Naked Shorting-Hedge Fund & Market Maker manipulation? Message Board

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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?

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To: basserdan who wrote (4188)	3/15/2009 2:46:01 PM
From: rrufff	1 Recommendation Read Replies (1) of 5034

Madoff wants everyone to believe that his MM operations were honest. In reality, at best, he used lax rules to perhaps legally front run and operate another type of scheme, making a market but failing to settle the transactions. He even threw in commissions even though there were no transactions. Despite all this, there are still out there who claim that MM's don't scam us. <<I want to emphasize today that while my investment advisory business -- the vehicle of my wrongdoing -- was part of my firm Bernard L. Madoff Securities, the other businesses my firm engaged in, proprietary trading and market making, were legitimate, profitable and successful in all respects. Those businesses were managed by my brother and two sons.>> . . . In fact, I never made the investments I promised clients, who believed they were invested with me in the split strike conversion strategy. . . . In connection with the purported trades, I caused the fraudulent investment advisory side of my business to charge the investment advisory clients $0.04 per share as a commission. At times in the last few years, these commissions were transferred from Chase Manhattan bank account of the fraudulent investment advisory side of my firm to the account at the Bank of New York, which was the operating account for the legitimate side of Bernard L. Madoff Investment Securities — the proprietary trading and market making side of my firm. I did this to ensure that the expenses associated with the operation of my fraudulent investment advisory business would not be paid from the operations of the legitimate proprietary trading and market making businesses. It is my belief that the salaries and bonuses of the personnel involved in the operation of the legitimate side of Bernard L. Madoff Investment Securities were funded by the operations of the firm's successful proprietary trading and market making businesses.>> cnbc.com

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