TAIBBI: SEC Cover-up? - Whistleblower: Agency Hiding Wall Street Crimes/Destroying Records

[kpete]

Shredded Justice
Is the SEC covering up Wall Street crimes? By MATT TAIBBI

Is the SEC Covering Up Wall Street Crimes?

A whistleblower claims that over the past two decades, the agency has destroyed records of thousands of investigations, whitewashing the files of some of the nation's worst financial criminals.



..For the past two decades, according to a whistle-blower at the SEC who recently came forward to Congress, the agency has been systematically destroying records of its preliminary investigations once they are closed. By whitewashing the files of some of the nation's worst financial criminals, the SEC has kept an entire generation of federal investigators in the dark about past inquiries into insider trading, fraud and market manipulation against companies like Goldman Sachs, Deutsche Bank and AIG. With a few strokes of the keyboard, the evidence gathered during thousands of investigations – $8,000 ... "including Madoff," as one high-ranking SEC official put it during a panicked meeting about the destruction – have apparently disappeared forever into the wormhole of history.

Under a deal the SEC worked out with the National Archives and Records Administration, all of the agency's records – "including case files relating to preliminary investigations" – are supposed to be maintained for at least 25 years. But the SEC, using history-altering practices that for once actually deserve the overused and usually hysterical term "Orwellian," devised an elaborate and possibly illegal system under which staffers were directed to dispose of the documents from any preliminary inquiry that did not receive approval from senior staff to become a full-blown, formal investigation...

...........

Many of the destroyed files involved companies and individuals who would later play prominent roles in the economic meltdown of 2008. Two MUIs involving con artist Bernie Madoff vanished. So did a 2002 inquiry into financial fraud at Lehman Brothers, as well as a 2005 case of insider trading at the same soon-to-be-bankrupt bank. A 2009 preliminary investigation of insider trading by Goldman Sachs was deleted, along with records for at least three cases involving the infamous hedge fund SAC Capital.

..................

WAY MORE:
http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes-20110817
http://www.alternet.org/newsandviews/article/651859/taibbi%3A_%22orwellian%22_sec_may_have_been_hiding_big_wall_street_crimes/

[gratuitous]

1. The Justice Department will get right on this!

That whistleblower better watch his back, because the Obama Justice Department doesn't play when it comes to things like this.

[librechik]

5. psst--you forgot your sarcasm smilie

and you mean the DOJ left to Obama by Bush which Obama has made almost no changes to except, seemingly, to tell them to forget about Wall Street and concentrate on intimidating medical marijuana outlets. Obama just hates that weed.

[abq e streeter]

13. I didn't catch it immediately either....post said "the whistleblower better watch his back".

[fasttense]

43. Evidence Smevidnce, the DOJ is capable of ignoring any fact , detail or evidence that involves

a rich criminal. Look how the DOJ so carefully overlooked the bush admitting, in writing, he authorized torture.

This goes beyond corruption. This is a blatant conspiracy. The SEC, DOJ, Supreme Court (though their more like a royal court) and most financial regulators are enablers, co-conspirators and accessories. The rich and powerful can do whatever they want. Let's just hope they don't want your spouse or children.

I wonder if the criminals who own our corporate media will allow this to be talked among their news talkers?

And here is an amazing bit of corruption gone un-prosecuted (from Rolling Stones article):

"SAC (bank) has long been accused of a variety of improprieties, from insider trading to harassment. But no charge in recent Wall Street history is crazier than an episode involving a SAC executive named Ping Jiang, who was accused in 2006 of enacting a torturous hazing program. According to a civil lawsuit that was later dropped, Jiang allegedly forced a new trader named Andrew Tong to take female hormones, come to work wearing a dress and lipstick, have "foreign objects" inserted in his rectum, and allow Jiang to urinate in his mouth. (I'm not making this up.)"

[DirkGently]

47. Think there's a pot farm that needs raiding first.

[xchrom]

2. Recommend

[Divine Discontent]

3. and there's the stinking pile of feces...

that has allowed so much economic calamity to ensue.



http://www.cafepress.com/barackobama12

[Name removed]

4. Deleted message

Message removed by moderator. Click here to review the message board rules.

[JackRiddler]

6. Maybe that's the intent? Distract with bizarro bullshit so that THIS very big story is ignored?

Compare the two threads!

[banned from Kos]

9. Duh! The SEC under Chris Cox was negligent while not watching porn?

NOT breaking news at all.

Meanwhile, Taibbi conveniently leaves out the fact that a Goldman Sachs BOARD member was just convicted! And sentencing should be 12-15 years based on prior cases.

Why was that not pushed into the memory hole to protect him?

The SEC was lax and terrible - no question. But Taibbi is priming his pump again - there must be a circulation drive at RS.

[girl gone mad]

21. This is institutional, dating back to the early '90s.

The SEC apparently knows that they are engaging in CRIMINAL ACTIVITY by destroying these files.

Going after a few small fish in show trials doesn't give the agency a get out of jail pass on criminal conspiracy and coverup charges. This time, these creeps should find prison cells on the other side of that revolving door.

[Phlem]

26. Needless to say

there are scales of understanding everywhere and while you might up on the latest, some here are hearing it for the first time (not me). To me, anything that replaces ignorance with understanding is that much more good for the country as a whole.
We need to be singing and sharing every bit of information against the thugs that we can among ourselves, because together we can and that comes from us, not some sound-bite uttered by the great conciliator.

-p

[DainBramaged]

32. Really? Really.......

Disinformation, the best tool to cause doubt even when all of the cards showing are aces.



A circulation drive? Really?

[JoeyT]

33. He said something mean about Obama once.

Well poisoning is really all they have. Don't take it away from them.

[trumad]

38. yep... there you are...

Just as I thought.

[spooked911]

40. it may be old to you, but I didn't know about this and I suspect it is shocking to most people

about the destruction of documents.

[bertman]

57. "a Goldman Sachs BOARD member was just convicted!" A. ONE. A SINGLE INDIVIDUAL.

The greatest heist in the history of the world and ONE fucking Board member is convicted and you think that means something.


This DOJ is protecting the rotten bastards and sacrificing a few lambs to make it look like they are doing something.


Typical.


The Golden Rule: He who has the GOLD rules.


REC.

[closeupready]

7. Wow, this just seriously stuns me.

:wtf:

[WinkyDink]

8. No! Who could ever keep such secrets? Must be some tin-foil-hat wearers!

*SARCASM*

[Hell Hath No Fury]

10. Well done, Taibbi --

He is one of the best out here. :applause:

[Remember Me]

11. That boy is one fine investigative journalist.

Wish there were a few more of 'em out there.

[truedelphi]

12. The Hill today talks abt Grassley and his desire to

Find out what is going on:

http://thehill.com/blogs/on-the-money/banking-financial-institutions/177255-grassley-asks-sec-if-it-has-destroyed-investigation-files

Anyway, thank you for posting this, Kpete, and a big K & R. Taibbi is one of the few reporters out there that is really telling us the truth.

[Jim_Shorts]

14. OHH Grassley is looking into it, wow I feel a whole lot better now (cough cough)

4 of the commissioners were appointed by W. Bush, who btw believed the SEC should not exist, the chairwoman was appointed by Ronald Reagan.... nuff said

[nashville_brook]

15. reading now! thanks for the link!

[leftstreet]

16. K&R

[Overseas]

17. K&R.

[certainot]

18. are the republican trolls blaming obama yet?

[Mz Pip]

22. GIve it time

give it time. They will if they think it will be to their advantage.

[wildbilln864]

19. k&r! nt

[Firebrand Gary]

20. K&R

[DeSwiss]

23. K&R n/t

[russspeakeasy]

24. Cover up ? I'm shocked ..We better catch the bastards who did

this and give them some money.....:headbang:

[Festivito]

25. How about some in the SEC spend those 25 years in jail. /nt

[Mimosa]

27. K&R Thanks, KPete.

You're always on top of the news. :)

[emilyg]

28. k/r

[hulka38]

29. The SEC needs to go the way of tower 7.

[spooked911]

44. Ironic you say that, since the demolition of WTC7

was partly about covering up financial wrongdoing

[david_vincent]

51. You beat me to it

amazing how quickly everyone seems to have forgotten just what was in building 7, and was completely destroyed when it went down.

[hulka38]

58. The problem with the existence of a captured agency like the SEC

is that the public for the most part thinks it's playing some role in regulating Wall Street. Of course, the reality is it's all part of the big charade.

[glinda]

30. k & R n/t

[DefenseLawyer]

31. In my limited dealings with the SEC

in some federal white collar cases with corresponding SEC investigations, I dealt almost exclusively with people fresh off Wall Street or the Merc who truth be known, probably didn't think the SEC should even exist. Unbelievably slow, uninspired and not at all eager to do their jobs.

[Amonester]

34. Kick. n/t

[Waiting For Everyman]

35. This is a 'must read' article. This is a whole new level of shocking.

No wonder no one has been prosecuted for the tsunami of financial crimes. The law has to apply to everyone, including the uber-rich, or it is a fraud too.

[Octafish]

36. Bush family tradition.

Try to find records of Zapata Offshore, HARKEN Energy, Silverado Savings and Loan.

LMAO if it wasn't treason.

[mrdmk]

37. K & R, for the truth to be told

[pam4water]

39. K&R

[malaise]

41. K & R n/t

[progressoid]

42. "individuals who would later play prominent roles in the..."

current White House? :shrug:

[Locrian]

45. ohhhh!

Any moment now a "strongly worded letter" will go out!

[salin]

46. fire top administrators and bring in Brooksie Borne and Eliot Spitzer. eom

[Hubert Flottz]

48. Just another all out attack by the wealthy 2% and their toadies...

on the security of the United States of America and all it has stood for, since 1776. They figure that the USA is not too big to fail.

[MsLeopard]

49. Our country is run like

the Mafia runs its turf. And I agree the whistleblower better watch his back, the so-called DOJ will be after him like he's about to light up a medical marijuana joint.

[KansDem]

52. Al Capone must be twirling in his grave!

He only had Chicago. These mobsters have the entire world!

...the so-called DOJ will be after him like he's about to light up a medical marijuana joint. Maybe DOJ agents carry "throw-down reefers?" :scared:

[Melissa G]

50. Thanks, kpete!

K&R!

[Duval]

53. K&R n/t

[indepat]

54. What a really neat way to cover up your own possible/actual malfeasance, misfeasance, and

nonfeasance not to mention the possible trails to vast criminal activities in the industry: neat indeed, no it does orwellian proud. :patriot:

[lovuian]

55. yep

the SEC has turned out to be the protector of criminals and thieves

not the American people who pay their salaries

[JackRiddler]

56. Let's keep this one kicked