process of law” clauses of the Fifth and Fourteenth Amendment because the SEC has placed Plaintiff’s life in jeopardy by refusing to prosecute in federal district court civil violations of federal securities laws at the American Stock Exchange.

 

“Your letter dated December 21, 2001, to the Director of the Division of Market Regulation has been referred to me for a response.  Your letter mentions what appear to be a number of criminal allegations.  As you may be aware the U. S. Securities and Exchange Commission administers the federal securities laws and is an agency that has authority relating to civil matters.  To the extent that you seek to report matters involving potential criminal activity, you should contact the appropriate federal and state criminal authorities.”

 

Now, we shall prove that Herbert Brooks is a liar and that the Securities and Exchange Commission permits and encourages pandemic violations of federal securities laws at the American Stock Exchange.

 

The Court must understand that only because Plaintiff had written to Senator Shelby concerning criminal activity at the American Stock Exchange the Securities and Exchange Commission and the American Stock Exchange were forced to take some modicum of investigative activity, no matter how minor, to respond.  And the response was minor, but the response of the American Stock Exchange has proved that Herbert Brooks lied and that Plaintiff Manfredonia has accurately reported violations of federal securities laws at the American Stock Exchange in the various Exchange Traded Funds.

 

To prove that Herbert Brooks is a liar we need to examine the American Stock Exchange Disciplinary Decision, In The Matter of Susquehanna Investment Group, Decision July 6, 2006.  This disciplinary decision can be accessed on the Internet at the website of the American Stock Exchange.  In this disciplinary decision on the second page,

III.  Violations

(2) violated SEC Rule 11Ac1-4 (currently known as Rule 604 of Regulation NMS) and Article V, Section 4(h) of the Exchange Constitution on multiple occasions between January 2003 and June 2005 by failing to handle customer limit orders in accordance with Rule 604;

(3) violated Exchange Rule 958A, SEC Rule 11Ac1-1, and Article V, Section 4(h) of the Exchange Constitution on numerous occasions between January 2003 and January 2005 by failing to execute orders upon presentment and failing to honor the published quotation when an order was presented at the published bid or offer in an amount up to the published quotation size;

(4) violated SEC Rule 11Ac1-1 and Article V, Section 4(h) of the Exchange Constitution in March 2003 by failing to execute orders upon presentment, thereby failing to honor the published quotations;

Let us briefly quote some of the violations of SEC Rule 11Ac1-1

On 83 occasions during the period of November 1, 2004 through June 30, 2005

On 25 occasions during the period of April 1, 2005 through June 30, 2005

On 25 occasions during the period of April 1, 2005 through June 30, 2005

 

Let us now examine another American Stock Exchange Disciplinary Decision.  In the Matter of SLK-Hull Derivatives, LLC and Goldman Sachs Execution and Clearing, L.P., formerly known as Spear, Leeds and Kellogg, Decision June 21, 2006. This is stated on the second page:

  • Violations

(2) violated Exchange Rule 958A, SEC Rule 11Ac1-1, and Article V, Section 4(h) of the Exchange Constitution on numerous occasions between January 2003 and September 2004 by failing to execute orders upon presentment or failing to honor the published quotation when an order was presented at the published bid or offer in an amount up to the published quotation size;

Let us briefly quote some of the violations of the SEA Act, SEA Rule 11Ac1-1

3.2  On 123 occasions during the period of January 2, 2003 through May 30, 2003

3.3  On 13 occasions during the period of January 2, 2003 through May 30, 2003

3.4  On 23 occasions during the period of March 1, 2004 through September 30, 2004

 

The American Stock Exchange stated that Susquehanna and Goldman Sachs had violated the Securities Exchange Act of 1934.  Those SEC Rules are the reason Herbert Brooks is employed at the Securities and Exchange Commission.

 

From 1999 to 2006 Susquehanna had earned at the American Stock Exchange approximately $500 million by violating federal securities laws.  Susquehanna was fined $275,000.

 

From 1999 to 2006 Spear Leeds and Kellogg/Goldman Sachs earned at the American Stock Exchange approximately $400 million by violating federal securities laws.  SLK/Goldman was fined $225,000.

 

Plaintiff Manfredonia has utilized some of the above information for an article, “Rip-Off:  Wall Street Price Fixing.”

 

Whoever said crime doesn’t pay, never worked on the floor of the American Stock Exchange.

 

Once again Plaintiff Manfredonia knew that Richard Robinson had been engaged in covering up violations of federal securities laws at the American Stock Exchange.

 

And there is more proof.  Even after the seminal 26 April 1999 BusinessWeek cover story, “Scandal On Wall Street,” was published, the Securities and Exchange Commission and the American Stock Exchange refused to investigate price fixing in options.  That is why Matthew Trinh’s courageous stand to expose option price fixing was so important.  Trinh proved that the American Stock Exchange, especially Richard Robinson and Aaron Rolley had continued to cover up violations of federal securities laws at the American Stock Exchange- after the publication of the article, “Scandal On Wall Street.”

 

On 17 May 2007, The Black Star News published an article, “Rip-Off:  Wall Street Price Fixing,” which was authored by Plaintiff Manfredonia.  In this article Plaintiff Manfredonia proved that specialist firms had cheated the American public out of hundreds of millions of dollars per annum at the American Stock Exchange by rigging the prices of the Exchange Traded Funds.

 

On 26 May 2007, Plaintiff Manfredonia sent a copy of this article, “Rip-Off,” certified Mail 7006 2150 0004 5143 6305, to Christopher Cox, Chairman of the Securities and Exchange Commission.  Copies of “Rip-Off” were sent to each Commissioner of the Securities and Exchange Commission.  No action was undertaken.  And this is why Plaintiff Manfredonia is litigating in federal district court to obtain Plaintiff’s SEC records.  The Securities and Exchange Commission has refused to investigate any violations of federal securities laws that have been reported to the Securities and Exchange Commission.  So, who has spoken and written evil of Plaintiff Manfredonia?

 

Under Chairman Christopher Cox, the Securities and Exchange Commission has undertaken to supersede, nay usurp, the role of Congress and the President.  The Securities and Exchange Commission has overthrown the enforcement of Sarbanes Oxley and the Securities Exchange Act of 1934.

 

The Securities and Exchange Commission has permitted Goldman Sachs to perpetrate accounting fraud in violation, not only of Sarbanes-Oxley, but also of federal securities law and Generally Accepted Accounting Principles.  On 1 March 2007, The Black Star News published an article, “Goldman Sachs’ Obscene Bonuses,” which exposed accounting fraud at Goldman Sachs.

 

Plaintiff Edward Manfredonia shall now proceed with proof that Goldman Sachs has perpetrated accounting fraud and that the Securities and Exchange Commission has permitted Goldman Sachs to perpetrate accounting fraud.

 

In 2000 Goldman Sachs purchased Spear Leeds and Kellogg for $7.2 billion.  Officially the price was $6.4 billion, but Goldman added another $800 million to be provided to keep certain employees because Spear Leeds had excellent earnings.

 

In a missive, dated 18 October 1999, Plaintiff Manfredonia wrote a letter to John Thain, who was then President of Goldman Sachs.  In this missive Plaintiff expounded upon illegal activity at Spear Leeds and Kellogg.  Somehow it must have eluded the mathematical mind of John Thain that the only reason that Spear Leeds and Kellogg was able to earn so much money was simply because the American Stock Exchange, the New York Stock Exchange, and the Securities and Exchange Commission had permitted massive violations of federal securities laws.  Some of these massive violations of the Securities and Exchange Act of 1934 were exposed by two seminal articles, which appeared in BusinessWeek in 1999.

 

“Scandal On Wall Street,” exposed not only illegal trading by Spear Leeds and Kellogg managing director, Pat Schettino, but also irregularities in the clearing operation of Spear Leeds and Kellogg.  And Schettino stated in his deposition that Peter Kellogg, Chairman of Spear Leeds and Kellogg, did not believe that Schettino’s illegal trading and violations of the Securities Exchange Act of 1934- including net capital violations, the same net capital violations to which Ivan Boesky pleaded guilty and was sentenced to federal prison, merited Schettino’s suspension.

 

“A Street Scandal That May Not Die” exposed illegal trading on the New York Stock Exchange, which illegal trading had been approved by Richard Grasso.  (Thus spake Ed Muegger and William Killeen.)  But even more importantly the article, “A Street Scandal That May Not Die,” proved massive irregularities in the clearing operations of Spear Leeds and Kellogg- the same illegal trading operations, which Goldman Sachs desired so much that it purchased Spear Leeds and Kellogg.

 

On 15 September 2000 Plaintiff wrote an expansive letter, certified mail 7099 3400 0020 7841 3911, to Robert Katz, Secretary to the Board of Directors of Goldman Sachs.  (This missive can be found in Part II of Plaintiff’s website, http://www.wallstreetscandals.com.)  In this letter Plaintiff urged Goldman Sachs not to purchase Spear Leeds and Kellogg.  Furthermore, Plaintiff detailed civil and criminal violations of federal securities laws.  Plaintiff also referred to his previous missives, including those written in 1999 and 2000 to John Thain.

 

But Goldman Sachs proceeded with its purchase of Spear Leeds and Kellogg.  The Securities and Exchange Commission knew of the criminal activity of Goldman Sachs- but the laws of the United States, especially the Securities and Exchange Act of 1934, do not apply to Goldman Sachs and Spear Leeds and Kellogg.

 

On 12 May 2002 Plaintiff Manfredonia wrote a letter, certified mail 7001 1940 0006 4325 1818, to James Schiro, Chief Executive Officer of PriceWaterhouseCoopers, the public accounting firm that audits Goldman Sachs and certifies that the financial statements of Goldman Sachs are accurate.  In this letter Plaintiff Manfredonia stated:  “Goldman Sachs is covering up a massive write-off of approximately $3 billion due to its purchase of Spear Leeds and Kellogg.”  At the time that this letter was written $3 billion was the approximate decline of the value of Goldman’s purchase of Spear Leeds and Kellogg.  But as we shall learn the value of Spear Leeds and Kellogg has declined even more dramatically.

 

Circa January 2004, Plaintiff Manfredonia was contacted by Charles Davis, an SEC staff attorney, concerning Goldman’s write off.  Davis, a crooked attorney for the SEC, laughed at Plaintiff.  Davis asked if Plaintiff Manfredonia had seen Goldman’s financial reports, etc.  Davis asked if Plaintiff Manfredonia had seen Goldman’s 10K.  Davis asked irrelevant questions.  Plaintiff patiently explained that Goldman was hiding a write-off.  Davis laughed.

 

Charles Davis is so corrupt that he asked about Goldman’s 10K, when Plaintiff had stated that Goldman was covering up a $4 billion, now $7.2 billion, write off.  If the $4 billion write-off were in the 10K, Goldman would not be covering up the write off.

 

Charles Davis is a corrupt incompetent SEC employee, who laughed at Plaintiff Manfredonia because he was told to laugh at Plaintiff.  And that is precisely the reason that the United States is experiencing financial turmoil because SEC employees are nothing more than trained show dogs, especially Charles Davis, Helen Moore, Carmen Lawrence, etc., who will perform any illegal act to cover up the violations of federal law that have been perpetrated by the titans, and dwarves, of Wall Street.

 

It is this corruption of the Securities and Exchange Commission that has permitted the implosion of the Collateralized Mortgage Obligation and Collateralized Debt Obligation crisis, which is causing a recession in the United States and which crisis is endangering the financial well being of the global financial community.

 

This is the precise reason that The Black Star News published Plaintiff’s article, “Goldman’s Obscene Bonuses,” on 1 March 2007.

 

In this article, “Goldman’s Obscene Bonuses,” Plaintiff Manfredonia proved beyond a reasonable doubt that Goldman Sachs has perpetrated accounting fraud by refusing to write-off a minimum of $4 billion of the purchase price of Spear Leeds and Kellogg.

 

But now the write-off exceeds the purchase price of $7.2 billion.

 

Goldman’s specialist units, which it purchased from Spear Leeds and Kellogg and Hull Trading ($800 million) are less than worthless- they are costing Goldman Sachs an estimated $60 million per annum in losses and Goldman cannot walk away.

 

Bear Stearns wrote off the value of its NYSE specialist unit, and made a deal with Cohen Specialists to take over its American Stock Exchange specialist operations, which were hemorrhaging money just as those who have contracted Ebola have hemorrhaged blood.  Red Ink.  Red Blood.  And let the Court not forget that Bear Stearns has since folded.

 

Van der Moolen not only walked away from its NYSE specialist unit, but also agreed to indemnify Lehmann Brothers, which took over the operations, for certain costs.

 

LaBranche is valued at cash on hand and the value of its 3.1 millions shares of New York Stock Exchange-Euronext stock (NYX)- which is sinking everyday.

 

According to some Goldman employees, Goldman Sachs has been required to spend a sum exceeding $1 billion to update REDI, the clearing system that Goldman purchased from Spear Leeds and Kellogg.

 

But Goldman had its own proprietary system.  Goldman desired REDI so that Goldman could clear for more hedge funds by reducing the competition.  Goldman then utilized its knowledge of the positions of hedge funds and other firms that owned CMOs and CDOs to take the opposite position.

 

By possessing knowledge of the positions of other firms, Goldman purchased credit-default swaps that increased as the value of the CDOs and CMOs decreased.

 

But Goldman’s investment in Spear Leeds and Kellogg necessitates a complete write-off of $7.2 billion.

 

If Goldman had not purchased Spear Leeds and Kellogg, Spear Leeds and Kellogg would be worthless.

 

Much of this was understated in Plaintiff’s article, “Goldman’s Obscene Bonuses,” but it is true.

 

On 13 July 2006 Plaintiff Manfredonia wrote to Chairman Christopher Cox and stated that Goldman Sachs must take a $5 billion write off.

 

On 21 July 2007, Plaintiff Manfredonia once again wrote to Chairman Cox and stated that Goldman must take a write off in excess of $4 billon as stated in “Goldman Sachs’ Obscene Bonuses.”  Plaintiff even enclosed a copy of “Goldman Sachs’ Obscene Bonuses” for Chairman Cox’s perusal.

 

But Chairman Cox has permitted Goldman Sachs to perpetrate accounting fraud.

 

And now for the CDO and CMO crisis.

 

In January 2007 Plaintiff Manfredonia was having a coffee.  Plaintiff was reading The Financial Times and laboring over his first projected article, “Goldman Sachs’ Obscene Bonuses.”

 

A young lady spoke to Plaintiff.  This young lady explained that the next financial crisis would be the CMO crisis.  The young lady spoke to Plaintiff Manfredonia and stated that she had worked on a report that projected massive write-offs in the CMO market.

 

This young lady would only tell Plaintiff that she had a master’s degree and worked for a prime broker- and that she had been transferred after she had authored a study, which was critical of the Collateralized Mortgage Obligation (CMO) market.

 

On 23 August 2007 The Black Star News published Plaintiff’s article:  “USA:  Billionaire’s Welfare State.”  This article explained in easy to understand prose, the Collateralized Debt Obligation crisis.  Plaintiff stated that the government would bail out the large firms.  Plaintiff was prophetic.

 

The Black Star News later published two articles, “Goldman’s Toxic CMOs,” which was published on 4 January 2008 and “Goldman’s CMO Liabilities,” which was published on 5 February 2008, that were authored by Plaintiff Edward Manfredonia.

 

“Goldman’s Toxic CMOs,” proved that Goldman Sachs knowingly sold toxic CMOs to its customers.  Plaintiff Manfredonia also proved that Goldman Sachs knew that these CMOs were worthless because Goldman Sachs had purchased enormous amounts of credit-default swaps that would have endangered the capital base of Goldman Sachs- if the market in the CMOs had not collapsed.

 

“Goldman’s CMO Liabilities,” through rigorous analysis proved that Goldman Sachs is liable for the value of the CMOs, which Goldman dumped upon its customers.  Goldman knew that these CMOs, which Goldman had peddled as AAA rated, were worthless.  Simultaneously Goldman reduced its inventory of toxic CMOs and sold these CMOs to the company’s customers.  But Goldman Sachs, being Goldman Sachs, went one step further.  Goldman Sachs purchased credit default-swaps, which would become valuable only if the value of the CMOs, which Goldman had sold to its customers, would become worthless.

 

“Goldman’s CMO Liabilities” examined three important factors:

  1. Goldman knew that it was selling to its customers worthless CMOs, even though the company had stated to its customers that these CMOs were AAA rated.
  2. Goldman reduced its inventory of worthless CMOs
  3. Simultaneously with selling worthless CMOs to its customers, Goldman purchased expensive credit-default swaps, which would be valuable only if the value of the CMOs that Goldman had sold to its customers had become worthless.

 

Plaintiff Manfredonia then compared Goldman’s selling of worthless CMOs to the 1970 Penn Central debacle, which almost bankrupted Goldman Sachs.  In the spring of 1970 Goldman Sachs sold the Commercial Paper of Penn Central to its customers.  Goldman told its customers that the Commercial Paper was rated “Prime,” but Goldman knew that the Commercial Paper had been downgraded by Brown Brothers.  In the CMO debacle Goldman passed off the worthless CMOs as AAA rated- the equivalent of Prime.

 

Goldman Sachs reduced its inventory of Penn Central Commercial Paper from $15 million to $5 million.  In the CMO debacle Goldman drastically reduced its inventory of CMOs and CDOs.

 

Then Goldman Sachs did, what it had not done in the Penn Central Commercial Paper collapse- Goldman purchased credit-default swaps that would become valuable only if the CMOs, which Goldman Sachs had sold to its customers became worthless.

 

Plaintiff then cited case law, which proved that Goldman Sachs had been held liable for the value of the Penn Central Commercial Paper, which Goldman Sachs had sold to its customers.  Plaintiff cited the Court’s decision in University Hill Foundation, Plaintiff v. Goldman Sachs, Defendant, 422 F.Supp 879, October 27, 1976.  In this decision the Court held:  “For the reasons set above, the Foundation is entitled to rescind the purchase and recover the consideration for the notes plus interest from the date of the sale.”

 

Furthermore, Goldman Sachs signed a consent decree, formally called a Stipulation of Settlement, No. 74-1916 with the Securities and Exchange Commission:  “Goldman Sachs will conduct such investigation as may be required under the circumstances to give Goldman Sachs reasonable ground to believe that such issuer will have the ability to ay such commercial paper as it matures.”

 

But Plaintiff Manfredonia was not content with writing articles.  Plaintiff Manfredonia wrote two letters to Christopher Cox, Chairman of the Securities and Exchange Commission, and sent identical letters to the Commissioners of the Securities and Exchange Commission.

 

In the first letter to Cox, dated 11 January 2008, certified mail 7007 1490 0003 6318 7516, Plaintiff Manfredonia included five articles, including “Goldman’s Obscene Bonuses” and “Goldman’s Toxic CMOs.”  In his letter Plaintiff stated that these articles proved that Goldman Sachs had violated federal securities laws.

 

On 14 February 2008, Plaintiff once again sent a letter, certified mail 7007 1490 0003 6321 1776, to Cox.  Plaintiff stated:  “Likewise in 2008 Goldman Sachs must be held liable for the value of the CMOs, which Goldman had falsely stated were rated AAA.  In 2006 and 2007 Goldman Sachs had knowingly sold falsely AAA rated CMOs to the company’s customers.”

 

“This legal exegesis was possible because, Viola! On 2 May 1974 Goldman Sachs signed a consent decree (formally called a Stipulation of Settlement, No. 74-1916) with the Securities and Exchange Commission.”

 

Now think of this.  Hundreds of billions of dollars of value vanished because Goldman Sachs knew that these CMOs were worthless.  And what did Goldman Sachs do?  Goldman Sachs put its billions ahead of the welfare of the Untied States of America.

 

But the Securities and Exchange Commission has done nothing.  Sorry, nothing.  Cox and his buddies have not utilized Plaintiff’s information.  And the question is why not?  And the answer is because Arthur Levitt instructed the SEC not to utilize any information that Plaintiff Edward Manfredonia may provide.

 

So, let us have all information concerning Plaintiff Edward Manfredonia.

 

But here is something even more egregious- if that is possible.

 

There is the “Crazy Eddie” imbroglio.

 

In September 2005 Plaintiff met a cousin of “Crazy Eddie” Antar in lower Manhattan.  This cousin of Crazy Eddie was accompanied by a friend, who agreed with all that transpired.  And this cousin provided Plaintiff with interesting information.

 

The cousin told Plaintiff that “Crazy Eddie” Antar had hidden tens of millions of dollars in Israeli Banks and was laundering the money into the United States.  The cousin told Plaintiff that “Crazy Eddie” had sent money to his sister for a Bat Mitzvah.

 

This cousin of “Crazy Eddie” also stated that a Syrian Orthodox Jewish attorney had permitted “Crazy Eddie” to keep tens of millions of dollars- as long as “Crazy Eddie” gave up a substantial sum of money.

 

Plaintiff believed that it was a defense attorney, who had permitted Eddie to keep the money.  Plaintiff thought that the Milberg Weiss was the lead plaintiff in the class action against Eddie Antar and the Antar clan.

 

But Plaintiff Manfredonia was wrong.  The lead attorney was Howard Sirota.  And Plaintiff discovered that the Syrian attorney to whom Eddie’s cousin referred was Howard Sirota’s wife and Howard Sirota.

 

So, it is discovered that Howard Sirota, a disreputable class action attorney, permitted Eddie Antar to keep a sum estimated between $30 million and $100 million.

 

Now you might scoff at that.  But Sam E. Antar has confirmed this.  And in so doing Sam E. Antar has stated in his blog that Eddie Antar kept millions and laundered $6 million via an Israeli hospital.  But there is a time discrepancy here.  Plaintiff first spoke of Eddie Antar’s money laundering in an InvestorVillage Post on 24 February 2007.  Sam E. Antar only wrote of this on his blog in June- 4 months later.

 

On 9 April 2007 Plaintiff wrote a letter, certified mail 7005 1820 0004 1210 8872, to Christopher Cox, Chairman of the Securities and Exchange Commission, concerning Eddie Antar’s tens of millions.  Plaintiff stated:

 

“The following information came to me from several members of an orthodox synagogue, which is situated on Ocean Parkway in Brooklyn, New York.

 

“Sam Antar, Eddie Antar, and other individuals involved in the scam of Crazy Eddie were members of this synagogue.

 

“In September 2005 I met a cousin of Eddie Antar.  This cousin informed me that Crazy Eddie was sending money via an Israeli Bank to his relatives.  He told me that Eddie Antar had sent $20,000 to pay for his niece’s bat mitzvah.  If my memory is correct, it was for the daughter of Eddie’s sister.

 

“This individual and other members of the synagogue, whom I knew, told me that members of Crazy Eddie’s orthodox Sephardic synagogue, had been informed by the Antars (Crazy Eddie, his father, Sam Antar) that Crazy Eddie was a fraud.  These individuals then shorted the stock of Crazy Eddie- and made millions.  Also, the Antars contributed millions of dollars to their synagogue.

 

“Members of the synagogue also told me that Eddie Antar had shorted the stock in offshore accounts and that Eddie Antar had made tens of millions of dollars shorting the stock- and that the SEC was unaware of this.”

 

In this letter to Chairman Cox, Plaintiff also stated:

 

“Members of the synagogue also told me that Eddie Antar had shorted the stock in offshore accounts and that Eddie Antar had made tens of millions of dollars shorting the stock- and that the SEC was unaware of this.

……

 

“I have been informed that Sam Antar, who boasts of being a convicted felon knows that Eddie Antar is illegally laundering money into the United States.

……

 

“I have been informed that Sam Antar is also attacking companies on Internet bulletin boards and that his friends have short positions in these stocks.  The purpose of Antar attacking these stocks is so that the stock of the targeted companies would decline.  That is a violation of federal securities laws, so I hope that you shall investigate Sam Antar.”

 

The Securities and Exchange Commission never investigated the laundering of tens of millions of dollars into the United States by Eddie Antar and members of the Antar family.  Hundreds of millions of dollars stolen and the SEC does nothing except keep a lien against Eddie Antar on its books.

 

Due to Plaintiff’s exposure of the tens of millions of dollars illegally kept by the Antar family, on 25 June 2007 Sam E. Antar finally admitted that Eddie Antar had laundered $6 million via an Israeli hospital.

 

It is painfully obvious that not only has Sam E. Antar conspired to defame Plaintiff because Plaintiff has exposed the lies of Sam E. Antar, but Sam E. Antar has lied to the Securities and Exchange Commission concerning the money stolen by the Antar family.  And where is the Securities and Exchange Commission, which should be seizing these assets?  Ignoring Plaintiff’s missives to cover up the SEC’s own incompetence and corruption.

 

Now Americans lost hundreds of millions of dollars.  The Securities and Exchange Commission has judgments totaling in excess of one hundred million dollars against Eddie Antar and his family.

 

So a rational human being might believe that the SEC would seek to seize Eddie Antar’s assets.  But the SEC is not rational.

 

On 6 July 2007 Plaintiff Edward Manfredonia wrote a letter, certified mail 7007 0220 0001 9875 1146, to Christopher Cox, Chairman of the Securities and Exchange Commission.  In this letter Plaintiff stated:

 

“Howard Sirota is friendly with Sam E. Antar.  Howard Sirota sued Crazy Eddie Antar for stock fraud.  Crazy Eddie Antar illegally kept between $30 million and $100 million- more money than Howard Antar collected from Crazy Eddie Antar.  Furthermore, Crazy Eddie Antar, the cousin of Sam Antar, has been illegally laundering the money, which he stole from American citizens into the United States via an Israeli Bank and into the accounts of his relatives.  Laundering money illegally into the United States is a violation of the Homeland Security Act and the Patriot Act.  This is known to both Sam Antar and to Howard Sirota.

 

“Howard Sirota knows that Crazy Eddie Antar was illegally laundering money into the United States in the account of his relatives.  ….

……

“And we must ask if Howard Sirota’s pursuit of Crazy Eddie’s hundreds of millions and Sirota’s condemnation of Crazy Eddie were an elaborate hoax.”

 

Plaintiff Manfredonia has provided information concerning the theft of hundreds of millions of dollars.  Yet, the SEC has refused to collect the money that Eddie Antar owes to the American government- precisely because Plaintiff Edward Manfredonia has informed the SEC that Eddie Antar and his family have in their possession approximately $100 million.

 

What is wrong with the Securities and Exchange Commission that it does not seek to collect hundreds of millions of dollars for which the SEC has a judgment?  Simple! Plaintiff Manfredonia has provided the information and Arthur Levitt has stated that the SEC must not utilize Plaintiff Manfredonia’s information.  Why?  Because Plaintiff Manfredonia’s information proves the corruption of Arthur Levitt.

 

But the most glaring example of the reach of Arthur Levitt involved the murders of Al Chalem and Maier Lehmann.

 

Chalem and Lehmann were murdered in October 1999 and the murder remains unsolved because of one individual:  Arthur Levitt.

 

Al Chalem and Maier Lehmann were running stock frauds out of Harbor Securities, a day trading firm in Manhattan.  Harbor Securities was founded and financed by members of the American Stock Exchange.  Michael Frayler, who pleaded guilty to illegal trading at the New York Stock Exchange, maintained the computer records of Al Chalem and recorded the profits, which Chalem made in his penny stocks.

 

Bill Toll, an Amex seat owner, was one of the original investors.  Al Santamaria, an Amex seat owner, was an investor and a close personal friend of Warren Sulmasy.  Shea Halligan, a former Amex member was second in command to Sulmasy.  Guy Velardi, an Amex seat owner, was the de facto office manager.  Joel Lovett, Vice Chairman of the Amex, was an investor.  Evan Lovett, an Amex member, traded illegally for the account of Gene Neale, an investor in Harbor Securities.

 

Harbor Securities had many problems.  The most important was capital.  Harbor Securities changed clearing firms three times.  First, it was Spear Leeds and Kellogg.  Then, First Options Corp. Finally, PAX Clearing.

 

According to Guy Velardi there were constant financial difficulties. Guy Velardi had a sobriquet on the floor of the Amex.  Velardi was known as the weasel.  Velardi was bestowed this sobriquet because Velardi cheated on trades.

 

One day circa February 1999 Plaintiff Manfredonia telephoned Guy Velardi at Harbor Securities.  Velardi told Plaintiff that Bill Toll had taken his money out of Harbor Securities because Toll did not like what was going on.

 

Velardi opined that he did not like what was going on.  Plaintiff Manfredonia inquired if it were the Italian Mafia.  Velardi said no, that it was someone else.  Plaintiff asked if Joel Lovett knew what was going on.  Velardi replied:  “Yes.”

 

Plaintiff asked if Joel Lovett knew that his son Evan Lovett had traded Amex listed stocks for the account of Gene Neale.  Velardi stated:  “Yes.”  Evan Lovett’s trading was illegal because Evan Lovett was a specialist and then a floor broker at the Amex and the Securities and Exchange Act of 1934 proscribed a specialist from trading for an off-floor account.

 

Velardi also stated that Evan Lovett had some Mob partners is two strip bars.

 

Plaintiff provided the tape recorded conversation to Gary Weiss, a reporter for BusinessWeek.

 

Here is another link between American Stock Exchange seat owners and the Russian Mob.  Feivel Gottlieb, an American Stock Exchange seat owner, was a personal friend of Seymour Zucker, Weiss’s senior editor at BusinessWeek.  Zucker invested on the basis of information that Zucker received from Gottlieb.

 

Gottlieb invested in the stock frauds of Maier Lehmann- and earned millions.  It must here be stated that Maier Lehmann had already signed a consent decree with the Securities and Exchange Commission and was required to disgorge $700,000 of the money that Lehmann stole.  Lehmann was also convicted of insurance fraud.  And Feivel Gottlieb has been investigated by the Nassau County District Attorney for insurance fraud.  Feivel Gottlieb has a new role- from investing in stock frauds, Gottlieb has now become a professional plaintiff in class action lawsuits.

 

Then after the murders of Chalem and Lehmann, Harbor Securities collapsed.

 

But what happened is even more revealing.  $4 million was stolen from PAX Securities by Harbor Securities.

 

In January 2000 Plaintiff Manfredonia was approached by several employees of Harbor Securities.  These employees asked Plaintiff Manfredonia if he could assist PAX in recovering the $4 million that Warren Sulmasy had stolen from PAX Securities.

 

After the debacle of Harbor Securities, Al Santamaria complained that Warren Sulmasy, his good friend, had kept all the money that had been made from the stock frauds.

 

And Arthur Levitt ordered the Securities and Exchange Commission to exonerate Warren Sulmasy.  Levitt ordered the Securities and Exchange Commission not to investigate the theft of $4 million from a clearing house.

 

Frayler was not questioned by the Securities and Exchange Commission- on orders of Arthur Levitt.

 

Levitt covered this up because the American Stock Exchange was involved in the murders of Al Chalem and Maier Lehmann.

 

Plaintiff Edward Manfredonia has been termed an anti-Semite by Sam E. Antar, a convicted felon, because Plaintiff has exposed that the stock frauds of Maier Lehmann were run out of an Orthodox synagogue and that Feivel Gottlieb, an individual known to Plaintiff Manfredonia from the American Stock Exchange, had invested in the stock frauds of Maier Lehmann.

 

Plaintiff Manfredonia has been termed an anti-Semite by Sam E. Antar because Plaintiff knows that Sam E. Antar had not informed the Securities and Exchange Commission and the Federal Bureau of Investigation that the Antar family had illegally kept millions of dollars- and that Crazy Eddie Antar had kept a minimum of $30 million in Israeli Bank accounts.

 

And the Securities and Exchange Commission has continued to the present day to cover up crime that involves the American Stock Exchange.

 

Plaintiff Manfredonia has proved the endemic corruption of the Securities and Exchange Commission.

 

That is why Plaintiff Manfredonia has initiated this lawsuit.  Plaintiff Manfredonia is entitled to his entire SEC files, all information (unabridged and unedited) that has been provided to the SEC; Arthur Levitt’s directive to the Securities and Exchange Commission not to investigate the American Stock Exchange.

 

IV:  REMEDY SOUGHT

 

Plaintiff Edward Manfredonia is entitled to his FBI files, his Department of Justice files, and his Securities and Exchange Commission files- and all material requested in this Complaint.

 

The Freedom of Information Act requires that the FBI, DOJ, and SEC provide Plaintiff Manfredonia with all information.

 

I declare under penalty of perjury that the foregoing is true and correct.

 

Dated:

Edward Manfredonia

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