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Attorney Richard Greenfield Brands Mary Schapiro and FINRA Execs as “Liars”

Posted by Larry Doyle on October 19, 2009 10:09 AM |

Is Mary Schapiro a liar? Are other FINRA executives also liars?

Fully appreciating that merely asking these questions is aggressive by its very nature, I do not ask them in a derisive fashion. The fact is, the answer to those questions in the eyes of Richard Greenfield is an unequivocal, “Yes!”

Who is Richard Greenfield? I had the distinct pleasure of chatting with Richard last evening on my weekly Sunday evening radio program. Richard Greenfield of Greenfield & Goodman is an attorney with over 40 years of experience in banking, securities, and consumer litigation. Amongst other legal venues, Attorney Greenfield has been admitted to practice before the Supreme Court of the United States.

Our conversation last evening was riveting. If you have an interest in the markets, our economy, developments on Wall Street and in Washington, I strongly encourage you to listen to the interview in its entirety. I will share with you some of the highlights which Richard provided.  (The timing I provide for these highlights can be used in the audio player provided here.)

16:40: FINRA’s mindset has never been on major league enforcement, but rather relatively picayune broker-dealer violations and even then the violations are more technical than they are real. Greenfield said, “the big boys always seem to get away with murder.”

18:30: The NASD coming out of the 1930s initially did a good job, but over time it became less and less concerned with enforcement and more concerned with the appearance of enforcement.

20:00: Most state attorneys general don’t have resources to devote to securities regulations. It’s the rare state, California and New York for example, which undertakes real enforcement activities. (LD’s comment: I would add that Massachusetts has also aggressively undertaken serious enforcement of securities regulation.)

22:00: Too Much Wall Street money finds its way into campaign warchests with the result that its special interests rival those of the insurance and defense industries and as a result Congress and many state government initiatives have been subverted.

25:00: Every major financial institution has ‘cooked their books’ for the last five years.

At the 29 minute mark or thereabouts,  our conversation truly elevates from the general nature of financial regulation to the very specific details of the cases Richard Greenfield and colleagues from the Washington D.C. based firm of Cuneo, Gilbert, and LaDuca are bringing against FINRA. I STRONGLY encourage you to listen to the next twenty minutes.

29:30: Greenfield provides background information on the complaint filed on behalf of the California based FINRA member firm, Standard Investment Chartered against FINRA.

32:00-44:00:
- Greenfield comments on some interesting connections between Bernie Madoff and Mary Schapiro, former head of FINRA and current head of the SEC.

- Documents provided by the NASD (now known as FINRA) to Greenfield and his colleagues show unequivocally that the NASD defendants lied to the NASD member firms regarding distribution of funds from the sale of the Nasdaq. Greenfield reiterates that these individuals lied blatantly and unequivocally. They intentionally lied. The lies are repeated over and over in a proxy statement provided to the member firms. The lies were repeated at roadshows which took place all around the country.

Who is they? Who lied? Who repeated the lies?

Mary Schapiro and senior officers in the NASD (FINRA)!!!

> The primary lie is the misrepresentation of the maximum proceeds that could have been paid to the NASD member firms. That figure was represented as being $35k when in fact it could have been much, much higher.

> Greenfield also highlights the fact that FINRA failed to perform in protecting investors from the Auction-Rate Securities scandal while liquidating its own ARS investment position in 2007.

> Greenfield sheds some light that he believes New York AG Andrew Cuomo is investigating FINRA’s liquidation of its Auction-Rate Securities investment.

>47:00

- Greenfield repeats his assertion initially made on September 3rd while appearing on America’s Nightly Scoreboard on Fox Business News (video clips can be seen here) that, based upon information and belief obtained from a source which Greenfield and colleagues believe to be reliable, FINRA had made investments with Bernie Madoff!!

- Greenfield believes that FINRA may have to be disbanded and the self-regulation of Wall Street may have to be scrapped because the self-regulatory model for this industry has failed.

- Greenfield concludes that Mary Schapiro talks a tough game, but is truly a non-regulator.

While Greenfield makes some serious allegations and charges in the course of this interview, he has unquestioned credibility and experience which comes from 40 years of fighting these battles.

Will the truth and transparency being sought in these complaints and which the American public so badly needs at this time come out? Do not discount the power of information. Please share this information which Richard Greenfield so descriptively and professionally detailed last evening with your friends and colleagues.

I thank you.

Questions, comments, constructive criticisms always appreciated.

LD

  • whoisjohngalt

    “Every major financial institution has ‘cooked their books’ for the last five years.”

    I wonder if that includes Fidelity. If so, then this country will implode because they manage so much of the $ in the USA.

  • Larry Doyle

    My sense is that Greenfield is referring to the major banks on Wall Street.

  • Dick O’Donnell

    Larry
    I have just been made aware of of your heroic effort to shed light on the huge “ripoff” the NASD/FINRA foisted on it’s members. It is about time that these so called regulators had some sunshine aimed at their own scadalous activity. It appears that not only are they inept at preventing frauds of the magnitude of Madoff and others, but they are guilty of the same type of behavior toward their own members!

  • Larry Doyle

    Dick,

    Thanks for your kind words. No interest in being a hero, but merely trying to bring a large measure of truth, transparency, and integrity to a corner of the market that deserves it.

    Spread the word.

  • fiscalliberal

    I wished I would have thought about having Greenfield comment on the Markpoulous comment: SEC is incompetent and FINRA was corrupt. We seem to be getting more detail on that statement now.

  • Larry Doyle

    My sense is that Greenfield would likely agree. We have not seen nor heard the last of Mr.Greenfield at Sense on Cents, so I will put that question on the ‘to be asked’ list.

  • Pingback: NASDAQ Sale: Why Would Schapiro and FINRA Lie? | Reaction Radio






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