Part I<\/p>\n
The Depository Trust Company
\nThe $19 Trillion Private Bank<\/p>\n
The Depository Trust Company (DTC) is the best kept secret in America. Headquartered at 55 Water Street in New York City, the average American has no clue that this financial institution is the most powerful banking corporation in the world. The general public has no knowledge of what the DTC is or what they do, but a clue can be taken from the sign at the front of the building, which says, “THE TOWER OF POWER”. How can a private banking trust company hold assets of over $19 trillion and be unknown! In an official press release dated April 19, 1999, the Depository Trust Company stated:<\/p>\n
“The Depository Trust Company (DTC) is the world’s largest securities depository, holding
\nnearly $19 trillion in assets for its Participants and their customers…. Last year, DTC processed over 164 million book-entry deliveries valued at more than $77 trillion.”<\/p>\n
In dealing with the trust department of Midlantic Bank, NA. in New Jersey [now PNC Bank, N.A.], this writer was authorized, as trustee and power of attorney, to transfer original trust assets comprising of common stocks and bonds to a new trust set up in another jurisdiction. An Assistant Vice President from the Trust & Financial Management Office of Midlantic Bank said to me “it will take at least 6 weeks to do this as the majority of the stocks and bonds are not held in the name of the trust”. This same Midlantic Bank Assistant V.P. also stated in a letter dated November 17, 1995, “Of the 11 municipal bonds, 8 are held in book entry only. This means they cannot be physically re-registered with a certificate sent to the new trustees.” (* these are not the actual figures quoted in the letter in order to protect the privacy of the account holder, at their request. Also, we were asked not to name the Midlantic Assistant V.P. in order to protect her privacy Rights. We respect these requests with full moral compliance). In disbelief, I brought this matter to the attention of our research assistants at the Christian common Law Institute [formerly the North Bridge News] and we began our lengthy investigation into the matter. After 3>Vz years, the can of worms we’ve opened up should frighten every American. With the advent of reported Y2K computer glitches and the possible collapse of our ‘paper asset’ economy, every person who has a stock or bond in their portfolio had better read this report and act on the information we are disclosing here.<\/p>\n
In November 1995, after encountering numerous “no comments” and a myriad of “that’s not my department”
\nexcuses via telephone, I eventually spoke with Mr. Jim McNeff who told me his position was Director of
\nTraining for the DTC. He said he’d been employed there for 19 years and was “very proud” of his employer.
\nDuring my initial telephone interview, either Jim’s employer or some other unknown person or persons were
\nillegally listening or taping our telephone conversation according to the electronic eavesdropping equipment we
\nhave installed on our end. Why did anyone feel it was necessary to illegally record our conversation without
\nadvising us? Was some federal alphabet agency monitoring DTC calls to safeguard National Security? That in
\nitself is suspicious enough to warrant a big red warning flag.<\/p>\n
Jim informed me back then (1995) that “the DTC is the largest limited trust company in the world with
\nassets of $ 9.1 trillion”. In July 1998, I spoke with Ms. Rose Barnabic of the DTC Finance Department who
\nsaid that “DTC assets are currently estimated at around $11 trillion”. As of April 19, 1999, the DTC itself
\nhas stated that their assets total “nearly $19 trillion” (see above). Mr. McNeff had also stated “the DTC is a
\nbrokerage clearing firm and transfer center. We’re a private bank for securities. We handle the book
\nentry transactions for all banks and brokers. Every bank and brokerage firm must secure their
\nmembership with us in case they become insolvent, so your assets are secure with DTC”. Yes, you read
\nthat correctly. The DTC is a private bank that processes every stock and bond (paper securities) for all U.S.
\nbanks and brokerage houses. The big question is this; Just who gave this private bank and trust company such a
\nbroad range of financial power and clout ?<\/p>\n
The reason the public doesn’t know about DTC is that they’re a privately owned depository bank for institutional
\nand brokerage firms only. They process all of their book entry settlement transactions. Jim McNeff said
\n“There’s no need for the public to know about us… it’s required by the Federal Reserve that DTC handle
\nall transactions”. The Federal Reserve Corporation, a\/k\/a The Federal Reserve System, is also a private
\ncompany and is not an agency or department of our federal government, according to the 1998 Federal Registry.<\/p>\n
The Federal Reserve Board of Governors is listed, but they are not the owners. The Federal Reserve Board,
\nheaded by Mr. Alan Greenspan, is nothing more than a liaison advisory panel between the owners and the
\nFederal Government. The FED, as they are more commonly called, mandates that the DTC process every
\nsecurities transaction in the US. It’s no wonder that the DTC (including the Participants Trust Company, now
\nthe Mortgage-Backed Securities Division of the DTC) is owned by the same stockholders as the Federal
\nReserve System. In other words, the Depository Trust Company is really just a ‘front’ or a division of the
\nFederal Reserve System.<\/p>\n
“DTC is 35.1% owned by the New York Stock Exchange on behalf of the Exchange’s members. It
\nis operated by a separate management and has an independent board of directors. It is a limited
\npurpose trust company and is a unit of the Federal Reserve.” -New York Stock Exchange, Inc.<\/p>\n
Now, let’s see how this effects the average working American family. If you’re not aware how the system
\nworks, you should visit or call a stock broker or bank and instruct them you want to purchase some shares of
\ncommon stock or a small municipal bond, for example. They will set up a brokerage account for you and act as
\nyour agent with full durable power of attorney (which you must legally sign over to them) to conduct business
\non your behalf, upon your buy or sell instructions. The broker will place your stock or bond purchase into their
\nsafekeeping under a “street name”. According to Mr. McNeff of the DTC, no bank or broker can place any
\nstock or bond into their firm’s own name due to Federal Trade Commission (FTC) and Security and Exchange
\nCommission (SEC) regulations.<\/p>\n
The broker or bank must then send the transaction to the DTC for ledger posting or book entry settlement
\nunder mandate by the Federal Reserve System. Remember, since your bank or broker can’t use their name on
\nthe certificate, they use a fictitious street name. “Since the DTC is a banking trust company, we can’t hold
\nthe certificates in our name, so the DTC transfers the certificates to our own private holding company or
\nnominee name.” states Mr. McNeff. The DTC’s private holding company or street name, as shown on
\ncertificates we have personally examined from numerous certificate holders, is shown as either “CEDE and
\nCompany”, “Cede Company” or “Cede & Co”. We have searched every source known to learn who CEDE
\nreally is, but have been unable to get any background information on them. Is Cede Company fictitious or is
\ntheir identity perhaps a larger secret than DTC? We must presume that the information Mr. McNeff gave us was<\/p>\n
correct when he confirmed that Cede Company was a controlled private holding company of the DTC. We have
\nnow found the following proof that CEDE is real from the Bear Stearns internet site:<\/p>\n
NEW YORK, New York \u2014 March 16, 1999 \u2014 Bear Stearns Finance LLC today announced
\nthat it will redeem all of the 6,000,000 outstanding 8.00% Exchangeable Preferred Income
\nCumulative Shares, Series A (“EPICS”) of Bear Stearns Finance LLC, liquidation preference of
\n$25.00 per Series A Share, CUSIP number G09198105. All of the Series A Shares are held
\nby Cede & Co., as nominee of The Depository Trust Company, and the payment of the
\nredemption price will be made to Cede & Co. by ChaseMellon Shareholder Services, LLC,
\nas paying agent, whose address is: 85 Challenger Road, Ridgefield Park, New Jersey 07660.<\/p>\n
The banks and brokers are merely custodians for their clients. By federal law (SEC), they cannot hold any
\nassets in the customer’s name. The assets must be held in the name of DTC’s holding company, CEDE & Co.
\nThat’s how DTC has more than $19 trillion dollars of assets in trust… or is it really in “trust” if the private
\nFederal Reserve System is technically holding it in their “unknown” entity’s name? Obviously, if stock and
\nbond certificates you’ve purchased aren’t in your name, then the “holder” (the Federal Reserve System) could
\ntheoretically refuse to surrender them back to you under a “national emergency” according to the Trading with
\nthe Enemy Act (as amended). Is this the collateral being held by the private Federal Reserve System to
\npay off the national debt owed to them by our federal government, first initiated by Lincoln’s debt bonds
\nof 1864?<\/p>\n
According to Mr. McNeff, the DTC was a former member of the New York Stock Exchange (NYSE), and
\n“Our sister company is the National Securities Clearing Corporation… the NSCC” (they have since
\nmerged). He was correct since we now know that the NYSE holds 35.1% of the “ownership” of the DTC on
\nbehalf of their NYSE members. Simply put, the Depository Trust Company absolutely controls every paper
\nasset transaction in the United States as well as the majority of overseas transactions, and they now physically
\nhold (as of April 1999) 99% of all stock and bond book-entries in their street name, not the actual owner’s
\nnames. If you have stock or bond certificates in your name buried in your back yard or under your mattress, we
\nsuggest you keep them there. If not, it might be very wise to cancel your brokerage account and power of
\nattorney status, re-register the stocks and bonds in your name (if you still can), and keep them hidden where
\nonly you know their location. Otherwise, you have absolutely no control over them (see Part II below for more
\ninformation on beneficial ownership status). However, getting a stock or bond certificate these days is not so
\neasy if possible at all:<\/p>\n
“For the most part, issuers know little about the role of the Depository Trust Company (DTC).
\nThe DTC was created in 1973 as a user-owned cooperative for post- trade settlement. Our
\nmembers are banks and broker\/dealers, whom we refer to as participants. We handle listed and
\nunlisted equities, including 51,000 equity issues and 170,000 corporate debt issues, equating to
\nmore than 78% of shares outstanding on the New York Stock Exchange (NYSE). We also have
\nmore than 95% of all municipals on deposit.<\/p>\n
In the 1980s, the “Group of 30″ [business leaders] recommended that stock certificates be
\neliminated, because physical certificates create risk. The Securities Exchange Commission (SEC)
\nissued a concept release in 1994 to gradually decrease certificates, providing optional direct
\nregistration on the books of the issuer instead of a certificate…. this enhances the portability of
\nshares between transfer agents and brokerage accounts. With the direct registration system,
\nbrokers transmit instructions to purchase through DTC, which the issuer or transfer agent then
\nregisters, so shares can be delivered electronically.” -John D. Faith, Manager, Corporate Trust
\nServices, The Depository Trust Company (1996)<\/p>\n
Now we’re about to reveal to you the most shocking discovery we came across during our research into this
\nmatter. Most of us remember a few years back the purported computerized selling of stocks that resulted in
\nWall Street’s “Black Monday”:<\/p>\n
Dow Dives 508.32 Points in Panic on Wall Street – “The largest stock-market drop in Wall Street
\nhistory occurred on “Black Monday” \u2014 October 19, 1987 ~ when the Dow Jones Industrial
\nAverage plunged 508.32 points, losing 22.6% of its total value. That fall far surpassed the one-day
\nloss of 12.9% that began the great stock market crash of 1929 and foreshadowed the Great
\nDepression. The Dow’s 1987 fall also triggered panic selling and similar drops in stock markets
\nworldwide” -Source: Facts on File World News CD ROM<\/p>\n
The stock exchanges had dramatic record losses, and a record volume of shares were traded on that infamous
\nMonday in October 1987. We all asked ourselves how computers could have done this by themselves without
\nsomeone knowing about it. After all, someone has to program a computer to tell it what to do, what not to do, or
\neven when to do or not do it.<\/p>\n
During my telephone conversation, Mr. McNeff was trying to assure me that they [the DTC] have “never lost a
\ncertificate or made a mistake in a book ledger transaction”. In attempting to give me an example of how
\ntrustworthy the DTC is when I asked him how he could back up such a statement, he replied “DTC’s first
\ncontrolled test was 4 or 5 years ago. Do you remember Black Monday? There were 535 million
\ntransactions on Monday, and 400 million transactions on Tuesday”. He was very proud to inform me that
\n“DTC cleared every transaction without a single glitch!”. Read these quotes again: He stated that Black
\nMonday was a controlled test . Black Monday was a deliberately manipulated disaster for many Americans at
\nthe whim of a controlled test by the DTC.<\/p>\n
What was the purpose of this test? Common sense tells you that you test something before you intend to use it.
\nIt’s quite obvious that the stock markets are going to ‘crash and burn’ at some future date and for some
\n‘unknown’ reason since the controlled test was so successful. Was this just one of the planned tests for a Y2K
\ninternationally planned worldwide economic meltdown? The Great Depression is about to be repeated, and it
\nwill be as deliberate and manipulated as the first one that began with the stock market crash of 1929. We are,
\nwithout a doubt, on the brink of the Mother of all economic Depressions. As of May 3, 1999, the Dow Jones
\nIndustrial Average (DJIA) went above a record 11,000 points. Just prior to the 1929 stock market crash, Wall
\nStreet was posting record prices, record earnings, and record profits…. just like the scenario we are experiencing
\ntoday. Will Y2K be a manipulated and deliberate a financial meltdown? Too many facts already support this
\nprobability.<\/p>\n
On June 7, 1995, the federal government issued a new regulation requiring stock and bond certificate transfers
\nto be cleared in three days instead of the previous five day time period. It coincided with the infamous
\nRegulation CC that purportedly gave us faster three day availability of funds from deposited checks. This
\nmeans that brokers and banks must get your stock or bond transaction into the street name (Cede & Co.) of the
\nDTC within 3 working days. That’s hard to do considering banks claim it takes 3 or more days to clear a check
\nthat you’ve submitted to pay for a stock purchase. But, there’s a reason for this new regulation and it coincides
\nwith the introduction of the new FRS “dollars”.<\/p>\n
On February 22, 1996, “the DTC will flip the switch” according to Mr. McNeff. “What switch?”, I asked.
\n“This is the day that clearing house funds will no longer be accepted for stock or bond transactions” was<\/p>\n
my reply from Jim. “Instead, only Fed Funds will be accepted”. Fed Funds, or a Fedwire, are electronic
\ncomputer ledger debit transfers between Federal Reserve System member banks. No checks or drafts have been<\/p>\n
allowed from that day, just as Mr. McNeff accurately stated. This is more commonly called a ‘cashless
\ntransaction’. I call it the reality of the mark of the beast. This is the manifestation of the new international god,
\nthe New World Order [I prefer the term ‘New World Disorder’ as a more accurate description].<\/p>\n
Consider this my fellow Christian Americans: All pension funds and other institutional ‘managed funds’ are
\ncomprised of paper asset investments such as stocks, bonds, and mutual funds. These certificates are technically
\nin the name of DTC’s private holding company, CEDE and Company. The DTC is owned by the private
\nFederal Reserve System owners (Click for a complete list of names). Congress has attempted, on no less than
\ntwo occasions since 1995, to pass legislation allowing pension funds to be used by the government as purported
\n‘loans’. All the Federal Reserve System has to do is hand it over. But, what happens to the people counting on
\nthose pension fund investments in order to feed themselves in their retirement? Too bad for them…. they’re out
\nof luck because for the ‘good of the nation’, they may be forced to share or relinquish their lifetime of hard-
\nearned wealth. This can be done without the consent of Congress under an Executive Order based on the War
\nand Emergency Powers Act and a state of National Emergency , just like we are already under. Since the
\nFederal Reserve System already holds our stocks and bonds in their fictitious DTC “street name”, CEDE, then
\nperhaps they’ll cash them in for the federal government’s failure to repay the loans that have become way
\noverdue. Heck, some of Lincoln’s gold backed bonds from 1864 have not been repaid yet…. and for a reason.<\/p>\n
On March 6, 1933, all bullion gold and gold coins were forcibly taken from the hands of private citizens (see
\nNew York Times) . Under the War Powers Act, President Roosevelt declared a national emergency touted as a
\n“Banking Holiday”. It was declared due to the deliberately calculated stock market crash that preceded the Great
\nDepression. Where did this gold end up? Into the hands of the Federal Reserve System owners. The majority is
\nstored in the impervious rock vaults they own beneath New York City. Is it any surprise that the DTC
\nphysically holds all the remaining non-book entry issued stock and bond certificates in the same place?<\/p>\n
Technically, our entire nation is still under the Executive Order declaration of the War Powers Act and in a
\ncontinual state of national emergency (See Clinton’s 1994 Executive Order 12919) . The President can enforce
\nany new emergency at any time under Executive Order or Presidential Directive. In 1995, we [the former North
\nBridge News] published that we expected a new national “dollar” emergency to be declared within a year or
\ntwo. Just like we thought at the time, they have now blamed it on the purported drug dealers who are allegedly
\ndestroying our currency by money laundering schemes.<\/p>\n
Since late 1996, old U.S. $100 FRB notes issued by the Federal Reserve Bank are being exchanged for new
\n$100 FRS issued by the Federal Reserve System . These new notes have scanable magnetic platinum encryption
\non the plastic strips embedded inside the bills. The U.S. Treasury claims this is for “the blind”. Now, new $20
\nand $50 FRS’s are replacing the older notes as well. What people don’t realize is that very soon, the older FRB
\nnotes will no longer be ‘legal’ and there will be a penalty for hoarding them. This is what happened to those
\nAmericans holding gold and gold coins after 1933.<\/p>\n
“We are most gratified with the successful introduction of the new $100 and $50 notes and look
\nforward to the same success with the new $20s,” Chairman Greenspan said. For the first time, a
\nmachine-readable capability has been incorporated for the blind. A new feature in the $20 will
\nfacilitate the development of convenient scanning devices that could identify the note as a $20. –<\/p>\n
U.S. Treasury, Office of Public Affairs, RR-2449 released May 20, 1998.<\/p>\n
Why new paper ‘money’ and for what purpose? Because the new FRS notes in your pocket can be scanned and
\nwhoever scans them can know exactly how much money you have on you. The older FRB notes are not
\nencoded to do this. This writer knows firsthand of at least one machine, manufactured by Diebold, Inc. (a\/k\/a
\nInterBold) that scans the money in your pockets, wallet or purse no different in theory than a credit card<\/p>\n
scanner, but much more sophisticated. I participated in a ‘test’ of this machine at a U.S. international airport in
\n1998. To me, it looks much like the standard metal detector scanners you walk through at all airports. I was
\nasked (by who I believe was a U.S. Treasury Agent, as he introduced himself and flashed his ID quickly in my
\nface so I couldn’t read it) if I had any of the new $100 or $50 bills in my pockets. I looked in my wallet and saw
\nI had one new $100 FRS note. I told him “yes”, then he said “Good, but don’t tell me how much”. After
\nsaying he would “really appreciate it” if I would help them with a test, he asked me to walk through what
\nlooked like a typical airport scanner. No beeps. No noise. No sound at all. He looked at a computer screen and
\nsaid “Do you have a new $100 bill?”. When I confirmed that was true, he thanked me and told me to please
\nmove on. I tried to ask him how the machine knew that, but he ignored my question. I took a good look at the
\nscanning system and believe I have now spotted them at Kennedy, Atlanta, Miami and Los Angeles airports.<\/p>\n
The odd part about this is that these machines seem to all be located in the customs areas where you enter the
\nU.S. from a foreign country. Obviously, they want to know if someone is carrying more than $10,000 into the
\nU.S. Common sense dictates that they should be more concerned about people leaving with more than $10,000
\nif they’re really trying to thwart the drug dealers…. until you begin to realize that there must be some other
\nhidden agenda: They are apparently going to stop money from entering the U.S. for a reason.<\/p>\n
Will the President call for the confiscation of all gold bullion and bullion coins as Roosevelt did? Who will end
\nup with it? The Federal Reserve System owners, just like before. Since June 1998, international gold supplies
\nhave been so low that some private Swiss Banks have been paying a premium above the market wholesale value
\nfor gold bullion. *Update October 2001: Credit Suisse has announced they will no longer participate in the
\ngold bullion business. This was confirmed to us by a gold and diamond mining Chief Executive from Rex
\nMining in Guinea, West Africa, who supplies raw gold to a major Swiss Banking company smelter and
\nprocessor. The spot gold market has been manipulated to keep the price low so that the Federal Reserve System
\nowners – and those behind them – can purchase all that is available through their various trusts and corporations.
\nWorld gold availability on the open market is now at a record low and mining production of gold is also at a
\nrecord low output.<\/p>\n
What happened to ‘supply and demand’ with gold and silver? Normally, when supply is high the price decreases.
\nWhen supply is low, precious metal prices increase. Perhaps the private FED will peg the new dollar to gold
\nprices, as many experts have already speculated. What will stocks and bonds purchased with old dollars be
\nworth then? Pennies to the dollar, so to speak. Who ends up being the only winner? The Federal Reserve
\nSystem stockholders. They control the circulation amounts of paper money in the U.S. Combine that with the
\nnew scanner to stop large amounts from entering into the U.S., and the scenario amounts to a planned shortage
\nof paper FRS notes, the banning of the older FRB notes, and the soon to be astronomical price of gold which
\nmost Americans will be forbidden to have or hoard, once again. The facts we’ve presented in this report all point
\nto this.<\/p>\n
People will be at the mercy of the federal government for daily food and for jobs. Checks are soon to be totally
\nphased out. Banks issue ATM debit cards and tell you they must charge more for your account if you use a real
\nlive human teller instead of the machine. The switch is being turned on. This is not speculation. This is the truth
\nof reality. It’s already been tested, and their new system works. Just ask Jim McNeff of the DTC.
\nThe day has come when you must decide to accept or reject the beast and the New World Disorder.<\/p>\n
Part II<\/p>\n
You don’t own your Stocks
\nor Bonds anymore…<\/p>\n
The Depository Trust Company does<\/p>\n
In Part I of this series, excerpts of which were first published in November 1995 by the former North Bridge
\nNews, we exposed The Depository Trust Company (DTC) as the Unknown $ 9.1 Trillion Company. It
\nappears that our startling discoveries of the inner-workings of the DTC had only scratched the surface. We’d
\nlike to add more fuel to this blazing fire by further exposing the DTC and those behind it.<\/p>\n
The Depository Trust Company has grown since October 1995. On July 1998, this amount was estimated by a
\nDTC employee at more than $11 Trillion. As of April 19, 1999, the DTC itself has stated in a press release that
\ntheir asset value is nearly $19 trillion. In 3 1\/2 years, their assets increased nearly $ 10 Trillion . That’s a lot of
\nstocks and bonds supposedly held in trust. The latest trend over the past ten years is for stock and bond brokers
\nto offer “book-entry ownership” only. Every book-entry stock or bond is literally owned by the DTC. Since
\n1985, most bond and many stock issuers have converted from the issuance of certificates to book-entry systems
\nadministered and controlled by the DTC. As of March 1999, the National Securities Clearing Corporation
\n(NSCC) and the Participants Trust Company (PTC) are now merged into the DTC. Practically, there isn’t one
\nstock or bond issued that is not controlled by the DTC.<\/p>\n
If you purchase any stock or bond through a broker, it is being held for you under a “street name” by the DTC
\nunless you have specifically requested to hold the certificate yourself. If you have a book entry stock or bond,
\nyou won’t be issued a certificate. It’s important to note that you have purchased that particular stock or bond
\nwithout becoming a registered holder of the actual stock or bond certificate. Instead, you have become a
\nbeneficial owner. The difference between the two is like night and day. Take the time to absorb and understand
\nthe following definitions:<\/p>\n
REGISTERED HOLDER- A Registered Holder literally possesses, owns, and holds, his stock or bond
\nwith his name appearing on the face of the certificate. The company that issued the certificate has
\nregistered the owner’s (holder’s) name on their official books. This is the safest way to own a paper
\nasset. You literally possess the fully registered certificate and only you can transfer or sell it. By all
\nRights and definition of law, you are the owner. You have it, you hold it, you possess it, and you keep it.
\nYou have the complete control over it.<\/p>\n
BENEFICIAL OWNER- A Beneficial Owner is nothing more than a beneficiary , “One who is
\nentitled to the benefit of a contract”- A Dictionary of Law, 1893. All book-entry stocks and bonds you
\npurchase make you the beneficial owner, not the registered holder. The owner of a book-entry stock or
\nbond is the entity or name that it is registered under.<\/p>\n
The DTC owns that bond or stock, not you. Rather than in your name, it’s registered (as the legal Registered
\nOwner or agent) in their “street name”, Cede & Company. (In the past, it may have been registered in your
\nbroker’s street name, but this is no longer allowed). The DTC is the Registered Owner – holder – of your stock
\nor bond. The DTC is the legal property-holder, share-holder, stock-holder, owner and purchaser. Your name
\nappears nowhere on the book entry or certificate as the actual owner. Instead, you have been designated by the<\/p>\n
legal registered owner, the DTC, as the Beneficial Owner. This means that your lawful Rights in that stock or
\nbond are confined to that of a successor or heir.<\/p>\n
At the University of Utah College of Law, we found the following examination question about Cede & Co.:<\/p>\n
The common stock of LargeCo, Inc. is publicly traded on the New York Stock Exchange.
\nOver 2\/3rds of the shares are registered on LargeCo’s books in the name of Cede & Co.
\nCede is a depository company which holds the shares as nominee on behalf of
\nbrokerage firms, mutual funds and other active traders. The brokerage firms in turn are
\nalso nominees with respect to some of the shares, which they hold on behalf of their
\ncustomers. Nominees, such as Cede and brokerage firms holding for customers, view
\nthe customer as the beneficial owner of the shares and consider the customer to be the
\none with the right to vote the shares; mutual funds, however, view the fund as the
\nowner of the shares it holds and vote the shares themselves.<\/p>\n
Most of the remainder of LargeCo’s stock (26% of the total) is held by the Large family,
\nwhich is still actively involved in management. LargeCo is aware that the beneficial
\nowner of about half the stock registered in Cede’s name is the Small family, who live
\nnext door to the Larges in downtown Rome, and that the remainder of the Cede stock is
\nbeneficially owned by several well known mutual funds.<\/p>\n
According to the DTC, under the US Security and Exchange Commission (SEC) rules, you only have the
\nright to “receive proceeds or other advantages as the beneficiary”. You are not the owner… you are the
\nconsignee, “One who has deposited with a third person an article of property for the benefit of a
\ncreditor”- A Dictionary of Law, 1893. In legal terms, you are considered the heir presumptive or heir at law<\/p>\n
to the stock or bond you paid for. The DTC controls, possesses as creditor, holds and owns your book-entry
\nstock or bond. This is a difficult pill to swallow for those who have placed their assets in stocks and bonds over
\nthe past decade. Your broker sends you a fancy accounting every month of your purported holdings, along with
\ndividend and interest payments paid.<\/p>\n
The fact is, you only receive the benefit of ownership (interest and dividends) without holding title to your
\nproperty. You are at the mercy of the registered owner, the DTC. If you don’t believe this is true, then call your
\nbroker right now and ask them who’s name is listed as the Registered Holder of your book-entry stocks and
\nbonds. If you’re lucky, the broker will tell you “why of course you’re the Beneficial Owner”, then you’ll know
\nthe truth. He may emphasize to you that the stocks and bonds are being held in “safe keeping” for your own
\nprotection. This is broker language for “your stocks and bonds are held by the DTC in their street name as the
\ncreditor”.<\/p>\n
From J.P. Morgan’s internet site :<\/p>\n
Registered and beneficial shareholders<\/p>\n
There are two types of shareholders: registered, who hold an ADR in physical form, and
\nbeneficial, whose ADRs are held by third-parties and are listed under a “nominee” or
\n“street” name (see chart below).<\/p>\n
Registered shareholders are listed directly with the issuer or its U.S. transfer agent. The
\ntransfer agent handles the record-keeping associated with changes in share ownership,
\ndistribution of dividend payments, and investor inquiries; it also facilitates annual meetings. An
\nissuer’s depositary bank can provide the identities of registered shareholders on a regular<\/p>\n
basis. However, this may not provide the level of shareholder identification required for a
\nsuccessful investor relations effort. Registered shareholders are typically individual
\ninvestors who have physical possession of their share certificates, generally in lots of
\n100 shares or fewer. The registered list also includes nominee names such as Cede &
\nCo., which represent the aggregate position of the Depository Trust Company (DTC),
\nthe primary safekeeping, clearing, and settlement organization for securities traded in
\nthe United States. DTC uses electronic book-entry to facilitate settlement and custody
\nrather than the physical delivery of certificates.<\/p>\n
Beneficial shareholders, which can include individual as well as institutional investors, do
\nnot have physical possession of their certificates; third-party broker-dealers or custodian
\nbanks hold their securities on their behalf. These shares are said to be held in street name
\nbecause they are kept with the DTC in the name of the broker-dealer or the custodian
\nbank – not the underlying shareholder. Lists of beneficial shareholders who do not object to
\ndisclosing their holdings are available from banks and broker-dealers. These lists, called
\nNOBO for Non-Objecting Beneficial Owner, typically provide the names of individual investors.<\/p>\n
To help identify institutional investors, who do not usually disclose their holdings, issuers use
\npublicly available filings. Large holders, including investment managers, are required to make
\nperiodic filings – such as 13-F, 13-G, and 13-D – with the Securities and Exchange Commission
\n(SEC) disclosing the name and value of the positions in their portfolios.<\/p>\n
Which brings us to the street name used, registered, and designated by the DTC as the registered owner of over
\n$19 Trillion (USD) of our stocks and bonds… CEDE & Co. Everyone in the brokerage business keeps
\npronouncing this name as “See Dee” and Company, but it’s spelled C-E-D-E and pronounced “Seed”. This is
\nwhere the real irony comes.<\/p>\n
Black’s Law Dictionary, Sixth Edition, 1990, the word Cede is defined as “To yield up; to assign; to
\ngrant; to surrender; to withdraw. Generally used to designate the transfer of territory from one
\ngovernment to another”. In the Black’s 1951 Fourth Edition, it lists the following as supportive case
\nlaw; Goetze v. United States, C.C.N.Y., 103 Fed. 72.<\/p>\n
Have you made the connection yet? Your book-entry stocks and bonds and all stock and bond certificates
\npurchased through your broker and held by them under your brokerage account are owned by CEDE &
\nCOMPANY (the DTC) as the registered owner. You have surrendered, assigned and granted ownership to
\nsomeone else other than yourself. Their name says it all.
\nHow ironic and sarcastic can they be?<\/p>\n
“CEDE- To surrender possession of, especially by treaty. See Synonyms at ‘relinquish’.” –<\/p>\n
American Heritage Dictionary of the English Language, 3rd Edition of 1992<\/p>\n
If Americans had any idea that they have relinquished the lawful ownership of their stocks and bonds to
\nsomeone or something else, there would be a revolution. In a sense, that’s why we are exposing this paper asset
\nscam to you. The point is, now that you know the truth, do something about it and get your assets back into your
\nname.<\/p>\n
Our suggestion to you is this: If you don’t literally have every stock and bond registered certificate in your
\npossession, then promptly call your broker and tell him you want all your securities transferred and re-registered<\/p>\n
into your name as the Registered Holder and Owner. If he says he can’t do that because your stock or bond is
\na book-entry transaction only, we strongly suggest, for your own security, that you sell your book-entry assets
\nimmediately. Don’t let the broker tell you that it’s “safer” for you if they keep your certificates. Remember, you
\nknow the truth. Even if all your stock and bond certificates were burned in a fire, the process to have them
\nreplaced is simple. If someone were to steal your certificates, you simply report them stolen to the company that
\nissued them and they’re automatically cancelled, just like a stolen credit card. Replacement certificates are then
\nissued to replace the lost or stolen originals.<\/p>\n
Most people don’t realize that when they open a brokerage account, they have entered into an contractural
\nagreement allowing the broker to assign the stocks and bonds to an undisclosed creditor , the DTC. (We suggest
\nyou read the small print on your brokerage agreement). This gives the broker your express written permission to
\nplace all your securities into the ownership of the DTC. Your broker is an agent for the DTC through mandatory
\nSecurities and Exchange Commission regulations and mandates by the Federal Reserve System private bank.
\nYour broker represents them, not you. Your brokerage account is nothing more than a ledger of accounting. It
\nreflects no assets held in your name. The assets are registered in a “street name” that is not you or your name.
\nSure…. you receive the interest and dividends, but you do so as a beneficiary to the real owner. Your brokerage
\naccount in no way, shape, or manner reflects who literally owns your securities. What you own is a brokerage
\naccount and nothing more .<\/p>\n
A greater consideration is just exactly who does the DTC hold these securities for? As the owner, who has the
\nDTC pledged these securities to? Our research points to the Federal Reserve System , an international private
\nbanking cartel with major offices found in Moscow, London, Tokyo, and Peking. By treaty with the United
\nNations and in compliance with the Bretton Woods Agreement, the DTC under regulation of the Federal
\nReserve System has pledged all those stocks and bonds to the International Monetary Fund (IMF). These are the
\nsame paper securities found in your IRA and pension fund accounts, as well as in your brokerage account.
\nRemember, you don’t own them . . . . you’re just a beneficiary .<\/p>\n
The truth is, the securities you purchased and paid for with your hard earned money is collateral for the United
\nNations which is backed by the Federal Reserve System and it’s associated agencies, such as the International
\nMonetary Fund. Is it any wonder that the UN can operate year after year with increasing budgets, but without
\nsufficient funds? The UN has nearly $11 Trillion of backing and reserves, thanks to millions of duped
\nAmericans. We are financing the New World Dis-Order with our stocks and bonds.<\/p>\n
Part III<\/p>\n
The inside story on the Depository Trust Company<\/p>\n
a\/k\/a CEDE & Co.<\/p>\n
A simple scenario takes place each week within the upper echelon of the financial powers that control America
\n– and the world – a\/k\/a International Organized Crime. In any other form of commercial interaction or business,<\/p>\n
the sale of non-existent stocks is considered absolute fraud. But, when you have the power to control paper or
\nelectronic accounting ledgers, you also have the power to create facsimile assets from nothing but thin air and
\njournal entries. This is where the Depository Trust Company (DTC) and CEDE & Co., the DTC’s “street
\nname” or “nominee name”, come into play. By holding their stock in the particular name of CEDE & Co., all
\n“DTC Participants” have the means of making fast and immediate illegal profits. Of course, none of this could
\nhappen without the full consent of the DTC, et al.<\/p>\n
For background reference, the Depository Trust Company (DTC) filed their original Organization Certificate
\nwith the New York Superintendent of Banks on March 20, 1973. In July 1999, The Depository Trust &
\nClearing Corporation (DTCC) became the name of the new holding company created by the merger of the DTC
\nand the National Securities Clearing Corporation (NSCC).<\/p>\n
Counterfeit Public Stocks<\/p>\n
In the past year, we have been shown more than twenty ways to make illegal profits from fraudulent stock
\nshares using the DTC “shield” – CEDE & Co. – to hide the fact that those particular shares are never actually
\nissued by a public company. In simpler terms, these are counterfeit shares of public stock. A couple of
\n“whistle blower” Wall Street brokers, along with a former employee of a major market operator, have shown us
\nhow this scam operates. We’ll try our best to explain it to you in the simplest terms possible.<\/p>\n
DTC Participants are exclusively able to issue and sell non-existent stock to the public. It’s that simple.
\nHowever, the process as to how this actually takes place is usually not quite so simple. This financial scam may
\nseem like a shock to the average American, but it’s time for a reality check. We’ve warned you since 1995 to
\ninsist on physically holding your stock certificates in your own name, and now we have more facts to support
\nwhat Parts I & II of this investigative series were revealing.<\/p>\n
When price is restrained below the balance of supply and demand, public buyers predominate and
\nmoney pours in while more and more bogus receipts flood the market. Eventually, those corporations must
\nbe bankrupted as the market operator and his criminal co-conspirators will never buy back their counterfeit
\nreceipts. This has been the modus operandi of international organized crime throughout history and should be of
\nno surprise to any of us. We should all read Isaiah, Chapter 10, verses 13-14 over and over until it sinks in that
\nwe’re the victims of professional financial thieves.<\/p>\n
According to the DTC, there are currently 11,000 brokerage firms, dealers, custodian banks, institutional
\ninvestors, transfer agents, paying agents, and exchange and redemption agents for securities issuers considered
\nas “DTC Participants”. There is the possibility that any or all of these DTC Participants could issue counterfeit
\nstocks at any given time. Being extremely conservative, let’s imagine if this was done on a weekly basis by only
\n5% of the DTC Participants. In such a scenario, there would be 550 worthless offerings of counterfeit stock
\nissued each week. If each offering is for 100,000 shares at a buy price of $7 ($700,000 each offering), the total
\nprofit to the DTC Participants each week would be $385 Million dollars from nothing more than ledger entries
\nand thin air. That’s an annual “profit” of $200,585,000,000 or more than $200 BILLION.<\/p>\n
The sale of counterfeit shares of a public corporation is illegal, unlawful, and immoral, yet the purported
\nagencies and departments {i.e. the SEC, FBI, etc.) that are supposed to “police” such illegal organized crime
\nactivities do nothing. As the market operators control prices, eventually those corporations will be bankrupted.
\nThis is because the market operators are not about to buy back their bogus receipts at higher prices. The entire
\nWall Street scam operation functions in this manner. Once the market operator sells bogus shares to control and<\/p>\n
manipulate prices, he puts himself, as well as his co-conspirators profiting from secret omnibus accounts, in a
\nvery profitable position.<\/p>\n
If anyone believes that the Executive Branch, the Congress, the Justice Department, the FBI, the SEC, et al, are
\nprotecting your interests, you had better wake up. For example, why is the U.S. Treasury “borrowing” paper fiat
\nmoney from the private Federal Reserve Corporation? The fake debt, based on “borrowed” counterfeit paper
\nmoney, created by accounting notations, and printed by the U.S. Treasury when paper receipts are needed,
\nwould not exist if government were not protecting the thieves. Having to pay the private Federal Reserve Bank
\nCorporation a billion dollars a day for bogus interest – the result of mere accounting notations – is blatant
\nthievery from the U.S. Treasury and all Americans.<\/p>\n
For more details, see Corruption in Government further below.<\/p>\n
Derivatives & Depositary Receipts<\/p>\n
We believe that the controlled media dis-information as to what a financial ‘Derivative’ actually is has been the
\ngreatest factor into the fraud now overpowering our nation’s economy. Forget about the drug dealers and their
\nalleged money laundering schemes. This is much larger in terms of monetary value…. and it’s highly illegal and
\nfar from being lawful or moral.<\/p>\n
The DTC allows their Participants (banks and brokerage firms) to issue Derivatives or Derivative Instruments.
\nA derivative is basically defined as something that can be made or derived from another; a spin-off based on an
\noriginal. As used in the current financial world, a Derivative is a Depositary Receipt (PR) . There are two basic
\nforms of Depositary Receipts: an American Depositary Receipt (ADR) and a Global Depositary Receipt
\n(GDR) .<\/p>\n
In essence, DTC Participants issue derivative stocks – Depositary Receipts (DR’s) – based upon previously
\nissued shares of public stock held in the name of CEDE & Co. on behalf of the beneficial owners, the actual
\npurchasers. The DTC Participants don’t own the legitimately issued stocks they issue their DR’s against. Those
\nstocks are held in trust for the public, the purchasers of the stock, in the name of CEDE & Co.<\/p>\n
First, let’s assume that a DTC Participant decides to sell one million shares of non-existent stock, or unsecured
\nDR’s, in each of the next 100 Over-the-Counter Bulletin Board (OTCBB) companies at an average price of
\n$3 per share [$300 million]. Given the fact that an average 98% of these OTCBB companies fail, they would
\nearn $294 million in sales, plus interest, by selling stock shares that don’t exist. This is not gambling. This is a
\nsure bet knowing that the “DTC house rules” are guaranteeing them a fixed return. But…. the game isn’t
\nover yet! This still leaves them with 2 OTCBB companies that haven’t failed and they can parlay that into even
\ngreater profits.<\/p>\n
Secondly, let’s also assume that the two left-over solvent OTCBB companies have a $10 per share price. Instead
\nof “covering” – guaranteeing – the two successful OTCBB companies and taking a $16 million loss (2% of the
\noriginal $300 million investment), the DTC Participant does an “Offshore Private Placement Regulation S”
\nunderwriting for these two companies. The standard brokerage discount on a Regulation S offering is 60%. This
\nmeans they will pay the company issuing the stock $8 million. If they simply deduct their $3 million gains from
\nthe sale of these stocks several years earlier, the DTC Participant loses $2 million on the books but, in reality,
\ngrosses $292 million in profits, plus interest.<\/p>\n
For more details, see Wall Street Thievery below.<\/p>\n
DTC Participant Tax Havens<\/p>\n
Why doesn’t the DTC Participant show this gain on their books? The DTC Participant creates their own tax
\nhaven client that technically sells the non-existent stock, or DR’s, and this “tax-free client” makes the profit.
\nSince the profit isn’t legally taxable due to their tax haven status, nobody (particularly the IRS) cares who makes
\nthe money. However, neither the bank shareholders, nor the brokerage firm shareholders, share in this profit.
\nThis is a real fraud scam in the real world.<\/p>\n
Now, let us explain how this works using a real scenario. Examine the recent Bear Stearns – a DTC Participant –
\nSEC 10-Q Filing at the end of 1999 [the Securities and Exchange Commission Form 10-Q is a report filed
\nquarterly by reporting companies which includes unaudited financial statements and is supposed to provide a
\nview of the company’s financial position during the year]. Their 10-Q report showed that Bear Stearns had
\nabout $819 million in assets with roughly a $34 Billion (that’s BILLION) “short position”. [A short position is a
\nsituation whereby an investor borrows stock certificates for delivery at the time of the short sale. Should the
\nseller be able to sell the stock at a price lower than the borrowed cost, a profit is made]. So then, where does the
\nprofit from the short sales go since it doesn’t seem to go to the brokerage firm or Bear Stearns’ stockholders? It
\ngoes to their created “tax haven client”.<\/p>\n
The brightest red light concerning this is that these short positions are rarely “covered” nor guaranteed by any
\nreal assets. Everything is on paper and nothing of any substance value is backing it up. This is due to the fact
\nthat the public company eventually fails as a result of its share price collapse from the nonexistent stock. In
\nlayman’s terms, this means that the profit from the short sale is NOT subject to taxes because the contract is
\nnever completed.<\/p>\n
Banks and Organized Crime Syndicates<\/p>\n
As previously discussed above, banks and stock brokerage firms use the actual public stock being held by the
\nDTC – in their street name CEDE & Co. – to issue bank Depository Receipts (DR’s). The bank does NOT
\nphysically, nor electronically, hold the stock for the Depository Receipt, nor do they actually own it. Rather, the
\nbank or brokerage merely issues DR’s and the public buys them as if they were actual and legitimate stock
\ncertificates. If any questions concerning the actual possession by the bank or brokerage of the stock certificates
\nare asked by an investor-purchaser, they reply that the stock is being held by the DTC. It’s very odd that the
\naverage investor never asks the bank or their broker to prove this. In essence, the banks and brokerages issue
\n100% non-secured and worthless paper. The DR’s are worthless because they are not secured. The banks,
\nalong with the brokerage firms, make 100% PLUS on every sale of these counterfeit stocks. They get the full
\nvalue for the DR’s plus their commission on the sale. This is the scam of all scams.<\/p>\n
At any time, anyone can issue an accepted financial instrument giving them the means to launder “money”. For
\nexample, look at the recent money laundering by Russian organized crime syndicates where the international
\nbanks sold DR’s representing stocks on the mob’s behalf . The banks issued the DR’s and the buyers accepted
\nthe DR’s as equivalent to the stock. The bottom line is that the seller of the stock was the Russian mobs.
\nHowever, the banks shared the profits with the mob to gain access to the mob’s money. The newspapers
\ncentered their headlines on the mob’s laundering without explaining that this could have never taken place
\nwithout the involvement of the banks and the DTC. This is the risk behind “Derivatives”. You never know if the
\npeople holding the stocks used as the basis for the DR’s are legitimate.<\/p>\n
Let’s not forget that we live in an instant society. If the average world citizen can’t make money right now, in an
\ninstant, few will play the “money game”. Money, or rather its ledger created facsimile, has become the god of
\nthis world. The stark reality behind the existence of the DTC is that it’s nothing less than a protective shield for
\nDTC Participants to create instant paper profits. Otherwise, the DTC and CEDE & Co. would have no practical
\nreason to exist.<\/p>\n
Who pays if Derivatives collapse the Markets?<\/p>\n
The banks are covered by FDIC insurance. This simply means that the U.S. taxpayer will pay for any losses.
\nConsider the S&L Crisis during thel980’s, especially in Texas and California when banks were collapsing left
\nand right. It cost least one Trillion dollars to FDIC insurance, a.k.a. the American taxpayer, to “bail out” the
\nbanks. Stock and mutual fund brokers are covered by private SPIC insurance. SPIC isn’t taxpayer backed, so a
\nmeltdown would mean the bankruptcy of the brokerage industry. Client accounts would be forfeited and there
\nwould be no taxpayers to pick up the tab. The alternative would be to have the derivatives covered by FDIC
\ninsurance as well. If there’s risk in issuing these derivatives – and we know these risks are big – and the same
\nderivative risks are to be covered by both the FDIC & SPIC, what would happen if these derivative scams are
\nexposed to the public and investors opt for a cash market by demanding their physical stock certificates?<\/p>\n
The doomsday “Stock Market Program” was put into effect after the October 1987 stock market exchange
\n“correction”. This was brought about by the DTC (See Part I). Directly attributable to this is the fact that the
\nprivately owned Federal Reserve System now has the “legal” right to buy “blue chip” Dow Jones Industrial
\nAverage (DJIA) stocks in a declining market. So far, the public has made money by having the FED support the
\nstock market. The problem with this is that the full faith of the U.S. “dollar” now supports the stock market and
\nthat support is the investment made by the average working American. Binding the U.S. Federal Reserve Notes
\n(FRN’s), which are not “lawful dollars”, to stocks increases the probability that FRN’s must fail sooner or later.
\nWith each passing day, “sooner” becomes a timely reality.<\/p>\n
How to legally launder money… just like banks and brokerage firms<\/p>\n
As a result of our research, and thanks to a few “insiders” who helped us put this all together over the past year,
\nwe have come up with 21 Ways to Legally Launder Money which mirror the actual goings-on in the financial
\nworld today.<\/p>\n
If you think the movie Wall Street was a shocker, wait to you read this script….<\/p>\n
Traditional Short Sale- Borrow the stock against a fifty percent margin. This is the only type of short sale that
\ncan be “squeezed” when the share price goes up. That’s because the short seller must add money to their margin
\naccount. This is the most “legal” way to “legitimately” launder money, but also it’s the riskiest for the launderer.<\/p>\n
Market-maker Short Sale- U. S. Market-makers are not required to take physical delivery of stock certificates
\nwhen they sell them. They are assumed to be a repository of the company’s shares.<\/p>\n
Brokerage House Short Sale- This is a decision by the broker not to execute a “buy order” from a client. The
\nbroker merely shows the stock as “owned” by the client on their monthly brokerage firm account statement – a
\npaper transaction without reality – securities fraud. [If you don’t think this really happens, they also have some
\nswamp land in Florida for sale to add to your monthly brokerage statement]. This is the first reason to insist on
\nholding your own stock certificates in your own hands and in your own name. Never trust a broker, the DTC, or<\/p>\n
anyone else to “hold” your certificates. You become the “beneficial owner” when they placed your certificates
\nin the “nominee name” of CEDE & Co.<\/p>\n
Clearing House Short Sale- The Clearing House doesn’t execute the buy order. Instead, they credit it to the
\nbrokerage firm client’s account.<\/p>\n
Naked Short Sale- This is where two brokerage firms agree to trade stock in a company with neither brokerage
\nfirm requesting physical delivery of the share certificates.<\/p>\n
Insider Short Sale- This is when insiders, with restricted stocks, use their restricted shares to sell their
\ncompany “short”. It’s supposed to be illegal according to the SEC. It was a common practice when the
\nRegulation S Hold Period was 40 days, but a rarer occurrence lately.<\/p>\n
Dodge Viper Short Sale- This is where a bloc of stock is purchased, then, the same stock is converted to
\nderivatives (DR’s) thus multiplying the original stock 100% or more. The short sale doesn’t occur in the stock
\nmarket, but the derivative or Depositary Receipt owners are holding a short position. We were told this is the
\nmost widely used method.<\/p>\n
DTC Short Sale- This is when DTC sells short using the stocks they hold in their “street name”, CEDE & Co.<\/p>\n
International Short Sale- a\/k\/a stocks created offshore. The company is listed to trade outside the United
\nStates (usually in Canada). However, the company is trading in the United States and the shares are sold within
\nthe U.S. The short sale is moved into the primary country where the local brokers can ensure that the short
\nposition will be covered by the listed company if there is ever a successful short squeeze.<\/p>\n
Judicial Short Sale- a\/k\/a LTV. Scattered Securities is an example of this short play. The Court in the LTV
\nreorganization determined the exchange rate for new shares for old shares at three cents. The controlled
\nfinancial media made sure that the Market didn’t know about the Court decision. The old shares traded far
\nhigher than the Court Ordered exchange rate. The short sale was done by selling old shares and buying new
\nshares before the Court mandated exchange of the share certificates.<\/p>\n
Agent 007 Short Sale- Sellers who are insiders, or who allege themselves to be insiders, sell completely
\ncounterfeit stock to buyers outside regular or known market channels.<\/p>\n
Desert Short Sale- Brokers sell stock at prices well above the actual trading price of the stock. This has been
\npopular with German OTC stocks sold into the Middle East. The gap between the sale price and the trading
\nprice is an effective short sale.<\/p>\n
DR Short Sale- Using counterfeit stock, the seller deposits it into an overseas bank. They then sell Depositary
\nReceipts against the counterfeit shares held by the bank. This is done alot in Asia.<\/p>\n
Rockford Short Sale- An investment firm buys shares and takes physical delivery of the stock certificates.
\nThey replace the actual share certificates with counterfeit share certificates. Next, they sell the real shares back
\ninto the market and repeat the process. This practice does wonders for their balance sheet! This tactic was
\npopularized by an episode of the Rockford TV Series. It’s done a lot in the Asian markets (especially Hong
\nKong) with NYSE shares.<\/p>\n
Tax Haven Bank Short Sale- Small banks, especially Caribbean banks, act as agents for their clients unwilling
\nor unable to reveal their real identity. However, the bank client wants to buy some legitimate stock. The bank
\nnever buys the stock on behalf of the client. Instead, they simply show the sale within the bank’s accounting<\/p>\n
system. This practice extends to gold and other precious metals and is the biggest scam used against U.S.
\ninvestors in offshore banks. Take note that a majority of the Caribbean banks are backed – and owned – by
\nvarious organized crime syndicates throughout the “new” Europe, especially former Soviet Union provinces that
\nare now independent countries and recognized by the United Nations and EU.<\/p>\n
Lost in the Mail Short Sale- The client-purchaser demands their stock or share certificate. The broker sends it
\nvia certified or registered mail to the wrong address – deliberately. The actual certificate is eventually returned
\nto the broker. Using the signed return receipt, the broker claims the client has the share certificate. For the
\ninvestor, perhaps a year or more is spent in proving it never arrived. Meanwhile, the broker has the stock
\ncertificate and can use it to cover other short sales. This happens frequently.<\/p>\n
Margin Short Sale- The purchaser buys stock on margin. They can’t take physical delivery of their share
\ncertificates, so the broker sells the margined account a\/k\/a non-existent stock.<\/p>\n
Public Media Takeover Short Sale- Brokers add non-existent stock into a highly publicized company takeover
\nwith a legitimate stock transaction. The buyer of the other company pays for the non-existent shares. The short
\nseller gets cash or stock in the buyer’s company.<\/p>\n
AWOL Short Sale- For many OTC stocks, about 3% of the “beneficial owners” cannot be accounted for each
\nyear. Usually, they die or forget they have the stock. Brokers can safely sell short 3% of the “float” each year
\nrelying on the fact that these beneficial owners will most likely never claim their stock. Some brokerage firms,
\nrelying on retirement age portfolios, sell short 5-10% hoping that the younger relatives never find out.
\nConsidering the numerous stock splits over the years, 10 shares in 1965 may well be 1,000 shares in 2000. This
\ngives the broker “safe” odds even if the original certificate shows up and is cashed in at a future date, provided
\nthe broker doesn’t get too greedy.<\/p>\n
Counterfeit Stocks- Professionals regularly send counterfeit share certificates to stock Transfer Agents.
\nBelieve it or not, a surprising percentage are accepted as real share certificates. The result is that the
\nprofessional thief has effectively sold short the shares involved in the certificate.<\/p>\n
DR Float- The issuance of Depositary Receipts without ever holding the stock certificates. This goes along
\nwith selling the Depositary Receipts at a profit even though they have no “cover” in real assets.<\/p>\n
Part IV<\/p>\n
Corruption In Government<\/p>\n
Compiled and prepared by George & Dana Brown, brianshouse@yahoo.com , for Lawgiver.Org<\/p>\n
THE THIEVERY<\/p>\n
Creating paper (fiat money), depositing it in your own account, and then paying interest on it when you spend
\nit: WOW! What a scam! Who would be so stupid?<\/p>\n
In the 1860’s, Abraham Lincoln created Greenbacks in the U.S. Treasury and refused to pay the thieves a dime
\nof “interest” on their bogus loan scam. In 1963, President Kennedy reissued interest free United States Notes
\nfrom the U.S. Treasury, so it can still be done.<\/p>\n
But, why is the U.S. Government paying interest on its own fiat (paper) money, our medium of exchange,
\ncreated by edict of Congress and printed by the U.S. Treasury? Yes, the fiat money is now called (private)
\nFederal Reserve Notes to help conceal the scam.<\/p>\n
Why embezzle (steal) MORE THAN 1.5 TRILLION in welfare for super-rich thieves every four years? Yes,
\neach year the thieves are now embezzling (stealing) MORE THAN 350 BILLION DOLLARS of your money
\nthrough this bogus interest scam. Yet, nothing was borrowed, nothing is owed, and no legitimate interest was
\never due!<\/p>\n
Again, our paper money is created by edict of the U.S. Congress, deposited in a U.S. Government account in the
\nprivate Federal Reserve via certificates of deposit (formerly gold or silver certificates), and printed by the U.S.
\nTreasury when paper bills are needed. Then, when the U.S. Government spends its own money (your money)
\ninto circulation, the thieving bankers call it a loan. So, as the principle of this bogus loan system increases so do
\nthe bogus interest payments. And International Organized Crime grows ever richer and richer. That explains
\none reason the U.S. Congress has been encouraged to spend, spend, and spend to squander billions annually.<\/p>\n
Whereas, if the U.S. Government were to operate more legitimately, via an account in the U.S. Treasury, there
\nwould be no excuse for such interest period. The tax burden on the U.S. Citizenry would be drastically reduced.
\nThere would be more funds for whatever and the U.S. Treasury would be operating with a large surplus.<\/p>\n
Also, the U.S. Government should act to recover the stolen wealth regardless of where it may be stashed. That
\nis, the U.S. Government should confiscate properties (including the private Federal Reserve Banks) and other
\nwealth owned by the thieves and their confederates just as done for vile drug dealers and other criminals. This
\naction should add considerable wealth to U.S. Treasury assets.<\/p>\n
ASK YOUR PUBLIC SERVANTS<\/p>\n
1 . Why are public servants acting as agents for International Organized Crime? If public servants did their
\njobs honestly this scam could not exist!<\/p>\n
2. Why is your U.S. President participating in this felonious embezzlement of your money while serving
\nInternational Organized Crime?<\/p>\n
3. Why are Members of the U.S. Congress permitting this criminal operation to rob our national treasury?
\nHow many criminal agents are on the public payrolls?<\/p>\n
4. Why is the U.S. Justice Department pretending that all is copacetic? Yes, the Justice Department is not
\nblindfolded, they simply have ignored the unbalanced scales and the serious criminal activities of which
\nthis scam is only one example.<\/p>\n
5. Why is the FBI protecting such criminal operations? Corruption in the FBI crime lab is only a snowflake
\non the FBI’s iceberg of crime being protected.<\/p>\n
6. Why is the U.S. Treasury Department closing their eyes to this fantastic rip-off?<\/p>\n
7. Why are former public servants that served as agents for International Organized Crime not being
\nprosecuted for their participation in this continuing embezzlement of public wealth?<\/p>\n
THE CONSEQUENCES<\/p>\n
As long as people refuse to hear, avoid talking about it, and do nothing (like the dumb monkeys) … scams such
\nas this will continue to flourish. Cowards in public office will continue serving International Organized Crime
\nwhile they too profit from the corrupt system.<\/p>\n
The cowards contend: “It’s not happening!” or “Leave the cleanup for your children and grandchildren!” or
\n“Jesus will clean it up when He comes!” Yes, cowards use any excuse to do nothing as they serve ole King
\nNebuchadnezzar and his loyal servants (Jeremiah 25:11; Isaiah 10:5,13-14; etc.). Yes, some people enjoy living
\nin Sodom and Gomorrah where anything goes.<\/p>\n
This, of course, is not the only such scam. However, it is so blatantly obvious: creating paper money, depositing
\nit in your own account, and then when you spend your own fiat (paper) money the crooked bankers call it a
\nloan.<\/p>\n
No one would be dumb enough to pay bogus interest payments on such a bogus loan. The scam involves
\ndeliberate calculated thievery. Anyone can see it. Proof is even deducted from every paycheck as “sovereign
\ncitizens” pay, pay, and pay as people serve their Satanic masters (Jeremiah 25:1 1).<\/p>\n
Meanwhile, as that bogus interest grows so too will that paycheck deduction … someone is paying that phony
\ninterest.<\/p>\n
Note also, the thieves have sold the general public an insignificant share of their thieving scam via Government
\nDebt Securities\/Bonds\/Certificates. They therefore have enlisted some citizenry on their side, to share in the
\nscam, to silence their opposition, and to attempt to legitimatize the scam. But thievery is thievery no matter how
\nthe thieves disguise their operations. Remember, “Thou shalt not steal!” (Exodus 20:15). Also, “Thou shalt not
\ncovet .. . anything that is thy neighbour’s” (Exodus 20:17).<\/p>\n
Today, people have a choice to either: (1) continue “volunteering” their payments to International Organized
\nCrime while bowing as Satan’s obedient servants (Jeremiah 25:1 1); or (2) to demand justice, demand that public
\nservants in responsible positions resign or do their jobs, and demand that agents serving and protecting
\norganized crime be imprisoned, fined, their wealth confiscated, etc. for their roles in protecting or otherwise
\nserving organized crime robbing our public treasury.<\/p>\n
WOW! EMBEZZLING MORE THAN $1.5 TRILLION EVERY FOUR YEARS WHILE PEOPLE
\nSLUMBER ON AND ON!<\/p>\n
Isaiah 10:13-14; 31:2; 42:24
\nPsalm 94:16; Judges 5:23; Exodus 23:20-25<\/p>\n
PartV<\/p>\n
Wall Street thievery<\/p>\n
During Economic Prosperity, Thieves Sell Untold Bogus Receipts.
\nWhy Do Corporations Allow Thieves To Control Their Securities?<\/p>\n
Compiled and prepared by George & Dana Brown, brianshouse@yahoo.com , for Lawgiver.Org<\/p>\n
THE SCAM<\/p>\n
The scam is rather simple: the sale of bogus counterfeit receipts to naive citizenry while illegally manipulating
\nprices below the natural balance of public supply and demand. Thus, lowering price below the value established
\nby a variety of factors entices a continual supply of “suckers” buying bogus counterfeit receipts run off on
\nprinting presses by the market operators. Eventually, engineered economic squeezes impact everyone.<\/p>\n
Meanwhile, assets represented by the bogus paper must be severely damaged and perhaps maliciously
\nbankrupted to artificially destroy the value of both the legitimate and bogus “watered” receipts to complete the
\nvile robbery of their myriad victims. Note: the thieves get your money up front and distribute it to their
\nconfederates via secret omnibus accounts (see U.S. Congressional Reports); then the destruction may be
\ndelayed until years later but it surely comes. The thieves are not about to buy back the bogus counterfeit receipts
\n…at least not at higher prices!<\/p>\n
Conversely, the prices of certain legitimate receipts are artificially raised above the value determined by public
\nsupply and demand to give those entities, their owners, etc. special unwarranted advantages over others. Yes,
\nproblems are created for some while others are free to do as they please, are given fat government contracts,
\nplenty of operating capital, etc.<\/p>\n
Oh, the “fun and games” take on a variety of wrinkles and twists depending on specific situations and the
\npositions of the vile thieves’ agents … many of whom are on the public payrolls. Yes, many agents serving the
\nthieves are in the employ of Government being paid as public servants but, in reality, are agents serving
\ndespicable people. Many agents, of course, don’t even realize who they truly serve but simply do the bidding of
\ntheir bosses to keep their jobs, get promotions, raises, etc. Often even their immediate bosses don’t realize
\nwhat’s going on but simply follow orders from higher echelons as dictates flow downhill. The laws are
\nmeaningless as the thieves and their agents are protected. Fantastic, you bet!<\/p>\n
THE RECEIPTS<\/p>\n
Modern scams involve: Securities representing ownership, Bonds representing loans, Partnership Shares
\nrepresenting profit sharing, Commodities representing articles of commerce, Bullion representing precious
\nmetals, etc.<\/p>\n
In ancient times merchant thieves even operated in the Temples selling receipts representing a variety of
\nofferings (See the Talmud; Josephus’ writings; Deuteronomy 14:22-27; Matthew 21:12-13; Mark 11:15-18;
\nLuke 19:45-46; John 2:13-16; Malachi 3:8-10). People would then take their receipts and exchange them for
\nfood and drink at the boiling courts (restaurants) in the Temple amphitheater. However, few were aware that the
\nsame offerings were being sold over and over and over as the thieves pocketed the lion’s share, gave the high
\npriest a cut, and the Temple Treasury got only a fraction of what was due. Thus, the Temples were dens of
\nthieves just as are today’s Wall Streets of this world.<\/p>\n
THE CONSEQUENCES<\/p>\n
Awake, people are being robbed blind! When the thieves are ready; retirement funds and investment plans are
\ndepleted, jobs are lost, lost seniority, economic turmoil, lost homes, “nest eggs” are wiped out, deliberately
\nmanipulated bankruptcies, artificially depressed prices, even instigated and propagated wars \u2014 bankers’ wars
\n(they destroy with armies, bombs, shells, etc. WWII, for example, shed the blood of 50 million naive victims to
\nirradicate bogus counterfeit receipts. The Iraqi, Kuwaiti, U.S.A. war is a more recent example).<\/p>\n
People have dwelt in poverty while others have lived “high off the hog” as generations after generations have
\nbeen robbed just as foretold in the Scriptures (Isaiah 42:22-24; 10:5,13-14; 17:12-14; Psalm 106:40-42; Daniel
\n7:7; 11:14; etc.).<\/p>\n
Oh, yes, more burdensome laws, unreal requirements, crooked judges, crooked lawyers, stealing corporate
\nsecrets and patented products, etc., etc. prevail today.<\/p>\n
In addition to the vast sales of bogus receipts the thieves’ games involve: falsifying reported data, a computer
\ngenerated Dow Jones Industrial Average, transferring blame and liability, protecting wrongdoers, putting
\nvictims in prisons, murders, payola, and you name it. It’s sad but the octopus’ tentacles even stretch throughout
\nthis nation and around the world as corrupt brokerage houses pedal both legitimate and bogus counterfeit
\nreceipts to the naive citizenry with impunity.<\/p>\n
Yes, the Executive Branch, the U.S. Congress, the Judiciary esp. bankruptcy courts, the Justice Dept., the
\nTreasury Dept., the Securities And Exchange Commission, the Internal Revenue Service, the FBI, even the
\nDefense Dept. … all work for, service, and protect those stealing your wealth, your money, destroying your
\ncorporations (the ones owned by the people).<\/p>\n
Meanwhile, corporations owned by the thieves are aided and protected. The Scriptures speak of events as the
\nsins of: Judah (Jeremiah 17:1-27; Zechariah 5:4; Habakkuk 2:1-17), Damascus (Isaiah 17:1-14), Tyre (Isaiah
\n23:1-18), the ancient nation (Jeremiah 5:15-17), the little horn (Daniel 7:8,1 1,20-24; 8:9), and other names.<\/p>\n
LOGIC<\/p>\n
Elementary logic dictates that an entity would have to have an endless supply of legitimate receipts to always
\nsell at lower prices while purportedly insuring a steady flow, smoothing out price changes, etc. Conversely, to
\nalways buy at higher prices to insure the reverse … that entity would have to have an endless supply of money.
\nNeither is true when it comes to the larcenous operations of national markets throughout the world. THUS,
\nTHE TRUE OPERATIONS OF THESE MARKETS ARE FOUNDED ON SELLING BOGUS
\nCOUNTERFEIT RECEIPTS, FRAUD, DECEIT, LARCENY, ILLEGAL PRICE MANIPULATION,
\nFALSIFIED REPORTS, PROTECTION OF THE THIEVES, ETC. … and all such swindlesome activities
\nare on behalf of International Organized Crime.<\/p>\n
After completion of this page and examining the associated hyperlinks, don’t miss the key hyperlink at the end
\nof the brief Summary of Scam #2. That is, at that time Market Operations might be examined for a further
\nexplanation of corrupted mechanisms of the market operations. Everyone, including every investor and all
\ncorporate management, should know and understand what’s going on.<\/p>\n
2. When the New York Stock Exchange first got their initial computerized system on line in 1964 … their
\nprogrammers did a very poor job of concealing the fact that the Dow Jones Industrial Average, for example,
\nwas artificially generated. And for the eleven years (1964-1974) a LINEAR plot of the DJIA, shows specific
\npoints conforming quite precisely with the computer program’s dictates. Amazing!<\/p>\n
Diagram Of DJIA (1964 through 1974)
\n(A Linear Plot)<\/p>\n
click here for explanation and copy of the graph<\/p>\n
3. Then there are the falsified short sales figures published monthly. A little research in the 1970’s revealed that
\nin issues more heavily short sold, reported short sales totaled to an artificial figure determined by multiplying
\nthe monthly total by a factor (a constant) that remained unchanged for ten consecutive months and for several
\nsubsequent spot checks. In addition, the total of all reported short selling in other issues always added up to the
\nsame total. Thus, there could be no mistaking that the publicly reported data has been severely falsified,
\nmanipulated with the exchange’s computer, to help conceal the scam and the extensive selling of bogus
\ncounterfeit receipts.<\/p>\n
4. In 1974 a U.S. Senate Permanent Subcommittee On Investigations, within the U.S. Senate Committee On
\nGovernment Operations, responded to an extensive list of conclusions provided to the Nixon White House and
\nto every U.S. Senator. The Senate Subcommittee’s 1974 response was quite interesting. Copy Of: US Senate
\nSubcommittee Letter Dated 30 January 1974 .<\/p>\n
Nevertheless, the criminal operations continue unabated; and, the Securities And Exchange Commission still
\ncontinues as watchdog for the thieves NOT for the citizens, investors, and their corporations.<\/p>\n
PRICE MANIPULATION<\/p>\n
Price manipulation up or down is child’s play for those given illegal license to ignore the laws, to sell bogus
\ncounterfeit receipts, to steal vast sums from the citizens, their invested wealth, and their corporations … all
\nwhile protected by agents on Government payrolls.<\/p>\n
For example, only 800 simple transactions could dump price $100 per share regardless of predominant public
\nbuying. The same results are achieved with any combination of zero, 1\/16, 1\/8, and 1\/4 point moves.
\nThe following examples demonstrate the simplicity of the protected market operators’ (specialists) abilities to
\nmanipulate price:<\/p>\n
Buyer ‘ s<\/p>\n
Price<\/p>\n
Source of<\/p>\n
Seller ‘ s<\/p>\n
Price<\/p>\n
Predominant<\/p>\n
Order<\/p>\n
Move<\/p>\n
Receipts<\/p>\n
Order<\/p>\n
Move<\/p>\n
Buy\/Sell<\/p>\n
#1 100<\/p>\n
up<\/p>\n
100<\/p>\n
Down<\/p>\n
Balanced<\/p>\n
On ^ ^* ^<\/p>\n
1\/8<\/p>\n
Printing<\/p>\n
Shares<\/p>\n
1\/4<\/p>\n
Press<\/p>\n
#2 1 mil.<\/p>\n
up<\/p>\n
100<\/p>\n
Down<\/p>\n
1 Mil.<\/p>\n
Shares<\/p>\n
1\/8<\/p>\n
Shares<\/p>\n
1\/4<\/p>\n
Bought<\/p>\n
The overall Price Move Down 1\/8 for both situations.<\/p>\n
Conversely, the opposite is also true. Price can be easily moved up when receipts are largely owned by the
\nMarket Operators and their confederates … even in the face of predominant public selling.<\/p>\n
SUMMARY<\/p>\n
The whole game is very similar to that of ancient times when people tithed via offerings to thieves in the
\nTemples. The thieves took it all and GOD got little or nothing. Oh, the high priest and a few others got a cut of
\nthe swag too; otherwise the thieves would have been run off.<\/p>\n
Yet, the people did not object or were ignored since government (the throne room was above the Holy of
\nHolies) and the priesthood were protectors of the vile thieves. So, history reveals that eventually GOD
\ndestroyed each of the corrupted Temples and the people had been cast into this unrighteous world, “the land of
\nthe North,” until these end times. And the thieves are still being protected by governments and the priesthood as
\nthe Religious Beast and flocks still refuse to help the LORD and oppose the mighty (Psalm 94:16; Judges 5:23;
\nEcclesiastes 10:4-5; Deuteronomy 20:1-4).<\/p>\n
Click here for a further explanation of corrupted mechanisms of Market Operations . Everyone, including
\nevery investor and all corporate management, should know and understand what’s going on.<\/p>\n","protected":false},"excerpt":{"rendered":"
This exclusive five part investigative report series is a combined compilation of interviews and background research from October 1995 through March 2000 conducted by Lawgiver.Org Part I The Depository Trust Company The $19 Trillion Private Bank The Depository Trust Company … Continue reading