God Protect America’s Economy From Herbert Allison

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[Policing Wall Street: Comment]

Once again another good old buddy from the American Stock Exchange has found happiness and warmth in the Administration of President Barack Obama.

Herbert M. Allison Jr., who possesses dubious qualifications in financial matters, is currently serving as Assistant Secretary of the Treasury for Financial Stability.

Allison also oversees the Troubled Asset Relief Program, TARP. In September 2008 Allison was appointed President and Chief Executive Officer of Fannie Mae; a perfect post for a man of his “character” as I will show below.

From 2003 to 2005 Allison served as a member of the Board of the New York Stock Exchange. Allison, who at the time was President of TIAA-CREF, served on the financial committee of the NYSE. Allison was on the compensation committee, which unanimously approved the excessive $140 million compensation to Richard Grasso, then Chairman of the NYSE. 

Everyone on Wall Street except Grasso’s cronies expressed revulsion at Grasso’s pay scale-even Jim Cayne, Chairman of Bear Stearns, expressed revulsion at the enormity of Grasso’s pay. 

But Allison, a hand-picked crony of Grasso, believed that $140 million was fair pay for Grasso. But it is during his tenure as Executive Vice President of Merrill Lynch and as a member of the Board of the American Stock Exchange that I determined that Herbert M. Allison was not up to the task.

It was Allison’s refusal to establish firm managerial control of Wagner Stott Clearing Corporation, a subsidiary of Merrill Lynch later known as Merrill Lynch Professional Clearing, that enabled criminals at the American Stock Exchange to defraud the public.  I will briefly mention several of these criminal activities, which occurred in the early 1990s. 

Alfred Avasso, who openly boasted of being a “front man” for the Italian Mafia, successfully pulled off two Mafia controlled stock frauds, Greyhound Electronics and PNF from the offices of Wagner Stott.

Rector Capital, a trading firm which sublet offices and cleared through Wagner Stott, masterminded the stock fraud, Play Video.
The insider trading scandal, Motel 6, was launched from the offices of Wagner Stott Clearing Corporation.

Each of these crimes was accomplished with the knowledge and assistance of the Vice Presidents of Merrill Lynch, who were ensconced in the offices of Wagner Stott.

But Allison’s defining moment came as a member of the Board of the American Stock Exchange. On November 13, 1996 I wrote a letter, (certified mail Z 226 603 031) to Allison in his position as a member of the Board of the AMEX. I listed the criminal activities at the American Stock Exchange. 

I described in detail, the stock fraud PNF, which originated in the offices of Wagner Stott, a subsidiary of Merrill Lynch, which was situated at Two Rector Street in Manhattan. 

I have considerable knowledge, since I had cleared my trades through Wagner Stott, which was later known as Merrill Lynch Professional Clearing, for several years and rented a small office from Wagner Stott. 

I detailed the PNF stock fraud, including Al Avasso’s illegal payments so that PNF would be listed on the American Stock Exchange. I mentioned that the FBI had been investigating Robert VanCaneghan and Louis Miceli, two former members of the Board of the American Stock Exchange, for their complicity in the stock fraud, PNF. 

This included payoffs from Avasso to Miceli and VanCaneghan.

In the letter, I detailed the theft of $500,000 from the American Stock Exchange by Charles Diecidue, former Vice President of Purchasing and Director of Security, and the complicity of the Senior Executive Vice President of the American Stock Exchange in these thefts.

Allison did nothing. With Allison at Treasury, I fear for America.


Please feel free to post your comments directly online or submit them to milton@blackstarnews.com

"Speaking Truth To Empower."


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