July 14, 2009
Mary Schapiro, Chairman
Securities & Exchange Commission
Dear Chairman Schapiro:
Today you said you are taking steps that will reinforce your focus on investor protection and market integrity. If you do not investigate, prosecute and imprison the conspirators behind the April 28th bear raid on Dendreon, no one is going to believe you. I sent the letter below to your Enforcement Division many weeks ago. A complete description of how the bear raid was pulled off has appeared on the Internet. One of the original perpetrators posted in advance that the raid was coming. This is a RICO case. Do something about it. (Also see http://www.deepcapture.com/michael-milken-60000-deaths-and-the-story-of-dendreon-chapter-1-of-15/ You are up against thugs and the Russian Mafia, and everyone in the stock market knows it and expects you to do nothing, as usual.)
[followed by SEC letter at bottom]
* * * * *
July 14, 2009
Senator Maria Cantwell
Via Fax: (202) 228-0514
Senator Patty Murray
Via Fax: (202) 224-0238
Congressman Jim McDermott
7th District, Washington State Via fax to: 206-553-7175
Dear Senators and Congressman:
A company in your state and district, Dendreon Corp. of Seattle, was the victim of an organized bear raid on its stock in the Nasdaq Stock Market on April 28. The purpose of the bear raid was to “run the stops” of individual investors, many of them Seattle residents, to force the sale of their stock at low prices. The bear raid ran the stock from $25 to $7.50 in 75 seconds. More than 4,000 trades were placed, totaling three million shares, or about 50% of Dendreon’s (spectacularly high) average daily volume, causing Dendreon’s share price to lose more than 65% of its value. The conspirators then bought the low-priced stock to cover their naked short sales and closed the stock at $11.81. The next day the stock opened at $27, the conspirators unloaded their stock, and your constituents were fleeced. DNDN stock closed that day at $22.84.
I immediately wrote the SEC and they have done nothing to investigate this obvious manipulation. Nasdaq has done nothing after a 30 minute investigation. I am asking you to hold the SEC’s feet to the fire on this one, because unlike most of these manipulations this one left clear footprints. Some braggart posted on the Yahoo message boards that the raid was coming, and predicted it almost to the minute. They may have been a low-level conspirator, but for once the SEC has the key to break this ring of conspirators, and they are not moving forward.
Below is my letter to the SEC. This game has gone on for years, and the numbers aren’t as big as the Madoff Ponzi scheme, but it is exactly what the SEC regulators should be pursing if they want to repair their image on Wall Street as a toothless agency.
And please remember that the company, its shareholder employees, and many other shareholders are in the Seattle area. Ask the SEC why they are not investigating!
Very truly yours,
[followed by SEC letter at bottom]
* * * * *
July 30, 2009
Senator Ted Kaufman
Via Web Mail
Dear Senator Kaufman:
Thank you for keeping the pressure on the SEC to rein in short selling. For many years I published the Overpriced Stock Service, a leading short-sale newsletter. While I continue to think there is great value in selling short companies that are drastically overpriced and/or frauds, there is absolutely no need for the short selling abuses we have seen: Naked short selling, coordinated rumor-mongering, “running the stops,” and so on.
Wall Street does not take the SEC seriously on this issue because they don’t investigate even the most blatant examples of abusive shorting, and they won’t publish the list of short sellers in a company’s stock, just as they publish the list of long holders. A recent example of a blatant situation that the SEC refuses to investigate is Dendreon Corp, the victim of an organized bear raid on its stock in the Nasdaq Stock Market on April 28. The purpose of the bear raid was to “run the stops” of individual investors to force the sale of their stock at low prices. The bear raid ran the stock from $25 to $7.50 in 75 seconds. More than 4,000 trades were placed, totaling three million shares, or about 50% of Dendreon’s (spectacularly high) average daily volume, causing Dendreon’s share price to lose more than 65% of its value. The conspirators then bought the low-priced stock to cover their naked short sales and closed the stock at $11.81. The next day the stock opened at $27, the conspirators unloaded their stock, and the average investor was fleeced. DNDN stock closed that day at $22.84.
I immediately wrote the SEC and they have done nothing to investigate this obvious manipulation. Nasdaq has done nothing after a 30 minute investigation. I am asking you to hold the SEC’s feet to the fire on this one, because unlike most of these manipulations this one left clear footprints. Some braggart posted on the Yahoo message boards that the raid was coming, and predicted it almost to the minute. They may have been a low-level conspirator, but for once the SEC has the key to break this ring of conspirators, and they are not moving forward.
Below is my letter to the SEC. This game has gone on for years, and the numbers aren’t as big as the Madoff Ponzi scheme, but it is exactly what the SEC regulators should be pursing if they want to repair their image on Wall Street as a toothless agency.
Please ask the SEC why they are not investigating! Also see http://www.deepcapture.com/michael-milken-60000-deaths-and-the-story-of-dendreon-chapter-1-of-15/ The SEC is up against thugs and the Russian Mafia, and everyone in the stock market knows it and expects them to do nothing, as usual.
My letter to the SEC:
The very unusual 65% drop in Dendreon (DNDN) shares on April 28 in a period of 75 seconds, just before they reported excellent clinical trial results, is worth your investigation. I have been a professional investor for 39 years, and this looked like an illegal conspiracy to run the stop losses. The stock went from around $23 to $8 in less than two minutes, and then was closed for trading as it rebounded to the mid-$11s. The next day, after the results, it opened up 100%. But many investors had been stopped out of the stock with “low” stop losses in the teens. One of my subscribers set a stop at $16.50 and was filled at $8.
This sort of organized market manipulation rarely leaves tracks, but this time it did. A new poster on the Yahoo Message Board for DNDN warned of a bear raid almost to the minute. How did he know? Who does he work for?
Here is his first post:
28-Apr-09 11:07 am 32. URGENT ALERT BEAR RAID @ 12 30 pm central Today
Expect Massive BEAR RAID this afternoon @ 12 30 pm central last trade 24 suggest you sell short into strength MASSIVE BEAR RAID coming.. TODAY
Business & Finance > Investments > Stocks (A to Z) > Stocks D > Dendreon Corporation (DNDN) monthaphumchare…
Here are some others from the same morning:
27. as a COURTESY I am alerting this board DNDN BEAR RAID today
u should be positioning on the short side of DNDN right now at 24 and on any additional strength ahead of conference by 12 30 stock will be in the throes of a MASSIVE BEAR RAID smart $ has a BIG…
Business & Finance > Investments > Stocks (A to Z) > Stocks D > Dendreon Corporation (DNDN) monthaphumchare… 28-Apr-09 11:27 am
28. See u @ 17 today MASSIVE BEAR RAID
suggest you position @ current price 24.08 for expected massive bear raid today 12 30 pm central
Business & Finance > Investments > Stocks (A to Z) > Stocks D > Dendreon Corporation (DNDN) monthaphumchare… 28-Apr-09 11:20 am
29. CNBC suckering U in Bear Raid coming
MASSIVE BEAR RAID today 12 30 pm central
Business & Finance > Investments > Stocks (A to Z) > Stocks D > Dendreon Corporation (DNDN) monthaphumchare… 28-Apr-09 11:12 am
30. Re: URGENT ALERT BEAR RAID @ 12 30 pm central Today
HIGH Probability stock trades down to 17 today on Bear Raid after presentation Outside chance stock drops 50 %
Business & Finance > Investments > Stocks (A to Z) > Stocks D > Dendreon Corporation (DNDN) monthaphumchare… 28-Apr-09 11:10 am
31. Re: URGENT ALERT BEAR RAID @ 12 30 pm central Today 
Suggest you SELL SHORT last trade 24.09 continue to sell short on any additional strength ahead of 12 20 pm presentation by 12 30 pm today you will witness a MASSIVE BEAR RAID DNDN
Business & Finance > Investments > Stocks (A to Z) > Stocks D > Dendreon Corporation (DNDN) monthaphumchare…
Please don’t give this one a pass. Many hundreds of individual investors were harmed by an obvious market manipulation, most likely involving more than one entity and therefore a RICO violation.
Very truly yours,
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