Old Wall Street Friends Bring Unpleasant Memories

[Policing Wall Street]

Once again another one of my good old friends is in the news.  Such unpleasant memories.

I am always reading of the “importance” of people like Paul Volcker, Burton Malkiel, Philip Frost, Mario Gabelli, Martin Feldstein, Richard Ravitch, Alan Blinder and other notables who were once members of the Board of the American Stock Exchange, and the “great” things they’ve done. 

Yet, in my own experience, these “famous” individuals lacked any concept of morality.

In previous columns, I dealt with the erroneously revered Volker.

See http://www.blackstarnews.com/news/135/ARTICLE/5730/2009-06-01.html

Also see http://www.blackstarnews.com/news/135/ARTICLE/5685/2009-05-17.html


Now my old AMEX buddy, Richard Ravitch, a former member of the Board of the Amex, has been sworn in as Lieutenant Governor of the State of New York.  

In previous columns I exploded the myth of Paul Volcker as a model of probity, both financial and moral.

When Ravitch was a member of the Board of the Amex I wrote him a letter, dated 26 February 1996, which was sent via certified mail P 228 322 703, exposing several transgressions then occurring on Wall Street.  

The authorities knew as a Wall Street trader, I had some considerable knowledge. The FBI even wired me to help collect information on
corruption and other crimes on Wall Street, and I informed Ravitch of this.

In the letter, I detailed alleged Mafia links between Al Avasso, the initiator of the stock fraud, at a company called PNF, and Louis Miceli and Robert VanCaneghan, two members of the Board of the AMEX who were the specialists in the stock fraud, PNF- and the stock market manipulation of
PNF.

I provided information concerning the links between Steven Lister, Senior Vice President of Compliance at the American Stock Exchange, and Al Avasso, in the stock fraud, PNF.  This information included alleged illegal payoffs.

I discussed the massive illegal trading of Pat Schettino, a managing director of Spear Leeds and Kellogg, for the account of Bulls eye Securities.  I explained how Schettino had violated the net capital rule, which mandates that a certain amount of capital be in an account to cover stock purchases. 

I then provided specific information concerning Schettino’s manipulation of the price of stocks in which Spear Leeds and Kellogg was the Specialist.  Furthermore, I showed that the AMEX was covering up Schettino’s illegal trading in the hope that it would go unnoticed in the press.

I presented Ravitch with information concerning the theft of $3 million by Brian McCahery from the coffers of U S Equity Management, an AMEX member firm.  McCahery had pleaded guilty to the theft of $3 million and was sentenced to prison-but only because his public investors demanded McCahery’s imprisonment. 

I also stated that Steven Lister, who was in charge of member firm regulation, had permitted U S Equity Management to continue to be a member of the American Stock Exchange until April 1995 even though the SEC had suspended the broker dealer of U S Equity in November 1994.  I stated that there were existed a monetary relationship between Lister and McCahery-something that the AMEX refused to investigate.

Why?  Because Lister was in charge of the investigation.

Furthermore, I informed Ravitch that McCahery had paid off AMEX employees; Mary Jo White, then United States Attorney, did not charge him, even though McCahery had provided proof of these illegal pay-offs.

I also provided detailed information to Ravitch concerning the sexual assaults of female employees of Bear Stearns by a member of the AMEX Board. 

I never heard from Ravitch. Now he’s the Lt. Governor?

God save New York.