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SEC Attorney Darcy Flynn Blows Whistle on Wall Street-Washington Incest….MUST READ

Posted by Larry Doyle on August 17, 2011 4:33 PM |


Since early 2009 I have written at length about the regulatory capture that has dominated the financial industry. I have defined this concept in layman’s terms as the Wall Street-Washington incest. Today a close friend and regular reader of Sense on Cents shares a story which blows the cover off this incest.

This story is written by Rolling Stone’s Matt Taibbi, perhaps Wall Street’s greatest nemesis. I commend him and those from whom he has sourced this information to have the courage of their conviction and the embodiment of the true American spirit to bring this story to light.

I ardently believe this expose should lead to public Congressional hearings and ultimately a federal judicial inquiry. Might it be the beginning of the end for Mary Schapiro?

If this story does not lead to the aforementioned hearings and inquiry, then I am compelled to believe that our financial system will NEVER be repaired and properly regulated. Moreover and perhaps more importantly, why would any investor care to participate in Wall Street’s racket? As I have often maintained, when principal is not protected, it will move elsewhere. Do you hear the hiss and the whir of those dollars moving offshore?

To those within the SEC who have any involvement whatsoever in the activities exposed by Attorney Flynn, you are obviously entitled to a fair and full hearing. I hope you get it. This case DEMANDS a full and thorough pursuit of the truth with complete transparency. If it does not get it, I would recommend that Americans march on Washington and Wall Street to demand the truth and the necessary transparency. This story is that important.

America knows all too well that the Wall Street-Washington incest has crippled our economy and also our nation.

Let’s pull back the covers and expose just how deeply in bed and enmeshed these lovebirds are. While these birds have been making sweet love to each other, is there any doubt as to who is really getting screwed?

That’s right, none other than the citizens of the United States of America.

On that note, here is the overwhelming stench of the incest written by Mr. Taibbi, Is the SEC Covering Up Wall Street’s Crimes?

Comments, questions, constructive criticisms encouraged and appreciated.

Please help us take back our country and restore a sense of integrity in the process, SHARE THIS STORY!!

Larry Doyle

P.S. So much for catching you at the turn of the month. Once again the best laid plans…

Isn’t it time to  subscribe to all my work via e-mail, an RSS feed, on Twitter or Facebook? Do your friends, family, and colleagues a favor and get them to do the same. Thanks!!

I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets, our economy, and our political realm so that meaningful investor confidence and investor protection can be achieved.


  • Rob

    I love Matt’s work… and yours, too, Larry.

  • brad

    there will be marching soon. one way or another

    • Aliyah


      How do we get the people together to start this march to Washington?

  • Dieter

    Unbelievable corruption at every level and even a U.S. Senator is dissed. If America is to survive we must open all doors wide and sweep clean with a new broom. I don’t believe Americans are ready. They’re still dancing to the latest beat.

  • Cate

    It’s a long read but every word is solid gold. Thanks for sharing this important article (which I have promptly shared on Facebook). Let’s see where it goes. As you said, Larry, if this doesn’t lead to serious investigations of the SEC and others, how can We The People ever hope to save America.

  • Howard T. Lewis IIIa

    I have just had microsoft steal all of my emails for somebody again, so I’m restricted. This is the third time. I imagine they hope I am planning to blow somebody up. But I am not. That’s what George W.Bush and his father do. I don’t market cocaine or heroine either.They do.

    This problem has to do with the royal heads of Europe, England in particular ,since queen lizard is the Grand Patron of freemasonry, and she is close to the City of London. Those are freemasonry symbols all over tha stupid ‘world court of the World’ in Israel that 80 American congressmen are going to stage a mewlathon to get favorable, traitorous TV news coverage from the CFR this election. The SEC and FTC are controlled by those seeking to financially destroy the U.S.(DUH!!)

    You guys have had a couple of years now to cowboy up to facing this. You keep writing how AMAZED you are. George Bush, white collar crime,murder,fraud, destroying America. You bought it. Now pay for it. Skull and Bones criminal enterprises have been stinking the place up for 60 years.

  • dogismyth

    quote: I ardently believe this expose should lead to public Congressional hearings and ultimately a federal judicial inquiry. Might it be the beginning of the end for Mary Schapiro?

    That’s when I stopped reading this crap. You want congressional hearings because…? A judicial inquiry because…? Oh yeah, you believe there is justice within the US system. How amazing the gullibility and level of indoctrination to even think in these terms…that THEY will help us or will correct the situation.

    Can’t you see…its over. These games they play are just charades for the gullible who still believe in the system. The police state cannot handle an all-out discontent from a majority. So the usual suspects of indoctrination and fools (sheeple) suck up the propaganda, and the correct process for mitigation dries up.

    You may as well roll over and take it like a man. They care not for you or your ambitions or your justices. They own the world, they run they world and they control all things through force, intimidation and fear.

    And Taibbi is just part of the act.

  • I refuse to believe gatekeeper Matt Taibbi, first he is ordered to cover up the attacks of 9/11, which makes him out to be one of the dumbest journalists in history or a traitor. Now we are to believe that he is some kind of genius for unraveling all of Wall St’s shenanigans.

    He is about as believable as Woodward and Bernstein who heard a voice in a parking garage known as “Deep Throat.” Forget their CIA back round and Skull $ Bones membership. Don’t look at the facts, just listen to the voice.

    Maybe, he should look into the destruction of the Saloman Building 10 years ago for evidence of massive and pervasive corruption of our government and Wall St together. You know, World Trade Center 7, the 47 story skyscraper that collapsed into its own footprint in 6.8 seconds without an airplane hitting it. All the SEC investigations that ground to a halt when the evidence was magically destroyed with the building. That miracle was responsible for 10 more years of financial rape of our country.

  • We have been trying to point out the Dept of Justice Cover Ups to protect Goldman Sachs and BAIN for a decade.

    Posting a testimony to federal agents online – Under Penalty of Perjury, detailing the facts.

    Even using the new SEC TCR tip line
    and the cover ups CONTINUE

  • Nora

    And they put Martha Stewart in Jail, what a joke! I am just curious what Ms. Shapiro’s answers to Mr. Grassley’s questions about the documents destruction will be. Will we as the citizens of this nation ever get to the truth and the transparencies that we deserve. I’ll give the judicial system a little while longer to figure this mess out and bring all those bastards to justice, whether it’s the SEC, the FEDs, the OCC or what ever organization that helped the downfall of this nation’s economy. And yes, a walk like an Egyptian is due for many good reasons, I’ll be up fronT with a BROOM!

  • Peter S.

    To Gary Aguirre, feel free to reach out to me through LD. I have nailed the bum (and others in another matter) responsible for you dutiful career in the SEC being destroyed.

  • Good Stuff Peter S.

    To see how much the SEC/ DOJ will do to Cover UP felony violations and massive civil violations of BAIN, Goldman Sachs and Wells Fargo

    Defying the Law openly – see the following links

    FBI raids OSC (Scott Bloch) home & office for destroying case files.
    (Office of Special Counsel OSC, is the whistle-blower division of Dept of Justice)

    Goldman Sachs takes eToys public in 1999
    eToys got $16.50 per share
    Sachs was to get $1.50 per share
    Stock soared above $78
    eToys filed bankruptcy March 7, 2001 became eToys Debtor counsel
    It is against the Law at the time, for an Investment Banker to be involved as counsel of the Debtor.

    MNAT was secretly Goldman Sachs attorney and lied about this more than 15 times to the court.
    While committing the acts of erroneous (Rule 2014/ 2016) Affidavits, MNAT petitioned for and received approval in the very beginning of the case to

    DESTROY Books n Records
    Traub Bonacquist & Fox firm (TBF) became the eToys creditors counsel. Traub and MNAT asked permission to replace the executives of eToys with their own person and the US Trustee told them NO
    (see ¶¶ 19 & 35 – of this US Trustee Motion (here))

    But MNAT and Traub ignored the US Trustee (the Police warning) and went ahead and replaced the President & CEO of eToys (Toby Lenk) – with Barry Gold.

    Problem is (and now they are caught-it is Confessed) Barry Gold is Paul Traub’s partner and also a paid employee of TBF.

    MNAT, TBF and Barry Gold sold the assets of eToys to Bain/ Kay Bee for discounts in the millions upon millions.
    we even had sold for $10 million
    Traub, Gold and MNAT reduced that to $3 million.

    What they did not tell anyone at the time, MNAT, Barry Gold and Traub all work for BAIN.

    This is Collusion to Defraud an estate.

    When we pointed this out and another $100 million fraud, the Deputy Director of the Dept of Justice sent me an email, promising to halt the crimes.

    Then another crime for $100 million transpired. Instead of stopping it, the DOJ Director of the US Trustee’s – RESIGNED

    This wound up in the Wall Street Journal July 25, 2005
    Judge finds potential conflict of Traub in eToys

    A different judge visiting and handling our fees and expenses, threatened me on July 24, 2005 – to try to stop the article from coming out. We sent new information that very day.

    SEC Bankruptcy Fraud Division (yes there is one – we have the emails) in Atlanta, told us they were solving the problem.

    OIG of the SEC also emailed me directly.

    Then, the Judge let those who lied, keep the keys to the vault they were fleecing, said 34 acts of False Affidavits was NOT perjury and expunged us from the case.
    Even though they were going to sell everything to Bain/ KB for $3 to $5.4 million and we got back nearly $50 million.

    The MNAT law firm submitted a forgery to the court, saying we WAIVED our fees and expenses

    I would laugh too, if it did not hurt so much.

  • here is the link to the presentation we gave to the Director, the Chief and the head counsel for Florida Office of Financial Regulations on April 22nd, 2011

    I was with Cameron Shaw, who gives the presentation. The video is summarized in a 19 minute youtube clip.

    Also your article today ( SPTIMES ) about the OFR, on a smaller scale is similar to the Matt Tiabbi story about the SEC and the Banks and the musical chairs played by the Lawyers.

    Please also watch and read my article Wall Street Fails To Deliver you can google the video Wall Street Fails to Deliver

    I have in my hands a powerful movie not out yet about how the money was stolen on Wall Street and how the jobs have been lost. I hope you will spend 19 minutes of your valuable time to watch the Florida
    presentation and then Wall Street Fails to Deliver.

    I am the narrator to the movie Stock Shock ( June 2009 )

    I will also play a big role in the upcoming movie out Sept 2011 called Radio Wars.

    here is my info, I hope you give me 1 hour of your time to meet in person and give you this movie so you can watch

    please contact me

    Richard Keane
    St Pete Beach, FL.

  • mike nielsen

    I have been working with the Sec investigative team for ten years for fraud about my grandfather (Donald E Nielsen) involving Berkshire Hathaway and Warren Buffet. They conspired to hide my grandfather’s 220,000 shares of class A shares worth $110,00/share. The problem is that the shares do not pay a dividend and thus never have to be registered witht he IRS or the SEC because there is no income. These people that invested with Buffet in the early days are now dying and these shares are showing up for the first time. Those shareholders that are a part of the so-called “inner-circle”, put their shares into a trust and have them illegally transfered to who-ever without ever being taxed. This is capable because the shares have never been registered with the IRS and the SEc and the then they do not pay estate taxes on them because they do not claim shares on their estate when they die. This is one of the several ways Buffett is a head of our government because he knows how to beat the tax system and control his value of his shares. this happened under Christopher Cox and it is happening under Shapirio. The “super-rich’ do own wall street and this country. I would love to talk to larry Doyle personally and i would be willing to fax all of the correspondence of myslef, the IRS, and my grandfather’s ex-accountant who helped hide these shares. i would love to go into further detail but you get the jist!


    A letter recently sent from Darcy Flynn’s attorney, Gary Aguirre, to SEC Chair Mary Schapiro.

    Aguirre Letter to Schapiro Re: Bringing Sunlight to the SEC-NARA Discussions

    Aguirre writes,

    I would urge you to consider the words of Supreme Court Justice Louis D. Brandeis many years ago: “[S]un1ight is said to be the best of disinfectants.” The Enforcement Division has destroyed thousands of files in violation of federal law, while telling NARA the records were preserved. It will not enhance the Commission’s credibility to negotiate the truth behind closed doors with NARA.

  • LD

    For the latest on this story, the WSJ reports this morning,

    SEC Officials Are Focus of Inquiry

  • LD

    Darcy Flynn is profiled in this morning’s WSJ for successfully exposing fraud while employed at Blue Cross Blue Shield of Michigan.

    SEC Lawyer Blew Whistle Before

    In June 1993, Mr. Flynn alleged in a lawsuit filed under the federal False Claims Act that the insurer had cheated the Medicare program by submitting false records in connection with audits of Medicare payments to hospitals.

    The insurer, without admitting wrongdoing, agreed in January of 1995 to pay the government $27.6 million in a civil settlement, and Mr. Flynn and his lawyer split 20% of that amount, or about $5.5 million, according to documents and testimony in conjunction with the case.

    Mr. Flynn’s lawyer in that matter, Robert Vogel, said in an interview last week that prosecutors praised Mr. Flynn for his accounting and organizational skills.

  • fred

    On a broader level beyond the Washington-Wall St incest, the problem with gov’t is that gov’t bureacracy has developed into a system of misaligned incentives and harmful alliances.

    The US Constitution is very careful to counterbalance political power so that no one political party can retain dominance or influence too long without the intervention of an electoral mandate. But what about the bureacracy of goverment that continues beyond the election cycle and does not answer directly to an electoral mandate?

    Whose interest does Ben Bernanke or Mary Shapiro really represent, corp lobbyist’s or the general public’s? Neither person elected, both appointed and wielding enormous power within the bureacratic structur. How about all the other sec, undersec, directors, etc., who actively use the revolving door with corporate america, whose interests do they represent? What about gov’t unions, how can they possibly represent public interest.

    In my lifetime, there has never been a better time to address the fundamantal flaws within our “system” of gov’t, our failure to respond adequately will do nothing less than determine our future as either a world power or a third world nation.

    Wake up America, government as it now exists IS the problem. As long as we rely on a misguided bureacracy for leadership we will continue our national decline.

  • jo

    They all need to go to jail! Bodily throw the sorry p.o.s.’s out and lead them all to jail and recover what they have stolen!!! Leave all the windows open to air out taxpayers offices! New rules and laws before another takes any of these jobs!

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