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Tuesday, January 28, 2014

CHINESE INVOLVEMENT IN OBAMACARE HIDDEN BY MISSING S.E.C. FRAUD CERTIFICATIONS

DC-based fund, Sands Capital, withheld filings that concealed Chinese influence over the White House, Patent Office, Judiciary & Facebook

Contributing Writers | OPINION | AMERICANS FOR INNOVATION  | Updated Jun. 16, 2016 | PDF
Beijing Bedfellows

Parker Zhang, Chief of Patents, Baidu, Inc. (ADR); Associate, Fenwick & West LLP
Parker Zhang, became "Chief of Patents" at Baidu in 2012. He worked for Fenwick & West LLP, 2006-2010. Photo: Google+
More News! Jan. 30, 2014—Baidu says attorney Parker Zhang is "Chief of Patents." It is very unusual for a junior attorney to reach such a position of power. Zhang graduated from Michigan Law in 2005. He was an Associate at Fenwick & West LLP from 2006-2010. After less than a year as "IP Consultant" at Hewlett-Packard, he became "Chief of Patents" at Baidu, in about May 2012. CLICK HERE for a bio.

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.
Breaking News! Jan. 29, 2014S.E.C. Chair Mary L. Schapiro held stock in both Facebook & Baidu (China) before the Facebook IPO via her investment in T. Rowe Price Growth Stock Fund (PRGFX), which was up to $600,000, according to Schapiro's financial disclosure.
Todd Y. Park
Mary L. Schapiro, Chair, S.E.C.; held stock in Facebook and Baidu before the Facebook IPO, along with Leader v. Facebook judges and Patent Office; ignored whistleblower warnings. Photo: NYTimes.
In addition to warnings about fabricated mobile revenues, her S.E.C. agency also ignored numerous whistleblower warnings of improper "dark pools" activity, including failure to disclose to investors that Facebook had been judged guilty on 11 of 11 federal counts of infringing Columbus innovator Leader Technologies' U.S. Patent No. 7,139,761 for social networking—the core technology engine running Facebook. Evidently, Schapiro knew about Facebook Chairman James W. Breyer's intention to exploit Leader's technology in China also, where his father, John P. Breyer, operates IDG-Accel-China.
Baidu, Inc., Beijing, China - corporate headquarters
Fig. 1—Sands Capital Management, LLC injected Chinese influence into Obamacare. Sands Capital, the 7th largest fund investor in the May 2012 Facebook IPO, secretly acquired over $200 million in Athenahealth holdings just as President Obama moved Todd Y. Park, Athenahealth's founder, from HHS to the White House, on Mar. 9, 2012..

Gordon K. Davison
Gordon K. Davidson, Fenwick & West LLP; current Facebook securities and patent counsel; Leader Technologies former corp. counsel (c.a., 2001-2004). Photo: Fenwick & West.
At the same time, Sands Capital secretly slipped in its holding in Baidu, Inc., sometimes called the Chinese Facebook. Baidu is notoriously controlled by the Chinese Communist Party. Baidu's CEO, Robin Yangong Li, started his job in Jan. 2004—the same month Mark Zuckerberg started Facebook after stealing Leader Technologies' source code via attorney firm Fenwick & West LLP, we believe.

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

Todd Y. Park
Todd Y. Park, U.S. CTO; HealthCare.gov architect; Athenahealth, founder; Castlight Health, founder. Photo: White House.

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.

Ann Huntress Lamong - Managing Partner, Oak Investment Partners; Director, Castlight Health; former Director, Athenahealth; former Director, National Venture Capital Association (NVCA); adviser to Todd Y. Park, U.S. Chief Technology Officer; collaborator with James W. Breyer, Accel Partners LLP, Robert C. Ketterson, Fidelity, Anne Rockhold, Vanguard; Investor, Meritech Management; wife of Edward ''Ned'' Lamont, grandson of JPMorgan Chase & Co. founder, Thomas W. Lamont
Ann H. Lamont, Director of Todd Y. Park's Castlight Health; former director of Todd Y. Park's Athenahealth; former director of NVCA with James W. Breyer, Accel Partners, among other Facebook cartel principals; Mng. Prtnr. Oak Investment Partners; husband Edward is grandson of JPMorgan Chase & Co. founder Thomas W. Lamont. Lamont is a heavy investor in Goldman Sachs, Morgan Stanely and JPMorgan—Facebook's underwriters. Photo: Stanford.

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

James W. Breyer, Facebook, Accel Partners LLP
James W. Breyer, Facebook; Managing Partner. Accel Partners LLP; NVCA Fmr. Chairman (2004). Photo: Der Spiegel.

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.

Todd Y. Park
Frank M. Sands, Sr., Sands Capital Management, LLC. Failed to file timely notices. Virgina.edu
Todd Y. Park
Frank M. Sands, Jr., Sands Capital Management, LLC. Failed to file timely notices. Virgina.edu

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.

#1: ATHENAHEALTH, INC.
Sands Capital Management, LLC ATHENAHEALTH, INC. holdings, Table, SEC EDGAR
Fig. 2—Sands Capital Management, LLC ATHENAHEALTH, INC. holdings—Holdings Reports, SEC EDGAR. Yellow highlighted rows show reporting periods in which no notices of acquisitions were filed by compliance officer, Robert C. Hancock. These notices are important filings for fraud watchdogs.


Sands Capital Management, LLC ATHENAHEALTH, INC. holdings, Value, SEC EDGAR
Fig. 3—Sands Capital Management, LLC ATHENAHEALTH, INC. holdings—Value Reports, SEC EDGAR. The yellow highlighted box shows the periods where no acquisition notices and no-fraud certifications were filed. In short, Sands Capital acquired over $200 million in Athenahealth stock without regulatory oversight. S.E.C. Chairman Mary L. Schapiro had financial holdings in funds invested in Athenahealth, e.g., Vanguard Extended Market (VEXMX).

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.

Robert Kocher, MD, Director, Castlight Health, founded by U.S. CTO, Todd Y. Park; former member, National Economic Council; Special Adviser to Barack Obama on Health Policy (chief architect of Obamacare)
Robert Kocher, MD, Director, Castlight Health, founded by U.S. CTO, Todd Y. Park; former member, National Economic Council; special adviser to Barack Obama on Health Policy (chief architect of Obamacare). Photo: Washington.edu.

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.

Lawrence ''Larry'' Summers</span>. Director, Square; Adviser, Andreessen-Horowitz; Former Director, National Economic Council (2008 bailout); former Treasury Secretary; Former Chief Economist, World Bank; mentor to Facebook's Sheryl K. Sandberg; mentor to DST-Moscow's Yuri Milner; godfather to Russian oligarch Alisher Usmanov; believed to be one of the prime organizers behind the Facebook cartel
Lawrence ''Larry'' Summers. Director, Square; Adviser, Andreessen-Horowitz; mentor to Facebook's Sheryl K. Sandberg, Russian oligarchs Yuri Milner and Alisher Usmanov; former director, Barack Obama's National Economic Council (2008 bailout); believed to be one of the prime movers behind the Facebook cartel. Photo: Life.

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.

#2: BAIDU, INC.
Sands Capital Management, LLC BAIDU, INC. holdings, SEC EDGAR
Fig. 4—Sands Capital Management, LLC BAIDU, INC. holdings, SEC EDGAR. Yellow highlighted rows show reporting periods in which no notices of acquisition were filed by compliance officer, Robert C. Hancock. These notices are important filings for fraud watchdogs.



Sands Capital Management, LLC BAIDU, INC. holdings, Value, SEC EDGAR
Fig. 5—Sands Capital Management, LLC BAIDU, INC. holdings, SEC EDGAR. The yellow highlighted box shows that no acquisition notices and no-fraud certifications were filed. In short, Sands Capital acquired over $2 billion in Baidu stock without regulatory oversight. These holdings commenced concurrent to the appointment of Todd Y. Park to U.S. CTO on Mar. 9, 2012, after Park had led the development of HealthCare.gov at Health and Human Services, including the embedding of his Athenahealth and Castlight Health software in the HHS infrastructure.

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-baidu

On p. 98, Baidu discloses that its three principal shareholders are:

Baidu, Inc., Beneficial Ownership; Robin Y. Li, Handsome Reward Limited (British Virgin Islands), Baillie Gifford, T. Rowe Price

Baillie Gifford and T. Rowe Price were #2 and #3 behind Goldman Sachs in the Facebook IPO just six weeks later.


Fig. 6—Robin "Handsome Reward" Yangong Li was installed as CEO of Baidu in Jan. 2004, the very same month that Mark Zuckerberg claims to have built Facebook "in one to two weeks" Leader Technologies said it took them $10M and 145,000 man-hours to invent social networking. They finished debugging a critical module on Oct. 28, 2003, the same night Zuckerberg hacked the House sites at Harvard. Photo: L’Express.

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

Todd Y. Park
Robin Y. Li, CEO, Baidu, Inc.; appointed Jan. 2004, the same month James W. Breyer, Accel Partners LLP, picked Mark Zuckerberg to start Facebook with stolen code from Columbus innovator Leader Technologies. Photo: RudeButGood.

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

American regulators during the Facebook IPO acted chased the bones fed them by Facebook's chief handler, James W. Breyer
Fig. 7—Administration and Judicial Watchdogs were busy chewing on their Facebook cartel bones. The United States top law enforcement officers and regulators, namely Eric H. Holder, Mary L. Schapiro, Rebecca M. Blank and David J. Kappos were silent during Sands Capital's misconduct. They were busying chewing on the bones that the Facebook cartel had already thrown them.

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.

#3: Facebook, INC.

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.

SEC fraudster
Fig. 8—S.E.C. Certifications are legal evidence. When a fund compliance officer signs an S.E.C. filing, he or she is signing an affidavit that is enforcable as evidence in court. If that person lies or in some other way willfully misrepresents the facts, it is the same as lying under oath in a courtroom.

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:

  1. Athenahealth was an inside job among selected funds, companies and individuals to control certain markets and global events;
  2. 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
  3. 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?

Click Official's Name to view his or her financial disclosure.
  • Mary L. Schapiro
    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.
  • Rebecca M. Blank
    Not Commerce Secretary #1 Rebecca M. Blank—she held TIAA-CREF, Vanguard and Fidelity funds.
  • Penny S. Pritsker
    Not Commerce Secretary #2 Penny S. Pritzker—she holds up to $23.4 million Morgan Stanley, JPMorgan and Goldman Sachs Facebook dark pools.
  • Eric H. Holder
    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?

Click Judge's Name to view his or her financial disclosure.
  • John G. Roberts, Jr.
    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.
  • Alan D. Lourie
    Kimberly A. Moore
    Evan J. Wallach
    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.
  • Leonard P. Stark
    Not Leader v. Facebook  District Court Judge Leonard P. Stark—he held Vanguard and Fidelity funds.
  • David J. Kappos
    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.

Robert C. Hancock, Chief Compliance Officer, Sands Capital Management, LLC
Fig. 9—Robert C. Hancock, Chief Compliance Officer, Sands Capital Management, LLC. Misled the American public by failing to file stock acquisition reports in a timely manner for Facebook, Baidu and Athenahealth. These failings concealed substantial Chinese influences regarding Obamacare and American data infrastructure. Photo: Sands Capital.


Jonathan Goodman, Chief Counsel, Sands Capital Management, LLC
Fig. 10—Jonathan Goodman, Chief Counsel, Sands Capital Management, LLC; former partner, Gibson Dunn LLP (Facebook's Leader v. Facebook law firm, and also counsel to the Federal Circuit and Federal Circuit Bar Association). Photo: Sands Capital.

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.

Todd Y. Park
Thomas G. Hungar, Gibson Dunn LLP. Failed to disclose conflicts of interest in Leader v. Facebook; counsel to the Federal Circuit and Microsoft (one of Facebook's largest stockholders); Chief Justice John G. Roberts, Jr. is a personal mentor.

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.

Barack Hussein Obama
Fig. 10—Pres. Barack H. Obama. Photo: jeannotramambazafy.overblog.com

Questions for President Obama

Given the suspicious timing of your appointment of Todd Y. Park to oversee America’s healthcare and digital infrastructure:

  1. How much do you know about SANDS CAPITAL'S collusion with the Chinese?
  2. What are you going to do about it?
  3. What assurances can you give us that the tech people you have hand picked are worthy of America's trust?
  4. Will the new systems really protect Americans' privacy, property and security?
  5. Did you know that your Securities Chair held stock in Facebook and Baidu before the Facebook IPO?
  6. Anita B. Dunn, White House Counsel; partner, Perkins Coie LLP
    Photo: Politico.
    Robert F. Bauer, White House Counsel; partner, Perkins Coie LLP
    Photo: Wikipedia.
    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?
  7. Where are Todd Y. Park's financial disclosures and written ethics pledges?
  8. 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

* * *

Tuesday, January 7, 2014

WALL STREET MANIPULATION OF JUDGES, POLITICIANS AND REGULATORS EXPOSED BY LEADER V. FACEBOOK JUDICIAL CORRUPTION

"Dark pools" used for currency, bribes, coercion and undue influence

Rigged Leader v. Facebook,  likely crashed NASDAQ

Contributing Writers | OPINION | AMERICANS FOR INNOVATION  | Updated Jun. 15, 2016 | PDF
Wall Street Journal Data exposes Contrafund's duplicity & Judge complicity

Top 10 mutual funds holding Facebook shares as of June 30, 2012. Source: Wall Street Journal, Aug. 24, 2012. No. 1 Goldman Sachs 36,634,486 FB shares; No. 2 Baillie Gifford 19,380,440 FB shares; No. 3 Fidelity 18,774,915 FB shares; No. 4 T. Rowe Price 18,663,997 FB shares; No. 5 Morgan Stanley 16,362,788 FB shares; No. 6 Blackrock 11,690,565 FB shares; No. 7 Sands Capital 11,649,292 FB shares; No. 8 Jennison Associates 9,691,825 FB shares; No. 9 Vanguard Group 9,582,480 FB shares; No. 10 Capital Research 8,273,200 FB shares; ''Who Else Has a Big Bet on Facebook'' by Telis Demos, Deal Journal, The Wall Street Journal, Aug. 24, 2012, accessed Jan. 22, 2014 New! Jan. 23, 2014 Fig. BLeader v. Facebook judges Roberts, Lourie, Moore, Wallach and Stark were/are all heavily invested in Fidelity and T.Rowe Price "dark pool" Facebook funds, yet failed to mention it during the proceedings. Disclosure of even the appearance of impropriety is required by the Code of Conduct. Tellingly, Justice Roberts recused himself from the Microsoft v. i4i case because of his Microsoft holdings and his relationship to Thomas G. Hungar, Gibson Dunn LLP, Facebook's attorney as well as attorney to the Federal Circuit Bar Association (FCBA). The FCBA failed to mention this conflict when they filed their Request motion in Leader v. Facebook on Sep. 11, 2012. Microsoft is one of Facebook's largest investors, and is a member of the FCBA "Leaders Circle." The judicial and attorney conflicts of interest not disclosed in Leader v. Facebook are off the charts.
New! Jan. 22, 2014—A critical Morningstar table summarizing 189 Facebook IPO mutual fund investors has just surfaced in the The Wall Street Journal archives. The WSJ online article is scrambled and difficult to read, but AFI technical experts fixed the problems (Thank You!). Here is the article, titled Morgan Stanley Funds in Big Facebook Bet, WSJ, Aug. 24, 2012. Here is the Facebook IPO investing spreadsheet of the table in the article.

As of Jun. 30, 2012, Fidelity Contrafund had invested $413,476,551 in Facebook. Of the 16 Fidelity funds tallied by Morningstar, Fidelity's total investment was $818,228,924. Much, if not all, of Fidelity's investing occured in "dark pool" pre-IPO period brokered by Goldman Sachs. As of Jun. 30, Goldman Sach's holding had dropped to $21,910,983. However, Goldman Sachs had already dumped $914,000,000 of its shares at Day 3 of the IPO, on May 26, 2012. See Fig. 3. below.

Excel file containing all four sections of the WSJ table from the article titled: Lucchetti, A., Demos, T. (Aug. 24, 2012). Morgan Stanley Funds in Big Bet Facebook Bet. The Wall Street Journal.

Excel spreadsheet (*.xls)
Another WSJ article:

Demos, T. (Aug. 24, 2012). Who Else Has A Big Bet on Facebook. The Wall Street Journal, provides a top 10 table of mutual fund investors. Now familiar Facebook cartel actors include Goldman Sachs at No. 1, Fidelity 3rd, T.Rowe Price 4th, Morgan Stanley 5th, Blackrock 6th and Vanguard 9th.

New! Jan. 23, 2014 Attorney General Eric H. Holder dove into Facebook's dark pools too

Eric H. Holder, Attorney General, has holdings in 16 Facebook ''dark pools''
Photo: Paul J. Richards/
AFP/Getty Images
Eric H. Holder's 2009 financial disclosure reveals at least three Facebook "dark pools" in which he was invested prior to the Facebook IPO. The Wall Street Journal list reveals Fidelity Blue Chip Growth FBGRX ($53M), Fidelity Contrafund FCNTX ($413M) and T.RowePrice Blue Chip Growth TRBCX ($84M). This conflict of interest explans why he throws only puff balls at Wall Street and Executive Branch wrongdoers in the 2008 bank bailout of Wall Street (read: padding wallets; killing competition; deceiving taxpayers; buying an election), Benghazi (R.I.P. Amb. Stevens. Tyrone Woods, Sean Smith and Glen Doherty), energy stimulus, IRS, AP, Fast & Furious (R.I.P. Agent Brian Terry) and Obamacare. They're his dark pools investing club members. People have died because of their secrecy and corruption. Ask yourself, how is it that this lawyer has amassed up to a $22.4 million net worth.
Our bottom line assessment of these new data, now seen in context, is that Fidelity is The Real Wolf of Wall Street. Sadly, our highest judges and government officials could not resist investing in the Mother of All Stock Scams. See Fig. A below. Evidently, in their hubris they believed they could use their collective powers to squash dissent and avoid public accountability. These are big numbers these people were toying with.

The math alone proves the corruption

New! Jan. 23, 2014 S.E.C Chair Mary L. Schapiro couldn't resist the temptation to dive into the "dark pools"—despite her solemn public duty not to do so

Mary L. Schapiro, Chairman, S.E.C., has holdings in 51 Facebook ''dark pools''
Photo: Evan Vucci/AP/CBS News
SEC records summarized by The Wall Street Journal on Aug. 24, 2012 reveal that T. Rowe Price Growth Stock (PRGFX) Fund invested $199,863,052 in Facebook as of Jun. 30, 2012. Schapiro's financial disclosure shows that among their 27 T.Rowe Price investments, Schapiro and her husband had $350,000 invested in PRGFX.

Given T.Rowe Price's very public "dark pools" pre-IPO investing, the specter of collusion looms large. This is especially true since the "dark pools" investing started only after Schapiro blessed the now infamous 500-shareholder exemption. That unprecedented exemption was used by Goldman Sachs as the excuse to sell T.RowePrice hundreds of millions of dollars of private Facebook stock, in an unregulated, secret, "dark pools" market. T.Rowe Mary liked these funds so well that she gorged herself on up to $45 million worth.

Schapiro's conduct signals that she was not about to be left out of the stock scam of the century. After all, a presidential pardon for her sins was probably promised as her backstop. Such conduct would explain why the President doesn't fire anyone in his many scandals. Those people were likely just following orders.
Ask yourself, what are the statiscal odds of all the Leader v. Facebook judges, senior Commerce Department officials and Director of the Patent Office all being heavily invested in the Facebook cartel—with four of the five judges holding mountains of Fidelity stock, and three of the five holding Fidelity Contrafund specfically? And, they were all invested before 2008. That's right, short of omniscience or collusion, it is a statistical impossibility. There is no middle ground. This was a large-scale, well-thought-out plan. Trouble is, insider trading is iillegal. The math only makes the corruption stick out like a sore thumb. Are these judges and patent officials above the law?
New! Jan. 17, 2014Chief Justice Roberts' Leader v. Facebook misconduct proved definitively by S.E.C. records. AFI investigators have been digging into the stock portfolios of the Facebook "dark pool" funds. One overarching observation is that the same Facebook cartel names keep popping up, IN ALL OF THESE FUNDS—Fidelity, Vanguard, T. Rowe Price, Blackrock, JPMorgan, Morgan Stanley, Goldman Sachs, etc.

This verifies that these fund managers were coordinating their "dark pools" agenda. So much for arm's length, transparent public markets, Entire Fairness and the Business Judgment Rule. (Those rules are only for the rest of us poor saps who respect and follow the Rule of Law.) No market can operate freely when the market makers are colluding. Also evident is that selected senior government regulators at the S.E.C., Commerce, HHS and the judiciary were invited to play, and they did.

Chief Justice John G. Roberts had investments in Fidelity Contrafund K (FCNKX) and T. Rowe Price Science & Technology Fund (PRSCX), and others, at the same time when the Leader v. Facebook Petition for Writ of Certiorari came before him on Nov. 16, 2012. This is in addition to his close mentoring relationship to Facebook's attorney, Thomas G. Hungar, Gibson Dunn LLP. Keep in mind that in 2011 Roberts had recused himself in the Microsoft v. i4i patent case, presumably because of his relationship to Hungar (who was counsel of record for Microsoft) and his Microsoft holdings. So, Roberts understands the conflict of interest rules, he just chose not to follow them in Leader v. Facebook.
The Real Wolf of Wall Street
Fidelity Contrafund FCNTX Facebook IPO scam summary
The Fidelity and T. Rowe Price funds not only held substantial investments in Facebook "dark pools" stock, but they also held investments in 17 Facebook cartel collaborators, including athenahealth,1 Microsoft,5 Goldman Sachs,2 Dropbox,6 IBM,5 JPMorgan,2 LinkedIn,5 Morgan Stanley,2 State Street Corp,2 Tesla Motors,3 Baidu (China),4 and Mail.ru (Russia),4
LEGEND: 1Obamacare, HealthCare.gov, Todd Y. Park, Edward Y. Park, Michelle Obama, Robert Kocher MD, National Economic Council, HHS, CGI Federal, Booz Allen, Ann H. Lamont, David A. Ebersman; 2bank bailout;3energy stimulus; 4money laundering & stock fraud; 5intellectual property theft; and 6data theft.See PERT Chart.
Leader v. Facebook Federal Circuit Judges Kimberly A. Moore and Evan J. Wallach also hold Fidelity Contrafund K. Judge Moore also holds the Fidelity Spartan US Bond Index Investor Fund (FBIDX) which reads like a Facebook "dark pools" Who's Who. When combined with Federal Circuit Judge Alan D. Lourie's substantial dark pool investments, the trifecta of all three judges involved in Leader Technologies' appeal was complete (click here to jump to the Judge Lourie section below).

New! Jan. 21, 2014Leader v. Facebook Chief Justice Roberts and District Court Judge Leonard P. Stark share uniquely a Fidelity "dark pool" investment in Fidelity Spartan 500 Index. This fund includes no less than 12 Facebook cronies, including the Fidelity slush fund, euphamistically named "Fidelity Cash Central Fund." See Weiss, M. (Jun. 01, 2011). Fidelity's Danoff Bets on Facebook. Bloomberg.

Is Danoff one of the real life Wolves of Wall Street? It appears so.

These judges had a clear and present duty to recuse themselves, instead of betraying the public's trust for their own greed. Others in the administration holding the Fidelity Contrafund were Attorney General Eric H. Holder, Federal Election Commission Secretary John H. Sullivan, Education's Carmel M. Martin, and Health & Human Service's Howard K. Koh. The skids for this widespread agenda were well greased.

The core ethical rule is for a judge to "avoid even the appearance of impropriety" in order to maintain the trust of the American people. How much more lawless can these judges and federal officials be?
New! Jan. 16, 2014more D.C. corruption—Facebook "dark pools" flood the court of Judge Thomas S. Ellis, III, Rembrandt v. Facebook,  Eastern District of Virginia. Judges Ellis recently asked the Facebook-corrupted Federal Circuit to review his denial of a Rembrandt Social Media's expert witness. AFI investigators were suspicious as to why he kicked upstairs such an everyday decision. The Rembrandt case involves the invention of the "like" button claimed by the family of the late Dutch inventor, Johannes Van Der Meer. Very curiously, Fenwick & West LLP was Van Der Meer's attorney. Fenwick & West LLP also represented Leader Technologies. Rembrandt is yet another in a long line of "coincidences" where a Facebook actor has stolen from a real innovator, then hires morally bankrupt lawyers to lie, cheat and steal their way to ill-gotten gain.

Ellis tied to Facebook cartel: AFI investigators quickly discovered that Judge Ellis has aligned his financial interests with the Facebook cartel and should recuse himself. Too many judges throw up their hands when asked about keeping track of stocks in their mutual funds. We have concluded that such bluster probably telegraphs that they are concealing misconduct. Rembrandt's attorney is Fish & Richardson LLP.

This mutual fund stock information is easy to find. Each fund is required by law to publish its holdings regularly. For example, here are T. Rowe Price's and Fidelity's websites. Alternatively, one can simply Google the name or symbol of the fund (e.g., FCNTX – Fidelity Contrafund), select the Morningstar URL choice, click "Filings," then select "Semi-Annual" or "Annual Report."

Since 2006, federal judges have been required to keep a "Mandatory Conflict Screening" database. Here's the policy for the DC Circuit. Given the ready availability of the stock data, adding that information to one's conflicts database is not difficult. However, not a single court in Leader v. Facebook has disclosed its conflicts screening database in response to FOIA requests, or even in response to a motion to do so.

Ellis' Facebook Bedfellows: Judge Ellis' IRAs hold stock in Facebook directly as well as in "dark pools." In addition, his Facebook cartel holdings include LinkedIn, Zynga, Groupon, Mail.ru (Russia) (aka DST, Digital Sky, Yuri Milner, oligarch Alisher Usmanov), Tesla Motors, Dropbox, Workday, JPMorgan, Morgan Stanley, Goldman Sachs, Microsoft, ComScore, IBM, Wal-Mart, Verisign, Baidu, T.Rowe Price, and even HealthCare.gov architect Todd Y. Park's Athenahealth (which associates National Venture Capital Association directors Ann H. Lamont. Robert C. Ketterson [Fidelity] and James W. Breyer, as well as Obama's National Economic Council member and Obamacare architect, Robert Kocher, as well as Facebook CFO David A. Ebersman). This list doesn't even count the now familiar law firms associated with these companies, including Gibson Dunn LLP, Perkins Coie LLP, Fenwick & West LLP, Weil Gotshal LLP, Latham & Watkins LLP, Blank Rome LLP, White & Case LLP and Cooley Godward LLP. Jump to Fig. 9 to read the Judge Ellis investigation results below. (This evidence is suitable for citizen ethics complaints. It is your right and duty not to remain silent about this misconduct.)
New! Jan. 14, 2014More Chief Justice John G. Roberts, Jr. "dark pools" revelations. Jump to Fig. 7 below. Definitive proof from Justice Roberts' financial disclosure and related public documents that he failed his ethical duty to disqualify himself from Leader v. Facebook. This is in addition to his failure to disclose his close personal association with Facebook's attorney Thomas G. Hungar, Gibson Dunn LLP. Use of these indiscretions as blackmail for Roberts' flip-flop on Obamacare seems more likely with each new revelation.

News Flash!S.E.C. Chair Mary L. Schapiro stock records render the Facebook IPO a sham. Jump. to Fig. 8 below to see the hard evidence for yourself.

Jan. 10, 2014More Dark Pool Infections. Obama's U.S. Attorney Designate Debo P. Adegbile appears to be infected with undisclosed Facebook "dark pools." Are "dark pool" infections crippling the Obama White House? Click here to see Adegbile's financial disclosure.

ORIGINAL POST

Mary L. Schapiro, Chairman, S.E.C., has holdings in 51 Facebook ''dark pools''
Fig. 1—Mary L. Schapiro, S.E.C. Chairman, Schapiro was appointed by President Obama on Jan. 12, 2009 and resigned on Nov. 26, 2012. In the interim, she protected her 51 investments in Facebook "dark pools" by clearing every regulatory hurdle to enable Goldman Sachs, Morgan Stanley and JPMorgan to sell billions of dollars of Facebook pre-IPO insider stock. Not once did the proponents officially disclose to the investors the risks associated with Facebook having been found guilty on 11 of 11 counts of infringing the patent for social networking held by Columbus innovator Leader Technologies. Photo: Evan Vucci/AP/CBS News.
Mary L. Schapiro, Chairman, S.E.C., failed to discloser her 49 investments in Facebook ''dark pools;'' transparency, accountability, disclosure, investor protection
Fig. 2—T.Rowe Mary promised to clean up Wall Street practices after the crash of 2008. Instead, she dove in head first into the Facebook "dark pools" herself; purchasing more than anyone else in the Obama cabinet or judiciary. Photo: Evan Vucci/AP/CBS News.

(Jan. 7, 2014)—Wall Street "dark pools" are hidden from Main Street by definition. Dark pool stock trades are concealed from the public. As such, U.S. judges and government officials who participate in such pools violate fundamental tenants of public accountability and transparency to "avoid even the appearance of impropriety."[1] Despite the clear rules, the judges in Leader v. Facebook did not disclose even a single share of their substantial Facebook "dark pool" holdings.[2]

Root of Washington's Dysfunction

We at AFI now believe that these "dark pools," sometimes called "black pools," are at the root of the dysfunction in Washington D.C. Many there carry this hidden agenda, just hoping they "get out of Dodge" before the chickens come home to roost. Everyone has Facebook investment dirt on everyone else, Republican and Democrat.

What better way to silence one's opponent than the threat of exposing his unethical investing conduct? We also believe that Chief Justice John G. Roberts, Jr.'s flip-flop on Obamacare will be traced to some threat or other leveled against him regarding his Facebook "dark pool" holdings by his protégé, Facebook's Leader v. Facebook appeals attorney, Thomas G. Hungar, Gibson Dunn LLP. Hungar is a central player in the Leader v. Facebook improprieties.

Facebook insiders pump and dump on Day 3 of the Facebook IPO, May 22, 2012; James W. Breyer, Accel Partners LLP, Juri Milner, DST, Digital Sky, Mail.ru, Mark Zuckerberg, Goldman Sachs, Peter Thiel, Meritech Management, Microsoft
Fig. 3—T.Rowe Mary's blind eyes. Numerous Facebook insiders cashed out over $13 billion of their exemption-insider-stock on Day 3 of the Facebook IPO.

Normally insiders in an IPO are "locked up" and are not permitted to dump their stock like this. Such actions signal lack of confidence and will depress the trading price, which it did.

T.Rowe Mary's S.E.C. gave a blessing to this practice. Insider Morgan Stanley was given sole discretion to allow insiders to sell before the end of the lock up period.

The fraud here is in Schapiro's and the S.E.C.'s many conflicting associations with these insiders, including: (1) James W. Breyer, associated with S.E.C. Chief Counsel Thomas J. Kim, National Venture Capital Association and Barack Obama via Latham & Watkins LLP and Harvard; Juri Milner, associated with former National Economic Council director Lawrence "Larry" Summers; Meritech Management, i.e., Ann H. Lamont associated with Obama CTO Todd Y. Park and S.E.C. Chief Counsel Thomas J. Kim via Latham & Watkins LLP; Goldman Sachs, notoriously associated with Juri Milner, Moscow, and bailed out by Larry Summers and Barack Obama; and Morgan Stanley, also bailed out by Larry Summers and Barack Obama... for starters.

T.Rowe Mary's Big Sin:
No public hearings were conducted on the S.E.C. Facebook exemption from the 500-shareholder rule. (Gee Beav, was that wrong? We're sorry.... Bwahaha, Cha Ching, Suckers!!!)

Abuse of the public trust is an ugly thing

Did we mention that Hungar was counsel to the Federal Circuit prior to the Leader v. Facebook case? Despite this profound conflict of interest, the judges and Hungar were all silent about their prior relationships, in violation of every rule of fair play.

T.Rowe Mary speaks with forked tongue

President Obama's S.E.C. appointee Mary L. Schapiro promised to clean up dark pools. Instead, she appears to have aided and abetted the largest dark pools scam in history. See Fig. 2.

Schapiro dove in head first with 51 personal investments in Facebook pre-IPO interests—more than anyone else in the 2009 Obama cabinet. Twenty-seven (27) of Schapiro's investments are in T.RowePrice that purchased 5.2% of Facebook.[3] Just a few months before her appointment, S.E.C. chief counsel, Thomas J. Kim gave Facebook an unprecedented exemption from the well-settled 500-shareholder rule. This rule declares that any company with more than 500 shareholders and $10 million in assets is a de facto public company and subject to public disclosure of their stock sales.[4]

The first problem with this exemption is that Thomas J. Kim is a former Harvard Law classmate of Barack Obama. He also worked previously for Latham & Watkins LLP, counsel to Facebook's then chairman and largest shareholder, James W. Breyer, and the National Venture Capital Association, whose directors included Fidelity's Robert C. Ketterson, Vanguard's Anne Rockhold and Athenahealth/Castlight Health (Obamacare)'s Ann H. Lamont. These people are the presumptive "dark pool" ring leaders, along with Lawrence "Larry" Summers and his head gopher, Sheryl K. Sandberg, COO of Facebook.

The second problem is the exemption itself. The 500-shareholder rule is one of the most enforced rules on the books. It prevents shysters from setting up their own private +stock markets—just the sort of thing that happened in the 1930's. Neverthless, Kim issued the ruling without even a public hearing.

S.E.C. Exemption Grossly Abused

Facebook’s underwriters Goldman Sachs, Morgan Stanley and JPMorgan grossly abused the Kim exemption. They used it as their permission to sell billions of dollars of private Facebook stock promoted by the same dark pools that T.Rowe Mary publicly decried. Billions of dollars of those shares were even sold to Russian oligarchs allied with Goldman Sachs and Lawrence "Larry" Summers in Moscow.[5]

The S.E.C. Chairman's Deception:

Schapiro says she believes in investor protection, transparency, accountability, and disclosure, however...

She secretly invested in 51 Facebook "dark pools"

On Jan. 15, 2009, Mary L. Schapiro told Congress:

"We need an SEC that is the investors’ advocate… to vigorously prosecute those who have broken the law and cheated investors"

"Second, I want to reengage the SEC with the people we serve, namely investors. The investor community, from the largest pension fund to the family who has scrimped and saved in their 401(k) or 529 plan, needs to feel they have someone on their side, that they can go to the SEC for advice, to seek redress, or to have their opinions heard. Third, as I work to deepen the SEC’s commitment to investor protection, transparency, accountability, and disclosure."[6]

On Oct. 21, 2009, Mary L. Schapiro convened an all-hands-on-deck meeting about Dark Pool Regulation and said:

"In recent years, a large number of dark pools have entered the markets, and now represent a significant source of liquidity in U.S.-listed stocks. Given the growth of dark pools, this lack of transparency could create a two-tiered market that deprives the public of information about stock prices and liquidity . . . Transparency is a cornerstone of the U.S. securities market. That is why I asked the staff earlier this year to begin a comprehensive review of dark pools, as well as other types of dark liquidity" (emphasis added).[7]

On Jan. 20, 2010, Mary L. Schapiro remarked on her concerns about dark pools at the 37th Annual Securities Regulation Institute meeting in Coronado, California:

"Already we have proposed rules that would effectively prohibit broker-dealers from providing customers with "unfiltered" access to an exchange or alternative trading system. We have proposed rules that would strengthen our regulation of dark pools of liquidity” (emphasis added).[8]

On Mar. 10, 2011, Mary L. Schapiro told Congress:

"After the flash crash [market swung 1,000 pts. down, then back up, in one day], I had many foreign regulators call me just horrified. What happened? What are you going to do? How are you going to prevent this? I mean, there was more international interest in that event directed into my office than I have seen in my two years at the SEC, with the possible exception of international accounting standards. It suggests to me that there is deep concern everywhere—and other markets are starting to see the kind of market structure we have developed with the prevalence of dark pools and more fractured and fragmented trading" (emphasis added).[9]

" . . . more than 30 dark pools, three electronic communication networks (ECNs), and more than 200 internalizing broker-dealers. Currently, more than 30 percent of the volume in U.S.-listed equities is executed in venues that do not display their liquidity or make it generally available to the public, reflecting an increase over the last year."

"The continuing growth of trading in dark pools and other types of dark venues can challenge the quality of the market’s price-discovery function. And the complexity of the market structure sometimes makes it difficult for even sophisticated investors to pursue their own best interests" (emphasis added).[10]

On, May 18, 2012, Mary L. Schapiro’s dark pool investments began cashing in after the Facebook IPO. See Fig. 3 above.

Hidden "dark pool" agendas destroy public confidence

T.Rowe Mary talked a good game, but failed to deliver. As telling as any misstep in this ethical wasteland, Schapiro as S.E.C. Chairman, failed to require Facebook to disclose these "dark pool" risks in the pre-IPO S-1 Disclosure, even though her own fund, T.RowePrice, had acquired a 5.2% ownership stake in Facebook.[11] Worse, she abused the public trust by engaging in the very secret investing schemes she told the American people she would protect them from. To the investing world, Chairman Schapiro's empty words are analogous to the President's lies about healthcare and keeping one's doctor.

Thank you Leader Technologies

Concurrently with Chairman Schapiro, Commerce Secretary Rebecca M. Blank and Patent Office Director David J. Kappos, and all the judges in Leader v. Facebook participated in Schapiro's Facebook IPO dark pools, including T.Rowe Price, Fidelity, Vanguard, TIAA-CREF, Blackrock, Morgan Stanley, JP Morgan, Goldman Sachs.

Alan D. Lourie, Federal Circuit, Presiding Judge, Leader v. Facebook
Fig. 4—Alan D. Lourie, Leader v. Facebook  Presiding Judge. He failed to disclose even a single stock holding of his 24 investment in Facebook "dark pools" that he valued up to $14.4 million. Following T.Rowe Mary's lead, Judge Lourie held six T.Rowe Price funds. (See. Fig. 5.) T.Rowe Price bought so much Facebook "dark pool" stock (5.2%) that it made The Wall Street Journal on Apr. 16, 2011. T.Rowe's Facebook holding was so large it had to be specifically called out in the Facebook S-1 prospectus. Not even Facebook's crooked lawyers could justify hiding it.

Ignored Conflicts Disclosure Motion

On Sep. 5, 2012, Dr. Lakshmi Arunachalam filed a friend of the court (amicus curiae) motion asking all the Federal Circuit judges to disclose their financial conflicts of interest. The court ignored her motion.[12]

If the Leader v. Facebook judges had not behaved so badly and so illegally, it is unlikely that this dark pools scheme would have come to light. It all started with District Court Judge Leonard P. Stark’s misconduct in Leader v. Facebook and has fanned out from there. Every freedom-loving American should contact Leader Technologies with words of support, encouragement and resolve not to rest until justice is served

Hidden investments by judges make bad justice

Everyone knows that judge bias and hidden agendas destroy equal treatment before the law.

Chairman Schapiro cleverly stalled her S.E.C. investigations into "dark pools" until all her Facebook friends had cashed out, including the Leader v. Facebook judges. Alan D. Lourie, the presiding judge in Leader v. Facebook holds up to $14.4 million in 24 dark pools [These judges do find ways to take care of themselves, don't they?], including five (5) T.RowePrice pools. The judges, including Chief Justice John G. Roberts, Jr., appear to have run interference for her and the rest of the Facebook cartel; to guard against a Leader Technologies victory. Even so, these actors could not completely control the jury, which found Facebook guilty of patent infringement on 11 of 11 counts. Leader’s victory would have ruined their promised IPO payday.

Sadly, with a cooperative judge and a grossly deceptive expert witness in Dr. Saul Greenberg, Facebook confused the jury on the Pfaff Electronics and Group One legal tests for on-sale bar. These bad actors cajoled an unfounded on-sale bar ruling which was sustained on appeal by the fellow "dark pool" Federal Circuit appeals panel, led by Alan D. Lourie.

The U.S. Constitution now looks to Congress—"the People's Body"—to fix this gross injustice spewing from two branches of government, the Executive and Judicial.

Judge Alan D. Lourie, Leader v. Facebook  Presiding judge, had 24 holdings valued up to $13.9 million in Facebook "Dark Pools"—he chose personal greed over justice

New! Jan. 11, 2014—Links to Obamacare Uncovered:
Judge Alan D. Lourie's financial disclosure (below) has been analyzed further. We believe the analysis shows that under no interpretation of the "safe harbor" rule could Judge Lourie have justified not disclosing at least T.RowePrice conflicts of interest in Leader v. Facebook. The Bloomberg Jun. 1, 2011 article embedded below even fingers Leader v. Facebook Judge Kimberly A. Moore's Facebook holdings, as well as Judge Evan J. Wallach's holdings, in Fidelity Contrafund, who invested $74 million in Facebook Class B non-voting shares. Chief Justice John Roberts was also invested in Fidelity Contrafund. This was certainly a cozy crowd between Facebook, the White House, Goldman Sachs, these "dark pool" funds including T.RowePrice and Fidelity, Federal Circuit judges and Supreme Court justices.

Investigations into Judge Lourie's T.RowePrice holdings have taken a strange turn. Significant ties were uncovered with key actors in the HealthCare.gov debacle, as well as with Facebook officers, directors and investors. See Judge Lourie's financial disclosure below, Figure 5. In summary, Judge Lourie's investment ties him to Marc Andreessen (Facebook director), Todd Y. Park (HealthCare.gov architect, Castlight Health, Athenahealth), Ann H. Lamont (Meritech Investment - early Facebook pump and dumper), Athenahealth, Castlight Health), David A. Ebersman (Facebook CTO), Castlight Health, Athenahealth, HealthCare.gov and Robert Kocher (Obamacare architect, National Economic Council, Athenahealth director).

Judge Alan D. Lourie, Federal Circuit, Leader v. Facebook,  Financial Disclosure

CLICK HERE TO DOWNLOAD: Alan D. Lourie, 2011 Financial Disclosure, submitted Apr. 1, 2012

Alan D. Lourie, Federal Circuit, Financial Disclosure Report for Calendar Year 2011, submitted 04-1-2011
Fig. 5—Alan D. Lourie, Presiding Judge, Leader v. Facebook,  Federal Circuit Court of Appeals (Washington D.C.). Financial disclosure, 2011. Click here to download a PDF directly. Also on the three-judge Leader v. Facebook Federal Circuit panel were Kimberly A. Moore and Evan J. Wallach, both of whom also have substantial Facebook "dark pool" holdings.

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File a complaint with the S.E.C. Inspector General. While we are skeptical that the S.E.C. will honestly and forthrightly investigate one of its own, we need to make the shout for justice from the public louder and louder. Share the Inspector General's responses with your elected representatives. No one in this transparency process can be allowed to hide any longer. Keep them busy with your complaints.

(Also file Freedom of Information Act (FOIA) requests as well. It is your constitutional right. Use it or lose it.) These citizen requests carry the weight of law. Keep your mailing receipts and correspondence. Even if they stonewall you, stonewalls are evidence in and of themselves. T.Rowe Mary and her accomplices must be exposed.

Also, file a complaint with the U.S. Department of Justice Inspector General. Ask why our top law enforcement officer, Eric H. Holder, does not investigate for possible criminal wrongdoing by the U.S. Securities & Exchange Commission. Ask why Attorney General Eric H. Holder holds 22 Facebook "dark pools" including five (5) T.Rowe Price funds.

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Be sure to provide your Congressperson and Senators with regular updates about the Leader v. Facebook property confiscation injustice and this blog. Ask for a meeting to brief them and ask them to act and correct this abuse of fundamental constitutional property rights. This information will help them and their staff members get up to speed when the matter comes before Congress formally. A growing national bipartisan group is determined to make sure it does.

If this property rights case is not worthy of our full advocacy, then none is, in our opinion. We will not find a cleaner, more clear-cut case to advocate.

Don't procrastinate. If not you, who? If not now, when?

If you need additional information for your briefings, just post your request in the comments and we'll post the link to the documents in reply.

Carpe diem.

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Eric H. Holder, U.S. Attorney General, Facebook Cartel Conflicts, Financial Disclosure

CLICK HERE TO DOWNLOAD: Eric H. Holder, Jr. OGE Form 278 Financial Disclosure, 2008, submitted Jan. 12, 2009

Eric H. Hilder, Jr. 2088 Financial Disclosure summary

Fig. 6—Attorney General Eric H. Holder holds at least 16 Facebook "dark pool" investments. This makes him conflicted on any matters related to Facebook or Facebook bankers, including JPMorgan, Goldman Sachs and Morgan Stanley, among others. Click here to download a PDF directly.

Chief Justice John G. Roberts, Jr., U.S. Supreme Court, Leader v. Facebook, Financial Disclosure

CLICK HERE TO DOWNLOAD: John G. Roberts, Jr., 2011 Financial Disclosure, submitted May, 11, 2012

John G. Roberts, Jr. 2011 Financial Disclosure summary

Fig. 7—Chief Justice John G. Roberts holds at least 21 Facebook "dark pool" investments. This makes him conflicted on any matters related to Leader v. Facebook. Click here to download a PDF directly.

S.E.C. Chair Mary L. Schapiro,  Financial Disclosure

CLICK HERE TO DOWNLOAD: Mary L. Schapiro, OGE Form 278 Financial Disclosure, 2008, submitted Jan. 12, 2009

Mary L. Shapiro, 2009 Financial Disclosure screen shot

Fig. 8—S.E.C. Chairman Mary L. Schaprio holds at least 51 Facebook "dark pool" investments. New research proves that some of those funds held direct investments in Facebook. This evidence renders the Facebook IPO a complete sham, and Schapiro's conduct fraudulent. Click here to download a PDF directly.

Thomas S. Ellis, III,  Financial Disclosure, Rembrandt Social Media v. Facebook (E.D. Virginia)

CLICK HERE TO DOWNLOAD: Thomas S. Ellis, III, Financial Disclosure Report, 2010, submitted Aug. 10, 2011

Thomas S. Ellis, III 2010 Financial Disclosure screen shot

Fig. 9—Thomas S. Ellis, III holds at least 21 Facebook "dark pool" investments. He presides over the case Rembrandt Social Media, LP v. Facebook, Inc. et al, 1:13-cv-00158-TSE-TRJ (E.D.V. 2013). New research proves that some of those funds are holding Facebook stock directly, in addition to dozens of stocks in the Facebook cartel. This evidence demands Judge Ellis's immediate recusal and sanction. Click here to download a PDF directly.

Footnotes/Evidence:


[1] Guide to Judicial Ethics: Canon 2: "[a] judge should avoid impropriety and the appearance of impropriety in all activities."

"Canon 3C(3)(c) provides that a financial interest means ownership of a legal or equitable interest, however small . . . Ownership of even one share of stock by the judge’s spouse would require disqualification." (p.20-2) (emphasis added).
Guide to Judiciary Policy. (Sep. 05, 2013). Vol. 2, Ethics and Judicial Conduct, Pt. B, Ethics Advisory Opinions, Ch. 2, Published Advisory Opinions, U.S. Courts, transmittal 02-014, last rev. Sep. 5, 2013. U.S. Courts.

[2] Leader v. Facebook Summary: Petition for Writ of Certiorari, Leader Technologies, Inc. v. Facebook, Inc., No. 12-617 (U.S. Supreme Court Nov. 16, 2012).

[3] T.Rowe Mary sanctioned Facebook's securities fraud: AFI. (Dec. 20, 2013). Securities Commission Chair Mary L. Schapiro Knew Facebook Was a Fraud. Americans for Innovation. ("Securities Chair Mary L. Schapiro knew Facebook and its IPO were frauds – Schapiro sanctioned the 500-shareholder exemption so her 51 Facebook fund boats would all float in the IPO."). HTML.

[4] Facebook IPO "Pump & Dump:" AFI. (Mar. 28, 2013). The Real Facebook - A Portrait of Corruption. Americans for Innovation. (SEC counsel cleared the way for the Facebook "pump and dump” scheme in 2008.). HTML.

[5] Congressional Briefing: Briefing. (Oct. 19, 2012). Briefing for Representative Jim Jordan (OH) - House Oversight Committee—American and Russian Opportunists Undermining U.S. Sovereignty and Corrupting U.S. Financial and Judicial Systems. U.S. Congress.

[6] T.Rowe Mary (Schapiro) Testimony, Jan. 15, 2009: S. Hrg. 111-32. (Jan. 15, 2009). Nomination of Mary L. Schapiro for Chairman of the U.S. Securities and Exchange Commission, Hearing of the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, Y 4.B 22/3, Jan. 15, 2009, p. 12, 13. GPO.

[7] T.Rowe Mary Testimony, Oct. 21, 2009: Mary L. Schapiro. (Oct. 21, 2009). Speech by SEC Chairman: Statement on Dark Pool Regulation Before the Commission Open Meeting by Chairman Mary L. Schapiro, Oct. 21, 2009. Securities & Exchange Commission. HTML.

[8] T.Rowe Mary Testimony, Jan. 20, 2010: Mary L. Schapiro. (Jan. 20, 2010). Speech by SEC Chairman: Embracing the Change by Chairman Mary L. Schapiro, Jan. 20, 2010. Securities & Exchange Commission. HTML.

[9] T.Rowe Mary Testimony, Mar. 10, 2011: S. Hrg. 112-25. (Mar. 10, 2011). Testimony of Mary L. Schapiro, Chairman, U.S. Securities & Exchange Commission, Hearing, Subcommittee on Securities, Insurance, and Investment of the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, 112th Congress, Mar. 10, 2011, Y 4.B 22/3, p. 21, ¶7. GPO.

[10] Id  : p. 27, ¶6.

[11] Facebook S-1 Disclosure, 8th Amendment: S-1 Amendment No. 8. (May 17, 2012). Facebook Amendment No. 8 to Registration Statement. SEC Edgar.

[12] [Court ignored] Motion to compel Federal Circuit to disclose financial conflicts of interest: Motion to Compel Each Member Of The Federal Circuit To Disclose Conflicts Of Interest in Leader v. Facebook by Amicus Curiae Lakshmi Arunachalam, PhD, Sep. 5, 2012.