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CFA Society of Los Angeles Hosts Panel Discussion ``Exposing Systematic Fraud in The Stock Market'

LOS ANGELES--(BUSINESS WIRE)--June 1, 2006--CFA Society of Los Angeles will host a panel discussion and luncheon on June 6 offering a rare look into stock trading practices known as concerted failure-to-deliver (FTD) and naked short selling (NSS). By law, "short sellers" are required to borrow and deliver the shares sold short within three days of sale. But reports indicate naked short selling may be widespread. DTCC allows electronic entry of shares in buyers' accounts despite sellers' failure to deliver.


Dr. Patrick Byrne, CEO of NASDAQ-traded Overstock.com, will discuss his firm's buffeting by trading of "shares" that appear to outnumber those officially issued and outstanding. In March at a New York conference, Byrne named a dozen large brokerages with clients who claim several million more OSTK shares than the number held by the brokerages at DTCC.

Dr. Susanne Trimbath, a Santa Monica research economist with operations management experience in clearing and settlement of trades at DTCC, will illuminate current trading practices.

Portfolio manager and financial writer Arne Alsin will provide insights gained as an investor in large-lot trades in markets systemically flawed by FTDs.

The panel will address the following questions: Are hedge funds and banker/brokers conspiring to swindle ordinary investors by failing to deliver shares sold short? Are self-regulatory organizations such as NASD ignoring concerns while industry-wide organizations like Depository Trust & Clearing Corporation (DTCC) aid the illicit activity? Are investors already exposed to such large losses that the SEC is frozen into inaction?

CFALA, www.cfala.org, is a non-profit membership organization established in 1931. Among its 1800 members are mutual fund and investment company in-house financial analysts and portfolio managers, banks, insurance companies and other buy-side firms, sell-side analysts, investment bankers and broker-dealers, investment advisers, academics, regulators, accountants, and investment consultants. CFALA is one of 131 member societies of the CFA Institute, www.cfainstitute.org, the global, non-profit professional association that administers the Chartered Financial Analyst(R) (CFA(R)) curriculum and examination program worldwide, publishes research, conducts professional-development programs, and sets voluntary, ethics-based professional and performance-reporting standards for the investment industry. CFA Institute has more than 79,000 members in 125 countries and territories.

To request an interview with CFALA or a press pass to attend the panel discussion on June 6, call Dan Pomerantz, CFALA Public Awareness at 213-627-1500 X703.

CFA Society of Los Angeles
555 W. 5th St., 31st Fl., Los Angeles CA 90013

http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20060601005914&newsLang=en


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CFA Society of Los Angeles Hosts Panel Discussion ``Exposing Systematic Fraud in The Stock Market'

In a related story, the CFA Society of Los Angeles will host a panel discussion with Tommy "No Money Down" Vu, Don "Tiny Ads" Lapre and Kevin "I'll sell any crap" Trudeau.
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Arnie seems to be awfully cozy with PB these days. Pumpin' OSTK on da street. Ordering up his certs. Now PB gets a whole CFA luncheon with his superfriends.

I wonder if he can get a Bill passed in California to retard the markets, er, I mean, stop this terrible scourge of naked short selling.

I guess it'll depend on whether or not he wants to spread around some campaign money over there.

Sj
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Arnie seems to be awfully cozy with PB these days.

Just think of the stink that would be raised if Greenberg and Rocker presented at a similar conference.
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Just think of the stink that would be raised if Greenberg and Rocker presented at a similar conference.

You mean like SABEW?
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Just think of the stink that would be raised if Greenberg and Rocker presented at a similar conference.

You mean like SABEW?

Or how about Whitney Tilson, Greenberg, and Bill Mann presenting at the Value Investing Congress? In what kind of bizarro world is Greenberg a value investor? If it's not a value stock before Rocker, Greenberg, and Gradient start smearing the stock, it sure will be after they get Eisinger of the WSJ after it, and Carol Remond at Dow Jones to boot?

Sam Walton wouldn't let his buyers accept any gifts from suppliers because it affected their objectivity. After being a presenter at the Value Investors Conference, you really think Bill Mann can write objectively about Greenberg's work?

The real question at the Value Investing Congress isn't what was presented, but what value did the attendees receive for the $5,000? If Whitney Tilson is such a great investor and is running all these mutual funds, what's he doing running around organizing these Value Investing Congresses? Does he have that much free time? Does he need the money that badly? Is it worth it for the average investor to attend these events?

Let me guess, Bill Mann will attend the CFA LA discussion only if he's comped heavily. Otherwise TMF can't afford it. David G wants a new Lexus, and it's either keep the travel expenses down, or sell a lot more TMF newsletters.
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This post offers a wonderful insight into the paranoid mindset. In particular, this:

After being a presenter at the Value Investors Conference, you really think Bill Mann can write objectively about Greenberg's work?

Being a professional means being able to do just that sort of things, Retieff. I'm sure there are those who couldn't maintain objectivity, but that doesn't mean that no one, or a majority of people, could not. THEY SPOKE AT THE SAME CONFERENCE. It doesn't make them blood relatives or something.

This kind of logic leads to the conclusion that, to pick something totally random, people who write for the same website have to love and support each other, which is another silly falsehood.

The real question at the Value Investing Congress isn't what was presented, but what value did the attendees receive for the $5,000?

You don't even have that right; it didn't cost $5000. Here's the signup for the next one:

http://www.valueinvestingcongress.com/registration.htm

If you're dumb enough to wait till the latest possible moment, and you want to sign up for the whole thing, it's $5200. For the typical person it's going to be $2195.

Anyway, people go to these sorts of things all the time (although there are precious few in the value area), and yes, they cost thousands to attend. They go to hear the speakers and hobnob with their fellow investors. This doesn't seem so terribly difficult to figure out to me. I did not attend myself, but I know people who did and they seem to have felt they got their money's worth.

Why not get upset about the Tomorrow's Children's Fund investment conference, a charitable event, which cost a few grand to attend also? More investors, talking to each other, cost $3000 I believe.

SRI holds all kinds of conferences, most less expensive but you get the idea: http://www.srinstitute.com/sricalendar.cfm

So I'm not sure what the big deal is. Conferences are part of the business world; that you don't know that doesn't make it not so.

UsuallyReasonable
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The whole post was a logical train wreck, so I'll just hit the highlights:

After being a presenter at the Value Investors Conference, you really think Bill Mann can write objectively about Greenberg's work?

I don't think Bill's job is to critique other writers. If Herb goes public under the symbol HERB, I guess that may make some sense.

If Whitney Tilson is such a great investor and is running all these mutual funds, what's he doing running around organizing these Value Investing Congresses?

If Oprah is such a good TV host, why is she running around creating magazines and radio programs?

Let me guess, Bill Mann will attend the CFA LA discussion only if he's comped heavily.

I need you to come and fix my roof, but I'll bet you'd only do it if I paid you. You must be greedy and corrupt.
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Just think of the stink that would be raised if Greenberg and Rocker presented at a similar conference.

You mean like SABEW?

It didn't take long to illustrate my point. And this cynicism is just from writers gathering. Imagine if a hedge fund manager was on the program too, like you are trying to imply without saying it to maintain the plausible deniability.

But no cynicism when a CEO, who threw his loyal supporters a bone by posting the "Big news this week comment", and the guy who provided the "big news" (and a 25% stock price pop) in an article a couple of days later appear together at a seminar.
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Yeah, a CEO's predicting big news then following it up with a spoon-fed fluff piece by a manager captive enough to be crying for his "certs" is fine, just so long as you're on the long side of things.

Maybe the shorts out there should be crying for subpoenas of everyone Arnie's been talking to and sue him and Patrick for conspiring to wreck their investments...
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But no cynicism when a CEO, who threw his loyal supporters a bone by posting the "Big news this week comment", and the guy who provided the "big news" (and a 25% stock price pop) in an article a couple of days later appear together at a seminar.

Nonsense

I forwarded your post to Dr. Byrne.

He replied that the big news he was referring had not happened yet.
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The big news is a little tardy, then, no?

I'm giddy with anticipation.
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I forwarded your post to Dr. Byrne.

What is this "I'm telling Daddy on you" garbage? LSB, please get an opinion and a spine of your own and quit acting like a small child.
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What is this "I'm telling Daddy on you" garbage? LSB, please get an opinion and a spine of your own and quit acting like a small child.


??

He is the only one who could respond fully to the accusations.
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Smells a lot like many of your "I forwarded this to Bobo..." and "I had a lawyer friend look at this, and he said...". I know a sock puppet when I see one.
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Smells a lot like many of your "I forwarded this to Bobo..." and "I had a lawyer friend look at this, and he said...". I know a sock puppet when I see one.


??

A serious accusation was made and I thought it was worth asking the accused--Dr. Byrne--if the accusation was accurate.


Was that wrong?

Should I have simply stated my own opinion?

Or guessed as to what really happened without full information?

These guys respond to emails. There is no harm in going to the source.
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LSB,

Again, most of us are unimpressed with your cozy relationship with the Twenty Foot Tall CEO and the World's Funniest Man. But if you wish to continue playing pigeon, all the while harboring your cutesy schoolgirl crush, please do continue.
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LSB -

Here's the problem with "going to Patrick" with board stuff:

He feels he has to respond even though he has only an incomplete understanding of what someone has said here. Therefore, despite my kind beginnings and praise mentioned here for the guy, he determined from messages forwarded to him (presumably by you) that I am a miscreant.

He shouldn't waste his time here, not should he get messages forwarded to him by you. We all know how to reach the guy. We also know he sees only what he wants to see.

The "don't listen to anybody else" side of PB that undoubtedly helped him through his bouts of C...IMHO...don't serve him well as a CEO of a public company. When he sees intelligent people saying, "that doesn't look right," his response should not be:

MISCREANT.

It should be:

I SEE THAT I NEED TO EXPLAIN MYSELF BETTER IN PUBLIC. THANK YOU. MAYBE IS SHOULD SPEND LESS TIME ON THAT AND MORE ON THIS. [What he actually thinks is irrelevant in my example.]

What can you do to make this better? Don't forward anything to him. Don't repost Bobo blog entries here (anyone who wants to see them knows where to go...and we only have an audience of 12 grizzly vets in this forum.) When you do it only pisses him off and he vents here on the boards. It makes him look idiotic. Unfair to him and the other posters.

Yoroshiku-

et

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Don't forward anything to him. Don't repost Bobo blog entries here

ET,

Duly noted.

For what it is worth, I do not--and never have--believed you were a miscreant.

~ ladysnow
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He is the only one who could respond fully to the accusations.

They are not accusations. They are easily documented facts.
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For what it is worth, I do not--and never have--believed you were a miscreant.


I'm too F$%&ing stupid to be a miscreant. I'm glad you picked that up.

:)
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They are not accusations. They are easily documented facts.

1) It is not a fact that the "news" Patrick referred to is the Alsin article.

2) It is not a fact that Patrick even knew about the Alsin article before it appeared on TheStreet.com.


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There is no harm in going to the source.


There is when the source has proven he's got a major credibility problem, yet has plenty of adherents who take his every utterance as Gospel.

Sj
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1) It is not a fact that the "news" Patrick referred to is the Alsin article.

2) It is not a fact that Patrick even knew about the Alsin article before it appeared on TheStreet.com.


You don't know that. Is it really relevent? It's possibly not provable either way.

Here is the chain of events minus any judgement on intent:

- CEO makes cryptic "big news this week comment" to a select few readers of the OSTK TMF board
- A couple of days later the very positive Alsin article appears.
- Stock price is up 25% within the week or so

Question: Is anyone who read the "big news" comment on Sunday and bought based on that Monday guilty of insider trading?
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Is anyone who read the "big news" comment on Sunday and bought based on that Monday guilty of insider trading?

Not if the "big news" was not the Alsin piece.

Not if the Alsin piece was pure coincidence.

My understanding of Ref FD is that "who knew what & when" is everything.

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There is when the source has proven he's got a major credibility problem, yet has plenty of adherents who take his every utterance as Gospel.

I look at the evidence don't shoot the messenger.
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I thought the big news was the bold foray into DVD rentals...but what do I know. Arne, like so many others, is trapped in a bad trade and trying to make the best of it.

Chris typed:

There is when the source has proven he's got a major credibility problem, yet has plenty of adherents who take his every utterance as Gospel.


I look at the evidence don't shoot the messenger.


I have no clue what this means, Chris.

As for evidence, any headway on proof of those Caribbean daisy-chain FTDs numbering in the millions?


et
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As for evidence, any headway on proof of those Caribbean daisy-chain FTDs numbering in the millions?

What makes you think I was talking about that?
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I am still waiting for my proof that OJ is guilty.
I am sure it is coming, but what ya going to do.

Life has been busy.

BTW What do you know about foreign failed trade regulations?

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I look at the evidence don't shoot the messenger.
I have no clue what this means, Chris.-ET


What it means is that Patrick is just a messenger to an existing problem in the market.

FTD's are occurring because market makers do not want to pay for the buy-in.

He indeed might be abrasive to some, but that does not mean he is wrong.

Hope I cleared that up.


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