wendling_r

Gone Nowhere in 8 Years

Yes they were indited, but all charges were dropped and no punishment was put in place. See my web site for the final ruling.

Richard


On Sep 12 03:21 PM untrusting investor wrote:

> The market have been manipulated for many decades, just like they
> are now. It is just much larger scale now and moving into the billion/trillion
> dollar ranges from the million/billion dollar ranges previously.
> See for example the article from 2005 below.
> ======================...
> quote.bloomberg.com/ap...;sid=as_5ShkZcKx4&...
>
> April 12, 2005 (Bloomberg) -- Fifteen New York Stock Exchange specialists,
> the traders responsible for keeping an orderly market on the world's
> biggest stock exchange, were indicted for fraudulent and improper
> trading.
>
> In the biggest federal crackdown on illegal trading at the NYSE since
> 1998, the U.S. Attorney's Office in Manhattan will announced the
> charges this morning with representatives from the FBI and Securities
> and Exchange Commission. Indicted are current and former employees
> of firms including LaBranche & Co., Van der Moolen NV, Bear Wagner
> Specialists, Goldman Sachs Group Inc.'s Spear Leeds & Kellogg
> and Banc of America Specialist.
>
> The charges stem from a two-year probe of specialists, who match
> by and sell orders on the floor of the exchange and trade for their
> own accounts. The NYSE's seven specialist firms last year agreed
> to pay $247 million to settle allegations that they profited on trades
> at the expense of their customers.
>
> ``To see criminal activity on the floor is really astounding,'' said
> Jacob Zamansky, a New York lawyer who represents investors in arbitrations
> against brokers. ``This occurred under the watch of the NYSE. It
> raises questions about whether the NYSE can properly supervise the
> people there.''
>
> If convicted, the specialists face a maximum of 20 years in jail
> on each count of securities fraud and fines of $1 million to $5 million.
>
>
> ``These defendants broke the rules repeatedly,'' U.S. Attorney David
> Kelley said at a press conference.
>
> Indicted Specialists
>
> Former Van der Moolen Senior Managing Partners Joseph Bongiorno and
> Patrick McGagh Jr., Frank Delaney of Bear Wagner and LaBranche's
> Freddy DeBoer are among the specialists indicted.
>
> The NYSE's other specialist firms are SIG Specialists Inc. and Performance
> Specialist Group. The exchange first said in April 2003 that it was
> investigating the firms to determine whether they illegally traded
> stocks ahead of their clients.
>
> Kelley, the SEC and the NYSE have been investigating individuals
> in connection with the violations.
>
> In a statement, Kelley said the indicted specialists violated federal
> securities law ``through patterns of fraudulent and improper trading
> over approximately four years.'' He didn't name the individual specialists
> or the firms they worked for.
>
> The U.S. Department of Justice first targeted illegal trading on
> the NYSE in 1998, when it charged eight floor brokers and two executives
> of Oakford Corp.

Closing Update for Friday, July 24: Salvaging a Gain

You are wrong in your assessment of the market today and recently. Specialists and their system want the market to move higher on light volume as it has done in recent weeks. This allows them to manipulate stocks higher without the participation of the average investor because they are out on summer vacation and not paying attention to their investments. Then when September comes around volume will increase dramatically along with the advance of the DJIA. This will indicate the end of the current market rally as those same specialists will be selling out their personal trading accounts and then selling short preparing the market place for the sharp decline I am expecting in the later part of the year.

For more information on how the system is able to manipulate the market as it is now and more information on what I expect in the DJIA click on the website attached to this posting and read the recent market reports on the Dow.

You will be amazed on how the system works.

Richard W. Wendling