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seriously, thank you for what you are doing
I like your move to sniffing out whistleblowing.
In the past few years as absurd amounts of money and influence have been showered on the Wall Street elite, many have become pseudo celebs. The wealth and influence of Hollywood elite has always been neutralized by the paparazzi and gossip columnists like Perez Hilton. What is needed is a tongue and cheek ego-check pink pages for Wall Street titans. Casual dalliances and screw jobs can be reported. Ghastly fashions can be discussed. Etcetera.
Thought I'd just cross-post this paper to here for those who believe that closing price manipulation on trading alone is perfectly legal or that there can be nothing done about it...
We quantify the effects of closing price manipulation on trading characteristics and stock price accuracy using a unique sample of prosecuted manipulation cases. Based on these findings we construct an index of the probability and intensity of closing price manipulation. This index can be used to study manipulation in the large number of markets and time periods in which prosecution data are not readily available.
According to the paper, such manipulation IS illegal. The entire paper is download-able on this site.
The first conviction that comes from this will give ZeroHedge a better enforcement record than the SEC.
I have no faith in our government to serve the people. Wall Street = Main Street sums it up perfectly in that regard.
When I first started reading I never imagined you would/could take it this far. Now I think you are one of the last hopes we as citizens of this kleptocracy have left.
if i win the lottery im donating 2mil to zero hedge and 2mil to denninger to dismantle this crook machine.
3 August 1999
The SFC's Successful Prosecution for Market Manipulation
The Securities and Futures Commission (SFC) announced today that it had successfully prosecuted Mr. LAU Kin Chung for manipulating the share price of South East Asia Wood Industries Holdings Limited (SEA Wood). Mr. LAU pleaded guilty before Ms Pang Ip Tsui-Yuk at Western Magistracy to a total of 4 summonses in relation to his employment of improper trading practices during the period April 1998 to July 1998 and he was fined $80,000 and ordered to pay costs of $50,000 to the SFC.
An investigation launched by the SFC into unusual price movements in SEA Wood shares found that Mr LAU, the Vice President of SEA Wood, since the listing of SEA Wood shares in September 1997 to March 1998, had by April 1998 accumulated a large number of SEA Wood shares. However, since September 1997 the price of SEA Wood shares had declined from about $2 to $0.38 by March 1998. In order to protect the value of his investment and arrest this decline in price, Mr. LAU conducted a series of trades in SEA Wood shares with the intention of creating a false and misleading appearance of active trading in the said shares. Such trading was in contravention of section 135(1)(a) of the Securities Ordinance.
As part of this scheme Mr. LAU also bought and sold SEA Wood shares from and to himself through his trading accounts maintained at 2 different brokerage houses. These fictitious transactions involved no change in beneficial ownership and were in contravention of section 135(3) of the Securities Ordinance.
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