Trader gets away with $60 million interpositioning scheme

[peilthetraveler]

http://content.govdelivery.com/bulletins/gd/USSEC-232259


So from reading this, it seem this trader who basically took this pension fund for $65 million dollars, only has to pay $1 million for ill-gotten gains and his former company has to pay $4 million, plus he is barred from being a trader for the next 5 years and that settles ALL charges meaning he got to walk away from this deal with $60 million dollars.

Strange how easy wall st. is on their own kind. If someone robbed a bank and got $65k they sure as hell wouldnt agree to let them go free if they returned $5k of it. Heck, they would get jail time even if they returned all of it.

 

[nutmeg]

The odd thing about these and similiar cases is you never hear about the tax consequences.The trader made 60 m probably paid 1/2 in taxes. The pension fund who had the loss has a major write off (for whatever that is worth). Deconstructing the trade would be a considerable loss of tax revenue.

Ya think anyone is getting a refund with interest from the IRS on a clawback re Madoff? Probably a lot of silly ass games behind the scenes us peons no nothing about.

 

[peilthetraveler]

Its also possible that the trader made the pension fund hundreds of millions of dollars so maybe they didn't want to push it, but we will never know.

 

[failed_trad3r]

Quote from peilthetraveler:

http://content.govdelivery.com/bulletins/gd/USSEC-232259


So from reading this, it seem this trader who basically took this pension fund for $65 million dollars, only has to pay $1 million for ill-gotten gains and his former company has to pay $4 million, plus he is barred from being a trader for the next 5 years and that settles ALL charges meaning he got to walk away from this deal with $60 million dollars.

Strange how easy wall st. is on their own kind. If someone robbed a bank and got $65k they sure as hell wouldnt agree to let them go free if they returned $5k of it. Heck, they would get jail time even if they returned all of it.

nothing new. read articles from an insider in the industry. apparently 9 out of 10 hedge funds during the dotcom bubble was not legit and more or less siphoning funds to swiss bank accounts. for example a guy steals literally 20 million. how did the SEC apparently handle this? a 100k fine.

This happened 10 years ago, how can you think the SEC will overfine instead of underfine, beats me, you must not get out much.

 

[nazzdack]

Quote from peilthetraveler:
----So from reading this, it seems....
----Strange....

Suspicion should have been aroused more quickly when it was discovered that people with Hispanic surnames were involved with an investment company. :eek:

 

[stock777]

that ping pong trading sounds like stuff Ive seen on the exchanges over the years. bet plenty of pension funds have been took for large coin.

 

[lighnintrade]

Quote from peilthetraveler:

http://content.govdelivery.com/bulletins/gd/USSEC-232259


So from reading this, it seem this trader who basically took this pension fund for $65 million dollars, only has to pay $1 million for ill-gotten gains and his former company has to pay $4 million, plus he is barred from being a trader for the next 5 years and that settles ALL charges meaning he got to walk away from this deal with $60 million dollars.

Strange how easy wall st. is on their own kind. If someone robbed a bank and got $65k they sure as hell wouldnt agree to let them go free if they returned $5k of it. Heck, they would get jail time even if they returned all of it.

Not suprising at all, in fact this is how most join the 1% club. Basically just high paid con artists that make enough to buy their way out of any real consequences should they get caught.

 

[Options12]

Quote from failed_trad3r:

nothing new. read articles from an insider in the industry. apparently 9 out of 10 hedge funds during the dotcom bubble was not legit and more or less siphoning funds to swiss bank accounts. for example a guy steals literally 20 million. how did the SEC apparently handle this? a 100k fine.

But then there have been some very large fines levied for this kind of behavior.

In 2004, Knight Securities paid more than $70 million to settle claims that they defrauded their institutional customers by not fulfilling Best Execution obligations.

http://www.sec.gov/litigation/admin/34-50867.htm

 

[murray t turtle]

Quote from peilthetraveler:

http://content.govdelivery.com/bulletins/gd/USSEC-232259


So from reading this, it seem this trader who basically took this pension fund for $65 million dollars, only has to pay $1 million for ill-gotten gains and his former company has to pay $4 million, plus he is barred from being a trader for the next 5 years and that settles ALL charges meaning he got to walk away from this deal with $60 million dollars.

Strange how easy wall st. is on their own kind. If someone robbed a bank and got $65k they sure wouldnt agree to let them go free if they returned $5k of it. Heck, they would get jail time even if they returned all of it.

=========
Good points P-tt.

Also you may want to note in your scenerio;
its much better not to use a gun, in a theft.Loss of life frequently happens to the robber.

And not to laugh off a bank or securities ripoff.
But between that Mexican middleman deal, penny stocks, near Los Angeles[Angels] , that pension fund was probably the main party hoping & praying for a quick, get this thing out of the papers/settlement.LOL

Also note Mr Rodrigez[now living ''safely'' in Mexico] was not just barred from any investment co work for 5 years; but participating in any penny stock offering for 5 years.