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According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia

Saturday, April 24, 2010

Goldman Sachs Profits Through Destruction

This is a good piece written by Thom Simmons, an economist from New Hampshire.  I came across it in in my daily email from  Gold Anti-Trust Action Committee - GATA - and would not have found it otherwise.  Here is GATA's introduction to the well written article exposing Goldman Sachs and their destructive business model. 

Thom Simmons wrote commentary on Goldman's rape of Ashanti

Section: 9:29p ET Friday, April 23, 2010
Dear Friend of GATA and Gold:
The essay posted this week at GhanaWeb and called to your attention (along with its incomplete attribution) on Wednesday under the headline "How Goldman Sachs Screwed Ghana by Bankrupting Ashanti" ( was written by Thom Simmons, an economist and entrepreneur from Winchester, New Hampshire, and first posted at his blog site, Tully's Page, here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Here is the article in full from Thom Simmons:

Monday, April 19, 2010

Goldman Sachs: A Fraudulent history repeats itself - The Legacy of Ashanti Gold 

The only ones who should be surprised by Fraud allegations levied against Goldman Sachs are insiders who have become so arrogant as to think that they were somehow untouchable. Personally, I am wondering why it has taken so long.

Together, much of the Wall Street Bailout process was designed by Treasury Secretary Timothy Geithner, Past President of the NY Federal Reserve Bank; Stephen Friedman, an ex-Goldman Sachs officer who still serves on the Board of the NY Fed; Hank Paulson, an ex-Goldman Sachs operative who designed the hedge funds that plunged the financial markets into turmoil in the first place; and Goldman Sachs financier Robert Rubin. As the crisis unfolded, Goldman Sachs continued to market these Hedge Funds to uninformed clients, even after becoming aware that mortgage-backed securities were crumbling. And when When AIG was bailed out...the primary beneficiary was Goldman Sachs.

And I have to ask: does this surprise anyone? This is a world-wide pattern that Goldman Sachs has utilized to enrich itself at the expense of everyone else for years. And perhaps there is no better example of this than the destruction of Ghana's largest company a decade ago: Ashanti Gold.

In 1998, Ashanti Gold was the 3rd largest Gold Mining company in the world. The first "black" company on the London Stock Exchange, Ashanti had just purchased the Geita mine in Tanzania, positioning Ashanti to become even larger. But in May 1999, the Treasury of the United Kingdom decided to sell off 415 tons of its gold reserves. With all that gold flooding the world market, the price of gold began to decline. By August 1999, the price of gold had fallen to $252/ounce, the lowest it had been in 20 years.

Ashanti turned to its Financial Advisors - Goldman Sachs - for advice. Goldman Sachs recommeded that Ashanti purchase enormous hedge contracts - "bets" on the price of gold. Simplifying this somewhat, it was similar to when a homeowner 'locks in' a price for heating oil months in advance. Goldman recommeded that Ashanti enter agreements to sell gold at a 'locked-in' price, and suggested that the price of gold would continue to fall.

But Goldman was more than just Ashanti's advisors. They were also sellers of these Hedge contracts, and stood to make money simply by selling them. And they were also world-wide sellers of Gold itself.

In September 1999 (one month later), 15 European Banks with whom Goldman had professional relationships made a unanimous surprise announcement that all 15 would stop selling gold on world markets for 5 years. The announcement immediately drove up gold prices to $307/ounce, and by Octoer 6, it had risen to $362/ounce.

Ashanti was in trouble. At Goldman's advice, they had bet that gold prices would continue to drop, and had entered into contracts to sell gold at lower prices. These contracts were held by a group of 17 other world banks. Ashanti found themselves being forced to buy gold at high world prices and sell it at the low contract prices to make good on the contracts. The result? In a few weeks time, Ashanti found itself with 570 million dollars worth of losses. It had to beg the 17 banks not to force the execution of the contracts.

Who served as the negotiator for the 17 banks and Ashanti? Goldman Sachs. The same company that designed the contracts for Ashanti(making a profit in their sale.

The basic bankruptcy of Ashanti drove its stock price from an all time high of $25 per share to a paltry $4.62 per share. Thousands of investors - your blogger among them - lost their investments almost overnight as Ashanti was declared insolvent.

In the end, Ashanti was purchased by their largest African competitor, AngloGold, a British company headquartered in South Africa, who bought them for a song. The Financial Advisors to AngloGold? You guessed it: Goldman Sachs.

The destruction of Ashanti Gold by Goldman Sachs was saturated with fraud and conflicts of interest: Goldman Sachs served as Ashanti's Financial Advisors; profitted form the contracts they designed and marketed for Ashanti; was involved in the manipulation of the gold prices on which the contracts depended; represented Ashanti's creditors when the contracts went bad; and profitted as the Financial Advisors to the company that picked up the Ashanti corpse for pennies on the dollar.

The Bailout of Wall Street - little understood by many Americans, and supported grudgingly by members of both political parties who operated on only fractions of the full picture (not unlike the Iraq invasion) - has Goldman Sachs' legacy all over it.

Prosecution of Goldman Sachs and Regulation of the Financial Industry is not evidence of "Big Government," "Socialism," or more "Washington Take-over."

It is an appropriate - and overdue - safeguard against Fraud and Theft, which, the last time I looked, was not antithetical to the principles of liberals, moderates, conservatives, or libertarians.

LInk to Thom Simmons site and original here

Larry here:  There is right, there is wrong then there is Goldman Sachs and the Wall Street cartel.  Don't be fooled, Wall Street has been in control of our economy for quite some time working closely with their implants in government.  Hopefully, Americans will begin to head our call and WAKE UP. 


Anonymous said...

I'll take BR over James Creamer and the CNBC (not bought cheaply) tag team of propagandists any day!

Barry asserts the case against Goldman, far from weak, is very strong. “Based upon what is in the complaint, parts of the case are a slam dunk. The claim (by Fabrice Tourre, a former Goldman VP pushing the deal) that Paulson & Co. was long $200 million when it actually was short is a material misrepresentation — that’s Rule 10b-5, and it’s a no-brainer. The rest is gravy.”

Why This Blog? said...

I am presently in litigation with Fremont Reorganizing, Goldman Sachs dba Litton Loan Servicing, et al., (2 different cases) for about 2 years now. The main issue with the complaint is a fraudulent loan originated by Fremont in June 2006. This in turn produced an array of other
issues: unsigned deed of trust, over billing issues, lost payments, excessive balloon payment, back dated assignments, illegal non-judicial foreclosure documentation, missing documentation, illegally reporting to my credit, falsifying declarations, 6 week TRO's, court procedures not followed, judges wait until the courtroom is cleared to rule against a TRO (both times); retired (78 year old) judge ruled against a seated judges TRO where the retired judge took 30 minutes to read a 300 page brief. The whole time they have been ignoring my request and failing to give me the required documentation so that I can rescind the loan. Goldman Sachs dba Litton Loan Servicing has been aggressively trying to foreclose on my property. I believe to cash out for insurance reasons. (It's over a million dollar loan) I have invested over $400,000 into this property for the past 5 years and if I had known about this mortgage meltdown game played by Wall Street I would have never proceeded with this Real Estate transaction. The Media and the Government has not once addressed or helped the borrower, namely me, who also has been damaged by these defaulted CDO's.

A Time line of what's going on with Goldman Sachs to show how they are scheming to pursue foreclosures for the insurance by acquiring distressed, shelled fraudulent companies which will eventually or haven't already gone BK...

 Oct 26, 2005 Litton Loan Servicing Class Action - mishandling loans, servicing over 400,000 borrowers - case settled Feb 17, 2009 for $537 (limited due to class status)
 Feb 27, 2007 FDIC Cease and Desist - Fremont Reorganizing for illegal loan practices, et al., (largest predatory lenders who heavily solicited brokers for their schemes)
 Oct 16, 2007 Massachusetts Lawsuit vs Fremont and Goldman Sachs - Predatory Lending Practices - settled May 11, 2009 for $60 mil
 Dec 11, 2007 - Goldman Sachs Acquires Litton Loan Servicing
 June 2, 2008 Litton (Goldman Sachs) Acquires Fremont Reorganizing Servicing Rights
 June 19, 2008 Fremont Reorganizing files BK
 Apr 16, 2010 - SEC vs Goldman Sachs - Securities Fraud

Here is the link to my blog if you want to download court documents pertaining to my case.

Note: My wife is pursuing individuals who are interested in joining her in a class action lawsuit with regards to violation of her community property rights in a wrongful foreclosure. If you are in a community property state and a spouse is not on title you may have grounds for legal

Anonymous said...

President Obama: Bring Back Black

I urge the President to play the race card--the human race card. The Founding Fathers sought to protect the Republic from this tyranny of private interests. This was meant to be a place where all members of the human race have a fair opportunity to thrive.

These show trials and faux 'investigations" distract us from the real job of reform and protect Wall Street's interests. It's time to bring back Black--or regulators like him--and truly give us our "Pecora" moment.

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