To: Lucretius who wrote (312351 ) 9/18/2005 12:01:27 PM From: Gut Trader Read Replies (2) | Respond to of 436258 A Crime That Paid By James J. Cramer newyorkmetro.com While the Feds torment small-time pump-and-dumpers like Tokyo Joe Park, the big-time dumpers—like Global Crossing's Winnick and WorldCom's Ebbers—are totally in the clear. If you are going to pump your stock up and then dump it on the pitiful public, make sure you use the national media and Wall Street analysts to do the hyping. Be careful to unload hundreds of millions of dollars' worth of stock, not just several thousands of dollars' worth. Insist that you have a ton of legitimate reasons to sell, not that you wanted to scam the public while the scamming was good. Get your general counsel to blast the investigative press at every turn as tools of the "short sellers." There. Now pay me $800 an hour for that advice. And not just because I am a lawyer licensed to practice law in New York. Because I have just told you how to avoid being prosecuted for the most obvious securities crime in the book: pumping and dumping stock you know is worth a fraction of what you say it is. What else can be the take-away from the outrages that are Tyco, Enron, Global Crossing, and WorldCom? These became billion-dollar companies overnight because they were hyped by managements that made unconscionable predictions, none of which came true or were based on reality. Their CEOs were actors on the CNBC stage, making grand statements that appeared to have credence but couldn't have been more bogus. While the predictions were being asserted, they sold and sold and sold. . . . And now the executives who did the pumping and dumping, who reaped billions of dollars in sales, are going to get away with it. It's been more than a year since Enron's execs unloaded all that stock after hyping the company on CNBC, but nobody's been indicted for the crime of selling inflated securities to the unsuspecting public. Jack Grubman's been barred for life from the securities business for pushing, among other stocks, WorldCom on Salomon Smith Barney's customers, but former CEO Bernie Ebbers, his partner in the hype, hasn't been charged with anything, and he was able to borrow hundreds of millions of dollars against his stock—same as selling—to buy vast amounts of property around the globe. Tyco's execs just told the press that while the company created hundreds of millions of dollars in fictitious gains that allowed Dennis Kozlowski to dump shares at top-dollar prices, there's nothing illegal about that. Thanks, David Boies! And at the end of 2002, the Feds dropped criminal charges against Gary Winnick for selling $740 million of Global Crossing stock into hype he created and nurtured about that scam PS Boooooyaaaaaah ....skiiiidaddy