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SEC Officially Above The Law: Prosecutors Decline To Charge SEC Employee For Violating Internal Rules

Tyler Durden's picture





 

Two weeks ago we wrote of SEC compliance examiner (yes, compliance examiner) Steven Glichrist who was arrested for being non-compliant with the SEC's ethics requirement to disclose his financial holdings. "New York-based SEC employee Steven Gilchrist was charged with three counts of making false statements regarding the nature of his personal financial holdings. As WSJ reports, the 48-year-old compliance examiner at the agency, allegedly certified that his stock holdings were in compliance with the agency's ethics rules, when in reality he had held shares of six companies that agency staffers are barred from holding. The SEC is "very disappointed that an employee allegedly made false statements to conceal prohibited holdings after being told by our ethics office to divest." Fast forward to today when we learn that not only was the SEC not disappointed when another SEC employee was found to have flouted virtually the same rules, but that, inexplicably, federal prosecutors decided not to prosecute.

Why did this anonymous staffer somehow get an immunity from prosecution (and how is he or she any different from Gilchrist)? There is no immediate answer but for some hints we go to the WSJ:

The SEC has strict rules on the stocks employees can hold and goes further in its employee-trading restrictions than many other federal agencies. The rules cover a spouse’s holdings as well.

 

The watchdog’s office found evidence that the employee’s spouse owned stakes in entities “directly regulated” by the agency, which are prohibited, according to the report. The employee also didn’t disclose “the vast majority” of his or her spouse’s holdings through required agency channels, which include getting clearance to make trades through a computer system, the report said.

 

The report said there was evidence that the “senior officer” shared non-public information with his or her spouse. There was also evidence that the employee had worked on a matter that involved former employees of a company in which the spouse owned stock. The referral for the investigation came from the agency’s ethics office, the report said.

Ok, so he clearly broke pretty much every rule in the book, and doubly so considering who his employer is. So his actions surely would have been met with harsh punishment right? Wrong.

Federal prosecutors decided not to prosecute a Securities and Exchange Commission employee who showed signs of flouting rules restricting personal securities holdings, according to a new report from the SEC. The decision to not file charges came in the months before prosecutors charged another SEC staffer for similar alleged conduct. It’s unclear if the investigations of the two are related but the report sheds light on recent steps the agency’s inspector general has taken to investigate employee holdings.

 

Federal prosecutors declined to prosecute the employee and the watchdog’s office told the agency’s management of the investigation’s findings in early September, according to the report, which did not specify which particular U.S. Attorney’s office was involved. The agency’s administrative response to the investigation was “pending” as of the end of September.

 

It is not clear what role, if any, federal prosecutors played in the investigation. The SEC didn’t immediately respond to a request for comment on this and whether this probe is linked to the investigation of New York-based employee Steven Gilchrist.

What else is there to say here: the regulator in charge of enforcing a fair and honest "market" picks and chooses which of its employees should comply with the rules that the same regulator is supposed to enforce upon everyone else.

And some still wonder why no rational human being, who manages their own and not other people's money, opts out of this manipulated, canterally-planned, algorothmic casino.

 


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Fri, 12/06/2013 - 15:05 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

ROLL THE FUCKING GUILLOTINES ALREADY

Fri, 12/06/2013 - 15:11 | Link to Comment mofreedom
mofreedom's picture

Let them take us all...to the camps...

http://www.youtube.com/watch?v=T-jXe0x4YdM

Fri, 12/06/2013 - 15:16 | Link to Comment pods
pods's picture

All animals are equal, some are just more equal than others.

 

Fri, 12/06/2013 - 15:19 | Link to Comment smlbizman
smlbizman's picture

keep ur eye on the baltimore sun for updates...than say..that guy is a hedger..

Fri, 12/06/2013 - 15:25 | Link to Comment SWRichmond
SWRichmond's picture

Do what thou wilt shall be the whole of the law.

Fri, 12/06/2013 - 15:31 | Link to Comment knukles
knukles's picture

Time for the return of the Nephilim, the Watchers

"and for fear of him the watchers did quake, and became as dead men."
          -Matthew 28:4

Fri, 12/06/2013 - 15:19 | Link to Comment MissCellany
MissCellany's picture

Especially the hogs.

Fri, 12/06/2013 - 15:25 | Link to Comment dryam
dryam's picture

Makes sense to me.  You do not harm someone (in a non-lethal way) who knows too much on how you operate where it could be used against you.  Business 101, and I never took a business class in my life.

Fri, 12/06/2013 - 15:24 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Tell any of the sheep of this information and they will bleet, "Well, there is always corruption in the system."  Normalcy bias of dealing with horseshit and accepting it.  Bahhhahahahahahaaa

Fri, 12/06/2013 - 15:16 | Link to Comment smlbizman
smlbizman's picture

it is truly time for individual civil disobedience.....start with speed cameras....lets get some shit incited...ive lived most my life..seems like a good time to start giving back a little for your and my kids and grandkids....do we die on our knees , begging like a cunt or upright like proud men?????

Fri, 12/06/2013 - 15:25 | Link to Comment mofreedom
mofreedom's picture

Sweet, sweet sugar...

http://www.youtube.com/watch?v=JW_LvJm_FK0

When the Obama phones first came out, I thought, now there's a depot to storm and loot but then I got involved with the kids and drank too much and went to bed...now I remember I have to leave my kids a future...I never forgot...work gets in the way...

Got Sugar!

Fri, 12/06/2013 - 15:29 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

I am trying in every aspect I can.  In fact, was quoted in the local rag saying this, "I've let Mayor Vicky (Stevens) know I'm not paying the tax," Gandee said. "I'll gladly go to jail for a couple months for it. I need a vacation."  The problem is that I find myself as the lone sheep who then has the sheers come closer.

http://www.news-herald.com/general-news/20130604/perry-village-group-seeking-to-put-referendum-on-ballot-to-restore-income-tax-exemption

Fri, 12/06/2013 - 21:52 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

I didn't see any Dr. Head quoted in that article.

BTW, don't keep us in suspense. Did the referendum make the ballot? Did anyone get a jail vacation? Did Mayor Vicky disappear, her abandoned car found parked near the Fairport Harbor lighthouse?

Sat, 12/07/2013 - 11:51 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

The mob ruled and we got some income back. http://www.news-herald.com/general-news/20131106/election-2013-perry-vil...

Problem is there is a sheet of ice on the roads and they refuse to even salt them as punishment. Fucking government.

Sorry for the delay in responding.

Sat, 12/07/2013 - 15:51 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Outstanding! Chalk one up for mob rule.

I think this is also a good example of why democracy works better on a small scale.

Problem is there is a sheet of ice on the roads and they refuse to even salt them as punishment. Fucking government.

Petty tyrants will be petty. Again, the advantage of small scale government is that if they piss you off too much, everyone knows where they live and it's not far away.

Fri, 12/06/2013 - 18:02 | Link to Comment shovelhead
shovelhead's picture

If I have to die, I'd rather do it on my couch watching TV with a bag of Cheetos by my side.

Fri, 12/06/2013 - 15:14 | Link to Comment prains
prains's picture

"take your KKKronies out to the ball game".......or some such song

 

 

wake me up when there's blood in the streets

Fri, 12/06/2013 - 15:18 | Link to Comment Nothing but the...
Nothing but the truth.'s picture

So some are more equal than others before the law, the untouchables - this is Animal Farm to a fucking tee. Makes a mockery of everything we were taught and the standards we had to uphold.

Fri, 12/06/2013 - 15:05 | Link to Comment Rick Blaine
Rick Blaine's picture

Steven Seagal is going to be furious.

Fri, 12/06/2013 - 15:16 | Link to Comment El Oregonian
El Oregonian's picture

Eff'em... They do not have to obey the laws, so neither do we. FORWARD!

Fri, 12/06/2013 - 15:19 | Link to Comment Sonic the porcupine
Sonic the porcupine's picture

The problem is, the "little people" can't get away with breaking the laws when they're caught.

Fri, 12/06/2013 - 15:27 | Link to Comment El Oregonian
El Oregonian's picture

Not if enough pissed off citizens say SCREW YOU! I'm NOT taking it ANYMORE!!!

At that point, the real SHTF starts.

Fri, 12/06/2013 - 16:26 | Link to Comment Jumbotron
Jumbotron's picture

Even IF you found that number who EVEN know about this story.......hardly any would care. 

There is no shit.....and there will be no fan.

Welcome to Prison Planet

Fri, 12/06/2013 - 15:05 | Link to Comment Joebloinvestor
Joebloinvestor's picture

What is sauce for the goose is aparrantly NOT sauce for the gander.

Fri, 12/06/2013 - 15:06 | Link to Comment Critical Path
Critical Path's picture

"Its a big club... and you aint in it"

Fri, 12/06/2013 - 16:26 | Link to Comment Jumbotron
Jumbotron's picture

"It's a big club.....and you ain't in it"

 

https://www.youtube.com/watch?v=i5dBZDSSky0

 

 

Fri, 12/06/2013 - 15:09 | Link to Comment NOTW777
NOTW777's picture

lawlessness

Fri, 12/06/2013 - 15:45 | Link to Comment NidStyles
NidStyles's picture

"I AM THE LAW!!" ~ Judge Dredd.

Fri, 12/06/2013 - 15:09 | Link to Comment GottaBKiddn
GottaBKiddn's picture

Trickle-down corruption will continue until morale improves.

Fri, 12/06/2013 - 15:25 | Link to Comment JustObserving
JustObserving's picture

Corruption sans consequences is too precious to be allowed to trickle down - only reserved for the 0.1%, just like QE.

In other news:

Over 3,200 people in the United States are serving life sentences without parole for non-violent and often petty offenses – and taxpayers are paying billions to keep them locked up, according to a new report.

The American Civil Liberties Union (ACLU) report, titled ‘A Living Death,’ relays the stories of thousands of people impacted by the United States’ “late-twentieth-century obsession with mass incarceration and extreme, inhumane penalties” which leaves them likely to die behind bars even though they are far from being serious or violent offenders. 

From possessing a bottle cap smeared with heroin residue to working as a middleman in a $10 drug sale, the ACLU says that punishment thought to be reserved for the most violent criminals in the US is also meted out to others - oftentimes for minor crimes.

http://rt.com/usa/life-prison-without-parole-694/

Fri, 12/06/2013 - 17:22 | Link to Comment Crash Overide
Crash Overide's picture

Stop participating in their games and it all falls apart... it's almost over.

Fri, 12/06/2013 - 15:15 | Link to Comment Toolshed
Toolshed's picture

My guess is, the guilty party had evidence of his superiors engaging in the same sort of dirty dealing. I mean really, aren't SEC scum basically banksters-in-training?

Fri, 12/06/2013 - 15:22 | Link to Comment TheFreeLance
TheFreeLance's picture

Ding ding ding! And that is precisely why none of the 2008 Meltdown frauds were prosecuted -- past the first round of questions it would've have led directly to senior Treasury and Fed officials who knew, for example, exactly what Countrywide and Golden West were up to when they pawned them off on BAC and Wachovia in exchange for wink-wink, nudge-nudge treatment and no questions asked access to the discount window. 

This is why I say the rule of law was repealed -- and has yet to be restored.

Fri, 12/06/2013 - 16:31 | Link to Comment object_orient
object_orient's picture

Or he/she is now an informer and got immunity from prosecution. Your explanation is, sadly, more likely.

Fri, 12/06/2013 - 15:17 | Link to Comment ImpotentRage
ImpotentRage's picture

I've been waiting for a chance to throw this out again!

http://www.youtube.com/watch?v=ZNJDV1XoEpw

Fri, 12/06/2013 - 15:19 | Link to Comment Sonic the porcupine
Sonic the porcupine's picture

Just another data point supporting the fact that there is 1 set of rules for the "little people", and another set of rules  no rules for the "big people".

Fri, 12/06/2013 - 15:19 | Link to Comment Dr. Engali
Dr. Engali's picture

Shit like this pisses me off. We get a fucking anal probe by these bitches and if every I isn't dotted and T crossed they ram a hot poker up your ass. But they get away with this shit. Fucking sickening.

Fri, 12/06/2013 - 15:22 | Link to Comment Mad Mohel
Mad Mohel's picture

Fuckin LOL!!!! Write a fucking headline when one of those bitches does get prosecuted. That would be shocking news.

Fri, 12/06/2013 - 15:27 | Link to Comment Herodotus
Herodotus's picture

They can't prosecute Steve.  He knows too much.  He would spill the beans.

The entire government is staffed by criminals from top to bottom.

The few who aren't criminals are too stupid or lazy to learn how to be a crook.

Fri, 12/06/2013 - 15:35 | Link to Comment yogibear
yogibear's picture

That's right, it would be a shock if one of these criminals were prosecuted. 

The just-us system is way past redemption. 

Fri, 12/06/2013 - 15:44 | Link to Comment moneybots
moneybots's picture

"And some still wonder why no rational human being, who manages their own and not other people's money, opts out of this manipulated, canterally-planned, algorothmic casino."

 

Hugh Hendry says buy stocks.

Fri, 12/06/2013 - 15:46 | Link to Comment curbyourrisk
curbyourrisk's picture

Obvioulsy, this guy donated to the adminstration. 

The other guy must have voted Romney.

Fri, 12/06/2013 - 17:13 | Link to Comment Emergency Ward
Emergency Ward's picture

The other guy failed to hedge his bets and donate to both.

Fri, 12/06/2013 - 15:46 | Link to Comment orangegeek
orangegeek's picture

Above the law:

 

Ben, Barry, Yellen, Banksters, Holden, Hilary, Harry Reid, Pelosi.....the list just goes on.

 

And now an SEC employee - big fucking whoop.

 

Barry wants it this way and that's how it's going to be.  Free healthcare anyone?

Fri, 12/06/2013 - 15:56 | Link to Comment ebworthen
ebworthen's picture

"If you like your rule-of-law, you can keep your rule-of-law."

Fri, 12/06/2013 - 15:55 | Link to Comment Goldilocks
Goldilocks's picture

Jim Carrey "Really!" (from Ace Ventura)
http://www.youtube.com/watch?v=D2MPoqqzwdY (0:12)

Fri, 12/06/2013 - 15:56 | Link to Comment ebworthen
ebworthen's picture

U.S.A.

BANANA

REPUBLIC

Fri, 12/06/2013 - 17:42 | Link to Comment Hail Spode
Hail Spode's picture

They can't change the standards now or it wouldn't be fair.   That is why they have to let the insiders go and prosecute the little guy for triflings, because that is the standards they have been using.

Fri, 12/06/2013 - 18:00 | Link to Comment akarc
akarc's picture

"The SEC is "very disappointed that an employee allegedly made false statements to conceal prohibited holdings after being told by our ethics office to divest.""

Well it's a damn good thing the SEC is disappointed. Shame on those bad employees. Now everybody, back to work, I mean ripping off, I mean............

Fri, 12/06/2013 - 18:28 | Link to Comment SmittyinLA
SmittyinLA's picture

"six companies that agency staffers are barred from holding"

 

What is the criteria for "barring" staffers from holding a company?  .....and what 6 companies?

Fri, 12/06/2013 - 18:31 | Link to Comment SmittyinLA
SmittyinLA's picture

the entire federal bureaucracy is a Socialist pig farm, we need a "cultural revolution" in larger scope than China had.

Fri, 12/06/2013 - 18:50 | Link to Comment shovelhead
shovelhead's picture

Senior Officer...

Get it?

Fri, 12/06/2013 - 19:02 | Link to Comment CharliePrince
CharliePrince's picture

only people  not connected    with the sec  should be prosecuted

 

all employees  are free to commit fraud and any other money making schemes

 

bribes are ok.....life is good in government

Fri, 12/06/2013 - 20:18 | Link to Comment Angus McHugepenis
Angus McHugepenis's picture

Who fucking cares. If you play in their arena by their rules you're screwed. Be a spectator and watch them eat each other alive when they realize only they are playing the game.

Fri, 12/06/2013 - 22:12 | Link to Comment jtg
jtg's picture

So what do you think will happen to us when we break a similar law? Oh, I forgot, we are not members of the sociopathic elites that rule over us serfs.

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