Blogger Exposes Hedge Fund Scam

Economic Policy Journal ^ | 1/2/10 | Robert Wenzel

[sickoflibs]

Kucinich is a very principled and honest leftist/liberal, very different than Obama. He is the only Dem presidential candidate who actually said what he would do as president. He is a guest on Cavuto regularly.

[CutePuppy]

"If the SEC did indeed begin an inquiry in 2006 and was called off by another agency, our subcommittee will demand that the SEC reveal the name of that agency which told it not to enforce federal laws which protect investors," said Chairman Kucinich.

Most likely, it was DEA (and/or ATF) that made the request. Stanford's bank(s) in Texas and Florida have been used to launder money for drug trade and, apparently, it was more useful to monitor and track the bank accounts' traffic than busting him on SEC civil charges.

Of course, R. Allen Stanford's donations and connections to Democrats are ignored while Republicans' ties are publicized by the usual "activist" networks:
Investors Want Aid From Stanford-Linked Congressman - CNBC, 2009 December 30, by Scott Cohn

A group of investors in Allen Stanford's alleged Ponzi scheme are demanding a powerful Texas congressman give them the same kind of support he showed Stanford when regulators shut down the alleged scam in February.

The Miami Herald reported Sunday that on February 17, the day the Securities and Exchange Commission charged Stanford with a massive fraud, Republican Congressman Pete Sessions wrote an e-mail to Stanford saying, "I love you and believe in you. If you want my ear/voice—e-mail."

The Herald says the Justice Department has launched a "sweeping" investigation into Stanford's ties to Sessions and other lawmakers from both parties. A Justice Department spokeswoman declined to comment to CNBC about the report, because it is "an ongoing case."

But the Stanford Victims Coalition, which claims to represent some 28,000 investors, is seizing on the report to demand Sessions come to their aid.

"While Congressman Sessions was writing that email to Allen Stanford on that fateful day in February," writes Coalition founder Angela Shaw in a letter to Sessions' office, "panic struck the lives of Stanford investors as they feared the worst—that their retirement plans, their children's' college savings, their life's savings would never be recovered."

Shaw, who lives in Sessions' Dallas Congressional District, notes that Sessions has been supportive of the Stanford investors in the past, including signing a letter from 48 members of Congress to SEC Chairwoman Mary Schapiro earlier this year seeking coverage for the investors under the Securities Investor Protection Act.

Now, armed with Sessions' e-mail to Stanford, Shaw is demanding the Congressman step up his fight for the coverage, which would allow the investors to collect as much as $500,000 in insurance proceeds from the Securities Investor Protection Corporation, which, so far, has refused to cover the Stanford investors.

"I implore Congressman Sessions to do the right thing and help Stanford victims obtain SIPC coverage," Shaw writes, adding, "We need the kind of genuine support he showed Allen Stanford in February."

Sessions, the Chairman of the Republican Congressional Campaign Committee, was among a bipartisan group of lawmakers who came to be known as the "Caribbean Caucus" as a result of their frequent trips to the region -- trips funded by a Stanford-backed non-profit organization. He has received $44,375 in campaign contributions from Stanford and members of his staff, according to the Miami Herald.

Sessions' press secretary, Emily Davis, has defended the Congressman, saying in a statement to Politico this week that "Allen Stanford had everyone fooled," and insisting Sessions has worked to ensure that investors get justice. .....

[Tunehead54]

Morning bump! ;-)