Market Timing and Late Trading
Has anyone out there experienced this in their office? In my situation the manager created broker rep numbers with more than half a dozen people and using 3 different branches to hide his trades. Not telling them that they were going to use it commit fraud. He just wanted to give something extra for those who worked hard in the office. Yeah right. The final outcome was everyone whose rep numbers were used were forced out so they wouldn’t talk. How the f(*& does that happen?
Isn’t it hard enough to stay out of trouble when you actually DO play by the rules? And suddenly, a manager comes up and says, “Hey! I’m setting up a phony Rep ID for you, and you won’t know what’s going on, but you’ll make some money!” Gee, what can go wrong here? IMHO, the reps are as guilty as the manager.
Starka, you don't know sh*t. Who knew it was phony? Did anyone know about market timing and late trading three years ago. He targeted the rookies and sales assistants. And are you going to say no the manager. He is the law and compliance in the office. The amount of money I made buys lunch for the month.
Oh by the way Starka, are you that idiot that everyone makes fun of on other posts.
I might not know sh*t, as you so quaintly put it, but I do know enough not to let ANYONE run anything through my Rep ID. Manager or not.
[quote=IH8AGE]
Oh by the way Starka, are you that idiot that everyone makes fun of on other posts.
[/quote]
Yup! That's me!
Then you are lucky enough not to work for AGE. At AGE, they talk about integrity, putting clients interest first, what BS. AGE and their managers committed fraud. They stole millions from the same clients they sought to protect. CIBC and PRU are paying hundreds of millions to settle. But those are cases are just of rogue brokers. At AGE this was conspiracy to defraud with over 20 branches. They are wrecking careers of the people they used. I am just disgusted by that firm.
That I can support. If fraud was indeed systemic at the firm, then all involved need to be strung up, and if the firm goes belly up because of it, well, it’s not the first time. However, I don’t think that one can be in this business for more than a few days and not know that what you described is not only wrong, but it’s also actionable.
Sorry if I was rough on you Starka. But three of us did come forward to AGE in St. Louis and followed their own internal procedures to report fraud. According to AGE, it is not your option but your duty to report such matters. Not only did they violate their own internal policy which is based on Sarbanes Oxley by not taking action against their own managers, they covered up what happens to be a multi-billion dollar fraud. It was a matter of ethics, how can you turn your back on the employees that wanted to do the right thing to protect those who are guilty. I just hope justice is served.
[quote=Starka]That I can support. If fraud was indeed systemic at the firm, then all involved need to be strung up, and if the firm goes belly up because of it, well, it's not the first time. However, I don't think that one can be in this business for more than a few days and not know that what you described is not only wrong, but it's also actionable.[/quote]
Stanka, I thought about what you said but are you an idiot. "One can be in this business for more that a few days....." You expect rookies to figure this scheme out. They couldn't tell livestock from preferred stock in their first few days much less do any business. You have posted over 500 times and the only relevant post is the one you admitted to being that idiot. If you question my manager, all you will get are lies and denial. He tells you he wants to help with production but really only does things to benefit himself . He represents AGE, he is the one giving the compliance meetings, he has the Series 24, and is supposedly meant to abide by the rules. And by the way, the original question was asking people if they experienced this is in their office, and here you come along giving some BS opinion without knowing the facts. How in the h(*# did you get to be a Capt in the military? With people like you no wonder this country hasn't won a war since Korea. And Gulf War I doesn't count. How can you consider that a victory when the enemy doesn't want to fight. It was more like a overblown military exercise.
Did you take the Series 7? Did you not read the material? If yes, how do you NOT know that this little scheme that you allege was at the very least contrary to your company’s policy, if not illegal? If that’s your definition of intelligent, I’ll accept your charge of idiocy.
[quote=Starka] If that's your definition of intelligent, I'll accept your charge of idiocy. [/quote]
Why accept it? You already admitted to it...captain...(see below)
[quote=Starka][quote=IH8AGE]
Oh by the way Starka, are you that idiot that everyone makes fun of on other posts.
[/quote]
Yup! That's me!
[/quote]
"According to AGE, it is not your option but your duty to report such matters."
And they were right. Just because they canned these guys who didn't report it doesn't mean they won't also take action against the manager. In fact, you can count on it.
Ih8AGE were you out of the Back Bay office,or chicago or FL ?
Let’s just say I know about ALL the players involved.
[quote=Starka]Did you take the Series 7? Did you not read the material? If yes, how do you NOT know that this little scheme that you allege was at the very least contrary to your company's policy, if not illegal? If that's your definition of intelligent, I'll accept your charge of idiocy. [/quote]
Because executives of the company assisted in this little endeavor to cover up the stupidity of the reps who participated. They changed company policy to suit themselves. They stole at will so to speak.
[quote=IH8AGE]
[quote=Starka]Did you take the Series 7? Did you not read the material? If yes, how do you NOT know that this little scheme that you allege was at the very least contrary to your company's policy, if not illegal? If that's your definition of intelligent, I'll accept your charge of idiocy. [/quote]
Because executives of the company assisted in this little endeavor to cover up the stupidity of the reps who participated. They changed company policy to suit themselves. They stole at will so to speak.
[/quote]
Those are some pretty hefty allegations. As I posted before, if they are indeed true then some heads need to roll. And if it's as widespread as you say, it might well bring the entire firm down.
"Let justice be done, though the heavens may fall."
--Lord Mansfield
Millenium group was involved in some of the late trading etc. at
AGE. From what I understand they were the masterminds of a lot of
this and they used different dba’s to get around the firms internal
checks. They had approached me, so I have followed this pretty
closely, glad I didn’t get involved. I hear there were some MER
guys involved as well.
[quote=Starka][quote=IH8AGE]
[quote=Starka]Did you take the Series 7? Did you not read the material? If yes, how do you NOT know that this little scheme that you allege was at the very least contrary to your company's policy, if not illegal? If that's your definition of intelligent, I'll accept your charge of idiocy. [/quote]
Because executives of the company assisted in this little endeavor to cover up the stupidity of the reps who participated. They changed company policy to suit themselves. They stole at will so to speak.
[/quote]
Those are some pretty hefty allegations. As I posted before, if they are indeed true then some heads need to roll. And if it's as widespread as you say, it might well bring the entire firm down.
"Let justice be done, though the heavens may fall."
--Lord Mansfield
Starka, sorry again for giving you a hard time. But this situation makes me furious. Yes, heads will roll and the $28 million dollar settlement that AGE paid to those P & G employees down in Augusta, GA will seem like a parking ticket compared to what's coming down.[quote=Keyser Soze]Millenium group was involved in some of the late trading etc. at AGE. From what I understand they were the masterminds of a lot of this and they used different dba's to get around the firms internal checks. They had approached me, so I have followed this pretty closely, glad I didn't get involved. I hear there were some MER guys involved as well.
[/quote]
You're lucky, but greed and stupidity took hold at AGE. The masterminds of this situation was AGE themselves.
IH8AGE
From what I know about AGE I don't doubt you. They have made me furious also. This could very well leave Bagby playing the fiddle while that sh**house burns.
[quote=HoughBomont]
IH8AGE
From what I know about AGE I don't doubt you. They have made me furious also. This could very well leave Bagby playing the fiddle while that sh**house burns.
Hough, what they did was disgusting. I still have wholesalers asking me about the office. They can't believe AGE has not done one thing about it. All AGE can do is lie, even when there is a huge paper trail of evidence against them. Man, are they going to shred every ticket, statement, confirm, LOA, account card and pull an Arthur Andersen. As for Bagby, why did Ben gives this fool a job. I read his internal memos about AGE being an integrity based firm, doing the right thing for the client, blah, blah, blah. I will not rest until I see criminal charges against him and his managers. Then my work will be done.Compliance With Laws, Rules and RegulationsIt is A.G. Edwards' policy that its directors, officers and employees comply with all federal, state, local and international laws (including insider-trading laws) as well as regulations that govern the conduct of its business. This policy extends to full compliance with federal, state and international laws prohibiting money laundering and with the safeguards included in the USA Patriot Act.
As part of A.G. Edwards' commitment to comply with all laws and regulations governing its business conduct, any violations of such laws and regulations, or any actions directed toward another employee in retaliation for reporting of such violations, may result in immediate disciplinary action, up to and including termination, and may result in the reporting of such conduct to governmental, regulatory and/or law enforcement agencies.
For Bagby and his managers, what part of your own Code of Ethical Conduct don't you understand? You idiots wrote the damn thing. State of Georgia nearly kicked you out. The State of Massachussetts wants to do the same thing. Illinois and Florida are next in line, right behind the SEC, NASD, NYSE, and the Department of Justice. The crooks are still on board.
Is AGE anywhere near a settlement at this point?
Do you know where regulators are in the process?
AGE claims they are going to "vigorously defend" against the charges. But 14 firms have settled. AGE is too stupid to figure out that there is no legal way to market time or late trade. But seriously, the settlements recently have been excess of $100 million, which includes CIBC and Prudential. Bear Stearns has set their legal reserves at somewhere around $200 million. Those companies pockets are deep AGE's is not. So it could be a matter of survival on remaining independent. If they get hit with something of that amount, that would be damaging to their financial statements and their reputation and you can see the class action suit against AGE and its executives for attempting to hide a multi-billion dollar fraud with everyone from the CEO to the branch managers being complicit coming down soon. I have done my research and looked at the Mass complaint and its exhibits and other complaints. AGE was not being as truthful with the SEC and with Mass as you would think. AGE's internal investigation was a sham. They never questioned witnesses to the fraud including myself, they asked the perpetrators, who were the managers. Do you think they would incriminate themselves? Market timing and late trading has been verified. Money was being stolen. As for the regulators, I have already been questioned. They were quite aggressive. If I have to testify, I will do it gladly. But I can see not only civil charges, but criminal charges coming down. Out of all the firms I've researched this has to be by far the worst case. I'm still in shock on how AGE treated the employees coming forward to tell the truth. And the response I got from AGE after I left was disgusting. This company can deny everything and bad mouth an employee who told the truth, my lawyer said its a standard response and not to take it personally. But do these idiots realize the statements, commission runs, the comments from wholesalers, eyewitnesses, all this point only in one direction, securities fraud, wire fraud, etc. And if this f**king company mentions integrity one more f**king time. I am going to personally send Bagby a f**king dictionary so he could look up the meaning for himself. Whew, I feel better now.
THE HEAT IS ON, AGE. YOUR NEXT.
Ex-Prudential broker charged with fraud
Friday August 26, 9:32 am ET
U.S. Attorney Michael Sullivan told Reuters Martin Druffner made $1 million in commissions after he engaged in the quick trading of mutual funds with several other former Prudential traders and managers.
In market-timing trades, investors exchange shares rapidly in the hope of exploiting inefficiencies in mutual-fund pricing.
Druffner, 36, was one of seven former Prudential employees charged by state and federal securities regulators in 2003 with making millions of dollars by quickly trading in and out of mutual funds, at times under false names.
"It is alleged that ... Druffner and other brokers who worked with him defrauded mutual fund companies and the companies' mutual funds by employing various deceptive and fraudulent acts and practices," Sullivan told the news agency.
If convicted, Druffner could face up to 20 years in prison and $250,000 in fines on each of four counts of wire fraud and 20 years in prison and a $5 million fine on each of four counts of securities fraud, Reuters says.
The trades took place between 2001 and 2003, prosecutors allege.
Charlotte-based Wachovia Corp. (NYSE:WB - News) merged its retail brokerage operations with those of Prudential Securities in the summer of 2003. New Jersey-based Prudential Financial Inc. (NYSE:PRU - News) owns a 38% stake in Wachovia Securities. Wachovia owns the rest.
Another former Prudential employee involved in the case, Skifter Ajro, pleaded guilty to securities fraud this month and will be sentenced in November. So far, two others have been charged in the case.
Massachusetts securities watchdog William Galvin also accused Prudential Securities of ignoring scores of letters sent by 68 mutual-fund companies warning of market timing in the company's Boston office, Reuters says.
Published August 26, 2005 by the Charlotte Business Journal
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