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April 14, 2017


Fragos Knows Where The Skeletons Are Buried On Wall Street


Frances Fragos Townsend knows where the skeletons are

Fragos also empanelled a federal grand jury. And what occurred afterwards –as in no action– proves that the corruption of the United States is worse than that exposed in Wikileaks.

By Edward Manfredonia

December 30th, 2010


[Policing Wall Street]

I continue to recount my experience as a Wall Street trader years ago to demonstrate that the SEC will never be able to police the crimes there.

On September 13, 1993 I left the office of United States Attorney Frances Fragos at One Saint Andrew Plaza after a meeting.  At this meeting Fragos and FBI Special Agent Joseph Yastremski questioned me about the stock fraud, PNF, and the insider trading case known as Motel 6.

During my meeting with Fragos, she told me that the Securities and Exchange Commission had informed the Amex that members of the Board were being investigated by the FBI.  Even worse according to Fragos, the SEC upon the orders of Levitt had passed copies of my letters to the American Stock Exchange in order to inform the Amex of what I knew and thus to forestall a criminal investigation. Fragos Townsend today is of course a well known national security and terrorism consultant who appears regularly on CNN and a former Homeland Security Advisor to George W. Bush.

I learned that Al Avasso, a convicted felon and the architect of the stock fraud PNF, had made illegal payments to Steven Lister, Senior Vice President of Compliance at the Amex, and to Robert VanCaneghan, a member of the Amex Board.

I then dropped a bombshell.  I told Fragos that in 1992 Avasso had told me that he had paid off a postal inspector.  But even worse Avasso had asked me if I would set up a hit on someone who was responsible for Avasso’s permanent ban from the securities industry–I knew that person.

This is the way it was supposed to occur.  I would finger that person to some of Avasso’s Mafia friends and this corrupt postal inspector.  The postal inspector would show that person his badge and speak to him.  Then Avasso’s friends would execute the hit and take him in a car.

Fragos wanted to know the name of the postal inspector.  I told her that I did not know his name and that I had refused to go along with the hit.  When Avasso asked me again, I refused.

I left Fragos in the early afternoon.  I went to the Blimpie’s, which was located on Trinity Place and across the street from Two Rector Street, where the offices of Frost & Sullivan had been situated. As I was eating, Jeff Green, who later pleaded guilty to insider trading in Motel 6, entered and approached me.

Green and I talked about the investigation into Motel 6 and Green told me that he would probably be banned and fined- but there would be no prison time for anybody.  Green told me that Levitt had limited the scope of the investigation and did not want it to spread to the Amex and Bear Stearns- precisely what Joseph Greenwald, who also had traded Motel 6 on inside information, had told me.

But then Green dropped a bombshell.  Green told me that Robert VanCaneghan had admitted to the Board of the Amex that he had indeed sexually assaulted his female employees, when confronted with the evidence.  VanCaneghan had promised he would never again commit such assaults.

Green told me that Joel Lovett, Vice Chairman of the Amex, had told this to Greenwald and him in the offices of Wagner Stott.  (The firm of J Streicher & Co. cleared its options trades via Wagner Stott.)  Green also told me that Lovett had said that no one would go to prison in the insider trading scandal, but that they would be permanently banned from the securities industry.

So when Green began to eat, I excused myself.  I then went to a pay telephone and I made a quick telephone call to Fragos.  I told her what had transpired. Fragos wanted to know to whom VanCaneghan had admitted the sexual assaults.  I told her that Green had only told me that Lovett knew.

I learned that VanCaneghan had admitted the assaults to the Board of the Amex.

I went to the offices of Wagner Stott at Two Rector. There I met Al Sedita, Vice President of Wagner Stott.  Sedita told me that Lovett had come up to the offices and had threatened to have him fired, if he permitted me to come to the offices.  Lovett told Sedita that I knew enough to shut down the Amex.

Sedita was upset.  He told me that he did not like this and that he felt that VanCaneghan should be in jail but that according to Lovett, Arthur Levitt demanded that the rapes be covered up.  Sedita stressed that he would be fired. He told me not to come to the office again.

I relayed this information to Fragos. And on September 15, 1993 Yastremski went to the offices of Steven Lister and demanded the records of the stock fraud PNF.

Fragos also empanelled a federal grand jury. And what occurred afterwards –as in no action– proves that the corruption of the United States is worse than that exposed in Wikileaks.

Manfredonia, a former trader, was tossed from Wall Street when he became a whistleblower.

“Speaking Truth To Empower.”


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