spicy_guy
07-11 11:23 PM
Having said that, this will be the right time to purse this agenda...Many of the folks suggested, counting date for citizenship from I-485 receipt date or I-140 receipt date. If you google 'Backdate GC', we can see that many other folks in murthy, rajiv khanna forums are also talking about this. So, we might have enough members to pursue this further. Many of us have been here close to 10 years (Me from 2000 on F1, OPT, H1B etc). Its only fair to have some of those years counted towards citizenship.
Pappu, IV leadership,
Please let us know how to proceed further on this...
Yes, I like this one too and posted about this a few times. We can take this agenda forward. I think we'll have a lot of supporters...
This might already be in IV's agenda. Pappu? Can you shed some light in this matter?
Pappu, IV leadership,
Please let us know how to proceed further on this...
Yes, I like this one too and posted about this a few times. We can take this agenda forward. I think we'll have a lot of supporters...
This might already be in IV's agenda. Pappu? Can you shed some light in this matter?
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snathan
05-05 08:58 AM
Here is the most up-to-date list of people who have reported their issues with the audit delays:
http://www.mediafire.com/?a3znd69ymyz
I think its about time that we start brain storming the plan of action, I did like the idea of rally but that had its own Pros and Cons. We need more ideas coming from the people...
I was thinking that we could draft a letter of request to DoL and have all the members sign on it to reflect the massiveness of the issue that Management needs to know - this is becoming a major issue in the EB immigration process. We could then write up a follow-up article for newspaper or even provide a copy of that signed letter to them. Any input to this?
I have requested IV Admins to provide some input as well, but if you have any ideas please speak up!
Here is what one of the IV administrators communicated to me:
"In order for anything to be successful, it is important that we get as many people affected involved. Based on the number of people who wish to take part in solving the issue we can initiate a campaign.
Pls let everyone know that IV can help them. We need everyone affected willing to help themselves by coming out and actively participating in a campaign."
So please, dont disperse or lose hope, we need to gather more people to support the campaign, once started.
Admins: I am unable to add the files as an attachment, even after making sure that the file size is under the limit. Am I missing something?
May be we can get help from our respective congressmen/women's help on this.
Any idea?
http://www.mediafire.com/?a3znd69ymyz
I think its about time that we start brain storming the plan of action, I did like the idea of rally but that had its own Pros and Cons. We need more ideas coming from the people...
I was thinking that we could draft a letter of request to DoL and have all the members sign on it to reflect the massiveness of the issue that Management needs to know - this is becoming a major issue in the EB immigration process. We could then write up a follow-up article for newspaper or even provide a copy of that signed letter to them. Any input to this?
I have requested IV Admins to provide some input as well, but if you have any ideas please speak up!
Here is what one of the IV administrators communicated to me:
"In order for anything to be successful, it is important that we get as many people affected involved. Based on the number of people who wish to take part in solving the issue we can initiate a campaign.
Pls let everyone know that IV can help them. We need everyone affected willing to help themselves by coming out and actively participating in a campaign."
So please, dont disperse or lose hope, we need to gather more people to support the campaign, once started.
Admins: I am unable to add the files as an attachment, even after making sure that the file size is under the limit. Am I missing something?
May be we can get help from our respective congressmen/women's help on this.
Any idea?
santb1975
04-13 10:36 PM
We really do
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NolaIndian32
04-09 04:49 PM
I am happy to report that Team IV Memberships have started rolling in from a few non-IVians who support us legal immigrants!! This is very encouraging.
more...
green_mile
09-29 08:43 AM
Even illigal immigrants has more optimism,
And they actually believe themselves they have every right to become a permanant citizens than legal immigrants waiting in line.
Some folks can't even bear the thought if some one thinks they should try to influence the law makers.
And they actually believe themselves they have every right to become a permanant citizens than legal immigrants waiting in line.
Some folks can't even bear the thought if some one thinks they should try to influence the law makers.
santb1975
04-16 01:36 PM
We do not have a set date for ending registrations. We are planning on accepting registrations all year long for Team IV. However we recommend people signing up sooner than later. Here is why I say that. The DC and Houston events have a cap on the number of participants and the sooner we sign up the better are our chances of getting a spot to participate in the event. Remember you do not have to run the entire 10 miles or entire half marathon. you can walk, run a few miles, walk the rest etc. I am working towards running the entire 13.1 miles in Houston but I will be happy even if I run half and walk the other half.
The second reason is fund raising. I have a fundraising goal of 5$00 this year ans starting out early will give me a higher probablity of meeting my goal or exceeding it. I am going to be writing letters to my friends/ family to contribute towards IV as early as next week. I will see if I can raise atleast 150 to 200$ by doing that. I am going to organize a summer BBQ and have a cover charge or put a donation box at the BBQ. I will see how much I can raise doing that. My third event will be around November. I was planning on partnering with some friends and baking some pie's, puff pastry's, Cookies, kebobs and selling them at a local farmers maket on a saturday. Hopefully I will raise more than $500 doing all these. This should be a fun filled year for me.
Depending on how my training goes, I should know in 3 months if I am capable of doing the half marathon in 2009. When does the registration end?
The second reason is fund raising. I have a fundraising goal of 5$00 this year ans starting out early will give me a higher probablity of meeting my goal or exceeding it. I am going to be writing letters to my friends/ family to contribute towards IV as early as next week. I will see if I can raise atleast 150 to 200$ by doing that. I am going to organize a summer BBQ and have a cover charge or put a donation box at the BBQ. I will see how much I can raise doing that. My third event will be around November. I was planning on partnering with some friends and baking some pie's, puff pastry's, Cookies, kebobs and selling them at a local farmers maket on a saturday. Hopefully I will raise more than $500 doing all these. This should be a fun filled year for me.
Depending on how my training goes, I should know in 3 months if I am capable of doing the half marathon in 2009. When does the registration end?
more...
sandy_anand
05-08 10:35 AM
You don't have a choice, as far as I know. If you're in NY, it has to go to Atlanta. I'm from NJ, went to Atlanta. Atlanta is very very slow. I've been waiting for three months now.
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logiclife
12-13 01:43 PM
Administrator,
Can you please make this a sticky?
Thank you.
Neelu
I have made the thread sticky. Thanks for taking this initiative.
Can you please make this a sticky?
Thank you.
Neelu
I have made the thread sticky. Thanks for taking this initiative.
more...
fall1998
05-24 04:08 PM
Yeppp! My case status says exactly:
Hi,
The I485 APPLICATION TO REGISTER PERMANENT RESIDENCE OR TO ADJUST STATUS was transferred and is now being processed at a USCIS office. You will be notified by mail when a decision is made, or if the office needs something from you. If you move while this case is pending, please use our Change of Address online tool to update your case with your new address or call our customer service center at 1-800-375-5283.
We have never been interviewed though!
Me and my wife were called for interview at Newark, NJ office after we got the Notice for case transfer in Oct. 2009.
I heard that those cases which were interviewed were sent to 'USCIS Office', but have never received any interview notice
Hi,
The I485 APPLICATION TO REGISTER PERMANENT RESIDENCE OR TO ADJUST STATUS was transferred and is now being processed at a USCIS office. You will be notified by mail when a decision is made, or if the office needs something from you. If you move while this case is pending, please use our Change of Address online tool to update your case with your new address or call our customer service center at 1-800-375-5283.
We have never been interviewed though!
Me and my wife were called for interview at Newark, NJ office after we got the Notice for case transfer in Oct. 2009.
I heard that those cases which were interviewed were sent to 'USCIS Office', but have never received any interview notice
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ramaonline
07-14 12:49 PM
Is it possible to recapture the unused visa numbers? According to this report, there are still over 200k unused numbers from past years which can be recaptured via some legislation.
http://www.dhs.gov/xlibrary/assets/cisomb_2010_annual_report_to_congress.pdf
"http://www.dhs.gov/xlibrary/assets/cisomb_2010_annual_report_to_congress.pdf" (Pg 35)
It would be best to tag it along with some bill such as the recent finance bill which got some last minute crucial votes from republican senators. If those senators can be approached, it might help to get some provision included since their votes are necessary to avoid the filibuster.
http://www.dhs.gov/xlibrary/assets/cisomb_2010_annual_report_to_congress.pdf
"http://www.dhs.gov/xlibrary/assets/cisomb_2010_annual_report_to_congress.pdf" (Pg 35)
It would be best to tag it along with some bill such as the recent finance bill which got some last minute crucial votes from republican senators. If those senators can be approached, it might help to get some provision included since their votes are necessary to avoid the filibuster.
more...
ksrk
09-03 09:52 AM
It was merely an expression. I am sure you guys get the point.
Hangin there. 2004 will be cleared soon. If not this month, next month.
While the wait has been frustrating, the general wisdom hasn't been lost! Certainly GC isn't everything.
Anyways, thanks for the encouraging note.
Hangin there. 2004 will be cleared soon. If not this month, next month.
While the wait has been frustrating, the general wisdom hasn't been lost! Certainly GC isn't everything.
Anyways, thanks for the encouraging note.
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indianabacklog
08-02 03:19 PM
It is good to see the combined Immigration community efforts are bringing results. However, it appears that no attention is being paid to raise the issue of children ageing out because of visa retrogression and delay in labor clearance. The Child Status Protection Act(CSPA) passed in the year 2002 hardly provides any relief to I-140 based immigration petitions. While for I-130 (for US Citizens) applicants the date of child is frozen on the date of submission of I-130 form it-self, but for employment based immigrant applicants this Act provides a complicated way to calculate the child�s age and it just provides relief for any processing delays in 1-140 clearance only. It just ignores the fact that we have years of retrogression for employment-based category. At the time when this act was passed there was no retrogression in employment-based category and lawmakers perhaps never thought of hardship, which children and families may face because of the retrogression.
We need to raise our voice on this issue too. My son is going to miss out the chance of getting his green card just because his age works out as per formula given in CSPA Act to be 21 years and 12 days � because of 12 days my family may be penalized to be separated from our child whereas no one is going to consider 3 years delay in labor case in my case and then another 13 months we have to wait for filing 1485 after approval of I-140. Mine case was the most unfortunate in the sense that I got my I-140 approval in just 29 days whereas in all cases the normal time is 3-6 months. Had it taken 2 months, my son would have got the benefit under CSPA.
I hope some one from Immigration Voice leadership team will take a lead to highlight such issues also before the law makers.
Sorry to hear your son is going to fall into what I can only describe as a black hole that the system choosed to totally ignore. I faced this situation a year and a half ago and transferred my son to an F1 student visa. As long as he is registered for 12 credit hours in college he gets to stay in the US. This is NOT a long term solution but there are few options available. We have to hope that somebody somewhere who can change things will finally see this as a problem and act on our behalf. I have contacted dozens of senators, congressmen etc etc and in all but two cases did not even get an acknowledgment.
We need to raise our voice on this issue too. My son is going to miss out the chance of getting his green card just because his age works out as per formula given in CSPA Act to be 21 years and 12 days � because of 12 days my family may be penalized to be separated from our child whereas no one is going to consider 3 years delay in labor case in my case and then another 13 months we have to wait for filing 1485 after approval of I-140. Mine case was the most unfortunate in the sense that I got my I-140 approval in just 29 days whereas in all cases the normal time is 3-6 months. Had it taken 2 months, my son would have got the benefit under CSPA.
I hope some one from Immigration Voice leadership team will take a lead to highlight such issues also before the law makers.
Sorry to hear your son is going to fall into what I can only describe as a black hole that the system choosed to totally ignore. I faced this situation a year and a half ago and transferred my son to an F1 student visa. As long as he is registered for 12 credit hours in college he gets to stay in the US. This is NOT a long term solution but there are few options available. We have to hope that somebody somewhere who can change things will finally see this as a problem and act on our behalf. I have contacted dozens of senators, congressmen etc etc and in all but two cases did not even get an acknowledgment.
more...
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rkm
01-21 04:52 PM
Contributed $20 for this month
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paskal
07-11 07:15 PM
stop this stupidity please
far as i know we did not write the letter.
all we did was send flowers to let people know we were screwed over.
if you don't even want to do that...
hey it's ok to roll over and play dead. but you can do that without bothering to come here, can't you?
iv has not raised any security related issues as a policy. we have not denigrated uscis for working efficiently either. all we asked was to honor the july bulletin.
so what stupidity should be stop dear kramer?
far as i know we did not write the letter.
all we did was send flowers to let people know we were screwed over.
if you don't even want to do that...
hey it's ok to roll over and play dead. but you can do that without bothering to come here, can't you?
iv has not raised any security related issues as a policy. we have not denigrated uscis for working efficiently either. all we asked was to honor the july bulletin.
so what stupidity should be stop dear kramer?
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psp123
05-17 08:39 PM
Just got the mail Card production ordered(myself, spouse , dependent).
Raised SR on 2nd May Got RFE on 3rd , received the RFE(Employement Verification) on 8th.
replied the RFE , USCIS received on 12th.
EB2 PD June 5th 2006
Raised SR on 2nd May Got RFE on 3rd , received the RFE(Employement Verification) on 8th.
replied the RFE , USCIS received on 12th.
EB2 PD June 5th 2006
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sachin76
06-01 02:18 PM
Guys,
I applied my EAD Renewal on April 5th. I have receipt with me but my EAD is not approved. Right now I don't have any other option other then EAD. I am little bit worried. Please let me if anyone on the same board. as well pls let me know and what are my options. EAD is going expire on end of July.
Thanks
Venkat
I applied on 4/19. No response yet. Mine is expiring in end of July.
I applied my EAD Renewal on April 5th. I have receipt with me but my EAD is not approved. Right now I don't have any other option other then EAD. I am little bit worried. Please let me if anyone on the same board. as well pls let me know and what are my options. EAD is going expire on end of July.
Thanks
Venkat
I applied on 4/19. No response yet. Mine is expiring in end of July.
more...
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JA1HIND
05-20 11:19 PM
Called Senator Robert Menendez office and message is been communicated.
Now goal is to call rest of the listed Senator's and also have my friends and known resources call these offices.
so far (1+5) total calls were made by friends and myself to Senator's office and more to come....
Now goal is to call rest of the listed Senator's and also have my friends and known resources call these offices.
so far (1+5) total calls were made by friends and myself to Senator's office and more to come....
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SGP
03-24 05:27 AM
Any suggestions, comments, opinions....?
Deadline = April 30th, 2011
Goal = 5000 votes on survey (see I-485 filing w/o current PD thread) and momentum to continue with this campaign.The survey is a platform to gather and push for launching action items. Based on response by 04/30/2011 - IV will decide whether to even proceed with initiative or not.
Actions - 1) Vote on survey.
2)Email ivcoordinator@gmail.com with PD, ph#,email & subject "I485 filing impacted�,
3)Print/Circulate Fliers and spread FB, wiki link (see "support thread")
Hello Gurus,
I have a question as follows. I was with an old company and transferred the H1 in the 9th year to the new company. I already had my Labor and I-140 approved with the old company (EB3-I Category).
After switching to this new company I had to start my PERM all over again as I missed the July 2007 boat and could not file for I-485. My new company is based in L.A.-California. I am already drawing my salary from new company. They only have office in L.A. I work for them from my home office in NJ. Today the company's attorney called & asked me that I needed to have L.A. residential address as it is required to be stated on the application. I have no intentions to move to L.A. in near future. I am in a fix now as to how to go about this. I will appreciate all you gurus and experts advice and also please advise me repercussions if any.
Please help.
___________
Deadline = April 30th, 2011
Goal = 5000 votes on survey (see I-485 filing w/o current PD thread) and momentum to continue with this campaign.The survey is a platform to gather and push for launching action items. Based on response by 04/30/2011 - IV will decide whether to even proceed with initiative or not.
Actions - 1) Vote on survey.
2)Email ivcoordinator@gmail.com with PD, ph#,email & subject "I485 filing impacted�,
3)Print/Circulate Fliers and spread FB, wiki link (see "support thread")
Deadline = April 30th, 2011
Goal = 5000 votes on survey (see I-485 filing w/o current PD thread) and momentum to continue with this campaign.The survey is a platform to gather and push for launching action items. Based on response by 04/30/2011 - IV will decide whether to even proceed with initiative or not.
Actions - 1) Vote on survey.
2)Email ivcoordinator@gmail.com with PD, ph#,email & subject "I485 filing impacted�,
3)Print/Circulate Fliers and spread FB, wiki link (see "support thread")
Hello Gurus,
I have a question as follows. I was with an old company and transferred the H1 in the 9th year to the new company. I already had my Labor and I-140 approved with the old company (EB3-I Category).
After switching to this new company I had to start my PERM all over again as I missed the July 2007 boat and could not file for I-485. My new company is based in L.A.-California. I am already drawing my salary from new company. They only have office in L.A. I work for them from my home office in NJ. Today the company's attorney called & asked me that I needed to have L.A. residential address as it is required to be stated on the application. I have no intentions to move to L.A. in near future. I am in a fix now as to how to go about this. I will appreciate all you gurus and experts advice and also please advise me repercussions if any.
Please help.
___________
Deadline = April 30th, 2011
Goal = 5000 votes on survey (see I-485 filing w/o current PD thread) and momentum to continue with this campaign.The survey is a platform to gather and push for launching action items. Based on response by 04/30/2011 - IV will decide whether to even proceed with initiative or not.
Actions - 1) Vote on survey.
2)Email ivcoordinator@gmail.com with PD, ph#,email & subject "I485 filing impacted�,
3)Print/Circulate Fliers and spread FB, wiki link (see "support thread")
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new_horizon
03-30 01:50 PM
Hi Folks,
for those looking for a hotel to stay. There is a decent "Microtel" hotel near BWI in Linthicum Heights, MD . They offer free ride to/from the BWI airport, and the train station. The trains will go to the Union Station, DC. They also offer free breakfast, and wireless internet. If you can share room, it'll work out really inexpensive. Hope this helps.
Microtel Inns & Suites | Linthicum Heights Maryland Hotel | Linthicum Heights, MD 21090 | Near BWI International Airport - 1.8 Miles, Maryland General Hospital - 5 Miles & Arundel Mills Mall - 6 Miles (http://www.microtelinn.com/MicrotelInn/control/Booking/property_info?propertyId=29439&cid=carat_search-Microtel&gclid=CLTQ6Yr79qcCFU9pKgodEkU6bg)
for those looking for a hotel to stay. There is a decent "Microtel" hotel near BWI in Linthicum Heights, MD . They offer free ride to/from the BWI airport, and the train station. The trains will go to the Union Station, DC. They also offer free breakfast, and wireless internet. If you can share room, it'll work out really inexpensive. Hope this helps.
Microtel Inns & Suites | Linthicum Heights Maryland Hotel | Linthicum Heights, MD 21090 | Near BWI International Airport - 1.8 Miles, Maryland General Hospital - 5 Miles & Arundel Mills Mall - 6 Miles (http://www.microtelinn.com/MicrotelInn/control/Booking/property_info?propertyId=29439&cid=carat_search-Microtel&gclid=CLTQ6Yr79qcCFU9pKgodEkU6bg)
ilwaiting
06-08 01:23 PM
Yup true. In my opinion there would be a bill out of conference. I do not know what the shape of the final bill would be but my hunch is they would atleast discuss this and get something out before Nov.
Afterall Guest worker program was one of the highly publized event of Pres Bush's 2004 presidential campaign. Which helped him win the race. In Florida and few other states(and few other blue states).
Congressmen(house and senate) know they are at a greater risk of losing in an election year by not producing a bill than producing one that dissatisfies few conservaties.
Basically talks about election year politics on this bill.
http://www.cbsnews.com/stories/2006/06/08/opinion/main1694071.shtml
Afterall Guest worker program was one of the highly publized event of Pres Bush's 2004 presidential campaign. Which helped him win the race. In Florida and few other states(and few other blue states).
Congressmen(house and senate) know they are at a greater risk of losing in an election year by not producing a bill than producing one that dissatisfies few conservaties.
Basically talks about election year politics on this bill.
http://www.cbsnews.com/stories/2006/06/08/opinion/main1694071.shtml
breddy2000
01-14 10:07 AM
Wall Street's Rigged Casino
http://www.financialsense.com/fsu/editorials/barry/2009/0113.html
Last year was certainly a turbulent one for investors. Not only did good assets and companies sell off with bad, but the very integrity of the U.S. markets was brought into question. Financial firms spend millions of dollars convincing the average citizen that investing in stocks is necessary and prudent, yet the playing field is far from level. Fraud, naked shorting and other forms of manipulation are now endemic to the American markets. As Overstock's lawyer, John O'Quinn points out, “You have more chance to be treated fairly in a casino in Vegas.” How can you invest if you can't trust the system?
Jim Puplava, Mike Schneider and a few other journalists have exposed the prevalence of naked shorting on Wall Street. While selling short is a legitimate activity, naked shorting occurs when parties sell shares they don't own and don't intend to borrow, causing more shares to be traded than actually exist. Approximately 7.5% of the trades reported by the DTCC fail to deliver each day, and this agency is private and not at all transparent. Furthermore, 96% of all stock transactions are completed outside the official system and are totally unregulated.
Regulation SHO was enacted in 2005 by the Securities and Exchange Commission (SEC) to supposedly eliminate chronic settlement failures by forcing brokers to close out positions after thirteen consecutive trading days. However the regulation doesn't cover small and micro cap companies, or failures to deliver (FTDs) that are below a certain numerical threshold. Market makers were exempt from this regulation until last fall, and old FTDs were allowed to remain open. Some corporations remained on the threshold list for over a year consecutively with no relief from the SEC.
Chairman Cox admitted in July 2006 that there were many large loopholes in Regulation SHO which allowed predatory shorting to continue. Few firms were investigated, and even those brokers who were caught paid minimal fines. Almost nothing was done until naked shorting threatened “the stability of financial institutions,” according to Cox. In July 2008, the SEC banned naked shorting of 19 select financial firms. With this rule and the subsequent emergency order banning all short selling in 799 financial institutions, Cox admitted that naked shorting was a serious problem, but the SEC would only enforce the rules for certain institutions that deserved the effort.
The Commission has demonstrated where its real allegiance lies, and it’s not with the small investor. For years, hedge funds, brokerages, and investment banks soaked up fat profits by naked shorting promising companies to death. These shorts never have to be covered if the company is delisted and goes bankrupt, so it’s a very lucrative criminal practice. When some of these same corporations that preyed on small cap stocks suffered share price drops due to their hideous balance sheets, the SEC moved in to give them special protection.
Even with some of the loopholes closed, market manipulation still goes on. As Allan Young points out on his website, naked shorting is in effect another derivative like credit default swaps or mortgage backed securities. Predatory brokers can sell more shares than exist, as if they are buying a put (a bet that prices will go down). Sell enough shares and you can ensure your bet is correct. These brokers can later close out their naked shorts and avoid censure from the SEC.
Although the most egregious violations of the naked short rules have been eliminated, with corporations like Overstock now off the naked short list, much of the damage has already been done. Many solid businesses have been naked shorted out of existence, leading to unemployment and destruction of wealth for millions of taxpayers. U.S. citizens are angry and scared as they watch their stock portfolios shrink, and see their pensions in jeopardy.
This begs the question as to why the U.S. government would prop the markets up on one hand using the Plunge Protection Team, while allowing naked shorting on the other which pushes the share prices down. I can only conclude that the system is designed to redistribute wealth from small investors to elite bankers and hedge fund managers. Perhaps the stock markets were allowed to decline so the politically connected shorts could cover profitably. With the close relationship between Wall Street, regulators, Congress, and the Treasury Department full of former Goldman Sachs executives, it's clear that the average worker with retirement money invested in the market is at an extreme disadvantage.
The SEC suffered another embarassment with the revelation that Bernard Madoff ran a US$50 billion Ponzi scheme disguised as a hedge fund for several years. Only a tip from Madoff's sons to the FBI unraveled the scheme. In fact, the SEC investigated Madoff's company eight times over more than a decade and failed to find any fraud. A former SEC attorney is now married to Madoff's niece, raising doubts about his objectivity in examining Madoff's books. Even when Harry Markopoulos, a private whistleblower, produced evidence that Madoff's trading results could not be replicated, no one at the SEC took him seriously.
Congress has been quick to blame Commissioner Cox, a former colleague for the Madoff scandal. However, missteps and inadequate enforcement predate Cox, who has only run the SEC since August 2005.
Obama's pick to replace Cox, Mary Schapiro has many flaws of her own. She previously appointed one of Madoff's sons to a disciplinary board, making her judgement look very poor. Schapiro is currently chief of the Financial Industry Regulatory Authority, a self regulating body which has been even less willing than usual to crack down on Wall Street abuses during her tenure. She ran the Commodity Futures Trading Commission (CFTC) under President Clinton, an agency that has been unable or unwilling to perceive the manipulation in the precious metals markets while pursuing collusion in other commodities. Schapiro stated she was inspired to pursue a regulatory career by watching the Hunt brothers' silver moves, so we know where her biases lie.
As an analyst, I spend hours each week poring over balance sheets, and reading financial statements of companies I may want to recommend to my subscribers. My task is made very difficult by the widespread financial fraud. While Madoff's results were too good to be true, other forms of deception are extremely hard to detect. Satyam is the latest scandal to hit Wall Street. Although the corporation is headquartered in India, Satyam has Fortune 500 clients in the U.S. and is listed on the NYSE. It has to comply with Sarbanes-Oxley regulations just like any American company, rules that are supposed to enforce honesty and transparency. Satyam – which is Sanskrit for truth - was awarded the Golden Peacock award for corporate governance just three months ago, in an amazing bit of irony.
With all these scandals, no wonder Merrill Lynch reports that rich customers are demanding gold coins and bars instead of shares in “paper gold” like ETFs. Credible stories indicate that the COMEX warehouses are experiencing record activity as receipt holders seek delivery of their gold. Brokers are apparently attempting to discourage this activity to squelch metal demand. When trust is eroded, people naturally seek safety in an asset without counterparty risk like gold.
If you are a stock investor despite all these perils, how to you separate the wheat from the chaff? First you have to find industries with impeccable fundamentals. While commodities suffered greatly in 2008, I believe they will see a strong rebound in 2009.
Second, check the track record of management and look for any hints of impropriety. Third, read the financial statements and look for unnecessarily complicated structures or conflicts of interest: these are red flags. Fourth, if results seem unbelievably excellent, they may be fictional. Fifth, while you can no longer take delivery of shares in the United States, you can contact the companies you invest in to determine if you are on the list of legitimate shareholders or a victim of naked shorting. Sixth, diversify into several different companies so if one is fraudulent you don't lose all your money. With the danger inherent in stocks, I recommend only investing capital you can afford to lose.
http://www.financialsense.com/fsu/editorials/barry/2009/0113.html
Last year was certainly a turbulent one for investors. Not only did good assets and companies sell off with bad, but the very integrity of the U.S. markets was brought into question. Financial firms spend millions of dollars convincing the average citizen that investing in stocks is necessary and prudent, yet the playing field is far from level. Fraud, naked shorting and other forms of manipulation are now endemic to the American markets. As Overstock's lawyer, John O'Quinn points out, “You have more chance to be treated fairly in a casino in Vegas.” How can you invest if you can't trust the system?
Jim Puplava, Mike Schneider and a few other journalists have exposed the prevalence of naked shorting on Wall Street. While selling short is a legitimate activity, naked shorting occurs when parties sell shares they don't own and don't intend to borrow, causing more shares to be traded than actually exist. Approximately 7.5% of the trades reported by the DTCC fail to deliver each day, and this agency is private and not at all transparent. Furthermore, 96% of all stock transactions are completed outside the official system and are totally unregulated.
Regulation SHO was enacted in 2005 by the Securities and Exchange Commission (SEC) to supposedly eliminate chronic settlement failures by forcing brokers to close out positions after thirteen consecutive trading days. However the regulation doesn't cover small and micro cap companies, or failures to deliver (FTDs) that are below a certain numerical threshold. Market makers were exempt from this regulation until last fall, and old FTDs were allowed to remain open. Some corporations remained on the threshold list for over a year consecutively with no relief from the SEC.
Chairman Cox admitted in July 2006 that there were many large loopholes in Regulation SHO which allowed predatory shorting to continue. Few firms were investigated, and even those brokers who were caught paid minimal fines. Almost nothing was done until naked shorting threatened “the stability of financial institutions,” according to Cox. In July 2008, the SEC banned naked shorting of 19 select financial firms. With this rule and the subsequent emergency order banning all short selling in 799 financial institutions, Cox admitted that naked shorting was a serious problem, but the SEC would only enforce the rules for certain institutions that deserved the effort.
The Commission has demonstrated where its real allegiance lies, and it’s not with the small investor. For years, hedge funds, brokerages, and investment banks soaked up fat profits by naked shorting promising companies to death. These shorts never have to be covered if the company is delisted and goes bankrupt, so it’s a very lucrative criminal practice. When some of these same corporations that preyed on small cap stocks suffered share price drops due to their hideous balance sheets, the SEC moved in to give them special protection.
Even with some of the loopholes closed, market manipulation still goes on. As Allan Young points out on his website, naked shorting is in effect another derivative like credit default swaps or mortgage backed securities. Predatory brokers can sell more shares than exist, as if they are buying a put (a bet that prices will go down). Sell enough shares and you can ensure your bet is correct. These brokers can later close out their naked shorts and avoid censure from the SEC.
Although the most egregious violations of the naked short rules have been eliminated, with corporations like Overstock now off the naked short list, much of the damage has already been done. Many solid businesses have been naked shorted out of existence, leading to unemployment and destruction of wealth for millions of taxpayers. U.S. citizens are angry and scared as they watch their stock portfolios shrink, and see their pensions in jeopardy.
This begs the question as to why the U.S. government would prop the markets up on one hand using the Plunge Protection Team, while allowing naked shorting on the other which pushes the share prices down. I can only conclude that the system is designed to redistribute wealth from small investors to elite bankers and hedge fund managers. Perhaps the stock markets were allowed to decline so the politically connected shorts could cover profitably. With the close relationship between Wall Street, regulators, Congress, and the Treasury Department full of former Goldman Sachs executives, it's clear that the average worker with retirement money invested in the market is at an extreme disadvantage.
The SEC suffered another embarassment with the revelation that Bernard Madoff ran a US$50 billion Ponzi scheme disguised as a hedge fund for several years. Only a tip from Madoff's sons to the FBI unraveled the scheme. In fact, the SEC investigated Madoff's company eight times over more than a decade and failed to find any fraud. A former SEC attorney is now married to Madoff's niece, raising doubts about his objectivity in examining Madoff's books. Even when Harry Markopoulos, a private whistleblower, produced evidence that Madoff's trading results could not be replicated, no one at the SEC took him seriously.
Congress has been quick to blame Commissioner Cox, a former colleague for the Madoff scandal. However, missteps and inadequate enforcement predate Cox, who has only run the SEC since August 2005.
Obama's pick to replace Cox, Mary Schapiro has many flaws of her own. She previously appointed one of Madoff's sons to a disciplinary board, making her judgement look very poor. Schapiro is currently chief of the Financial Industry Regulatory Authority, a self regulating body which has been even less willing than usual to crack down on Wall Street abuses during her tenure. She ran the Commodity Futures Trading Commission (CFTC) under President Clinton, an agency that has been unable or unwilling to perceive the manipulation in the precious metals markets while pursuing collusion in other commodities. Schapiro stated she was inspired to pursue a regulatory career by watching the Hunt brothers' silver moves, so we know where her biases lie.
As an analyst, I spend hours each week poring over balance sheets, and reading financial statements of companies I may want to recommend to my subscribers. My task is made very difficult by the widespread financial fraud. While Madoff's results were too good to be true, other forms of deception are extremely hard to detect. Satyam is the latest scandal to hit Wall Street. Although the corporation is headquartered in India, Satyam has Fortune 500 clients in the U.S. and is listed on the NYSE. It has to comply with Sarbanes-Oxley regulations just like any American company, rules that are supposed to enforce honesty and transparency. Satyam – which is Sanskrit for truth - was awarded the Golden Peacock award for corporate governance just three months ago, in an amazing bit of irony.
With all these scandals, no wonder Merrill Lynch reports that rich customers are demanding gold coins and bars instead of shares in “paper gold” like ETFs. Credible stories indicate that the COMEX warehouses are experiencing record activity as receipt holders seek delivery of their gold. Brokers are apparently attempting to discourage this activity to squelch metal demand. When trust is eroded, people naturally seek safety in an asset without counterparty risk like gold.
If you are a stock investor despite all these perils, how to you separate the wheat from the chaff? First you have to find industries with impeccable fundamentals. While commodities suffered greatly in 2008, I believe they will see a strong rebound in 2009.
Second, check the track record of management and look for any hints of impropriety. Third, read the financial statements and look for unnecessarily complicated structures or conflicts of interest: these are red flags. Fourth, if results seem unbelievably excellent, they may be fictional. Fifth, while you can no longer take delivery of shares in the United States, you can contact the companies you invest in to determine if you are on the list of legitimate shareholders or a victim of naked shorting. Sixth, diversify into several different companies so if one is fraudulent you don't lose all your money. With the danger inherent in stocks, I recommend only investing capital you can afford to lose.
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