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A Concerned USXP Shareholder Weighs in On Honorable Chairman Cox with a BOMB.

Location: Blogs Bud Burrell - Front and Center
Posted by: bburrell	1/16/2008 3:50 PM
Dear Honorable Chairman Cox: As a representative of the "Concerned USXP Shareholder Group" (see attached), I urgently request that you instruct your staff to make available to our group all trading data for Universal Express, Inc. (USXP.PK) that could shed light on the naked shorting that is alleged to have gone on unchecked for at least the past seven years. We have reason to believe some selected sections of the SEC, in collusion with Judge Lynch of the U.S. District Court, S. D. of NY, and the court appointed receiver Ms. Jane Moscovitz, are deliberately targeting the company due to its vociferous and brave stand on the subject of naked shorting. We have alerted our representatives in Congress who have promised to help and the case is now under review in the 2nd circuit court of appeals. It is incumbent upon you as the Chairman and Chief Protector of people's rights to a transparent market to lay to rest the mounting suspicion that the SEC is intentionally attempting to destroy this company since its erstwhile chairman and general counsel acted as the chief whistleblowers on the subject of naked shorting in general and naked shorting in USXP in particular. The company has been brutally attacked by the SEC with full cooperation from the Judge and a Receiver brought in to replace the company CEO in total disregard to judicial norm (see the appeal in the 2nd circuit court). The receiver has promptly liquidated for farthings all of the company's holdings while refusing to budge an inch to repeated requests by shareholders for an “independent third-party reconciliation” of the stock transfer register of the company. We request that the SEC provide to us all documents in possession, control and custody of the SEC showing all naked short selling or failures to deliver shares on settlement dates of Universal Express's shares of stock on a daily, weekly and monthly basis from January 1, 1997 to and including September 4, 2007. We, the shareholders have limited evidence of our own that shows that naked shoting was rampant with this equity over the past seven years. Prior to that, this company had already sued some naked shorters in Florida and two separate juries had awarded the company with over 700 million in damages (see attached files for details) I and others have followed this saga for over 6 long years and I can verily write a treatise on the corrupt and unlawful trading that has gone on at the expense of thousands of common, hardworking, generally upright investors, the common man of this country. Whether the repeated mantra of rampant naked shorting is 100% true, 80% true, partly true, or even false, there is clearly enough evidence out there for one to make an intelligent surmisal that inordinate manipulation has gone on in this equity. We, the common shareholders and citizens of this country, had hoped that with the SEC's involvement, then the judiciary's involvement, the truth would become transparent. Instead, what we see is a government body (the SEC) run amuck, and officers of the court taking drastic and unorthodox steps without ever addressing the quintessential and central point in this seven-year long battle, namely whether or not the equity USXP has been severely naked shorted. The proof of this is in the SEC and DTCC's hands. I am sure you are aware of this. We humbly request that you use your considerable power and authority to instruct your staff to open the books on USXP and expalin this mystery to the shareholders once and for all.

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Re: A Concerned USXP Shareholder Weighs in On Honorable Chairman Cox with a BOMB.

By ginger on 1/29/2008 12:11 PM

Rogue Trader Held in French Bank Scandal
By PIERRE-ANTOINE SOUCHARD – 20 minutes ago

PARIS (AP) — Police on Saturday questioned the young trader blamed for a massive fraud that cost France's Societe Generale bank more than $7 billion, as the country's president accused global financial institutions of having "gone haywire" and urged common sense.

The possible motivations of the 31-year-old trader, Jerome Kerviel, remained a mystery, and the bank said it appeared that he made no personal gain from the unauthorized trades.

Judicial officials said Kerviel was taken into custody earlier in the day — two days after Societe Generale's announcement that he was responsible for one of history's biggest frauds. The officials spoke on condition of anonymity because the investigation was ongoing. Under French law, Kerviel can be held up to 48 hours.

Jean-Michel Aldebert, head of Paris' financial police, said Kerviel gave himself up. He "is very well, he's collaborating," Aldebert told reporters.

The debacle further rattled an already nervous banking sector and has fueled a debate about risk management.

"If we can make profits in a matter of hours, we can also have huge losses," President Nicolas Sarkozy said during a visit to India. "We must stop with this system that has gone haywire and that has lost track of its aim."

He added: "It appears to be time to ... inject a bit of common sense into all these systems."

French officials said the trader had been dealing with more than $73.3 billion. That figure outstrips the bank's market capitalization of $52.6 billion, and is close to the annual GDP of entire nations such as Slovakia, Qatar or Libya.

It remains unclear whether Kerviel's actions, if proved, were motivated by malevolence, ambition or some other reason. Three union officials representing Societe Generale employees said managers at the bank who briefed them about the fraud told them Kerviel was having family problems.

Acquaintances described Kerviel as reserved and considerate, a young man who once taught children judo and held the door for elderly neighbors.

Experts and others including France's prime minister have questioned whether a single futures trader could have managed such large sums. Some have suggested Societe Generale might have used Kerviel as a scapegoat for other losses.

Paris prosecutors are conducting a preliminary investigation based on three complaints: one by the bank accusing Kerviel of fraud, and two by small shareholders.

In an interview published Saturday, Societe Generale's chief executive, Daniel Bouton, dismissed the notion that the bank's actions helped fuel the turmoil on world markets.

"It's absurd!" Bouton told Le Figaro daily in an interview published Saturday. "Anyone could calculate our contribution to the market in recent days."

Bouton said Kerviel had been betting throughout 2007 that markets would fall — a winning position. But the trader overstepped his authority and wagered much more money than he should have, Bouton said.

So at the beginning of January, Bouton said, Kerviel voluntarily created losing positions to neutralize his earlier gains and cover his tracks.

But this month's quickly dropping markets turned "this sad affair ... into a Greek tragedy: His virtual losing position became huge," Bouton was quoted as saying.

Despite the bank's $7.14 billion losses, which Bouton called "enormous and abnormal," he insisted Societe Generale's viability was not at risk.

In Thursday's statement, the company also announced another $2.99 billion subprime-related loss and said it planned to raise $8.02 billion in new capital.

French Finance Minister Christine Lagarde, speaking Saturday at the World Economic Forum in Davos, Switzerland, said she has been asked to compile a report on the fraud, Dow Jones Newswires reported.

Lagarde said her report will look at "the reality of facts based on real hard data," and "how and why" the bank's security controls failed to prevent the fraud.

The bank says the scale of the damage was so great only because of the bad timing of the discovery — right before the worst day in world markets since Sept. 11, 2001. It also fired Kerviel's supervisors.

Societe Generale's shares have lost nearly half their value over the past six months. After an up-and-down day Friday, the shares closed down 2.5 percent at 108.62.

Associated Press writers Cecile Roux and Angela Charlton in Paris contributed to this report.

http://ap.google.com/article/ALeqM5h4ncvzDOrXAnqyB9avT4zvg1iJTQD8UDSISG0

Re: A Concerned USXP Shareholder Weighs in On Honorable Chairman Cox with a BOMB.

By cagauss on 2/13/2008 12:42 AM

Forgive me, but a lot of reading has not turned up an answer to a simple question: if you buy shares of a stock and there is no delivery, can't you repudiate the purchase and get your money back? That's a foundation of commerce. That's not a complicated principle. Why aren't failure-to-delivers (FTD's) simply canceled by voiding the transaction and returning the money to the "buyer" who did not get what he bought?

Reply: Dead on. If you do not get your goods, you have legal recourse for refund in full.