SEC, Saad Group and minimum contacts – Update 1
Posted by Ivo Cerckel on July 25th, 2009
Update 1 links news dissemination with minimum contacts
The US of A Securities and Exchange Commission (SEC) on Thursday charged a Kuwait-based trader and three related foreign firms with making millions of dollars in trading profits following the dissemination of false news about two U.S. companies. (1)
Are we all SEC bureaucrats now? What’s the problem with making millions of dollars in trading profits? Is the SEC jealous?
Do we have to accept exceptions to the freedom of speech?
Is there a conflict between the right to speak freely and other rights held in vastly higher esteem? (2)
Saudi Saad Group conglomerate can be taken to court in the US of A. (3)
Americans, however, can only be taken to court in another US of A state if they “could reasonably expect to be haled into court” in that state, that is, if they have minimum contacts with that other state. (4)
For Saad Group to be taken to a US of A court by the Saudi Algosaibi conglomerate, no contacts are necessary
But since there is no freedom of speech, the US of A Leviathan can do what it pleases and nobody can complain.
By the way, what contacts do that Kuwait-based trader and those three related foreign firms, which are per-secuted by the SEC, have with the US of A?
Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/
NOTES
(1)
U.S. charges Kuwait trader in false news case
Jul 24, 2009 at 08:44
By Sarah N. Lynch
http://business.maktoob.com/20090000008489/U_S_charges_Kuwait_trader_in_false_news_case/Article.htm?utm_campaign=Day-Newsletter&utm_medium=Main-News4&utm_source=Day-Newsletter&utm_content=
(2)
Walter Block, “Defending the Undefendable”, New York, Fleet Press Corporation, 1976. pp. 80-83
(3)
Saudis rocked by $10 bln lawsuit against tycoon
By Paul Handley (AFP) – 6 days ago
http://www.google.com/hostednews/afp/article/ALeqM5hXqyEB2MbAzzE39ydqhxv8Ur461Q
(4)
From Wikipedia, the free encyclopedia
Minimum contacts is a term used in the United States law of civil procedure to determine when it is appropriate for a court in one state to assert personal jurisdiction over a defendant from another state. The United States Supreme Court has decided a number of cases that have established and refined the principle that it is unfair for a court to assert jurisdiction over a party unless that party’s contacts with the state in which that court sits are such that the party “could reasonably expect to be haled[1] into court” in that state. This jurisdiction must “not offend traditional notions of fair play and substantial justice.” International Shoe Co. v. Washington, 326 U.S. 310 (1945).
http://en.wikipedia.org/wiki/Minimum_contacts
No related posts.
July 25th, 2009 at 15:53
Kuwaiti groups deny gains from Harman trade
Published: July 24 2009 23:30 | Last updated: July 24 2009 23:30
http://www.ft.com/cms/s/0/7f26f598-78a0-11de-bb06-00144feabdc0.html
SNIP
On Thursday, the U.S. Securities and Exchange Commission sued Kuwaiti financier Hazem Khalid Al-Braikan and entities linked to him, including KAMCO, saying they earned millions from trades in Harman and Textron after ”FRAUDULENT” TAKEOVER REPORTS sent the shares of the two U.S. companies soaring. UNSNIP
Ivo:
You see, the bureaucrats at SEC are jealous of the gains.
Take over, that’s like marriage.
En mariage, il trompe qui peut.
Nobody who is married can say that her partner deceived her before the marriage.
July 25th, 2009 at 16:22
It’s becoming interesting.
Read my lips
The SEC will “follow the trail wherever it leads”, said Robert Khuzami, director of enforcement. A phoney announcement of the bogus offer for Harman was faxed to media outlets on Sunday, then reported on the internet, pushing the company’s share price more than 40 per cent in pre-market trading on Monday
(SEC pursues Kuwaitis in Harman hoax
By Joanna Chung, Julie MacIntosh, Miles Johnson and Andrew England
Published: July 24 2009 03:00 | Last updated: July 24 2009 03:00
http://www.ft.com/cms/s/0/c4ab879e-77e9-11de-9713-00144feabdc0.html
July 25th, 2009 at 16:37
False-News Scheme …
It’s like a Ponzi … Scheme.
They are good at building Madoff-perceptions.
SEC Charges Trader, Entities In False-News Scheme
JULY 23, 2009, 5:30 P.M. ET.UPDATE:
http://online.wsj.com/article/BT-CO-20090723-721452.html
SNIP
WASHINGTON (Dow Jones)–The U.S. Securities and Exchange Commission Thursday charged a Kuwait-based trader and three related foreign entities with making millions of dollars in trading profits following the dissemination of false news about two U.S. companies
July 25th, 2009 at 16:45
[...] This post was Twitted by IvoCerckel [...]
July 25th, 2009 at 16:45
Will I now also be prosecuted for spreading rumours (False-News Schemes) that Madoff escaped with his Ponzi Schemes from jail?
July 25th, 2009 at 17:19
Kuwait’s KAMCO hits back at U.S. lawsuit
Jul 25, 2009 at 05:39
http://business.maktoob.com/20090000008495/Kuwait_s_KAMCO_hits_back_at_U_S_lawsuit/Article.htm
SNIP
Kuwaiti fund manager KAMCO said on Friday it had made no gain from trades in shares of Harman International Industries and Textron investigated by U.S. regulators. UNSNIP
Ivo:
This is a stupid defence
As I said:
Are we all SEC bureaucrats now?
Do we have to accept exceptions to the freedom of speech?
Is there a conflict between the right to speak freely and other rights held in vastly higher esteem?
Take over, that’s like marriage
“En mariage, il trompe qui peut.”
Nobody who is married can say that her partner deceived her before the marriage.
July 30th, 2009 at 12:14
lack of personal jurisdiction
Deutsche Bank in NY court fight with Algosaibi unit
Wed Jul 29, 2009 1:16pm EDT
* Algosaibi-controlled unit sued by Deutsche Bank
* Dispute over $74.2 million in forex swap
By Grant McCool
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN2927405920090729
SNIP
NEW YORK, July 29 (Reuters) – Lawyers for Deutsche Bank (DBKGn.DE) and a subsidiary of Saudi Arabia’s Algosaibi Group are arguing over whether the bank’s claim for $74.2 million in a foreign exchange swap deal belongs in a New York court, according to court papers.
The civil case against The International Banking Corp (TIBC) was adjourned on Monday until Sept. 8 after TIBC lawyers asked New York State Supreme Court Justice Bernard Fried to “dismiss the action for
lack of personal jurisdiction.”
Ahmad Hamad Algosaibi and Brothers Group (AHAB), a controlling shareholder in TIBC of Bahrain, has separately been sued in the same court by Mashreq Bank MASB.DU of Dubai — a case that has also embroiled another Saudi conglomerate, the Saad Group [SAADG.UL].
Saad Group and Algosaibi are restructuring a huge debt pile to which regional and international banks are exposed. The trouble at the two conglomerates have brought the level of disclosure in the Gulf Arab region into question. [ID:nLL566732]
March 27th, 2012 at 16:56
Trituradora…
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