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Commentary - Aug 18, 2006 - Printable Version
- Once a Liar, Always a Liar
by Mark Faulk
From now on, don’t believe a word of anything the SEC tells you. Chances are, they’re lying. In a courtroom, they call it “impeaching the witness,” Attorneys refers to it as the “Once a liar, always a liar” scenario. Over a year and a half after the story of a little company called Global Links Corp. was first reported by the late Gayle Essary at FinancialWire.net, Dave Patch of investigatethesec.com has exposed major fraud on Wall Street, and a blatant cover-up by the SEC. In that story, which was cited by Senator Bob Bennett in a Senate Banking Committee hearing in March of 2005, where he questioned then SEC Chairman William Donaldson about naked short selling, 50 million shares were traded in the first two days after a single shareholder, Robert Simpson, bought every single share. In fact, another shareholder, Paul Flotos, bought 15% of Global Links stockafter Simpson bought 100% of the company, and both shareholders registered their purchases with the SEC, claiming 115% combined ownership in a company that was still trading tens of millions of shares on a daily basis.
Now, Dave Patch has received, through the Freedom of Information Act, SEC records confirming that over ten million counterfeit shares of Global Links stock were dumped into the market immediately after the company did a reverse split and reduced the total share count to just over one million real shares. The brokers sold millions upon millions of fake shares, and the SEC covered it up. In fact, almost six million shares still remained undelivered as of the end of 2005. In classic cover-up mode, by calling the counterfeit shares “long fails” instead of “short fails,” the recent list only shows 6,800 shares short for Global Links. So…only 6,800 counterfeit “short fails,” but millions of “long fails.” It's pure distortion of the facts, it's disinformation, sleight of hand. A fail is a fail is a fail.
I repeat: Don’t believe a word of anything the SEC tells you.
There are several ways that an attorney can discredit an individual in a court of law. According to Wikipedia:
Bias-- The individual is biased against one party or in favor of the other.
Inconsistent Statement-- The witness has made two or more conflicting statements. By exposing his conflicting statements, you reduce his credibility.
Character-- Show that the witness has a community-recognized reputation for dishonesty.
Prior Criminal Acts-- If the witness has committed any crime involving dishonesty (i.e. larceny-by-trick, embezzlement, fraud, etc.) then the prior conviction is admissible under every circumstance. The judge cannot refuse this evidence because it is so probative of dishonesty.
Bias? Conflicting statements? A reputation for dishonesty? Prior criminal acts?
Try “all of the above.”
The SEC has been caught covering up fraud, plain and simple. And if they’ve done it once, chances are they’ve done it a thousand times. Once a liar, always a liar. If there’s any justice left in America whatsoever, Congress will launch an immediate investigation into this scandal, and the media coverage will trigger a public outcry that will topple the hierarchy from Wall Street to Washington.
But what about the major media? Will they jump all over this story and expose the SEC and the Wall Street elite who are robbing shareholders blind? Will NBC, CNBC, CBS, AOL/Time Warner, or FOX protect America against the corruption on Wall Street, or are they somehow also “biased against one party or in favor of the other?” For starters, the New York Stock Exchange sits on the board of directors of every one of those news organizations, and all of the top brokerage firms and investment banks fill out the majority of the remaining seats.
In short, every single major news organization in America is controlled by Wall Street.
The only mainstream writer to discuss the Global Links story was Carol Remond, and in a July 26, 2005 article called Global Links Corp: The Real Storythe Faulking Truth discredited her as a liar who printed quotes that company never made, and who dismissed the 60 million shares traded in two days (when NO shares should have been available for sell at any price) as brokerage firms legally shorting the stock to “instill liquidity in the market.”
How do you use the excuse of instilling liquidity in the market for a stock that DOESN’T HAVE A SINGLE SHARE FOR SALE?
This is the SEC’s own response to "Does NSCC's stock borrow program create counterfeit shares?":
"NSCC's stock borrow program, as approved by the Commission, permits NSCC to borrow securities from its participants for the purpose of completing settlements only if participants have made those securities available to NSCC for this purpose and those securities are on deposit in the participant's account at DTC."
Over a year ago, we put it this way: “Where did those brokers expect to find the shares to cover those trades, since they DIDN'T EXIST? Answer: they didn't expect to cover those trades, just as they haven't covered trades in thousands of other companies' stock for years. They expect the SEC and DTC to just let them get away with criminal counterfeiting, because THAT'S HOW IT'S ALWAYS BEEN.”
And now, Dave Patch has the evidence in his hands that makes that statement look prophetic. THEY STILL HADN’T DELIVERED THE MAJORITY OF THOSE SHARES A YEAR AND A HALF LATER, AND THE SEC KNEW IT, AND COVERED IT UP. In the words of Bud Burrell, “the Dave Patch article makes this ‘game over.’ This kind of brutal arrogance is nothing more or less than simple treason.”
In Bob O’Brien’s article Dave Patch Exposes SEC Colluding With Wall Street To Defraud Investors, O’Brien facetiously says “I suppose that it is possible that the SEC ignored Bennett's instruction to Donaldson to look into Global Links and figure out what was going on,” and follows it with the comment “It isn’t remotely likely.”
The SEC knew, they were fully aware of the Global Links situation, and they covered it up. In fact, while they allowed brokers to sell millions upon millions of counterfeit shares, they were busy investigating Global Links - trying to discredit the company itself. In our June 26, 2005 article, company representative Pat Donahoo said,
"At present, the Company is cooperating with SEC requests for information. All of their requests, thus far, seem to be directed at potential company wrongdoing, and nothing has been mentioned of any victimization of the company or its shareholders. It feels like they would rather find any way to blame everything on somebody else, rather than accept responsibility for something that should never have happened. It’s a pretty scary feeling for a country where freedom is supposed to be a reality!”
Why did the SEC go after the company instead of following up on Senator Bennett’s request to investigate evidence of naked short selling in the Global Links case?
Why didn’t they investigate Etrade, who was singled out by Wells Fargo Bank as the main culprit in the failure to deliver shares to investors trying to get their certificates?
Why didn’t they go after the DTC, who allowed millions of shares to be traded when NOT ONE share was available in the NCSS stock borrow pool?
Why didn’t they investigate Carol Remond, who lied about Global Links in her articles, and clearly slanted her coverage to cover up the fraud committed by Wall Street?
Why did they fail to even respond to numerous investor inquiries about failures to deliver stock in certificate form? One shareholder was told by his broker that his certificates “somehow got ‘stuck’ in the system,” and another was informed that “the stock had a chill on it.”
This reeks of a massive cover-up, one that extends all the way from Wall Street to the SEC, and one that implicates those in Congress who have allowed it to continue unchecked. Wall Street robbed America, the SEC covered the tracks, and the media concocted the alibis. And Congress turned a blind eye to the entire robbery.
One more time, for good measure: If it’s happened once, then it’s happened a thousand times.
Once a liar, always a liar, and that’s the Faulking Truth.
At the Faulking Truth, we only wish our good friend and fellow advocate Gayle Essary, editor of Investrend, was still here to see the results of his efforts, to watch a cause that he fought long and hard for come to fruition. He supported our publication from day one, and was fighting the fight for honesty and integrity in our financial system when most others weren’t even aware that a problem existed. I once promised Gayle that after this battle was over, after we exposed the greed that threatens the very foundation of our country’s wellbeing, that I would throw a party for everyone involved. The party’s still on, and when we’re all gathered in one place, we’ll drink a toast to one of the heroes of this saga. So here’s to you, Gayle Essary, you’ve earned a place in history.
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To read more about the issue of stock counterfeiting, go to:
http://www.faulkingtruth.com/
http://www.investigatethesec.com/
http://www.thesanitycheck.com/
http://www.financialwire.net
http://www.americaneedstoknow.com/
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