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From: StockDung4/15/2008 7:24:27 PM
   of 122037
 
US SEC issues warning list of fake investment firms
Tue Apr 15, 2008 1:53pm EDT
WASHINGTON, April 15 (Reuters) - The U.S. Securities and Exchange Commission said on Tuesday it launched a crackdown on online boiler rooms and other suspicious investment solicitations that may be trying to bilk investors.

Consumers who are weighing a possible investment should first check a new SEC website that lists solicitations made by entities that have made phony claims of being affiliated with established broker firms or registered with the SEC, the agency said.

Some also boast false U.S. addresses or endorsements from make-believe government agencies, the SEC said.

The new list initially included 56 firms and will be updated regularly.

"Anyone thinking about investing online needs this in their tool kit," said SEC Chairman Christopher Cox in a statement. "By arming investors with this online resource, we're making it increasingly difficult for swindlers to succeed with their illegal activities."

In general, U.S. firms that solicit consumers for the purchase or sale of securities are required to register with the SEC.

The new list was compiled from investor complaints and from foreign regulators, the agency said.

"These schemes, which often purport to be legitimate entities located in the U.S., have been mercilessly targeting UK investors, particularly our vulnerable senior citizens, with assurances about bogus opportunities to invest in the U.S. market," Steve Wilmott, head of the London police department's economic crime unit, said in the statement.

The SEC said that for each entity on its new list, agency staff found there was no U.S.-registered securities firm with that name, or it falsely claimed an affiliation with an established firm.

The SEC warning list was posted on the Internet at: here. (Reporting by Karey Wutkowski; Editing by Andre Grenon)

sec.gov

Public Alert: Unregistered Soliciting Entities (PAUSE)
List of Unregistered Soliciting Entities That Have Been the Subject of Investor Complaints
The SEC receives complaints from investors and others, including foreign securities regulators, about securities solicitations made by entities that claim to be registered, licensed and/or located in the United States in their solicitation of non-US investors, and entities not registered in the United States that are soliciting US investors. In some cases, the complaints are about entities claiming to offer investments endorsed by governmental agencies, including the SEC. These claims are important because when an entity claims to be registered with the SEC, it is in effect claiming that it has made itself available for SEC regulation and oversight. Generally, US entities that solicit you to purchase or sell securities for your own account are required to register with the SEC. For this reason, it is important for you to consider whether the entity that solicits you is, in fact, registered with the SEC.

The SEC has looked into these complaints and has learned that in many cases, the soliciting entities are not registered in the United States as they claim or imply. In an effort to warn the public about these entities, the SEC is publishing information it has learned in reviewing these complaints

For each of the entities named below, our staff has determined either (1) that there is no US registered securities firm with this name, or (2) that there is a US registered securities firm with the same (or a similar) name but that solicitations appear to have been made by persons who are not affiliated with the US registered securities firm.

In addition, the "Comments" section for each entity provides additional relevant information we have learned, by answering the following questions:

Is the entity registered in the United States?

Is the entity using a name that is the same as, or similar to, the name of a US registered securities firm notwithstanding the fact that the soliciting persons are not affiliated with a US registered securities firm? FINRA (formerly, the "NASD") maintains a public registry of its broker-dealer members and their sales personnel. Using this website, you can verify both the registration and address of any FINRA-registered US broker-dealer and any individual US securities broker. Checking PAUSE is not a substitute for checking the public registry. Here is the link to that registry: nasd.com
ChecktheBackgroundofYourInvestmentProfessional/index.htm

Does the entity claim an endorsement, approval or other support by a governmental agency or international organization that does not exist or does not really lend support to the entity or the investments it is offering? For a list of fictitious governmental agencies and international organizations that are referenced in investor complaints, [click here]. As reflected in the SEC's investor alert entitled, "Fake Seals and Phony Numbers: How Fraudsters Try to Look Legit," the SEC does not "approve" or "endorse" any particular securities, issuers, products, services, professional credentials, firms, or individuals, and does not allow private entities to use its government seal. Here is the link to the SEC investor alert: sec.gov.


The SEC will regularly update this list.

You should be aware that this list does not include all unregistered entities or entities that have been the subject of complaints received by the SEC. Also, you should understand that the inclusion of a name on this list does not mean that the SEC has concluded that a violation of the US securities laws has occurred or that the SEC has made any judgment about the merits of the securities being offered by these entities.

To see the official SEC release describing and providing more details about this list, [click here]. If you have information, questions or comments about the entities on this list, please contact oiea@sec.gov or call 202-551-6551.

Name Comment
Allen Brothers M&A
2733 Vine St.
Cincinnati, OH 45219
Phone: 513-488-0508
Fax: 513-488-0509

No US registered securities firm with this name.

Bainbridge Management
999 3rd Avenue
Suite 3800
Seattle, Washington 98101/98104
Phone: 206-774-1943
Fax: 206-374-3024

No US registered securities firm with this name.

Beacon Global Management, Inc.
Tower Executive Suites
10940 Wilshire Blvd., Suite 1500
Los Angeles, CA 90024
Phone: 866-365-0738
Fax: 213-947-4787

No US registered securities firm with this name.

Belmont Shaw and Associates Mergers and Acquisitions
80 N. 3rd Avenue
Phoenix, AZ 85003
Phone: 623-707-8676
Fax: 623-707-8677

No US registered securities firm with this name.
An onsite inspection conducted on May 1, 2007 by the State of Arizona Corporation Commission found that the address given for this entity does not exist.
Claims to be endorsed by, or makes other reference in its solicitations to, the International Compliance Assistance Center, an alleged claim-filing and fund recovery service provider for commercial and securities class-action settlements. This entity is believed to be fictitious.

Berger Aron Macey
1240 Peachtree Street NE, Suite 2700
Atlanta, GA 30309
Phone: 404-592-5106
Fax: 404-795-0613

No US registered securities firm with this name.


Bremer Financial Ltd.
Howard Hughes Center
6601 Center Drive, Suite 500
Los Angeles, CA 90045
Phone: 213-403-0107
Fax: 213-403-0109

No US registered securities firm with this name.


Cameron McDonald & Co.
625 4th Ave. S.
Minneapolis, MN 55415
Phone: 612-234-4048
Fax: 612-234-4049

No US registered securities firm with this name.


Capital One Management Inc.
Maine Business Center
415 Congress Street, Suite 102
Portland, ME 04101
Phone: 212-330-9008
Fax: 212-330-9009

No US registered securities firm with this name.


Century Management Division, Inc.
23351 Ford Rd.
Dearborn, MI 48128
Phone: 313-447-4477
Fax: 313-447-4477

No US registered securities firm with this name.


Charlton Hayfield and Company
30 E. Broad St.
Columbus, OH 43215
Phone: 614-947-0111
Fax: 614-947-0102

No US registered securities firm with this name.


City Capital Mergers & Acquisitions
6990 W. Cedar Ave.
Lakewood, CO 80226
Phone: 303-353-0736
Fax: 303-353-0737

No US registered securities firm with this name.


Coleman Brothers
1800 Grant Street
Denver, CO 80203
Phone: 303-952-5896
Fax: 303-952-5801, 303-952-5901

No US registered securities firm with this name.
Claims to be endorsed by, or makes other reference in its solicitations to, the Securities Compliance Agency, an alleged claim-filing and fund recovery service provider for commercial and securities class-action settlements. This entity is believed to be fictitious.

Collett Quinlan M&A
50 Hurt Plaza, SE
Atlanta, GA 30303
Phone: 404-671-8082
Fax: 404-671-8083

No US registered securities firm with this name.

The Equity Exchange Group Portfolio Management (Limited)
1 Federal Street, Floor 28
Boston, MA 02108
Phone: 617-499-4856
Fax: 617-499-4857

No US registered securities firm with this name.

Ferguson Hathaway Consulting, Ltd./FH Consulting
2101 Wall Street Center
14 Wall Street
New York, NY 10005
Phone: 212-461-1487
Fax: 646-224-8941

No US registered securities firm with this name.

FinAllianz
W. 50th St., Rockefeller Plaza
New York, NY 10019
Phone: 646-810-6182
Fax: 484-993-3822

No US registered securities firm with this name.

First Liberty Transfer Agency, LLC
1101 Pennsylvania Avenue
Washington, DC 20004
Phone: 202-449-9593
Fax: 202-379-9299

No US registered securities firm with this name.

Global Direct Financial Inc.
Aura Executive Center
695 Central Avenue, Suite 110
St. Petersburg, FL 33701
Phone: 786-228-4959
Head Office
93 Pearl Street
New York, NY 10004
Phone: 212-465-3259

No US registered securities firm with this name.

Golden Medallion Trading
Stanford Corporate Center
14001 N. Dallas Parkway, Suite 1400
Dallas, TX 75240
Phone: 866-296-7051
Fax: 817-977-5237

No US registered securities firm with this name.

Grant Group LLC
1120 Broadway, 22nd Floor
New York, NY 10010
Phone: 646-224-8723
Fax: 646-224-8724

No US registered securities firm with this name.

Griffin Mergers and Acquisitions
8th Street and Nicollet Mall, Downtown
Minneapolis, MN 55402-8773
Phone: 612-284-2417
Fax: 612-677-3711

No US registered securities firm with this name.

Hopewood and Company
413 4th Ave. S.
Columbus, MS 39701
Phone: 662-913-0603
Fax: 662-913-0604

No US registered securities firm with this name.

Howell and Johnson Associates
1422 Euclid Ave.
Cleveland, OH 44115
Phone: 216-744-1026
Fax: 216-744-1027

No US registered securities firm with this name.
Website shows different phone numbers, with Atlanta area codes, from those used in solicitation materials.

Imperial Quest Ventures, Ltd.
The Hancock Center
875 N Michigan Avenue, Suite 2600
Chicago, IL 60611
Phone: 866-365-3685
Fax: 312-205-6421, 312-277-3321

No US registered securities firm with this name.
Claims to be recognized by the SEC and the U.S. Federal Trade Commission. Neither the SEC nor the Federal Trade Commission has endorsed this entity.

J. Rowan Associates
230 Peachtree St.
NW Atlanta, GA 30303
Phone: 678-954-0520
Fax: 678 954 0521

No US registered securities firm with this name.

Kennedy, Anderson & Lang
60 E. 42nd St., Suite 1516
New York, NY 10165
Phone: 646-290-8536
Fax: 646-290-8922
Website (now offline): kal-ny.com

No US registered securities firm with this name.

Kobe Asset Management
One Oxford Centre, 301 Grant Street, Suite 2100
Pittsburgh, PA 15219
Phone: 412-235-0107
Fax: 412-202-0736

No US registered securities firm with this name.

Landmark M&A, Inc.
445 Park Avenue
New York, NY 10022
Phone: 646-530-8783
Fax: 646-417-7996

No US registered securities firm with this name.

Lindenberg Asset Management
One Market Street, Spear Tower, 33th Floor
San Francisco, CA 94105
Phone: 415-373-5248
Fax: 415-276-6023

No US registered securities firm with this name.

Lloyd Brown Investments, Inc.
Hancock Center
875 N. Michigan Ave., Suite 3100
Chicago, IL 60611
Phone: 312-416-0876
Fax: 312-416-0877

No US registered securities firm with this name.

Maitland Bell & Co.
2201 E. Camelback Rd.
Phoenix, AZ 85016
Phone: 602-926-1314
Fax: 602-926-1315

No US registered securities firm with this name.

Miller & Ross
Lexington Avenue, Manhattan-Midtown
Turtle Bay, NY 10107
Fax: 646-478-9513

No US registered securities firm with this name.

Universal Partners Mergers & Acquisitions
300 Main Street
Lafayette, IN 47901
Phone: 765-637-0102
Fax: 765-637-0103

No US registered securities firm with this name.
Claims to be endorsed by, or makes other reference in its solicitations to, the Regulatory Advisory Commission, an alleged claim-filing and fund recovery service provider for commercial and securities class-action settlements. This entity is believed to be fictitious.

Warren Sitco & Company
919 North Market Street
Wilmington, DE 19801
Phone: 302-391-0803
Fax: 302-391-0804

No US registered securities firm with this name.
Claims to be endorsed by, or makes other reference in its solicitations to, the Securities Compliance Agency, an alleged claim-filing and fund recovery service for commercial and securities class-action settlements. This entity is believed to be fictitious.

Wellington Mergers and Acquisitions
3340 Peachtree Road NE, Buckhead Area
Atlanta, GA 30326-1081
Phone: 404-592-4540
Fax: 404-759-2088

No US registered securities firm with this name.
Claims to be endorsed by, or makes other reference in its solicitations to, International Stock Regulators, an alleged claim-filing and fund recovery service for commercial and securities class-action settlements. This entity is believed to be fictitious.

Western Capital, Inc.
Empire State Building
350 5th Avenue, Suite 2108
New York, NY 10118
Phone 866-365-0736
Fax: 646-224-8765

No US registered securities firm with this name.

Wiess & Associates Ltd.
203 North LaSalle Center
Suite 1800
Chicago, IL 60601
Phone: 800-578-8365
Fax: 312-277-7553

No US registered securities firm with this name.


sec.gov

--------------------------------------------------------------------------------

Home | Previous Page Modified: 04/15/2008

sec.gov
Public Alert: Unregistered Soliciting Entities (PAUSE)
List of Fictitious Governmental Agencies and International Organizations Associated with Soliciting Entities
The SEC receives complaints from investors and others, including foreign securities regulators, about securities solicitations made by entities claiming to offer investments endorsed, approved, or otherwise supported by governmental agencies, including the SEC, or international organizations. As reflected in the SEC's investor alert entitled, "Fake Seals and Phony Numbers: How Fraudsters Try to Look Legit," the SEC does not "approve" or "endorse" any particular securities, issuers, products, services, professional credentials, firms, or individuals, and does not allow private entities to use its government seal. Here is the link to the SEC investor alert: sec.gov

The SEC has looked into these complaints and has learned that in many cases, the governmental agencies or international organizations claimed to have lent support to such investments do not exist. In an effort to warn the public about these entities, the SEC is posting the list below. The SEC will regularly update this list.

You should be aware that this list does not include all fictitious governmental agencies and international organizations. Also, you should understand that the inclusion of a name on this list does not mean that the SEC has concluded that a violation of the US securities laws has occurred or that the SEC has made any judgment about the merits of the securities being offered.

For a list of entities claiming to be registered, licensed and/or located in the United States and that have been the subject of investor complaints [click here] to access PAUSE. To see the official SEC release describing and providing more details about this list, [click here].

If you have information, questions or comments about the entities on this list, please contact oiea@sec.gov or call 202-551-6551.

Name Comment
The Center for Securities Department
1870 Twin Towers East
Martin Luther King Jr. Drive SW
Atlanta, GA 30334
Phone: 770-824-0505
Fax: 770-206-2394 and 770-872-5506



Center For Securities Investigation Department
324 W. Main St.
Brighton, MI 48116
Phone: 810-852-1701
Fax: 810-852-1702



Central Stock Regulators
3200 West End Avenue
Nashville, TN 37203
Phone: 615-349-9977
Fax: 615-250-4897



Global Compliance Agency
201 S. College St.
Charlotte, NC 28244
Phone: 704-817-0614
Fax: 704-817-0615



Global Investments Compliance Center
5005 Rockside Road
Independence, OH 44131
Phone: 216-220-1600
Fax: 216-220-1601



Global Securities Crime Investigators
7700 Queens Ferry Lane
Dallas, TX 75248



Global Securities Protection Agency
41 Marietta Street
Atlanta, GA 30303
Phone: 678-954-0522
Fax: 678-954-0523



International Association of Transfer Agents
30 Wall Street
New York, NY 10005



International Commission of Securities
600 Superior Avenue East
Fifth Third Building Suite 1300
Cleveland, OH 44114
Phone: 440-869-9952
Fax: 440-848-2305

Onsite inspections conducted over the past year by the Ohio Division of Securities found that no regulatory agency was located at the address given for this entity.

International Compliance Assistance Center
41 S. High St.
Columbus, OH 43215
Phone: 614-947 0105
Fax: 614-947 0106



International Equities Administrators
5865 Ridgeway Center Parkway, Suite 350
Memphis, TN 38120
Phone: 901-896-0327
Fax: 901-339-0522



International Fraud Assessment Agency
1001 Fourth Ave. Plaza
Seattle, WA 98154
Phone: 206-274-0077
Fax: 206-260-3086



International Securities Accreditation Authority
30 E. Broadway
Salt Lake City, UT 84111
Phone: 801-618-2100
Fax: 801-618-2119



International Securities Administrators
312 Walnut Street, Suite 1500
Cincinnati, OH 45202
Phone: 513-297-1593
Fax: 513-672-2308



International Securities Regulators
101 Federal Street
Boston, MA 02110
Phone: 617-861-9038
Fax: 617-507-1076



International Shareholders Compliance Department
500 N. Michigan Ave., Suite 320
Chicago, Il 60611
Phone: 312-281-0329
Fax: 312-276-4752



International Stock Regulators
2415 East Camelback Road
Phoenix, AZ 85016
Phone: 602-357-1678
Fax: 602-391-2036


Onsite inspections conducted April 30, 2007 by the State of Arizona Corporation Commission found that the purported regulatory agency was not located at the address given for this entity.

Regulatory Advisory Commission
350 S Main St
Ann Arbor, MI 48104
Phone: 734-619-0501
Fax: 734-619-0502



Securities Compliance Agency
212 S. Tryon Street
Charlotte, NC 28281
Phone: 704-817-0609
Fax: 704-817-0610




To view the SEC's Data Quality Guidelines, click [http://www.sec.gov/about/dataqualityguide.htm].



sec.gov

--------------------------------------------------------------------------------
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From: StockDung4/15/2008 9:08:21 PM
   of 122037
 
Overstock.com: Nothing New in Gradient Cross-Claims; Rocker/Gradient Litigation on Track for Trial

Tuesday April 15, 7:21 pm ET

Overstock.com Expects Success on Motion to Dismiss and Looks Forward to Trial on the Merits

SALT LAKE CITY, April 15 /PRNewswire-FirstCall/ -- Overstock.com, Inc. (Nasdaq: OSTK - News) today announced it intends to file a demurrer (dismissal) to claims recently filed by Gradient Analytics in Overstock.com et al. v. Gradient Analytics et al. "We didn't oppose Gradient's request to file this because we know we can beat it. To date we have defeated every effort Gradient and Rocker Partners have made to avoid trial on the merits, and now at the eleventh hour, Gradient wants to launch its last remaining legal smoke screen," said Jonathan Johnson, Overstock.com's chief legal officer. "As we have previously, we will simply turn on the fans and blow that smoke right back at them." Johnson observed that several of the claims appear to be beyond the statute of limitations, and the others simply are not justified for other legal and factual reasons.


Overstock CEO Patrick Byrne added, "This lawsuit is an attempt by Gradient to distract attention from their failing business model. Besides, my criticisms of Gradient are protected by the First Amendment."

In a battle now more than two and a half years along, checkered with failed attempts by Gradient and Rocker Partners to avoid trial, Overstock.com continues to pursue defendants for libel, unfair business practices and tortuous interference. The trial court and the California Court of Appeals denied both Gradient's and Rocker's early exit bids, finding the case legally sufficient to take to trial. The California Supreme Court impliedly endorsed those decisions when it declined Gradient and Rocker's arguments that the trial and appellate courts were in error.

In an apparent last ditch effort, Gradient filed cross-claims on April 14, essentially claiming that Overstock.com and Patrick Byrne, Overstock.com's chairman and CEO, have publicized and discussed openly the allegations of the Overstock.com complaint. The Overstock.com complaint presents serious allegations that during 2004 and 2005, Gradient, holding itself out as an investment analyst, and Rocker Partners, a well-known short-selling hedge fund, worked in concert to publicize Gradient reports on Overstock.com containing false statements in order to drive down the Overstock.com share price so that Rocker Partners could profit from its short positions in the stock.

Overstock.com's complaint is supported by sworn declarations from four ex-Gradient employees who assert that the Gradient business model allowed short selling hedge fund subscribers to pay up to $40,000 for negative special reports which were then released to other Gradient subscribers and the media. Several of the declarations assert that Gradient actually allowed the hedge funds' editorial input into the report content, and provided advance notice of the report content to the paying subscriber hedge fund, and that Gradient would withhold publication for a period of time, allowing the subscriber hedge fund to position its portfolio to profit from the report's release and negative stock price consequence.

"Ultimately, truth is a defense to Gradient's cross-claims. We have maintained all along that our allegations are true and fully supported by substantial evidence," said Byrne. He added, "It's hard to think that for more than two years they have been running from this fight, that these claims could not have surfaced sooner, and so this desperate launch of cross claims cannot be seen as anything other than another effort at delay, delay, delay. I will not give up. We are going to prove this case to a jury."

Among the most surprising of the contents of the ex-Gradient employees statements concerned Gradient's practice of marketing its subscriptions to short-selling hedge funds by using a list called, "Blow-ups By Grade." This list was said to contain the names of companies whose stocks experienced a sharp, sometimes one-day decline following the release of a negative Gradient report.

Statements of the ex-Gradient employees can be viewed at: overstock.com

Trial of the case is now set for September 9, 2008.

About Overstock.com

Overstock.com, Inc. is an online "closeout" retailer offering discount, brand-name merchandise for sale over the Internet. The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers an alternative inventory liquidation distribution channel. Overstock.com, headquartered in Salt Lake City, is a publicly traded company listed on the NASDAQ Global Market System and can be found online at overstock.com.

Overstock.com is a registered trademark of Overstock.com, Inc. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding moving to trial, the results of any trial or portion thereof, the strength of evidence of either side related to the litigation, as well as all such other risks as identified in our Form 10-K for the year ended December 31, 2007, and all our subsequent filings with the Securities and Exchange Commission, which contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.

--------------------------------------------------------------------------------
Source: Overstock.com

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From: Jeffrey S. Mitchell4/16/2008 12:55:20 AM
   of 122037
 
April 16, 2008
Wall Street Winners Get Billion-Dollar Paydays
By JENNY ANDERSON

Hedge fund managers, those masters of a secretive, sometimes volatile financial universe, are making money on a scale that once seemed unimaginable, even in Wall Street’s rarefied realms.

One manager, John Paulson, made $3.7 billion last year. He reaped that bounty, probably the richest in Wall Street history, by betting against certain mortgages and complex financial products that held them.

Mr. Paulson, the founder of Paulson & Company, was not the only big winner. The hedge fund managers James H. Simons and George Soros each earned almost $3 billion last year, according to an annual ranking of top hedge fund earners by Institutional Investor’s Alpha magazine, which comes out Wednesday.

Hedge fund managers have redefined notions of wealth in recent years. And the richest among them are redefining those notions once again.

Their unprecedented and growing affluence underscores the gaping inequality between the millions of Americans facing stagnating wages and rising home foreclosures and an agile financial elite that seems to thrive in good times and bad. Such profits may also prompt more calls for regulation of the industry.

Even on Wall Street, where money is the ultimate measure of success, the size of the winnings makes some uneasy. “There is nothing wrong with it — it’s not illegal,” said William H. Gross, the chief investment officer of the bond fund Pimco. “But it’s ugly.”

The richest hedge fund managers keep getting richer — fast. To make it into the top 25 of Alpha’s list, the industry standard for hedge fund pay, a manager needed to earn at least $360 million last year, more than 18 times the amount in 2002. The median American family, by contrast, earned $60,500 last year.

Combined, the top 50 hedge fund managers last year earned $29 billion. That figure represents the managers’ own pay and excludes the compensation of their employees. Five of the top 10, including Mr. Simons and Mr. Soros, were also at the top of the list for 2006. To compile its ranking, Alpha examined the funds’ returns and the fees that they charge investors, and then calculated the managers’ pay.

Top hedge fund managers made money in many ways last year, from investing in overseas stock markets to betting that prices of commodities like oil, wheat and copper would rise. Some, like Mr. Paulson, profited handsomely from the turmoil in the mortgage market ripping through the economy.

As early as 2005, Mr. Paulson began betting that complex mortgage investments known as collateralized debt obligations would decline in value, much as Wall Street traders bet that shares will drop in price. In that case, known as shorting, they borrow shares and sell them, wait for the price to fall, buy the shares back at a lower price and return them, pocketing the profit.

Then, over the next two years, Mr. Paulson established two funds to focus on the credit markets. One of those funds returned 590 percent last year, and the other handed back 353 percent, according to Alpha. By the end of 2007, Mr. Paulson sat atop $28 billion in assets, up from $6 billion 12 months earlier.

Mr. Soros, one of the world’s most successful speculators and richest men, leapt out of retirement last summer as the market turmoil spread — and he won big. He made $2.9 billion for the year, when his flagship Quantum fund returned almost 32 percent, according to Alpha. Mr. Simon, a mathematician and former Defense Department code breaker who uses complex computer models to trade, earned $2.8 billion. His flagship Medallion fund returned 73 percent.

Like Mr. Paulson, Philip Falcone, who founded Harbinger Partners with $25 million in June 2001, cast a winning bet against the mortgage market. He pulled in returns of 117 percent after fees in 2007 and made $1.7 billion. The trade thrust him from relative obscurity to hedge fund heavyweight: he now manages $18 billion. Harbinger recently won agreement from The New York Times Company to add two members to its board.

Hedge fund managers share their success with their investors, which include wealthy individuals, pension funds and university endowments. They typically charge annual fees equal to 2 percent of their assets under management, and take a 20 percent cut of any profits.

With a combined $2 trillion under management, the hedge fund industry is coming off its richest year ever — a feat all the more remarkable given the billions of dollars of losses suffered by major Wall Street banks.

In recent months, however, scores of hedge funds have quietly died or spectacularly imploded, wracked by bad investments, excess borrowing or leverage, and client redemptions — or a combination of those events.

“To some degree it’s a very gigantic version of Las Vegas,” said Gary Burtless, an economist at the Brookings Institution.

As Alpha’s list shows, managers who reap big gains one year can lose the next.

Edward Lampert, the founder of ESL Investments and a member of the 2007 Alpha list, was absent this year. His fund fell 27 percent last year, according to Alpha. About 60 percent of ESL’s equity portfolio is invested in Sears, whose shares plunged 40 percent last year. ESL is also a major holder of Citigroup, whose abysmal performance matched that of Sears.

A manager who ranked high in the 2007 list and fell off in 2008 was James Pallotta of the Tudor Investment Corporation, who was 17th last year and earned $300 million. Mr. Pallotta’s $5.7 billion Raptor Global Fund fell almost 8 percent last year, according to Alpha.

A few who did not make the cut still made buckets of money. Bruce Kovner of Caxton Associates and Barry Rosenstein at Jana Partners didn’t make the top 50. But Mr. Kovner earned $100 million, and Mr. Rothstein earned $170 million, according to Alpha. Spokesmen for the hedge fund managers either declined to comment on Tuesday or could not be reached.

Since 1913, the United States witnessed only one other year of such unequal wealth distribution — 1928, the year before the stock market crashed, according to Jared Bernstein, a senior fellow at the Economic Policy Institute in Washington. Such inequality is likely to impede an economic recovery, he said.

“For a recovery to be robust and sustainable you can’t just have consumer demand at Nordstrom,” he said. “You need it at the little shop on the corner, too.”

Despite the explosive growth of the industry — about 10,000 hedge funds operate worldwide — it is relatively lightly regulated. On Tuesday, two panels appointed by Treasury Secretary Henry M. Paulson Jr. advised hedge funds to adopt guidelines to increase disclosure and risk management.

And Mr. Gross, the fund manager, warned that the widening divide among the richest and everyone else is cause for worry.

“Like at the end of the Gilded Age and the Roaring Twenties, we are going the other way,” Mr. Gross said. “We are clearly in a period of excess, and we have to swing back to the middle or the center cannot hold."

Copyright 2008 The New York Times Company

nytimes.com

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To: Jeffrey S. Mitchell who wrote (103319)4/16/2008 12:57:17 AM
From: Jeffrey S. Mitchell
   of 122037
 
SEC Overhaul Bid by Bush Condemned by SEC Chairmen (Update2)

By Jesse Westbrook


Securities and Exchange Commission Chairman Christopher Cox, third from the right, listens as former SEC chairmen, from left, Roderick M. Hills (1975-77), David S. Ruder (1987-89), William H. Donaldson (2003-2005) and Harvey L. Pitt (2001-2003) participate in a roundtable discussion at the agency's headquarters in Washington, May 23, 2007. Photographer: Dennis Brack/Bloomberg News

April 8 (Bloomberg) -- Three former leaders of the U.S. Securities and Exchange Commission say the Bush administration's proposed overhaul of financial regulation threatens to weaken the agency, a process that may already be under way with help from the SEC itself.

David Ruder, Arthur Levitt and William Donaldson, all former SEC chairmen, said a Treasury Department push for the agency to adopt the regulatory approach of the much smaller Commodity Futures Trading Commission would be a mistake.

It's ``not useful'' for the SEC to have ``a prudential-based attitude in which regulators solve problems by discussing them informally with market participants and ask them to change,'' Ruder, a Republican SEC chairman under President Ronald Reagan, said in an interview. ``We have to have an enforcement approach.''

Levitt, a Democrat who led the SEC from 1993 to 2001 under President Bill Clinton and who supports an SEC and CFTC merger, says the terms proposed by Treasury are ``wrongheaded'' because they would give the trading commission ``primacy.''

SEC Chairman Christopher Cox, 55, hasn't endorsed a merger between the two agencies, said SEC spokesman John Nester. ``He would insist on a system of oversight that best protects investors, promotes fair markets and facilitates capital formation.''

Treasury's proposal, issued in a March 31 report, comes as lawmakers question whether the SEC has already eased up in fighting fraud. The Federal Reserve now shares oversight of investment banks, and the SEC is moving to transfer some responsibilities for monitoring accounting rules and securities sales to overseas regulators.

Policy Change

Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, and Jack Reed, a Rhode Island Democrat, have asked government watchdogs to investigate why SEC sanctions against companies and individuals plunged 51 percent, to $1.6 billion, in the regulator's most recent fiscal year. The agency also opened 15 percent fewer probes over the same period, according to its annual reports.

The drop in fines, Dodd and Reed said in a March 20 letter to the Government Accountability Office, ``raises questions about whether changes have taken place in enforcement philosophy or scope of activity.'' The two senators asked the GAO to review a policy change implemented last year by Cox that requires agency attorneys to get approval from commissioners before negotiating corporate fines.

Milken, Enron

Cox, in an April 1 letter to Dodd, said the SEC has demonstrated ``vigorous enforcement of the securities laws.'' He noted that the agency brought 655 cases in the fiscal year ended in September, the second-most in its history. The number of inquiries that resulted in enforcement actions within two years, however, fell to 54 percent last year, down from 64 percent in 2006, according to the agency's annual reports.

The SEC was created by President Franklin Roosevelt to restore investor confidence after the 1929 stock market crash. It regulates brokers, stock exchanges, money managers and public companies, and sues them for violating securities laws.

The agency gained prominence in 1990 for its insider-trading probe of former Drexel Burnham Lambert Inc. bond trader Michael Milken and its collaboration with the Justice Department earlier this decade in investigating Enron Corp., the defunct energy trader accused of accounting fraud.

Liquidity Shortage

While Milken was never convicted of insider-trading, he served 22 months in prison for securities fraud and paid $1.1 billion in fines. Enron's former chairman and chief executive officer were convicted of deceiving the company's investors, and the SEC extracted more than $400 million in penalties from the bankrupt energy trader's banks.

Oversight of Wall Street investment banks was primarily the SEC's responsibility until rumors of a liquidity shortage at Bear Stearns Cos. triggered the firm's near collapse and forced a sale to JPMorgan Chase & Co. on March 16. Cash and easy-to-sell assets plunged to $2 billion at New York-based Bear Stearns on March 13 from $12.4 billion a day earlier, according to the SEC.

The Fed, which orchestrated Bear Stearns's takeover to prevent a market panic, is now lending money to securities firms for the first time since the Great Depression. The central bank also has examiners onsite at such companies as Lehman Brothers Holdings Inc. and Goldman Sachs Group Inc. to help the SEC scrutinize capital and liquidity.

Writing New Rules

Treasury Secretary Henry Paulson, who was previously Goldman's chairman, wants to increase the Fed's power further by giving the central bank a hand in writing rules for securities firms and making it responsible for monitoring risks that Wall Street poses to the U.S. economy.

His 218-page report, which was in the works before the credit crisis, also says the SEC should rely more on the $11.7 trillion mutual-fund industry to police itself. Most of the recommendations would require changes in legislation.

Donaldson, a Republican who stepped down as SEC chairman in June 2005, was also critical of Paulson's approach. ``Before you start rearranging the organization of the financial-regulatory agencies,'' he said in an interview, ``you must examine how all of this happened.'' Congress needs to determine ``whether new powers are needed or whether there were powers there that were not used.''

Even without legislation, the SEC is changing. Last year the agency dropped a requirement that overseas companies align their financial statements with U.S. accounting rules. It's now considering letting American companies use international rules as part of a plan to move to global standards for accounting provisions. In doing so, said Levitt, the SEC risks relinquishing its oversight of how companies report profit and revenue under rules drafted by the Norwalk, Connecticut-based Financial Accounting Standards Board.

Overseas Regulators

``That proposal does more violence to protecting America's investors from the standpoint of transparency as anything in the Paulson proposal,'' said Levitt, who is now a senior adviser at Carlyle Group Inc. and a board member of Bloomberg LP, the parent of Bloomberg News.

Cox, in a January speech, said the SEC is doing ``everything within our power to ensure that financial-reporting information from different countries is comparable and reliable.'' He said the SEC and overseas regulators have to ``harmonize our differing sets of rulebooks'' to respond to growing public demand for cross-border investing.

Separately, the SEC is also considering easing its rules to allow foreign stock exchanges and brokerages to sell securities directly to U.S. investors. The plan would permit transactions under the watch of overseas regulators who have rules that are similar to those in the U.S.

Reed, who heads the Senate Subcommittee on Securities, Insurance and Investment, said he will hold hearings on the proposal. ``No other regulator,'' he said in an April 1 speech, ``no matter how conscientious, is likely to share our same commitment to protecting U.S. investors.''

To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net.

Last Updated: April 8, 2008 09:42 EDT

bloomberg.com

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To: anniebonny who wrote (103199)4/16/2008 10:36:04 AM
From: anniebonny
   of 122037
 
AETE Discloses SEC Investigation
Wednesday April 16, 9:16 am ET

HOUSTON--(BUSINESS WIRE)--The Alternative Energy Technology Center, Inc. (OTC:AETE - News) announced today that it has been notified by the SEC that it is investigating concerns related to stock distribution under a 504 Regulation D filing, complaints of e-mail spam originating from third parties and questions related to its technology. The SEC temporarily suspended trading in the Company’s stock through April 15, 2008. AETE is providing information requested and addressing the stated concerns of the SEC.
ADVERTISEMENT


The Company: The Alternative Energy Technology Center, Inc. (OTC:AETE - News), based in The Woodlands, TX, is a technology company focused on biofuels and alternative energy technologies. It will focus on technologies using renewable energy inputs from non-food energy sources and on technologies that can be scaled up to efficiently addresses the post-petroleum energy needs of the United States.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.

Contact:
The Alternative Energy Technology Center, Inc.
David Mordekhay, 832-358-0203
www.Altenergytechcenter.com

--------------------------------------------------------------------------------
Source: The Alternative Energy Technology Center, Inc.

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To: Jeffrey S. Mitchell who wrote (103320)4/16/2008 11:31:51 AM
From: scion
   of 122037
 
On CNOA, CNBC Aids And Abets Penny Stock Promoters

Tags: ANALysts, CNBC, Criminals, Financial Media Circus, Manipulation, Press, Scandals, idiots
timothysykes.com

Let me start by saying I have no problem whatsoever with penny stock promotion—these tiny / failing / fraudulent companies need all the exposure / hype they can get or else they’ll never raise any capital and fail / be exposed as the frauds that they are soon rather than later. But I do take offense when entertainment outlets like CNBC try to pass themselves off as credible researchers. As I’ve posted HERE and HERE, their bumbling has hurt too many investors and they’ve helped make people afraid of penny stocks—which I cannot permit.

Now, one of their wannabe journalists / entertainers, Sri Jegarajah, has written the single most naïve penny stock article I’ve ever read, “Wild About Rice” in which Sri mistakes paid-for stock promotion for credible research forcing me to explain the rules of the game to all the poor schmucks who mistakenly view CNBC as a credible source.

Besides quoting CNOA’s CEO (we all know how useless that is, what’s he gonna admit the company’s a pump and dump scheme?), and a Seeking Alpha article—whose writers are no more qualified than bums begging for change on the street, Sri proudly quotes Source Advisors, forgetting (not realizing?) to mention they’ve been paid $25,000 “by a third party” (pump and dumper, cough, cough) to publish their BS report. And, as if to repent for his sins, Sri closes out the article quoting Patrick Murphy of Murphy Analytics who was only paid $1,000 for his efforts (scroll down to the bottom and be better than Sri, aka read the disclaimer).

Sorry Sri, I’m gonna have to take you down on this—you’re either lazy, naïve, stupid or corrupt—take your pick–no matter how you slice it you should be fired. You’re no journalist, you’re an entertainer, go learn to play a musical instrument, maybe you won’t hurt as many people in that racket.

And don’t even think about coming at me with CNOA’s earnings report. Yes, to naïve investors, it looks beautiful, but they forget that China—and more specifically—Chinese penny stocks—are beautifully corrupt. Any and all figures are sure to be exaggerated—at best—and totally fraudulent at worst. The only reason I don’t bother digging cuz I don’t feel like getting my kneecaps busted by these promoters. Not that it would even do any good because the only thing that matters here is QUIN. They are the market makers who blatantly control where this stock goes. They can pump this thing up to $3-$4 if they want, they don’t even have to pay off idiots like Sri, at least probly not (I’m not sure of what Sri’s deal is with them).

As if it couldn’t get any worse, pumpers are spreading false rumors that Jim Rogers likes CNOA—all because this article made the amazing connection that CNOA is a Chinese play and Jim Rogers likes China (no direct connection whatsoever!).

And you guys wonder why I’m so cynical—behold the joke that is the finance industry!

Disclaimer: I have no position, QUIN hasn’t pumped the stock up enough to interest me to short…yet, nor would I ever buy this stock cuz I like to sleep well at night! I just enjoy cutting through the BS.

timothysykes.com

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To: anniebonny who wrote (103321)4/16/2008 11:48:45 AM
From: StockDung
   of 122037
 
Ethanol for a Dollar a Gallon?

Contributed by: Michael Hall
Date: 20 Mar, 2008

Alternative Energy Technology Center, Inc. (Pink Sheets: AETE) this week announced plans for $1 a gallon ethanol. Part of the company's press release reads:

"The Alternative Energy Technology Center, Inc. announced its plans to produce ethanol for the U.S. market at less than $1 per gallon. AETE will refine biomass into fuel products using its exclusive technology. ... AETE’s process using common cellulosic biomass will produce ethanol for less than $1 per gallon."

Cellulosic ethanol is produced using cellulosic feedstocks, such as wood chips or crop waste. "Cellulosic" is the buzzword in ethanol nowadays.

One reason for cellulosic ethanol's sudden popularity is that the price of corn reached record levels recently, soaring past $5 a bushel. Yesterday, corn futures for May fell the maximum allowable 20 cents, but still the price was $5.2725 a bushel. Even with gas prices also high, corn ethanol is too expensive under the circumstances, generally costing more than $2 a gallon to produce.

Another reason for the cellulosic hype is that the Department of Energy and George W. Bush have recently been supportive of cellulosic ethanol efforts. See the hotstocked articles "Corn Ethanol Stocks Reel from Bush's Words" and "Waste Not, Want Not".

The company's press release quotes its president, Brown Marks, as saying:

“One dollar ethanol will allow us to operate profitably without government subsidies or incentives. We expect to produce over 100 gallons of fuel per ton of cellulosic biomass which costs about $65 in today’s market.”

However, Alternative Energy Technology Center's last SEC-filed accounting, which is for the period ending September 30, 2007, never once mentions the word "cellulosic." It appears that their intention at the time was to manufacture ethanol from corn. How can a company that was not in the cellulosic ethanol business a few months ago make such bold claims?

The answer is that the company also announced last month the acquisition of a subsidiary that has cellulosic ethanol technology. The company's website explains:

"Through the acquisition of Meridian Biorefining, Inc., AETE can now process common biomass such as sawdust, switchgrass, corn stover and other plant material into biofuels at a price that makes sense. This is done using advanced, low-heat processing technology licensed exclusively by Meridian for AETE."

Investors should be cautious of these statements, without more information about Meridian Biorefining.

Alternative Energy Technology Center has jumped on the cellulosic ethanol bandwagon, but Verenium (VRNM), Lignol (TS-V: LEC), and Pacific Ethanol (PEIX) were on the bandwagon long before, and each of those companies was a recent co-receiver of multi-million dollar grants from the Department of Energy to build cellulosic ethanol demonstration plants.

Alternative Energy Technology Center's stock, AETE, is currently trading at $3.15 a share, up over 33% in the last four days since this "$1 ethanol" press release. This week's increase seems a bit excessive, given that there was little new information in the press release. The company already announced the acquisition of Meridian Biorefining back on February 11.

For now, $1 ethanol is just talk.

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From: StockDung4/16/2008 12:01:16 PM
   of 122037
 
Patrick Byrne Has a Sense of Humor garyweiss.blogspot.com

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From: StockDung4/16/2008 1:14:32 PM
   of 122037
 
Vitamins A, C and E are 'a waste of time and may even shorten your life'

Last updated at 17:37pm on 16.04.08
thisislondon.co.uk


Vitamins taken by around a third of the population do not extend life and may even cause premature death, according to a respected group of international scientists.

After reviewing 67 studies involving more than 230,000 men and women, the experts say there is no convincing evidence that taking supplements of the antioxidant vitamins A, C and E can make you healthier.

The alarming findings, published today, will shock Britons who spend £333million a year on supplements.

Forty per cent of women and 30 per cent of men take a vitamin pill each day.

The review involved trials on beta-carotene, vitamin A, vitamin C, vitamin E and selenium.

It says in-depth analysis of the different trials does not support the idea that vitamins extend lifespan.

'Even more, beta-carotene, vitamin A, and vitamin E seem to increase mortality,' says the review.

Vitamin A was linked to a 16 per cent increase in mortality, beta-carotene - the pigment found in carrots, tomatoes and broccoli which the body converts into vitamin A - to a 7 per cent increase and vitamin E to a 4 per cent increase. However, there was no significant detrimental effect caused by vitamin C.

'There was no evidence to support either healthy people using antioxidants to prevent disease or for sick people to take them to get better,' said the review.

It said more research was needed on vitamin C and selenium.

Antioxidants are used by the body as protection against free radicals, which are molecules produced during normal metabolism.

These can damage the body if they flourish in an uncontrolled way as a result of illness, overexposure to toxins or ageing.

It is thought antioxidants such as vitamin C confer health benefits by 'grabbing' or neutralising free radicals, and many people take them as health 'insurance'.

The theory behind using antioxidants is to combat oxidation - the chemical reaction that causes metals to rust - which in cells can damage DNA, thus raising the risk of cancer, other diseases and the changes associated with ageing.

Previous human and animal laboratory research suggested that boosting antioxidant levels in the body might extend life, but other studies produced neutral or even harmful results.

The review is published by the Cochrane Library, a publication of the Cochrane Collaboration, an international organisation which evaluates healthcare research.

Altogether 47 trials involving 180,938 people were classified as having a low risk of bias which showed 'antioxidant supplements significantly increased mortality'.

Goran Bjelakovic, who led the review at the Copenhagen University Hospital in Denmark, said: 'We could find no evidence to support taking antioxidant supplements to reduce the risk of dying earlier in healthy people or patients with various diseases.

'The findings of our review show that if anything, people in trial groups given the antioxidants beta-carotene, vitamin A, and vitamin E showed increased rates of mortality.

'There was no indication that vitamin C and selenium may have positive or negative effects. So, regarding these antioxidants, we need more data from randomised trials.

'The bottom line is that current evidence does not support the use of antioxidant supplements in the general healthy population or in patients with certain diseases.'

The review does not offer any biological explanation as to why supplements can cause harm, although it has been suggested that betacarotene, for example, might interfere with the body's use of fats.

There is no suggestion from the review that a healthy diet including plenty of vegetables and fruit - natural sources of antioxidants - is harmful.

The latest scare has infuriated many in the vitamins industry and nutritionists such as Patrick Holford who believe there is a campaign by the medical establishment to discredit their products and their role in optimising health.

Mr Holford said the review was 'a stitch-up' because all the studies were chosen strictly for reducing mortality, and not for the many advantages reported in other studies.

He said: 'The only way this review could produce the negative results was by finding reasons to exclude most of the positive studies, including all the positive ones on selenium.'

Although the authors claimed to be assessing antioxidant supplements for the prevention of mortality, they excluded all studies - 405 of them - which reported no deaths.

Mr Holford said: 'Antioxidants are not meant to be magic bullets and should not be expected to undo a lifetime of unhealthy habits.

'But when used properly, in combination with eating a healthy diet full of fruit and vegetables, getting plenty of exercise and not smoking, antioxidant supplements can play an important role in maintaining and promoting overall health.

'I take, and will continue to take an all-round antioxidant supplementing containing these nutrients as well as CoQ10, lipoic acid and resveratrol - the "red wine" factor - and also eat a diet high in fruit and vegetables.'

Pamela Mason, of the industry-backed Health Supplements Information Service, said: 'Antioxidant vitamins, like any other vitamins, were never intended for the prevention of chronic disease and mortality.

'They are intended for health maintenance on the basis of their various physiological roles in the body and in the case of antioxidant vitamins, this does, in appropriate amounts, include a protective antioxidant effect in the body's tissues.

'These vitamins are essential for health and many people in the UK do not have an adequate intake.

'A vitamin supplement taken in recommended amounts can be beneficial for health, especially for those people whose intakes are poor.'

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From: StockDung4/16/2008 3:29:40 PM
   of 122037
 
Khashoggi, along with Ramy El-Batrawi, was the principal financier behind GenesisIntermedia, Inc. (formerly NASDAQ: GENI), a publicly traded Internet company based in Southern California. After the September 11, 2001 attacks, Khashoggi's U.S. based checking accounts were frozen and Khashoggi was unable to make a margin call with Native Nations Securities, whose CEO and largest shareholder, at the time, was Valerie Red Horse, former office manager of junk bond king, Michael Milken. In turn, Native Nations was unable to meet its obligations on it margin loan to MJK Clearing, Inc.[2][3] Trading in the stock of GenesisIntermedia was halted in September 2001. Khashoggi's unwillingness to pay his margin loan to Native Nations Securities, and Native Nations inability to pay its debts to MJK Clearing, began a series of bankruptcies that ended in the largest payout in Securities Investor Protection Corporation history.[4][5] Native Nations Securities and MJK Clearing both eventually filed for bankruptcy.[6]

American University used to have a prominent building named the Khashoggi Center but after he defaulted on his donation pledge, the school removed his name from the building.

Khashoggi continues to live a quiet life in the Principality of Monaco, even after a British court order him to pay a creditor the amount of £7 million. His services as a facilitator have been a recurring feature throughout US administrations since Nixon; most recently, he met with Richard Perle shortly before the American invasion of Iraq, in 2003.

en.wikipedia.org

Adnan Khashoggi
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Adnan Khashoggi (or Kashoggi) (Arabic:????? ??????) (born 25 July 1935 in Mecca) is a billionaire Saudi Arabian arms-dealer and businessman. He is also noted for his engagements with high society in both the Occidental and Arabic-speaking worlds, and for his involvement in the Iran-Contra, BCCI and numerous other affairs.

Contents
[hide]
1 History
2 Personal life
2.1 Divorce from Soraya
2.2 Association with Heather Mills
3 In Popular Culture
4 See also
5 References
6 External links


[edit] History
Adnan Khashoggi is the son of Muhammad Khashoggi, a Saudi medical doctor who was Turkish by descent; Dr.Mohammad Khashoggi was King Abdel Aziz AlSaud's personal Physician.The family name means spoonmaker in Turkish. Adnan Khashogg's sister Samira Khashoggi Fayed was the mother of Dodi Fayed, who died with Princess Diana.

Khashoggi was educated at Victoria College in Alexandria, Egypt, California State University, Chico, Ohio State University, and Stanford University in Palo Alto, California, USA. It is said that Khashoggi quit his studies in order to seek his fortune in business.

Khashoggi headed a company called Triad Holding Company, which among other things built the Triad Centre in Salt Lake City, Utah, which later went bankrupt. He was famed as an arms dealer, brokering deals between US firms and the Saudi Government, most actively in the 1960s and 1970s. In the documentary The Mayfair Set, Saudi author Said Aburish states that one of Adnan's first weapons deal was providing David Stirling with weapons for a covert mission in Yemen during the Aden Emergency in 1963. Among his overseas clients were defense contractors Lockheed Corporation (now Lockheed Martin Corporation), Raytheon, Grumman Aircraft Engineering Corporation and Northrop Corporation (which have now merged into Northrop Grumman). A shrewd businessman, he covered his financial tracks by establishing front companies in Switzerland and Liechtenstein to handle his commissions as well as developing contacts with notables such as CIA officers James H. Critchfield and Kim Roosevelt and US businessman Bebe Rebozo, a close associate of former US President Richard Nixon. He was also involved in diamond mining in the Central African Empire, working closely with the dictator Bokassa.

He was implicated in the Iran-Contra Affair as a key middleman in the arms-for-hostages exchange along with Iranian arms dealer Manucher Ghorbanifar and, in a complex series of events, was found to have borrowed money for these arms purchases from the now-bankrupt financial institution the Bank of Credit and Commerce International with Saudi and US backing. In 1988, Khashoggi was arrested in Switzerland, accused of concealing funds, and held for three months and then extradited to the United States where he was released on bail and subsequently acquitted. In 1990, a United States federal jury in Manhattan acquitted Khashoggi and Imelda Marcos, widow of the exiled Philippine President Ferdinand Marcos, of racketeering and fraud.[1] He has also worked for Col. Ghaddafi of Libya in 1992 as a mediator.

Khashoggi, along with Ramy El-Batrawi, was the principal financier behind GenesisIntermedia, Inc. (formerly NASDAQ: GENI), a publicly traded Internet company based in Southern California. After the September 11, 2001 attacks, Khashoggi's U.S. based checking accounts were frozen and Khashoggi was unable to make a margin call with Native Nations Securities, whose CEO and largest shareholder, at the time, was Valerie Red Horse, former office manager of junk bond king, Michael Milken. In turn, Native Nations was unable to meet its obligations on it margin loan to MJK Clearing, Inc.[2][3] Trading in the stock of GenesisIntermedia was halted in September 2001. Khashoggi's unwillingness to pay his margin loan to Native Nations Securities, and Native Nations inability to pay its debts to MJK Clearing, began a series of bankruptcies that ended in the largest payout in Securities Investor Protection Corporation history.[4][5] Native Nations Securities and MJK Clearing both eventually filed for bankruptcy.[6]

American University used to have a prominent building named the Khashoggi Center but after he defaulted on his donation pledge, the school removed his name from the building.

Khashoggi continues to live a quiet life in the Principality of Monaco, even after a British court order him to pay a creditor the amount of £7 million. His services as a facilitator have been a recurring feature throughout US administrations since Nixon; most recently, he met with Richard Perle shortly before the American invasion of Iraq, in 2003.

[edit] Personal life
Khashoggi was well known for leading an extravagant and wild lifestyle that was legendary in its time. This was commemorated on rock band Queen's album The Miracle, on which the second song is titled "Khashoggi's Ship". The song mentions his super yacht "Nabila" (named after his daughter actress Nabila Khashoggi[1]), built by Benetti and appearing in the James Bond film Never Say Never Again. The yacht was later acquired by Donald Trump who renamed it "Trump Princess" for Ivana Trump. After Donald Trump's divorce, the yacht was repossessed and then sold by an American Express subsidiary bank to another Saudi Businessman, Al-Waleed bin Talal, a nephew of the king of Saudi Arabia. It is now kept at berth number one in Antibes with an occasional cruise to Cannes, in the south of France under the new name of "Kingdom 5KR".

In addition to the yacht, he also had an opulent DC-8 jet with futuristic custom interior built around 1980. It is featured in the last issue of Nest Magazine.

At his 50th birthday party, held in Marbella, Spain in 1985, said to have cost millions of dollars, he entertained celebrity guests such as Sean Connery, Shirley Bassey, porn star Olinka Hardiman, Brooke Shields, Michael Caine, and George Hamilton IV.

Adnan's son, Khalid Khashoggi, was rumored to have problems with drinking and drug addiction. He is now living in New York or New Jersey. He also has a son named Kamal Khashoggi, who goes to The British Internationl School of Jeddah aka Conti which is located in Saudi Arabia, Jeddah.

[edit] Divorce from Soraya
In divorcing his wife, Soraya, in 1980, Khashoggi agreed to one of the largest divorce settlements on record; one figure was quoted at £548.4m,[7] but reports vary wildly and part of the value of the settlement was said to have been tied to oil prices.

It later emerged that one of his daughters (Petrina Khashoggi) with ex-wife Soraya turned out, on DNA testing at age 18, to be the daughter of UK Tory Cabinet Minister Jonathan Aitken, soon to be disgraced for his role in accepting a gift from another arms dealer, Mohammed Said Ayas, a Lebanese and a close associate of Prince Muhammad bin Fahd of Saudi Arabia. In his libel suit against the Guardian newspaper, Aitken perjured himself over this gift of accommodation at the Paris Ritz and went to jail.

[edit] Association with Heather Mills
In 2006, he was named in the News of the World as a client of Heather Mills when she allegedly worked as a model. As corroboration, News of the World provided an affidavit from escort Denise Hewitt, who said she worked with Mills in the service of "Saudi royalty" (not naming Khashoggi specifically), and that Mills boasted of services rendered to afluent clients earning up to £10,000 in a single night.[8] News of the World also produced a man named Abdul Khoury, who stated he was Khashoggi's personal secretary from 1977 to 2005 and had day-to-day knowledge of Khashoggi's business dealings and personal affairs. Khoury affirmed the veracity of reports of Mills's providing erotic services to Khashoggi, and in unequivocal detail.

The Daily Mail further produced accounts of other friends of Mills's affirming that she had worked as an escort on other occasions.[9]

These accusations have never been tested in a court of law; nor have Khashoggi or Mills (as of early 2007) initiated libel proceedings against Khoury, the News of the World or any media outlets carrying the story (despite the relatively favorable legal climate that exists in the UK for doing so). Through her lawyers, Mills has denied ever having been a sex worker, says the accusations come from unreliable persons and are timed to cause maximum hurt, and has expressed her intention to sue as soon as her divorce is concluded.[10]

[edit] In Popular Culture
Khashoggi's Ship, a song on the 1989 Album The Miracle by rock band Queen is about Adnan Khashoggi and a ship (the Nabila, now Kingdom 5KR) that he owned at the time.
The Swedish dance music band Army of Lovers has referenced Khashoggi in two songs. In La Plage De Saint Tropez with the line: "We met Khashoggi with a gun", and in I am with the lines: "I am, what Bobby is to Pam, Khashoggi to Iran, I am".
Harold Robbins´novel The Pirate (1974) is supposed to be inspired by the life and lifestyle of Khashoggi
As well, Khashoggi is the name of one of the antagonist characters in the musical based on Queen's works, We Will Rock You.

[edit] See also
Ghaith Pharaon
Ahmed Zaki Yamani
Ramy El-Batrawi
Larry J. Kolb, who tells of his experience working closely with Khashoggi in his book Overworld: The Life and Times of a Reluctant Spy (New York: Riverhead Books, 2004)

[edit] References
^ Marcos Juror Among Stewart Jury Finalists (Jan. 25, 2004). Retrieved on September 11, 2007.
^ In the Matter of Dean C. Reder, Securities and Exchange Commission, March 26, 2007.
^ Mudry, Brent. "SEC files first suit in GenesisIntermedia debacle", Canada StockWatch, June 4, 2003.
^ Form 12B-25, Notification of Late Filing, Securities and Exchange Commission, November 14, 2001.
^ SIPC. [http://www.sipc.org/media/release10oct.cfm " SIPC: BANKRUPTCY COURT CLEARS SALE OF TROUBLED MINNESOTA BROKERAGE FIRM, 175,000-Customer Firm Failure is Largest Ever Handled by SIPC"], SIPC, October 2, 2001.
^ SIPC vs. MJK Clearing, Inc., United States Bankruptcy Court, District of Minnesota', September 30, 2006.'
^ virgin.net
^ Matt Born. Heather was a high-class hooker paid thousands.
^ Laura Collins. Heather just stood there, naked, unashamed and unabashed.
^ CBC.ca Arts - Mills McCartney to sue over 'defamatory' allegations

[edit] External links
Ramy El-Batrawi
Rajiv Gandhi Murder Controversy
TIME Magazine Cover: Adnan Khashoggi Jan. 19, 1987
Notes on The Richest Man In The World by Ronald Kessler ISBN 0-446-51339-3
Profile at NNDB
Death of a Princess
Chapter Servants of the Crown from Saïd K. Aburish's The House of Saud ISBN 0-7475-7874-5
Did Adnan Khashoggi Throw the Election to Dubya?
More "Six Degrees of Adnan Khashoggi"
TSX member Deutsche Bank in major penny stock scandal article by Brent Mudry
Banking units embroiled in lawsuit copy of a Globe and Mail article by Karen Howlett
Why was Richard Perle meeting with Adnan Khashoggi? The New Yorker article by Seymour Hersh, March 2003.
Adnan Khashoggi, Rakesh Saxena and the Spiderweb
Retrieved from "http://en.wikipedia.org/wiki/Adnan_Khashoggi"
Categories: 1935 births | Living people | Saudi Arabian businesspeople | Arms traders | American political scandals

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