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SEC Emerges From Carbonite Deep Freeze, Sues Egan-Jones
Just in case one is wondering what is a greater crime in America: vaporizing $1.5 billion in client money or having the temerity to downgrade the US (twice), JP Morgan and Morgan Stanley, here is the SEC with the answer:
- SEC SUES EGAN-JONES, SEAN EGAN ON ALLEGED MISREPRESENTATIONS
Somewhere Jon Corzine is cackling like a mad cow.
More on Egan-Jones' inhuman crime (and PDF)
Egan-Jones Ratings Co. and Sean Egan Charged with Making Material Misrepresentations to SEC
Washington, D.C., April 24, 2012 — The Securities and Exchange Commission today announced charges against Egan-Jones Ratings Company (EJR) and its owner and president Sean Egan for material misrepresentations and omissions in the company’s July 2008 application to register as a Nationally Recognized Statistical Rating Organization (NRSRO) for issuers of asset-backed securities (ABS) and government securities. EJR and Egan also are charged with material misrepresentations in other submissions furnished to the SEC and violations of record-keeping and conflict-of-interest provisions governing NRSROs.
The Commission issued an order instituting proceedings in which the SEC’s Division of Enforcement alleges that EJR — a credit rating agency based in Haverford, Pa. — submitted an application to register as an NRSRO for issuers of asset-backed and government securities in July 2008. EJR had previously registered with the SEC in 2007 as an NRSRO for financial institutions, insurance companies, and corporate issuers.
The SEC’s Division of Enforcement alleges that in its 2008 application, EJR falsely stated that as of the date of the application it had 150 outstanding ABS issuer ratings and 50 outstanding government issuer ratings. EJR further falsely stated in its 2008 application that it had been issuing credit ratings in the ABS and government categories as a credit rating agency on a continuous basis since 1995. In fact, at the time of its July 2008 application, EJR had not issued — that is, made available on the Internet or through another readily accessible means — any ABS or government issuer ratings, and therefore did not meet the requirements for registration as an NRSRO in these categories. EJR continued to make material misrepresentations regarding its experience rating asset-backed and government securities in subsequent annual certifications furnished to the SEC.
The SEC’s Division of Enforcement also alleges that EJR made other misstatements and omissions in submissions to the SEC by providing inaccurate certifications from clients, failing to disclose that two employees had signed a code of ethics different than the one EJR disclosed, and inaccurately stating that EJR did not know if subscribers were long or short a particular security.
The SEC’s Division of Enforcement further alleges that EJR violated other provisions of Commission rules governing NRSROs. EJR failed to enforce its policies to address conflicts of interest arising from employee ownership of securities, and allowed two analysts to participate in determining credit ratings for issuers whose securities they owned. EJR also failed to make and retain certain required records, including a detailed record of its procedures and methodologies to determine credit ratings and e-mails regarding its determination of credit ratings.
The SEC’s Division of Enforcement alleges that Egan provided inaccurate information that was included in EJR’s applications and annual certifications. He signed the submissions and certified that the information provided in them was “accurate in all significant respects,” when he knew that it was not. Egan also failed to ensure EJR’s compliance with the recordkeeping requirements and conflict-of-interest provisions.
The SEC’s Division of Enforcement alleges that, by the conduct described above, EJR willfully violated Exchange Act Sections 15E(a)(1), 15E(b)(2), 15E(h)(1) and 17(a), and Rules 17g-1(a), 17g-1(b), 17g-1(f), 17g-1(a)(2), 17g-2(a)(6), 17g-2(b)(2), 17g-2(b)(7), and 17g-5(c)(2). The Division of Enforcement further alleges that by the conduct described above, Egan willfully made, or caused EJR to make, material misstatements in its Form NRSRO, and caused or willfully aided, abetted, counseled, commanded, induced or procured EJR’s violations of Sections 15E and 17(a) of the Exchange Act and Rules 17g-1, 17g-2, and 17g-5.
The SEC’s investigation was conducted by Stacy Bogert, Pamela Nolan, Alec Koch, and Yuri Zelinsky. The SEC’s litigation will be led by James Kidney.
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Well there goes him being on CNBC ever again.
Just slash the SEC budget by 90%. They don't do anything for American civilians anyway.
if you did that the tranny porn industry would collapse.
This gov't has 2 purposes:
1) Convict those that don't play by the fake rules and refuse to continue the fraud, lies, and cooked bank stats through the MSM.
2) Invade, destroy, and occupy those countries that don't sell oil in USD.
The US has become a JOKE. Full of overweight, lazy, "professional" financial innovative cubicle workers, unproductive and illiterate, whose only means to "get ahead" is through credit. That is a supreme JOKE. There is no economy anymore.
"SEC SUES EGAN-JONES, SEAN EGAN ON ALLEGED MISREPRESENTATIONS"
L.O.F'ing.L.
And just to be sure that everyone gets the point, they sue Egan personally.
Any more questions?
This is SHOCKING!!!
http://vitals.msnbc.msn.com/_news/2012/04/19/11288958-watching-porn-may-...
This is EVEN MORE SHOCKING!!!!!
Egan-Jones gets prosecuted on "material misrepresentations" (trivialities) while the other Credit Ratings Agencies get zippo on national and international mortgage fraud
the SEC are not only defending fraudsters, showing complete contempt for the regulations but they're also bringing the US's biz reputation into disrepute
Fitch upgrades Ford. LOL...
Must keep subprime credit flowing
Good, as there's never been anything reputable about it.
I wanted to give you a greenie but your font prevents it.
Amerika...........fuck yea!
It was all good when our fascist government was imposing itself on the rest of the planet.
Now that it has turned attention to you and me it's not so funny anymore.
was over in the 60's.
"Was over in the 60's." Indeed. Hijacked on November 22, 1963.
S.E.C...?
SCREW
EVERY
CITIZEN
Who watches the watchers?
For fucks sake, everywhere I look this world is a fucking upside down joke. Everything I was taught as a child about how our country stands for goodness, honesty, truth and justice was a bunch of rotten maggots.
I have been lied to all my life and I am pissed off on epic levels.
At least maggots perform a useful service in the food chain.
More than you can say for the SEC.
The extent of regulatory capture in the U.S. would probably shock most people if they really knew. Patrick Byrne and his team of investigators have looked at this for years and its great reading for anyone wanting to see what really goes on with the SEC or with "regulatory" agencies generally:
www.deepcapture.com
"As if often the case, it all begins with Jim Cramer."
I hear you LC Waffen Im totaly ready to be in total dissent and non compliance of it all even if it kills me! Fuck all this! A lab rat wouldnt tollerate it!
I wish I had the balls to not pay taxes and tell the GOVERNMENT to go fuck themselves for destroying this country
Cindy Sheehan is on trial right now for just that. Hope the jury nullifies (right...)
also check out what has happened to the free interplay of ideas in the groves of academe.
http://www.salon.com/2012/04/24/ucla_professor_warned_about_israel_views...
Only works if you're a bigwig crony capitalist, or the Secretary of the Treasury. Little guys like you and me are screwed.
"I have been lied to all my life and I am pissed off on epic levels."
Welcome to the (fight) club.
You think he's got it bad, consider that poor James Kidney guy. Sounds like he's a real pisser.
too bad it's in name only. there sure are a lot of toxins in the financial world that need some straining out and flushing down the toilet (yes jon corzine, i'm talking to you).
>>"...and I am pissed off on epic levels."
You and me both... good thing I do yoga
Kickboxing classes work, too.
Home lobotomy kit, FTW!
Where's Nurse Ratchet when you need her? This country is a cuckoo's nest.
yuri b zelinsky of tacoma md?
I love google
Fuck you Bernanke!
fuck you mary shapiro
she's a dyke? sorry i ment "!"
Mary Shapiro, Ben Bernanke, Alan Greenspan, Janet Yellen, Donald Kohn, Tim Geithner..................it all leads to Rothschilds...Morgans...Chases'....wake up America...........you are a vassal of Judaism. And not the Chomsky, or Jon Stewart Judaism..........no no......I'm talking the Yitzhat Shamir type.
The world remains silent while the honest players are slaughtered and the criminals are rewarded. We're fucked.
Now the SEC can go back to watching tranny porn, thank goodness!
The SEC was booted off of the midget tranny porn sites for being too twisted.
That's why they have to look like they're doing something, for a change.
tranny porn stars need to make money too. you people are so cruel.
I am simply and utterly disgusted.
I honestly fear for the future of ZH at this point.
I'm pretty sure anyone who visits this site has their name added to a list
I'm pretty sure you can say that about this site and a few other's. I keep waiting for the day when I go to the Hedge for news and I see an "This page is no longer available" message on the screen.
Better for TPTB to leave the site alone. The fringies that hang here would be more motivated to go do stuff if they weren't all online posting their daily rants.
Oh, they'll leave ZH alone for the time being. For them, it's a free honeypot to observe. It will only be taken out if it's popularity surpasses HuffPo (or some similar site).
My barometer is watching the visibility of Mises.org (and LewRockwell.com). At some point, Krugman will lose his last follower to them, and MSM ridicule will no longer be effective enough to keep the herd away. Then they'll start attacking it in a last ditch effort to scare the herd away, lest they be tainted as a racist (because somehow freedom is really all about slavery).
Of course, by then we'll all be facebooking from the comfort of our FEMA camp, fully plugged into the Matrix.
It will only be taken out if it's popularity surpasses HuffPo (or some similar site).
Yeah, right.
You're suggesting that TPTB that are secretly running everything will shut down a great source of intelligence after it attracts a large enough group of suspects...er...viewers.
Guess you're not perceiving the incredibly stupid part of that prediction, huh?
Funny you mention that. I work for the government, and visit this site during my lunch break, from a work computer. It has not been banned or black-balled yet.
I am not a desk rider. I am a Sheet Metal Mechanic, and I make a lot less than you probably think I do. My work station is inside fuel tanks on communications aircraft.
Luch is over, gotta go.
SEEYA!
Doubtful, what happens when you remove the steam valves?
When it comes time for TPTB to put the hammer down, they aren't going to be worried about any steam valves. They will shut it all down.
Indeed, at that time even our beloved ZH will be low on our priority list.
Yep thats what really gets me, its obvious there are NO watchdogs out there at all like we're trained to believe there are thru James Bond or Batman espionage stories. They dont exist!
We live in the fucking Matrix. Too bad it's futile to try to wake up the folks in the other pods. Maybe when their food supply is cut off...
The majority of people will only wake up when a boot I literally stomping them in the face.
what do ya expect when your an irishman
http://www.jamesgoodeonthemoney.blogspot.com/2011/07/europe-china-usa-on...
First amendment only counts if you're a connected billionaire.
Didn't the Argentines fine journalists who dared suggest that inflation rates were about those officially stated? The US is ZILCH better than that banana republic.
shoot the messenger. good name for a rock band!
It already is. So is Don't Shoot the Messenger.
This is like KRAMER VERSUS KRAMER!.
Except the Kramers came to their senses and learned valuable lessons about themselves. Then they searched for porn on DARPA.
Well, if there was ever any doubt we now know the SEC's priorities (other than finding the fastest possible internet connection for surfing pron, that is) clear as day.
The Ponzi must be maintained - period. Full stop. And any who dare speak ill of the Ponzi or any of her main players must be immediately branded a heretic and burned at the stake.
But they're looking out for us. Just ask them, they'll tell you.
Ve haf vays of dealing vith peeple such az yourself Mr Egan.
Ve haf Sharks vit freekin' lasers on their heads!
i like your photo!
You ain't half bad yourself, baby.
Was ist los, zees paperz are not in order
One down..
It's not nice to piss off TPTB...
Stupid fucking mirrors with their accurate depictions.
To be fair, he was all, like, downgrading people all the time. Asswipe.
mirrors aren't accurate, they are latterally inverted.
The SEC and Mr. Jones, they got a thing, going on.
Of course they do.
Counter sue for malicious prosecution
That only works when justice was actually served.
Remember, it's a criminal justice system.
It's worse to steal a coke worth a buck from McDs-. A felony...Than to vaporize 1500 million dollars..
http://newsfeed.time.com/2012/04/24/man-arrested-for-stealing-soda-refill/
They did nothing about Madoff or Corzine. But when a ratings agency dares to downgrade the US gov., they leap into action!
Every day, this country is becoming more and more like Argentina.
. . . and they did NOTHING about the bogus AAA ratings on CDO junk which brought the system down in 2008.
Minus the 100x's more attractive, educated, and nicer, women.
Can't vote you up if the first line starts with italics.
Worse than Argentina. At least the Argentinian people had the balls to protest by means of a "cacerolazo" when the powers that be were trying to screw them. The masses of the U.S. are so placated by bread and circuses and drugged into submission, that all they care about is who wins American Idol and when they can buy the new Apple IPhone 6.66.
http://en.m.wikipedia.org/wiki/Cacerolazo#section_2
Corzine should be keel hauled. Instead he will get a fat consulting position.
Nice- they'll give him the death penalty, ban him from the biz..... Hey, just like me!
Pathetic that people can't see this sham for what it is- kill anyone who challenges the Evil Empire......
just something i noticed: even presidents are kept in line. the only two presidential executive orders that were completely overruled by the courts? truman's trying to seize the steel mills during the korean war and clinton's trying to keep permanent strike breakers from being hired by government contractors. see a pattern here?
so it's not really about abortion, drugs, gays, racism, school prayer, guns, .....? hmmm.
The SEC’s investigation was conducted by Stacy Bogert, Pamela Nolan, Alec Koch, and Yuri Zelinsky. The SEC’s litigation will be led by James Kidney.Keep an eye on this gang, they'll soon be moving up in the world.
Good thing they gave the names.
Hell, I thought the investigators were Boss Hogg, Laurel and Hardy, Jenna Jameson and the Keystone Kops, and the litigation to be led by Tamany Hall.
But maybe that's just me....
What a fucking joke. Corzine walks and the only ratings agency worth a dam gets screwed by the administration because of an honest downgrade?? Welcome to the Twilight Zone. This is the kind of stuff that makes you actually root for the downfall of these ass clowns.
Typical fascist state tactics.
Bingo~
“A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murderer is less to fear.”
? Marcus Tullius Cicero
AmeriKa, fuck yeah.
Amerwrecka
And the other one is on it's knees begging for mercy:
S&P Says First Quarter U.S. Public Finance Ratings Stabilized -DJ
The Titanic also 'stabilized' on the bottom of the Atlantic.
And the violins played until the bitter end.
When did the investigation start? Before or after the first downgrade?
Egan should market his firm as the anti-NRSRO. That'll give him even more credibility.
sweet name and pic
Mary's doing the job the WH hired her to do...
What are the consequences if Egan-Jones just refuses to rate USA anymore?
even if egan jones were guilty of this charge - although it has all of the earmarks of a kangaroo court proceding - it proves that the wall street banksters and bush crime syndicate backing corzine engineered this distraction...
this charade is a perfect example of motives and priorities of the agency run by porn peddling criminal mary schapiro....
it proves that the wall street banksters and Obama crime syndicate backing corzine engineered this distraction...
Fixed it for you.
Meanwhile lying ass Moody's et al get a free pass. LMAO!!!
Orwell was right!
The douchebags at the SEC either sat on this information for 4 years or just looked at the applications after the US was downgraded by them. Either way, there is nothing good you can say about these people. They protect criminals, but only the ones who agree to "play by the rules".
They protect criminals, but only the ones who agree to "play by the rules".
"make" the rules.
What we need is more regulatory agencies doing the people's work. After all we have to keep the government's borrowing cost down and we don't want any company with integrety getting in our way. Next up demonization in the press.
Stupid Erroneous Cunts
Safeguarding Egregious Criminality
What a Fucking Joke this country has become. If there were "material misrepresentations" on the application filed in 2008, why didn't Barney Fife and the SEC catch them at the time? The SEC is a material misrepresentation
The DOJ and SEC take orders from the squid.
Because the SEC does not routinely examine applications for registration for compliance -- often a firm's filing will look fine and pass muster but it isn't until an regulatory audit that the firm is found to not be compliant.
Compliance is "20-20 hindsight' many times - often firms don't know that they're doing anything wrong (and they aren't hurting anyone or causing monetary loss but the SEC might fine them $25,000 or more for administrative failures). Repeated administrative failures can put a firm in big trouble w/the SEC. But again...let's compare administrative failures with fraud (Corzine...but I would love to have a week to go through the files on the years of B. Madoff audits, wouldn't you?)
Instead of having a conspiracy dogpile, the question to ask is did Egan Jones misrepresent their having rated ABS? They are accused of saying they rated stuff when the SEC says they didn't.
This shouldn't be too hard to find out about.
Did they do it, but not post it publicly?
Is the SEC splitting hairs?
More intelligent even handed discussion, less hysteria pls...
That said, holy sheeet
I think you are misreading the outrage. Most here want them all prosecuted... It's just that there are bigger fish to fry (much bigger, oink emitting, cash co-mingling/bundling fish) and they started with one of the truth tellers. Hell, did the other ratings agencies get any punishment? What type of system is this?
EJ is probably no dirtier than the rest of the rating agencies. I guess there is a difference between having a coming to Jesus moment and "doing God's work.
EJ is probably no dirtier than the other rating agencies. Guess there must be a difference between a coming to Jesus moment and "doing God's work".
Well, at least they put their dicks away long enough to file some bogus charges... Progress?
Or dildos, in the case of the female, eunuch and trannie cohorts of the staff.
"Alec Koch" say it slow with a US southern accent.
Where is the investigation concerning Moody's and S&P's AAA credit ratings on the billions of dollars of sub-prime mortgage CDO's? Dead and buried that's where. This is outrageous.
Sorry, but irrational exuberence is not a crime!
Can I send gold or dollars to help the cause?
I just looked at the actual court papers. EJR had analysts rating shit that they owned.
That's dirty.
Yes, Moody's and S&P suck cock in hell, but if EJR was perpetrating blatant confilcts of interest, fuck him.
Everyone is dirty. imo EJ isn't being prosecuted for the lying and cheating they did but rather for the toes they stepped on. If they were friends of the squid (like moody's or facebook) they would be able to pay a small fine while admitting no guilt. Play ball or go to jail.
Besides, if they weren't dirty, they'd never been able to become a player.
Question is: why did they do it?
Nice quote:
"If Federal Reserve Chairman Ben S. Bernanke were to flood the markets with a third round of liquidity - another bond-buying program known as QE3 for quantitative easing - "that would definitely trigger a review" of the U.S. rating, Hassiepen said. "And the review, I think, would not be favorable," he told the audience of investors and Fed-watchers at the conference."
Derivatives? QE3?
http://online.barrons.com/article/SB500014240531119046373045764341809496...
http://articles.philly.com/2012-03-06/business/31127608_1_credit-rating-...
http://www.marketthoughts.com/forum/egan-jones-t5756,postorder,desc.html
Tyler,Nie linkage with the mad-cow post.
"Somewhere Jon Corzine is cackling like a mad cow."
Bankster giant Bank of America has joined the effort to take down the Second Amendment and deny Americans the right to own and use firearms.
Kelly McMillan, the CEO of McMillan Fiberglass Stocks, McMillan Group International, and McMillan Firearms Manufacturing, recently wrote on his Facebook page that Bank of America has refused to do business with his companies because they sell firearms. Bank of America admitted its decision was political. McMillan’s response was to immediately stop doing business with Bank of America.
http://www.infowars.com/bank-of-americas-war-on-the-second-amendment/
EVERYONE should stop doing business with BoA
Simple.
Or better yet. Stop doing business with any banks. Bring the system down, get your assets out of fiat currency and paper claims/stock certificates/derivatives/etc. You're part of the problem if you "invest" in the ponzi.
Everyone who appreciates the right to bear arms should stop doing any kind of biz with BofA and when you cancel your account(s) be sure to let 'em know why. Please email friends and family - I'm sharing the McMillan Group story. Everyone needs to know this - and of course it was not widely reported.
Would be awesome if they Downgraded the US quick and in a mother F ing hurry!!!
What crap....The only half-ass legitimate rating agency..If you call the Ponz what it is, that's wrong! , it's illegal!, and you will be persecuted...
If you're in "the game" you can steal a billion or so and get away with it..That's perfectly OK....Besides it "vanished" "disappeared".. No need for the SEC to look into it...Isn't that right Jonny Boy..You fucker...Keep bundling for Obama..
Egan-Jones are "Terrorists"
& I support them
Aye
This is just not right. How much worse does it get?
How is their investigation of MF Global going?....
What investigation?
No one likes a tattletale, if Egan didn't have anything nice to say about the fraud market then they shouldn't have said anything at all...
JNPR going berzerk...
thehell ... did trading actually halt on the rise? That's epic.
What is happening to Sean Egan of Egan-Jones can now sadly happen to any of us. This government is out of control. The SEC is just another political tool. This issue with a ratings agency somehow is more important than MFGlobal losing 1.5 billion and zeroing out client accounts? No indication whatsoever of any wrong doing by Corzine? I mean come on this is not even funny anymore. This reeks of evil corruption.
WTF. That did it right there. Signing a code of ethics -- of any kind -- will get you a room in Gitmo.
Indeed, onto the top of the financial terrorist list do you go,... Mr. Egan. How dare one speak before his turn without oligarchy supervision!
No time or resources to spend on MFG.
Now we know why. Fuck the SEC
SEC is a fucking joke. Of all the potential targets on Wall Street, they pick on the only "honest" ratings agency in the US. You can't make this shit up!
It things like this that remind us how deeply, deeply corrupt the US establishment is. And they want to fine Walmart for bribing a few Mexicans! Jesus, the hypocrisy is really difficult to swallow.
True that. Hmmmm, I wonder how much business is done in Mexico based upon greasing a few palms? I would venture to guess that it is considered "business as usual" and Walmart was simply fitting into the local culture. I don't care about this because we don't regulate Mexico - butt out U.S. and let Mexico deal with it if they have an issue. In the meantime, my kids don't appreciate any stock drops.
Don't worry, interest in Corzine will dry up soon. Nothing keeps American's attention for very long. Fukashima, GOM oil spill, etc etc--who is interested in that stuff now?
Don't worry, all of that will come back into the light... the instant it's too late to do anything about it.