Undisclosed conflicts of interest—on a massive scale—are choking Washington
Breaking News, Dec. 8, 2013—Leader founder and CEO, Michael McKibben, speaks publicly about the Facebook case for the first time in an exclusive interview with Estonia Daily Editor Eva Tampere—Michael McKibben: Facebook is built on technology stolen from us.CLICK HERE to read Eva Tampere's interview. (Skype originated in Estonia.)
(Dec. 3, 2013)—Investigation into the financial holdings of federal judges in Leader v. Facebook has exposed an unprecedented web of conflicts of interest in Washington D.C., New York, Boston and Silicon Valley. It is a cancer that appears to have metastasized into many agencies of the U.S. government.
Stitching this story together from public documents, one thread at a time, the apparent master minds are James W. Breyer and Lawrence “Larry” Summers.
Breyer is the managing partner of Accel Partners LLP, Palo Alto, California. He is also Facebook’s largest shareholder and former chairman.
These insider actions effectively double-crossed hundreds of investors who they had encouraged before 2008 to invest in certain funds that would eventually purchase billion of dollars in pre-IPO Facebook stock. For example, T. Rowe Price purchased more 5.1% of Facebook's insider stock, according to the Facebook S-1 disclosure. See p. 148. The T. Rowe Price stock was purchased at about the same time that Russian oligarch Alisher Usmanov invested billions.
Even senior Facebook employees found these pre-IPO insider transactions dubious. For example, Mark Zuckerbeg's former speechwriter, Katherine Losse, said they were essentially ordered to sell these insider shares to the Russians and "ask no questions." See the Boy Kings Congressional Briefing.
New, Dec. 12, 2013—Special Notice: Facebook IPO big winner, No. 6 Meritech Management, includes owner Ann H. Lamont. Ann Huntress Lamont is a former director of the National Venture Capital Association with Accel Partners' James W. Breyer, Robert C. Ketterson of Fidelity Funds and Anne Rockhold of Vanguard Funds, now CFO of Accel Partners. All these funds were big investors in the Facebook IPO.
Lamont is also a board member of Castlight Health founded by Obama appointee, U.S. CTO, Todd Y. Park, the chief architect of HealthCare.gov when he was CTO of the Department of Health and Human Services (HHS). See previous post.
Todd Y. Park's direct and undisclosed relationships to Facebook interests biases all his HealthCare.gov involvement and recommendations, including the knowingly false claim that the HealthCare.gov technology is "open source." This conduct shows evident intent by the Obama administration and cronies to confiscate the social networking property of Columbus innovator Leader Technologies.
On day 3 of the Facebook IPO, Breyer dumped over $6 billion of his shares under the cover of the supposed NASDAQ "glitch." However, it now appears the glitch was intentional, and it appears he was double-crossing the many investors identified in Fig. 1 by first pulling out plenty for himself before the stock price tanked—which he knew would happen since he had artificially inflated the valuation using his Russian oligarch slush funds.
As it turns out, SEC Chair, Mary L. Shapiro, was actively fanning this conflict of interest flame since she held 49 of these insider holdings. She exempted Facebook from the previously sacrosanct 500-shareholder rule. This act opened the corruption floodgates. This explains why complaints about insider trading prior to the Facebook IPO were ignored by the SEC. Attorney General Eric H. Holder holds 25 of these funds as well. They are up to their eyelids in this muck.
Summers is President Obama’s former director of the National Economic Council who allegedly oversaw the 2008 bailout. However, it now appears likely that the bailout itself was a Summers contrivance designed to supply tens of billions of dollars to this agenda.
Breyer’s father, John P. Breyer, and George Soros appear to be pulling the strings behind the curtains. They are fellow post-WWII Hungarian refugees. During James W. Breyer's ascendancy in the U.S. venture capital world, father John P. moved to Beijing, China and helped start that country's venture capital markets. Son James is actively dissing U.S. markets in favor of Chinese ones. Soros' agendas are well known.
Another troubling dimension is Russian President Vladimir Putin. He is closely allied with Goldman Sachs–Moscow’s Russian oligarch partner, Alisher Usmanov. Usmanov was the second largest shareholder in Facebook prior to the IPO. Summers mentored Usmanov's front-man, Yuri Milner, along with Facebook COO, Sheryl K. Sandberg. Usmanov's pre-IPO investments triggered the pre-IPO valuation bubble.
That investing appears to have been made possible by billions of dollars in Goldman Sachs bailout funds, funneled to Moscow via London, then back through Dubai before returning to purchase Facebook insider shares. All very clever, but very illegal.
Trans Pacific Partnership (TPP)
It is also becoming evident that these actors are directing President Obama’s secret Trans Pacific Partnership (TPP) agenda. Among other things, TPP is attempting to dramatically alter U.S intellectual property laws without Congressional approval. This tactic is similar to the confiscation of Leader Technologies' U. S. Patent No. 7,139,761 by the federal courts and Obama administration. They are working to dismantle private property rights in favor of judicial privileges that trump the Constitution and Congress.
Follow the money
Required annual financial disclosures blew the lid off this collusion. Investigators discovered that a select group of judges and administration officials had insider information on funds that would eventually invest heavily in Facebook’s IPO. Amazingly, this knowledge was gained before 2008. James W. Breyer appears to have tipped these officials prior to 2008 in order to elicit a massive array of favors and cooperation.
American Presidency for Sale
From the "Imperial Presidency" by Arthur M. Schlesinger, Jr. (1973), pages 417-8:
If one were intent on buying the 2008 and 2012 presidential elections, positioning people in bureaucratic power, changing laws to sanction intellectual property theft, and keeping people quiet, this would be one way to do it. Once these judges and officials were invested in these funds, they became complicit. They were then motivated to be silent and do what they were told, or were cajoled to do. This could explain Chief Justice John G. Robert, Jr.'s ashen, mumbling countenance after reversing himself on Obamacare. Was Roberts blackmailed, or did he do it to protect his 21 investments in Facebook-friendly funds?
Not a single conflict of interest has been disclosed
During this same time, Breyer was also riding herd over corrupt practices in Mexico as a Wal-Mart director. The Bible speaks about people who have a "conscience seared with a hot iron." Breyer's conduct would place him in this category of immorality.
After Leader Technologies' attorneys began spanking Facebook's attorneys in pre-trial hearings, Breyer used his influence to get certain judge appointments (Leonard P. Stark and Evan J. Wallach) and also ordered Obama to appoint David J. Kappos as Patent Office director—a man with whom he had been negotiating the sale of 750 IBM patents (all patents trumped by Leader's patent). With these people in place, Breyer was certain he could control his "Leader Technologies problem." Breyer used the courts and Patent Office to steal Leader's technology. See previous post.
A judge is required to disqualify himself even if his spouse holds only one share of stock in a company coming before his court. Similarly, members of the executive branch are required to act impartially and disqualify themselves if they have holdings in a party coming before them. Amazingly, not a single person or entity identified in Fig. 1 has disclosed any of the conflicting relationships identified by the blue lines.
Conflict of interest laws exist precisely because a person involved in a public trust cannot act impartially if he or she has an interest in one of the parties.
The corruption of an entire generation of public servants
By encouraging these individuals to invest in the insider funds, James W. Breyer embroiled an entire generation of promising public servants in the most massive fraud upon the American public in the history of the republic.
Breyer’s destructive example to future innovators
Leader Technologies’ social networking invention, which Breyer and his "PayPal Mafia" collaborators stole, became the glue that enabled Breyer to bind his collusion together. It enabled him to communicate with his several hundred actors secretly via secret Facebook email accounts.
By stealing from real American innovators, Breyer has likely corrupted an entire generation of high tech innovators and entrepreneurs, for whom he has set an immoral example.
* * *
- Americans For Innovation.
- Faces of the Facebook Corruption
- Judicial Watch.
- Leader v. Facebook Congressional Briefings.
- Origins of Facebook's Technology?
- Petition for Writ of Certiorari by Leader Technologies to the U.S. Supreme Court (Facebook did not respond); See also Leader Technologies Docs.
- U.S. Government Printing Office Government Publications Search.
- U.S. Office of Ethics in Government.