Well, the SEC is a scam, most definitely. As Lord Elon Musk puts it, the SEC stands for:
Well, on ‘official’ government papers, the SEC stands for the U.S. Securities and Exchange Commission. They’re supposed to help do something with the law with regards to Stock markets, exchanges, and other bullshit money holes.
Basically the SEC bullies businesses and people into compliance, unless you’re like a politician or something. The SEC definitely does not investigate and become a gate keeper allowing people to use insider information to short sell companies to allow corporate mergers to happen at a cheaper cost. That’s the whole, ‘Shortseller Enrichment’ bit.
The Beginning of the SEC
Back in the day, when people didn’t give a shit about anything, we had a thing called ‘The Great War’, it was so great that we had another one. We then think of these two great wars and called them World War I and World War II. There was no point in mentioning this, by the way.
Well, in between these great wars, we had a bunch of nice gentlemen that found out they could make more money in the stock market than in racketeering. These Fine Gentlemen used their experience in definitely-honest book keeping, account ledgers, and swindling people to help make more of a difference. By difference, I mean gains.
They ran a lot of insider trading, speculations, and pump and dumps.
One Notable Insider-Trading expert or Guru, if-you-will, is Joseph Patrick Kennedy. This guy was an outstanding Trader. Joe here also Invested in land and reputable businesses. Businesses like bootlegging, which is making alcohol during the prohibition era. You know, illegally.
Joe here, got rich. Because anything illegal makes a lot of money. Just think about it.
Joe worked in odd jobs for important people doing important things. Eventually Joe found a place inside the heart of wall street. This is where the fun really begins. You see, the Stock Market was a lot like the wild west, before the SEC, there weren’t a lot of rules and regulations. Much like Bit Coin, there were scammers and all sorts of foul play.
So Joe is attributed to have “an exquisite sense of timing” and got out of the stock market with his wealth in-tact, this was during the Stock Market Crash of 1929. Joe later invested his money into real estate again, made more money, then helped fund a presidential campaign. Putting a New Lord and Savior, Franklin D. Roosevelt in power.
Lord Roosevelt, then made a thing called the ‘New Deal’ in 1934 to help stifle the whole economic collapse and great depression that everyone is complaining about. The New deal included the Securities Exchange Act which founded the SEC. Who else to appoint in power than the guy that help fund your Campaign? That’s right, Joe got that job as Chairman of the SEC.
1934 President Roosevelt appointed Kennedy chairman of the Securities and Exchange Commission. A colleague asked Roosevelt why he had appointed “such a crook”. Roosevelt replied: “Takes one to catch one.” With his inside knowledge of the system Kennedy was able to outlaw those speculative practices that had made him rich but had contributed to the Wall Street Crash.–Spartacus Educational
So the founder of the SEC started outlawing the practices that he did himself. You know, ‘do as I say, not as I did’. Well, if you’re the guy making the laws and regulations, and enforcing them, whose going to stop you from further insider trading?
“Naw, the SEC wouldn’t be corrupt off the get-go” I hear you, but they hired a crook from the get-go. Don’t worry, Joe had a son that eventually became the President. You know, good ole Lord John F. Kennedy or JFK for short.
The SEC Now in General
The SEC nowadays does great honest efforts of not being at all corrupt. Definitely not working under the thumb of any large corporate interests to bully smaller companies into compliance or regulations.
Like any great things about the government, the SEC can sue you. Yea, there’s actually an archive of the SEC filing lawsuits against people and corporations. You know, because the government law is not a criminal offense, these regulations are civil infractions. And if your feelings are hurt, then sue them.
In 2019, they issued 862 enforcement actions.
The SEC, on paper, is responsible for protecting investors and protecting market integrity. So they take action against companies reporting false or inaccurate financial information.
You know, financial information like lying about business practices.
For example, Facebook was hit with a $100 million civil fine because they described the misuse of user data as hypothetical when they knew user data had been misused-CNBC
Facebook and the SEC settled outside of court but Facebook was also facing some other fines from the FTC, about a $5Billion dollars worth.
the Securities and Exchange Commission (SEC) announced a settlement with Facebook over claims the company made “misleading disclosures regarding the risk of misuse of Facebook user data.” The company announced it had agreed to pay a fine of $100 million but did not confirm or deny the claims.-ABC
Thus the SEC can bully even the large corporations into paying a fine for issues that don’t directly implicate the business uses of financial instruments. Facebook, or other businesses, only have to do something that would maybe affect stock price and the SEC can get butthurt and sue.
The SEC is supposed to keep traders, corporations, and people honest. However, there are arguments that they’ve been very lax about actually enforcing the regulations, unless you tweet something remotely wild like Lord Elon.
The SEC is full of lawyers that do a great job of turning a blind eye and allowing corruption to happen. You know, what good are lawyers if they don’t practice breaking the law? That’d be like a carpenter that doesn’t saw carpents or wood or whatever.
The SEC Malpractice
It’s alright though, the SEC won’t go after people that have too much “political clout” or “powerful political connections”. Yea in 2005, they fired former SEC lawyer, Gary J. Aguirre for trying to pursue an insider trading case against a John J. Mack. The SEC didn’t want to go after someone who funded the winning presidential campaign, you know, politics.
Mr. Aguirre tried to complain but then was fired. He just received a pay raise four months prior, and then was fired for no reason. Suspicious, much?
What was a lawyer to do when they get fired? Oh, yea, He sued the SEC and the SEC settled for $755,000. That’s your tax payer bucks going to work. You know, no one in the SEC was removed, just the festering corruption stayed in office.
. . .the SEC paid Aguirre $755,000, but its own people weren’t even reprimanded to their slimy roles in protecting the honcho. I have been reporting this story for the Reader since mid-2006.-Source
Mr. Aguirre is a whistleblower and goes on to critic the SEC
“First, the SEC and Wall Street player make an agreement on a fine that the player will pay the SEC. Then the Justice Department commits itself to pass, so that the player knows he’s ‘safe.’ Third, the player pays the SEC — and fourth, the player gets a pass from the Justice Department.”-Mr. Aguirre
Yea, its not like the “SEC would be a middleman between firms like AIG and Lehman Brothers and the Justice Department. Essentially, the SEC would help the law firms negotiate fines so that the crooks could buy their way out of serving time in jail.” oh wait, they had a press conference about that. That’s right. . .
The SEC is brokering shady deals like a corrupt cop but with financial securities. Basically, stealing from the people but in the Billions. A great white collar crime.
Kickbacks for Higher Ups
Just work for the SEC and mismanage a case against a company. You know, do malpractice or forget things. Make the prosecution suck. Heck, why not just wait until the statute of limitations expire before getting a deposition like in John J. Mack’s case?
Don’t worry, be good at your job. Be good enough to make it look like you’re trying. The Corporations need to feel somewhat threatened by you, before they walk on up and line your pockets with millions. You know, because you’re helping them get away with Billions.
Paul R. Berger
Mr. Aguirre’s former SEC boss apparently had a homie hookup to a specific law firm. It’s great because this offer came from within the SEC, just so you know that corruption runs deep.
On September 8, 2005, just days after Aguirre was fired, an SEC official at the same staff level as Berger wrote an e-mail to him titled “Debevoise”, saying he had mentioned Berger’s “interest” to White and within weeks, it was rumored that Berger would be leaving the SEC to join Debevoise & Plimpton as a partner. Berger submitted his resignation to the SEC on May 15, 2006 and on June 1, 2006 became a partner at Debevoise & Plimpton, where he continues to work.-Wikipedia
Richard H. Walker
Mr. Aguirre, being a lawyer, kept pursuing cases against the SEC. You know, because they made his life difficult when all he wanted to do was ‘his job’. Weird, right?
Mr. Aguirre represented Darcy Flynn. Darcy Flynn was also an SEC Lawyer and whistleblower, who in 2011 said the SEC destroyed thousands of records and investigations to protect Deutsche Bank, an Investment company. The SEC director of enforcement at the time, Richard H. Walker, also landed a job at the same Deutsche Bank shortly after the records purge. What a fucking coincidence.
“All the agencies have to some extent or another a revolving door [where government employees move to the private sector and earn more money]. But at the SEC, what you rotate into is an enormous salary leap. SEC managers may make $200,000. That same person may make $2 million as a starting salary on the outside and can move up from there. Now, when he leaves, I’m not sure he’s worth $2 million as a lawyer, but he takes his Rolodex with him and that Rolodex is gold. The system maintains itself, because those that stay know their turn will come if they play the game. They see a director or associate director move onto a $2 million job with a Wall Street law firm. Then, the departed employee calls back to his former colleagues and says, ‘you know I really don’t think there is much of a case against so-and-so, I’d like for you to take a look at it.’ And the case goes away; the system goes on in perpetuity.”-Mr. Aguirre
Linda Chatman Thomsen
Mrs. Thomsen was the Director of the SEC, who along with the other senior members, ignored the Investigative reports of a private investigator, Harry Markopolos, dealing with the Madoff Scandal starting in 1999.
You know, the Madoff scandal that brought the financial collapse of 2008 and shook the global economy resulting in massive recessions, foreclosures, job losses, and Greece Economic failure.
Don’t worry, Mrs. Thomsen and her cronies were called out by Representative Gary L. Ackerman during a senate hearing on the blind eye to the Madoff scandal:
“We thought the enemy was Mr. Madoff. I think it is you.”-Gary L. Ackerman NY Democratic Representative
After the Madoff ponzi scheme, SEC Director Linda Chatman Thomsen left her position to become a partner at Davis Polk & Wardwell, where according to the Wall Street Journal, she would be part of its “white-collar defense group”. You know, protecting Corporations and Wallstreet from laws and people.
So she jumped from working with the Government to working against the government. A bit suspicious, don’tcha think?
Sounds like a turncoat, maybe even treason.
Mary Jo White
- 1992, Mary Jo White worked as a Lawyer in wallstreet.
- 2002-2013, She became a Chair of Debevoise & Plimpton, the same Lawfirm that fights against the SEC.
- 2013-2016 she was appointed as Chair of the SEC.
- 2017 She went back to work for Debevoise & Plimpton as a Senior chair.
“Mary Jo White epitomizes the method by which Wall Street lawyers control the so-called regulatory agency. The method is called the “revolving door.” There are two ways the scam works:-Mr.Aguirre prior to Mary Jo White being appointed as Chair of SEC
1. A big Wall Street law firm will represent a crook who has stolen money from the public in a securities scam. The law firm gets its client off the hook by dangling a $2 million-a-year job in front of the SEC lawyer who is in charge of the case;
2. When the SEC is looking for someone to head its enforcement branch, it will choose a Wall Street lawyer who represents the crooks, rather than someone inside the agency who sincerely wants to chase bandits.
If President Obama names Mary Jo White to head the agency, she would represent both sides of the revolving door phenomenon. She was the U.S. Attorney for the Southern District of New York, which is responsible for policing Wall Street. Then she joined the law firm of Debevoise & Plimpton, which defends securities miscreants, among other things. If she went back to a government role, she will have come full circle, and Americans would be justified in having even more cynicism about the agency than they have now.”
So after being appointed Chair, she left and joined the opposite team. . . Again. Basically she became a double double agent? Not suspicious at all.
Don’t worry though, she implied that she would be less aggressive during her time as the Chair of the SEC. That sounds great.
She also represents some high profile people, that’s just the nature if you’re that good at Law. You know, like Jeffrey Epstein or Four members of the Sackler family, the owners of Oxycontin maker Purdue Pharma, have retained the services of former SEC head Mary Jo White as their personal lawyer.
Who can stop the SEC?
I mean, if the SEC wants to violate the SEC, who is going to stop them?
On July 22, 2010, President Barack Obama signed Wall Street reform legislation, the Dodd–Frank Wall Street Reform and Consumer Protection Act, which included a provision to exempt the SEC from FOIA requests by the public.-Wikipedia
Section 921I controversially limited FOIA’s applicability to the SEC, a change partially repealed a few months later. The SEC had previously used a narrower existing exemption for trade secrets when refusing Freedom of Information Requests.
So we have regulations that regulate people, but who regulates the regulators without the Freedom of Information Act? That’s right, nobody.
Basically, the SEC is a scam. They are like law-enforcers and are supposed to target corporations or rich people. The SEC doesn’t actually do a good job of monitoring inside trading. That’s because there are so many corrupt CEOs that are getting away with Corporate Murder.
The SEC was set up to protect the public from Wall Street, and it now protects Wall Street from the public.-Mr. Aguirre
Maybe that’s why people wanted to chant “occupy wallstreet” and maybe that’s why the 2008 Financial Crises happened. Back in the day, people’s heads would be on chopping blocks, but in today’s age, we have a white-collar prison that is practically empty of real offenders.
Oh yea, if you try to pull up any records from before 2012 on the SEC website, you’ll find none. Weird, huh?
Also these are recent corrupt SEC activities that were mentioned, within the last 10 years or so. Not to include the history between 1933 and now, food for thought. Yea the SEC started corrupt and was totally not-corrupt then became corrupt again? Totally.
To be fair, there are good souls in the SEC as evidenced by the whistle blowers. You just shouldn’t put too much faith in the government to take care of things for you. After all, the Government is made up of people. Gross.
In fact, I’d be willing to go as far as saying that the names I have mentioned here are not Evil people. They just do what cops and drug dealers do, follow the money. If you were offered a million dollars to do some sketchy shit, would you? You gotta forgive the players and change the game.
Plus, before reading this article, you probabilistically didn’t know any of the corruption. You learning it and being enraged by it, or having a deep emotional response, only shows that you have some emotions to work with. Evil exists, don’t give in and indulge in hate because it makes you feel better about it.
If you do want to change the system for the better, then spread the word and campaign, lobby, and get letters to your congressional representatives. There are good people that would change the world for better, in an honest way. Do something … or don’t, and be like me, and watch the world burn with popcorn and Netflix.
Oh, Here’s a Senate hearing of Mr.Aguirre’s case. This is if you have the patience to hear the SEC crumble slowly. It’s fucking great, watching them die slowly inside.
*Not Valid Financial, Legal, Life, or Any Advice