Tag Archives: Ponzi Scheme

Pam Martens ~ JPMorgan And Madoff Were Facilitating Nesting Dolls-Style Frauds Within Frauds

WallStreetOnParade  January 13 2014

russianDollsLast week JPMorgan Chase paid $2.6 billion in fines and restitution, signed a deferred prosecution agreement and walked away from their 22-year involvement with Bernie Madoff’s Ponzi scheme. But according to court documents filed in 2011 by the Trustee of the Madoff victims’ fund, Irving Picard, this was not a simple case of poor risk management at JPMorgan. This was an operation structured like those Russian nesting dolls, with the Ponzi scheme as the outside doll with many more frauds layered inside the big one.

After reading the documents released by the Justice Department in connection with the settlement, the Los Angeles Times asked in a photo caption of a smirking Madoff outside of Federal Court: “Bernie Madoff: Was he part of the JPMorgan ring, or was JPMorgan part of his ring?”

The New York Times had a far more charitable stance, with Floyd Norris writing: “Did JPMorgan Chase deliberately cover up Bernard L. Madoff’s fraud? The documents released this week by federal prosecutors do not show it did, and I suspect it did not.”

Interestingly, the folks in sunny California, 2400 miles away from Wall Street, had an epiphanous moment in that photo caption while the Times assumed an all too common ostrich position when it comes to Wall Street.

According to the Securities Investor Protection Corporation (SIPC), the Justice Department prosecutors who settled the case against JPMorgan Chase used the investigative material from Picard to bring their charges and settle the case. Those court filings show layers upon layers of frauds within the Ponzi scheme.

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Pam Martens ~ Who Was The Mysterious ‘Bank 2’ That Turned In Madoff – To No Avail

WallStreetOnParade  January 9 2014

bernieMadoffAccording to the settlement documents released Tuesday by Preet Bharara, the U.S. Attorney for the Southern District of New York, Bernie Madoff was not content to simply engineer the largest Ponzi scheme under the very noses of the largest squad of regulators in the history of finance, he was simultaneously running a brazen check-kiting scheme under the same noses.

Irving Picard, the Trustee of the Madoff victims’ fund set up by the Securities Investor Protection Corporation (SIPC), provided a great amount of detail on this operation in a court filing against JPMorgan in 2011. This week, U.S. Attorney Bharara added additional details.

According to Bharara, Madoff was writing checks from an account at “Madoff Bank 2” – a bank other than JPMorgan – to Norman F. Levy, a mutual customer of both Madoff’s firm and JPMorgan. Later the same day, Madoff would transfer money from his primary business account at JPMorgan to his account at Madoff Bank 2 to cover the earlier check. In the final leg of the transaction, Levy would transfer funds from his own JPMorgan Chase account to Madoff’s primary business account at JPMorgan in an amount sufficient to cover Madoff’s original check to him.

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Karen Hudes ~ U.S. Not A Super Power And Not Credible Anymore [Video]

USAWatchdog  October 21 2013

Former World Bank lawyer Karen Hudes says the global opinion of America is tarnished.  Hudes contends, “Is the United States a credible super power?  The answer to that is ‘we are neither.’  We’re not a super power and we are not credible.”   Hudes goes on to warn, “The biggest game changer is something that people are just ignoring, and they ignore it at their peril, and that is the creation of a fourth credit rating agency. . . . If they do not get our act together, they will have no choice . . . We are losing our credit rating.”

Hudes, who is also a whistleblower, charges, “There is fraud and corruption from top to bottom in the financial system.”  As far as global central banks are concerned (including the Fed), Hudes claims, “The central bankers have a scam going on.  It’s a Ponzi scheme.  The citizens of the world are paying interest on their currencies. 

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Jeff Nielson ~ Economic Armageddon & The Most Undervalued Assets On Earth [Audio]

SGTbull07  October 6 2013

Jeff Nielson from Bullion Bulls Canada join us for an in-depth precious metals and monetary Ponzi update. We discuss the absurdity of the CFTC declaration that there is no provable manipulation in the silver market, we discuss the near total control of THE ONE BANK which controls nearly 40% of the worldwide economy.

We discuss the accelerating collapse of the Church of Scientology which is an excellent allegory for the near total collapse of confidence in the United States government and the monetary Ponzi scheme known as Wall Street and the Dollar. Jeff’s site: http://bullionbullscanada.com/

Court Officially Declares Bitcoin A Real Currency

RT  August 8 2013

Image from flickr.com user@zcopley

A federal judge has for the first time ruled that Bitcoin is a legitimate currency, opening up the possibility for the digital crypto-cash to soon be regulated by governmental overseers.

United States Magistrate Judge Amos Mazzant for the Eastern District of Texas ruled Tuesday that the US Securities and Exchange Commission can proceed with a lawsuit against the operator of a Bitcoin-based hedge fund because, despite existing only on the digital realm, “Bitcoin is a currency or form of money.”

Trendon Shavers of Bitcoin Savings & Trust (BTCST) was accused last year of scamming customers out of roughly $4.5 million worth of the cryptocurrency through his online hedge-fund. Shavers promised investors a weekly return of 7 percent, according to the federal complaint, but shut-down his site after collecting upwards of 700,000 bitcoins. When the SEC charged Shavers last month with operating a Ponzi scheme, he fought back by saying Bitcoin is not actual currency and can’t be regulated.

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Michael Snyder ~ Not Prepared: 17 Signs That Most Americans Will Be Wiped Out By The Coming Economic Collapse

Economic Collapse blog June 24 2013

The vast majority of Americans are going to be absolutely blindsided by what is coming.  They don’t understand how our financial system works, they don’t understand how vulnerable it is, and most of them blindly trust that our leaders know exactly what they are doing and that they will be able to fix our problems.  As a result, most Americans are simply not prepared for the massive storm that is heading our way.

Most American families are living paycheck to paycheck, most of them are not storing up emergency food and supplies, and only a very small percentage of them are buying gold and silver for investment purposes.   They seem to have forgotten what happened back in 2008.  When the financial markets crashed, millions of Americans lost their jobs.  Because most of them were living on the financial edge, millions of them also lost their homes.  Unfortunately, most Americans seem convinced that it will not happen again.  Right now we seem to be living in a “hope bubble” and people have become very complacent.  For a while there, being a “prepper” was very trendy, but now concern about a coming economic crisis seems to have subsided.  What a tragic mistake.  As I pointed out yesterday, our entire financial system is a giant Ponzi scheme, and there are already signs that our financial markets are about to implode once again.  Those that have not made any preparations for what is coming are going to regret it bitterly.  The following are 17 signs that most Americans will be wiped out by the coming economic collapse…

#1 According to a survey that was just released, 76 percent of all Americans are living paycheck to paycheck.  But most Americans are acting as if their jobs will always be there.  But the truth is that mass layoffs can occur at any time.  In fact, it just happened at one of the largest law firms in New York City.

#2 27 percent of all Americans do not have even a single penny saved up.

#3 46 percent of all Americans have $800 or less saved up.

#4 Less than one out of every four Americans has enough money stored away to cover six months of expenses.

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The Resident ~ How The Economy Is A Ponzi Scheme [Video]

RTAmerica Apr 19, 2013

Bill Gross, Nouriel Roubini, the Wall Street Journal and many others say that our entire economy is a Ponzi scheme. The world’s economy is built on a system that requires ever more people to consumer ever more products. Building an economy that constantly leverages the prosperity of a society’s future is bad enough: the fact that ours might fail sooner than later is cause for great alarm. As fertility rates continue to fall, we are in danger of losing the sheer numbers of consumers it will require to keep our current Ponzi-like economy going. The Resident (aka Lori Harfenist) investigates.