Al-Braikan versus Madoff
Posted by Ivo Cerckel on July 26th, 2009
The US of A Securities and Exchange Commission (SEC) alleges to be entitled to sue Mr Hazem Khalid Al-Braikan, CEO financier of Kuwait’s Al-Raya Investment Co, and three related entities for making bogus bids to manipulate the stock prices of Harman International Industries Inc and Textron Inc.
The SEC says that Al-Braikan profited from amassing large positions in securities, thereby making millions of US of A dollars in trading profits following the dissemination of false news about the two corporations. (1)
At whose expense did Al-Braikan violate SEC rules?
Who lost money?
This happens barely a fortnight after the SEC’s top inspector, Lori Richards, was forced to leave the agency after a year in which her office and the enforcement division was accused of failing to spot Mr Bernard Madoff’s US dollar 65 billion fraud. (2)
For your information: In the Madoff case, there were victims.
Al-Braikan is suspected of having committed a victimless crime.
Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/
NOTES
(1)
SEC Charges Foreign Trader and Entities in Scheme Occurring Earlier This Week
Agency Obtains Court Order Freezing Several Million Dollars in Trading Accounts
FOR IMMEDIATE RELEASE
2009-169
http://www.sec.gov/news/press/2009/2009-169.htm
SNIP
Washington, D.C., July 23, 2009 — The Securities and Exchange Commission today charged a trader located in Kuwait and three related foreign entities for engaging in an illicit scheme through which they reaped millions of dollars in profits when trading around hoax offers to acquire U.S. companies. The SEC has obtained an emergency court order to freeze more than $5 million in trading profits located in various U.S. accounts in their names.
The SEC filed its charges and obtained the asset freeze within days of the latest hoax offer. The SEC alleges that Hazem Khalid Al-Braikan and the related entities traded around false news of a purported tender offer by a Middle East investment group to acquire Harman International Industries. A phony announcement publicizing the hoax offer was faxed to media outlets on Sunday, July 19, and subsequently reported on the Internet. Harman’s share price climbed more than 40 percent in pre-market trading on Monday, July 20.
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Additional Materials
Litigation Release No. 21152
SNIP
“This case exemplifies the SEC’s swift and surgical investigative skills and our determination to follow the trail wherever it leads,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. UNSNIP
(2)
SEC top examiner Richards to leave agency
Reuters – Thursday, July 9
http://asia.news.yahoo.com/rtrs/20090709/tbs-business-us-sec-richards-7318940.html
SNIP
WASHINGTON – The U.S. Securities and Exchange Commission’s top inspector, Lori Richards, is leaving the agency after a year in which her office and the enforcement division was accused of failing to spot Bernard Madoff’s $65 billion fraud.
No related posts.
July 26th, 2009 at 17:47
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 26th, 2009 at 17:51
Harman’s share price climbed more than 40 percent in pre-market trading on Monday, July 20, says the SEC in note 1 above.
Who has thereby been victimised?
The sellers who sold the share before its price climbed by that percentage?
July 26th, 2009 at 18:00
Efficient-market hypothesis
From Wikipedia, the free encyclopedia
http://en.wikipedia.org/wiki/Efficient-market_hypothesis
SNIP
In finance, the efficient-market hypothesis (EMH) asserts that financial markets are “informationally efficient”, or that prices on traded assets (e.g., stocks, bonds, or property) already reflect all known information, and instantly change to reflect new information. Therefore, according to theory, it is impossible to consistently outperform the market by using any information that the market already knows, except through luck. Information or news in the EMH is defined as anything that may affect prices that is unknowable in the present and thus appears randomly in the future. The hypothesis has been attacked lately by critics who blame belief in rational markets for much of the current financial crisis,[ with noted financial journalist Roger Lowenstein recently declaring “The upside of the current Great Recession is that it could drive a stake through the heart of the academic nostrum known as the efficient-market hypothesis.”
July 26th, 2009 at 18:04
The Efficient Market Hypothesis evolved in the 1960s from the Ph.D. dissertation of Eugene Fama
http://www.investorhome.com/emh.htm
SNIP
Fama persuasively made the argument that in an active market that includes many well-informed and intelligent investors, securities will be appropriately priced and reflect all available information. If a market is efficient, no information or analysis can be expected to result in outperformance of an appropriate benchmark.
“An ‘efficient’ market is defined as a market where there are large numbers of rational, profit-maximizers actively competing, with each trying to predict future market values of individual securities, and where important current information is almost freely available to all participants. In an efficient market, competition among the many intelligent participants leads to a situation where, at any point in time, actual prices of individual securities already reflect the effects of information based both on events that have already occurred and on events which, as of now, the market expects to take place in the future. In other words, in an efficient market at any point in time the actual price of a security will be a good estimate of its intrinsic value.”
Eugene F. Fama, “Random Walks in Stock Market Prices,” Financial Analysts Journal, September/October 1965 (reprinted January-February 1995). One of Fama’s recent papers (Market Efficiency, Long-Term Returns, and Behavioral Finance at the Social Science Research Network in Adobe Acrobat format) is one of the most popular investment downloads on the web.
July 26th, 2009 at 23:00
Kuwait broker facing US lawsuit found dead
http://www.zawya.com/Story.cfm/sidANA20090726T120725ZPUZ39/Kuwait%20Broker%20Facing%20US%20Lawsuit%20Found%20Dead
SNIP
KUWAIT CITY, Jul 26, 2009 (AFP) – A Kuwaiti investment broker facing a US lawsuit for allegedly profiting from fake takeover bids was found dead on Sunday, a security source said.
July 26th, 2009 at 23:03
The bastards, euhr murderers, only wanted “disgorgement” of ill-gotten gains
The SCE said it was seeking “a permanent injunction, disgorgement of ill-gotten gains with prejudgment interest, and financial penalties.”
http://www.zawya.com/Story.cfm/sidANA20090726T120725ZPUZ39/Kuwait%20Broker%20Facing%20US%20Lawsuit%20Found%20Dead
July 26th, 2009 at 23:15
Bastards, murderers, IRS parasites
UPDATE 2-Kuwait financier facing U.S. fraud suit found dead
Sun Jul 26, 2009 2:41pm EDT
http://www.reuters.com/article/companyNews/idUSLQ67135820090726
SNIPS
KUWAIT, July 26 (Reuters) – A brash Kuwaiti financier facing a fraud suit by U.S. authorities was found dead on Sunday in an apparent suicide that sent shockwaves through the Gulf Arab financial sector.
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In papers filed in Manhattan federal court last week, the SEC said Braikan and entities linked to him earned more than $5 million from well-timed trades in the two U.S. firms.
July 26th, 2009 at 23:49
Al-Braikan is the victim of having been suspected by the SEC of having committed a victimless crime.
The SEC did not say that Al-Braikan was making money at the expense of somebody else.
No, the SEC only complaint that he made money.
UPDATE 2-Kuwait financier facing U.S. fraud suit found dead
Sun Jul 26, 2009 2:41pm EDT
http://www.reuters.com/article/companyNews/idUSLQ67135820090726
SNIP
KUWAIT, July 26 (Reuters) – A brash Kuwaiti financier facing a fraud suit by U.S. authorities was found dead on Sunday in an apparent suicide that sent shockwaves through the Gulf Arab financial sector.
+
In papers filed in Manhattan federal court last week, the SEC said Braikan and entities linked to him earned more than $5 million from well-timed trades in the two U.S. firms UNSNIP
This is envy.
Al-Braikan now committed suicide.
The SEC is a murderer.
To repeat;
This happens barely a fortnight after the SEC’s top inspector, Lori Richards, was forced to leave the agency after a year in which her office and the enforcement division was accused of failing to spot Mr Bernard Madoff’s US dollar 65 billion fraud.
AYN RAND LEXICON
verbo “Envy/Hatred of the Good for Being the Good”
http://aynrandlexicon.com/lexicon/envy-hatred_of_the_good_for_being_the_good.html
SNIP
Envy is regarded by most people as a petty, superficial emotion and, therefore, it serves as a semihuman cover for so inhuman an emotion that those who feel it seldom dare admit it even to themselves . . . . That emotion is: hatred of the good for being the good.
This hatred is not resentment against some prescribed view of the good with which one does not agree . . . . Hatred of the good for being the good means hatred of that which one regards as good by one’s own (conscious or subconscious) judgment. It means hatred of a person for possessing a value or virtue one regards as desirable. UNSNIP
Al-Braikan is the victim of having been suspected by the SEC of having committed a victimless crime.
July 26th, 2009 at 23:56
Kuwaiti financier Al-Braikan is the victim of having been suspected by the SEC of having committed a victimless crime.
The bureaucrats at the SEC and their Masters are murderers.
Victimless crime
From Wikipedia, the free encyclopedia
Jump to: navigation, search
http://en.wikipedia.org/wiki/Victimless_crime
The term victimless crime refers to infractions of criminal law without any identifiable evidence of an individual that has suffered damage in the infraction. Typically included are traffic citations and violations of laws concerning public decency, and include public drunkenness, illicit drug use, vagrancy and public nudity.[1] These laws (concerning public decency) are based on the Offence principle, as opposed to laws based on the Harm principle.
July 27th, 2009 at 00:04
To repeat:
This happens barely a fortnight after the SEC’s top inspector, Lori Richards, was forced to leave the agency after a year in which her office and the enforcement division was accused of failing to spot Mr Bernard Madoff’s US dollar 65 billion fraud.
And
Madoff made victims …
July 27th, 2009 at 10:35
Al-Braikan did no harm to any body.
The SEC is not happy with only having killed him.
The SEC may still sue Al-Braikan’s estate, said Jacob Frenkel, a former SEC lawyer now with Shulman, Rogers, Gandal, Pordy & Ecker PA in Maryland.
“It’s not the same as a criminal matter, where the death of the individual means the government folds its case entirely,” he said. “Because it’s a civil suit, the SEC can still continue its efforts to pursue collecting the alleged ill- gotten gains.”
(Al-Braikan Dies in Likely Suicide, Official Says (Update3)
By Zainab Fattah and Maher Chmaytelli
July 26 (Bloomberg)
http://www.bloomberg.com/apps/news?pid=20601087&sid=a4.R9HiI25kc
July 27th, 2009 at 11:52
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