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Goldman Sachs, Merrill Lynch Accused Under RICO
by James West - MidasLetter
Perrenial warrior against naked short selling and Overstock.com CEO Patrick Byrne has amended a previously filed lawsuit against Goldman Sachs and Merrill Lynch to include charges under New Jersey RICO laws.
The original lawsuit, filed in the California superior court in San Francisco, alleged that Goldman Sachs Group Inc and Bank of America’s Merrill Lynch unit engaged in a “massive, illegal stock market manipulation scheme” that involved so-called naked short-selling.
In naked short selling, short sales are executed but never delivered, thereby causing the company’s share price to fall.
“Merrill, Goldman and certain of their market maker clients agreed to and created a scheme to effect the naked short selling in Overstock securities that is the subject of this action, in order to perpetuate short selling and drive down the price of Overstock, to their mutual profit,” alleges the motion, which was filed on Wednesday.
Jonathan Johnson, President of Overstock.com, stated, “Recently discovered revelations of concerted action among certain market makers and these two brokerages necessitate that we amend our complaint to include additional claims. We expect that this conduct of Goldman Sachs and Merrill Lynch is fully actionable under anti-racketeering laws.”
GoldmanSachs666 Message Board
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". 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
Monday, December 20, 2010
How can a bank like Goldman Sachs operate competently when it is continually fending off (or succumbing to) charges for fraud, racketeering , insider trading and who knows what else? If an institution really valued its good name then it would do everything to maintain it, such as acting honestly, transparently and ethically.