DC-based fund, Sands Capital, withheld filings that concealed Chinese influence over the White House, Patent Office, Judiciary & Facebook
Marauding Obama Donors: Zhang's move to Baidu, Inc. coincides with the unreported Sands Capital securities transactions analyzed below. Also during his move, Facebook went public, T. Rowe Price invested $190.5 million in Facebook and $147 million in Baidu. Fenwick & West LLP was Facebook's securities and patent counsel. The Leader v. Facebook case was on appeal at the Federal Circuit where the judges were heavily invested in Facebook, and the S.E.C. Chair in Baidu (e.g., T. Rowe Price PRGFX)
Zhang had only five years of experience before jumping to the top intellectual property job at Baidu. Baidu is one of the largest technology companies with $23B in revenue and 21,000 employees. This would place the company around 130th on the Fortune 500 list; along with U.S. Bank, Time Warner, and Goodyear. It appears that the Facebook IPO feeding frenzy was orchestrated in both the U.S. and China. This supports the hypothesis that the NASDAQ "glitch" was a smokescreen.
Facebook also went public during this same time (with Fenwick & West LLP as their lead securities and intellectual property counsel). Again, Sand Capital did not provide proper notice of its Facebook stock acquisition.
The juxtaposition of these three notice failures, combined with HealthCare.gov's claim that its software platform running on Facebook and other "open source" software, signals obvious collusion to deprive Leader Technologies of its private property rights—government confiscation of property.
It also proves Chinese meddling in America's data infrastructure and the Obama White House cabinet.
This picture shows the logo of Baidu on its headquarters. Photo: AFP/Getty Images/Forbes/via @daylife).
ORIGINAL POST
(Jan. 28, 2014)―Washington DC-based Sands Capital Management, LLC, the seventh largest fund investor in Facebook, failed to file three critical Facebook, Athenahealth, and Baidu-China (“the Chinese Facebook”) disclosures with the U.S. Securities and Exchange Commission (S.E.C.) during the period of May-August 2012.
These disclosures would have signaled serious conflicts of interests within the Obama administration, especially the complicity of Wall Street and the White House's Silicon Valley donors with likely undue Chinese influence over Obamacare.
Pres. Obama and Todd Y. Park blatantly violated conflict of interest laws
These Sands Capital filing failures occurred just as President Obama moved Todd Y. Park as chief technology officer (CTO) of Health and Human Services to the White House on Mar. 9, 2012. By this time, Park had already embedded his Athenahealth and Castlight Health technology deeply into HealthCare.gov.
However, Todd Y. Park was the founder of both Athenahealth and Castlight Health. His brother, Edward Y. Park, is the chief operating officer of Athenahealth. JPMorgan insider and Obama campaign financier, Ann H. Lamont, was an Athenahealth director with Park and his brother.
NVCA: Cesspool of White Collar Corruption
Ann H. Lamont is also an investing partner with Facebook’s James W. Breyer. She is also a fellow former director with Breyer at the National Venture Capital Association (NVCA).
Reporting new stock acquisitions to the S.E.C. is routine. “Form SC 13G” reports are an essential tool used by investors to know when funds add new stocks to their portfolios. Without those notices, new acquisitions can easily be missed. Independent stock analysts like Morningstar monitor them and create daily alerts of new acquisitions to the market as well as to watchdogs.
Had Sands Capital filed timely, accountability questions could have been triggered. As it happened, they slipped the holding quietly onto their quarterly reports, thus avoiding transparency.
The activities of these companies impact American healthcare and data security priorities. America was not given the opportunity to scrutinize this activity until now, after the damage has been done.
On May 14, 2010, 506,000 shares of Athenahealth appeared out of thin air on the Sands Capital Management, LLC quarterly report. More and more stock just started appearing each quarter, all without acquisition notices.
Then on May 14, 2012, hundreds of millions more shares appeared out of thin air—214 million more. Just a few weeks earlier, President Obama had appointed Todd Y. Park as U.S. chief technology officer. Park had already deeply embedded Athenahealth’s software code into the bowels of HealthCare.gov. In fact, no notices of acquisition were filed for Athenahealth until Feb. 2013.
Why is this S.E.C. irregularity significant?
The public has an interest in insuring that government vendors and officials are trustworthy. HealthCare.gov is making false "open source" intellectual property claims, but since HealthCare.gov is not a transparent development, no public scrutiny is possible.
The federal confiscation of private properties continues unabated. The agenda is very evidently being railroaded.
In addition, the involvement of the Chinese government in U.S. infrastructure raises critical national security questions.
Todd Y. Park’s ethics disclosures are missing
Tellingly, Parks’ ethics disclosure is missing from the U.S. Office of Government Ethics website. By contrast, even Hillary R. Clinton’s is there. Parks’ close relationships with associates of Athenahealth, Castlight Health, Baidu-China and Sands Capital Management, LLC show that any decision he has made involving these players benefits him personally.
Hindsight being 20-20, it should be noted that Robert Kocher, MD, President Obama’s chief healthcare policy adviser on Obamacare, had matriculated by 2011 to: (1) Castlight Health as director along with Ann H. Lamont, Todd Y. Parks’ other company, (2) Park’s venture capitalist, Venrock, and (3) McKinsey & Co. and the Brookings Institution, who are both Facebook’s COO, Sheryl K. Sandberg’s former clients.
Kocher’s other boss at the White House, National Economic Council chairman Lawrence "Larry" Summers, also works for the Brookings Institution. In short, Kocher’s post-administration job hunt appears to have been political revolving door payback.
Events are being coordinated
In addition, the list of funds pouring cash into Athenahealth and Castlight Health is a clone of Facebook’s and Baidu’s lists. Blackrock, Morgan Stanley, T. Rowe Price, Fidelity, Vanguard, Goldman Sachs, JPMorgan, etc. The evidence is clear. These funds are coordinating these events while the U.S. Congress and American people are sidelined.
It appears time for Congress to take control, pass legislation to return confiscated properties, impeach and replace many corrupted judges, change the legal discipline procedures by putting lay people in charge, put wrongdoers in jail, establish a Special Prosecutor, and call a Constitutional Convention to change the elements of our system that let this happen.
Our system of government appears to have been badly damaged by unscrupulous people, mostly lawyers, who no longer respect our laws, and clearly do not intend to follow them.
National Venture Capital Association (NVCA) collusion
AFI researchers have already proven NVCA connections with James W. Breyer, Accel Partners, LLP, Facebook’s first chairman and largest shareholder, among six of the ten top mutual fund investors in the Facebook IPO, namely (1) Goldman Sachs, (3) Fidelity, (4) T.Rowe Price, (5) Morgan Stanley, (6) Blackrock and (9) Vanguard.
Sands Capital’s association with Todd Y. Park ties Sands Capital to the NVCA as well through Castlight and Athenahealth director, Ann H. Lamont. This now proves that at least seven out of the ten top institutional investors in Facebook were colluding with James W. Breyer to steal Leader Technologies’ social networking invention. The Baidu association shows that the collusion also incorporates Breyer’s designs for China.
The next Sands Capital holding to appear out of nowhere is Baidu, Inc. Closely aligned with China’s Communist government, Baidu is sometimes called "the Chinese Facebook." Facebook is rumored to have partnered with Baidu. Baidu notoriously violates human and intellectual property rights. This alliance was concurrent with James W. Breyer’s movement of tens of billions of venture capital funds out of the United States and into the control of his reclusive father, John P. Breyer, chairman, IDG-Accel-China.
Not only did Sands Capital fail to file a notice of acquisition, but their quarterly report on Aug. 14, 2013 reveals a whopping 12,539% jump in holdings. That is an unregulated $867 million change in value. To our knowledge, neither the market nor regulators even noticed. This destroys the basic principle of transparency.
These risks certainly deserve serious investigation before permitting these people to get access to America's healthcare and data infrastructure. As Eric Snowden proved, it doesn't take much to copy millions of files into the hands of one's adversaries.
Most notable about the sudden appearance of the Baidu Inc. holding is that it occurs just as Athenahealth’s founder, Todd Y. Park, is moving from his position as the chief architect of HealthCare.gov at HHS to Chief Technology Officer for the United States by President Obama, on Mar. 9, 2012. And, it occurred at the same time as Sands Capital's 214 million unregulated share acquisition.
On Mar. 29, 2012, just 20 days after Pres. Obama’s appointment of Park, Baidu filed a Form 20-F, which is a financial disclosure equivalent to an S-1 public stock prospectus. The timing is six weeks before the Facebook IPO.
Bookmark: #handsome-reward-baiduOn p. 98, Baidu discloses that its three principal shareholders are:
Baillie Gifford and T. Rowe Price were #2 and #3 behind Goldman Sachs in the Facebook IPO just six weeks later.
Evidently, Baidu’s Robin Yanhong Li was self-conscious about his newfound wealth, hence the Freudian name he gave for his stock holding—Handsome Reward. Who was doing the rewarding? The evidence is overwhelming. It is James W. Breyer and the Facebook cartel who made Robin Li their front boy in China, just like they made Mark Zuckerberg their front boy in the U.S.
Big Lies
The world cannot hope to advance when its core infrastructures are founded on these Big Lies. Any engineer worth his salt knows that a good building cannot be built upon a corrupt foundation. This is both a law of physics, and a Law of God.
Baidu and Facebook CEOs started the same month—Jan. 2004
Robin Y. Li became CEO of Baidu in Jan. 2004. Coincidentally, that is the very same month Mark Zuckerberg claims he started Facebook (“in one to two weeks”) and launched it on Feb. 4, 2004. The name of his British Virgin Islands hide away for his Baidu holdings probably says it all—Handsome Reward.
The common denominator between the Chinese and American Facebooks is James W. Breyer. At that time was chairman of the National Venture Capital Association, managing partner of Accel Partners LLP, soon to be if not already largest Facebook shareholder, and fellow client of Fenwick & West LLP with Columbus innovator Leader Technologies, Inc.—the proven inventor of social networking. Robin Li’s handsome reward is his willingness to be Breyer’s Chinese front face.
Worried about signaling Chinese involvement
Sands Capital appears to have been worried about the appearance of impropriety? Had they disclosed Baidu in a timely way, eyebrows would have been raised about possible Chinese involvement in the Obama cabinet, as well as in American healthcare and data infrastructure. Something is clearly amiss, otherwise, why would the Baidu nondisclosure be such an outlier in Sands Capital Management, LLC’s SEC reporting?
American securities watchdogs were busy chewing on bones Breyer threw their way
The current Commerce Secretary, Penny S. Pritzker, continues the deafening silence. Graphic: Clker.com.
But lest we wonder where our U.S. securities regulators were during this shell game, the Facebook cartel had that covered too. They had already ensured for S.E.C. Chair Mary L. Schapiro, Commerce Secretary #1 Rebecca M. Blank, Commerce Secretary #2 Penny S. Pritzker, Patent Office Director David J. Kappos, Attorney General Eric H. Holder and Chief Justice John G. Roberts, Jr. were well cared for.
Among the five Obama administration senior officials alone, they hold at least 177 Facebook “dark pools” funds. In fact, no one in the Obama administration or judiciary had more Facebook cartel dark pool funds than Chairman Schapiro and Secretary Blank. See two previous posts. These dogs won’t hunt. The're too well fed.
The next Sands Capital holding to appear out of thin air is Facebook, Inc. Again, they did not file a Form SC 13G acquisition notice in their May 14, 2012 reporting, which is just four days before the May 18, 2012 Facebook IPO. We’re taking bets that Sands Capital will blame it on the NASDAQ “glitch.” The purpose of the glitch appears to us to be a smoke screen for these sorts of shady activities.
Then, without filing the stock acquisition notice Form SC 13G subsequently, like they did on all their other stock purchases (except Athenahealth and Baidu), on Aug. 13, 2012 they simply include their Facebook holding of 11.6 million shares valued at $362 million on their quarterly report.
Why such blatant disregard for SEC disclosure rules? Rules that Sands Capital appears to follow otherwise?
AFI researchers have lived with this cartel conduct for years now, and they believe Sands Capital was determined to get in on the HealthCare.gov “Datapalooza” that Todd Y. Park would bring them via Athenahealth. Datapalooza is the actual name Mr. Park gave to his dubious “open government” giveaways of healthcare data while CTO at HHS.
AFI researchers believe it is likely that Sands Capital kept the Baidu transactions below the radar screen in order to avoid awkward questions about Park’s role in Baidu, Athenahealth and Facebook financings and business activity, especially surrounding Obamacare and HealthCare.gov.
Notices of stock acquisitions are part of America’s securities fraud watchdog infrastructure
Readers should know that independent stock monitoring analysts like Morningstar use automated tools that send alerts/notices when companies file notice of new acquisitions. No such alerts occurred for Athenahealth, Facebook or Baidu because the notices were never filed.
The problem for Sands Capital's Robert C. Hancock is that intentional withholding of certifications, with the intent to deceive the public, is illegal since the omission misleads the public who must then rely on inaccurate information.
Sands Capital’s compliance officer Robert C. Hancock avoided liability by not signing
Sands Capital’s chief compliance officer, Robert C. Hancock, may have been trying to avoid personal liability by not signing what would otherwise be fraudulent representations of truthfulness. Corporate officers like Hancock can be personally liable if they sign knowingly false certifications under oath. It’s the same thing as knowingly making a false statement in court.
Here’s the SC 13G acquisition certification Hancock avoided signing for initial Athenahealth, Baidu and Facebook stock disclosures:
"Item 10. Certification: By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.
SIGNATURE: After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct."
Here’s an example of a later Athenahealth SC 13g acquisition certification that Hancock did sign on Feb. 13, 2013, so he knows what to do, he just didn’t do it when Athenahealth stock was first acquired.
Hancock was probably choking on the clause in red above: "... were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect."
Hancock may have refused to sign the Athenahealth, Baidu and Facebook certifications because he knew that:
- Athenahealth was an inside job among selected funds, companies and individuals to control certain markets and global events;
- Baidu, like Facebook, was a fabrication of James W. Breyer, Accel Partners LLP, and Facebook’s largest shareholder; therefore, everything about these stock maneuvers was designed to manipulate the cartel’s global agenda, which included the creation of a Chinese repository, potentially for exported U.S. healthcare and other data; and
- Facebook & Baidu were both running on software property stolen from Columbus innovator, Leader Technologies; therefore, these offerings were used to generate funds for the express purpose of misappropriation of patents, copyrights and trade secrets that would cause and effect the manipulation of the U.S. healthcare sector, among others.
Presumably, Hancock would want to stay out of jail by refusing to put his signature on a form where he clearly knew there was an intent to influence business and political events. Tellingly, he signed all of his other certifications during this period.
What U.S. judge or regulator is complaining?
Who would complain about Sands Capital’s failure to file the S.E.C. Form SC 13G notices of acquisition of Facebook, Baidu and Athenahealth stock?
- Not S.E.C Chairman Mary L. Schapiro—she held a boatload of "dark pool" Fidelity, Vanguard, AllianceBern, TIAA-CREF and T. Rowe Price funds.
- Not Commerce Secretary #1 Rebecca M. Blank—she held TIAA-CREF, Vanguard and Fidelity funds.
- Not Commerce Secretary #2 Penny S. Pritzker—she holds up to $23.4 million Morgan Stanley, JPMorgan and Goldman Sachs Facebook dark pools.
- Not Attorney General Eric H. Holder—he held T. Rowe Price and Fidelity funds. In fact, Holder held Fidelity Contrafund, the largest single Facebook mutual fund stock holder, valued at $413 million.
Photos: Holder–Huffington Post; Pritzker–White House;Blank–U.S. London Embassy; Schapiro–NY Times.
Who in the judiciary would complain?
- Not Leader v. Facebook Chief Justice John G. Roberts, Jr.—he held Microsoft, T. Rowe Price, Fidelity, Janus, Vanguard and Blackrock funds, including Fidelity Contrafund.
- Not Leader v. Facebook Federal Circuit Judges Alan D. Lourie, Kimberly A. Moore and Evan J. Wallach—they held Fidelity, Vanguard and T. Rowe Price funds, including Fidelity Contrafund.
- Not Leader v. Facebook District Court Judge Leonard P. Stark—he held Vanguard and Fidelity funds.
- Not Leader v. Facebook Patent Office Director David J. Kappos—he held over a million dollars of Vanguard funds.
Photos: Kappos–Politico; Stark–udel.edu; Wallach–Fed. Cir.; Lourie–Fed. Cir.; Moore–mit.edu; Roberts–sltrib.com.
The victims are complaining
On Nov. 19, 2008, Leader Technologies filed a patent infringement lawsuit against Facebook. Leader proved that Facebook stole the engine that runs Facebook, yet were ruled against anyway by the biased judges mentioned above, based on fabricated evidence.
In May 2012, Facebook IPO investors began filing class action lawsuits, claiming they had been defrauded and damaged by the NASDAQ “glitch.”
Complaints have been filed to inspectors general seeking justice.
Others have filed complaints too, like Paul Ceglia and Rembrandt Social Media.
America’s regulatory mechanisms are supposed to help prevent waste, fraud and abuse, not aid and abet it. The latter is called state-sponsored terrorism and totalitarianism.
In the case of the HealthCare.gov debacle, and the theft of Leader Technologies’ social networking invention, the failure of the S.E.C. to police Sands Capital Management LLC enabled them to press their hidden agenda using fraudulent funds.
That agenda has led to a disastrous HealthCare.gov architecture, corrupted by Athenahealth conflicts of interest, using Leader Technologies’ software which has become a mess of hacked pieces and parts. The agenda also threatens America’s healthcare data security since Sands Capital took its Facebook IPO winnings and bought $2.2 billion in the Baidu Inc. sometime between Feb-Aug 2013.
A solid democratic house cannot be built upon a foundation of regulatory corruption
Questions for Sands Capital's compliance officer Robert C. Hancock would be why he did not submit the notices of new stock acquisition forms with his signed certifications for Athenahealth, Baidu and Facebook. If he had done this, perhaps over six million Americans would not be struggling to replace their cancelled healthcare plans because the program would never have begun.
Gibson Dunn LLP also represents the U.S. in U.S. v. Paul Ceglia (Ceglia v. Zuckerberg) where U.S. attorney Preet Bharara was formerly employed by Gibson Dunn—an obvious conflict. Photo: Gibson Dunn LLP.
Hancock's ethics counsel is none other than another former Gibson Dunn LLP attorney, Jonathan Goodman. Goodman was at Gibson Dunn LLP with Thomas G. Hungar during the Leader v. Facebook case. Goodman’s other former firm, Cravath, Swaine & Moore LLP, just received David J. Kappos, former director of the U.S. Patent Office, as a new partner. Kappos only arrived after he had ordered an unprecedented 3rd reexamination of Leader Technologies’ patent. Kappos had purchased more than a million dollars of Vanguard "dark pool" funds, all on Oct. 27, 2009, within weeks of his appointment by President Obama.
Robert C. Hancock's ethical lapses have damaged millions of Americans
Apparently, Hancock was advised by Goodman/Gibson Dunn LLP that it was ethically acceptable not to file the Athenahealth, Baidu and Facebook stock acquisition notices.
Mr. Goodman’s former firm, Gibson Dunn LLP, swirls at the center of everything that has gone horribly wrong with this Obama administration, including the Leader v. Facebook judicial corruption scandal.
Had Hancock filed in a timely manner, questions about Todd Y. Park’s Athenahealth duplicity could have been raised. Athenahealth's close associations with Chinese interests could have been scrutinized. Sands Capital's role in the Facebook pump and dump IPO scheme would have become visible. Hancock's failure to file and certify did not allow regulatory mechanisms to work.
Questions for President Obama
Given the suspicious timing of your appointment of Todd Y. Park to oversee America’s healthcare and digital infrastructure:
- How much do you know about SANDS CAPITAL'S collusion with the Chinese?
- What are you going to do about it?
- What assurances can you give us that the tech people you have hand picked are worthy of America's trust?
- Will the new systems really protect Americans' privacy, property and security?
- Did you know that your Securities Chair held stock in Facebook and Baidu before the Facebook IPO?
- Photo: Politico.Why didn't your personal White House counsels from Perkins Coie LLP, namely Robert F. Bauer and Anita B. Dunn, husband and wife respectively, submit ethics pledges and financial disclosures? Did you know that Facebook was one of their clients?Photo: Wikipedia.
- Where are Todd Y. Park's financial disclosures and written ethics pledges?
- Did you know that a Florida judge was ordered to recuse himself from a case where he was Facebook Friends with one of the litigating attorneys? What do your 50 million "likes" say about your appointment of two of the four judges in the Leader v. Facebook case, not even counting all their financial holdings in Facebook, or the Patent Office's "likes"?
Summary of ethical standards to which the persons above swore solemn public oaths to uphold
Judges— Code of Conduct for U.S. Judges, Canon 2:
"A judge should avoid improprietary and the appearance of impropriety in all activities."
Judges—U.S. Courts.gov, Guide to Judiciary Policy, Ethics and Judicial Conduct, p. 20-2:
"Canon 3C(3)(c) provides that a financial interest 'means ownership of a legal or equitable interest, however small,' with certain exceptions not applicable to this situation. Ownership of even one share of stock by the judge's spouse would require disqualification." Many types of mutual fund holdings are not exempt from this policy (p. 106-1 thru 4).
"a judge who chooses to invest in such mutual funds should evaluate whether his or her 'interest' in the fund might be affected substantially by the outcome of a particular case, which would require recusal under Canon 3C(1)(c)" (p. 106-3). [If the largest tech IPO in American history—Facebook—does not apply, then this policy is meaningless sophistry.]
Executive Branch Employees—Standards of ethical conduct for employees of the executive branch 5 C.F.R. §2635.501:
"avoid an appearance of loss of impartiality in the performance of his official duties"
Attorneys—Model Rules of Professional Conduct, Preamble [6]:
"a lawyer should further the public's understanding of and confidence in the rule of law and the justice system because legal institutions in a constitutional democracy depend on popular participation and support to maintain their authority."
Directors—Business Judgment Rule, Parnes v. Bally Entertainment Corp., at 1246:
"The business judgment rule 'is a presumption that in making a business decision the directors of a corporation acted on an informed basis, in good faith and in the honest belief that the action taken was in the best interests of the company [and was not based on self-dealing].'"
Background: Funwallz.com
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