Litigation

The SEC investigation of Overstock was because Patrick Byrne is trying to expose corruption on Wall Street?

By Tracy Coenen

That appears to be what Patrick Byrne is suggesting in this interview. The story keeps changing. At one point, Patrick said he and Overstock.com (NASDAQ:OSTK) weren’t really the target of the SEC investigation. Rather, the investigation was focused on others (hence the “celebration” of subpoenas). When the SEC issued a no-action letter, suddenly the investigation really was about Overstock and Patrick, and they were vindicated (according to their supporters).

Byrne blathers and I paraphrase….

A dozen hedge funds. A dozen reporters. Reports shill for hedge funds. There are investigations. There are investigations of investigations. Patrick predicted it all. The “meltdown” has occurred. Reporters are now quiet because they helped cover up crimes. Uh-huh.

Patrick doesn’t say there’s a conspiracy. He just gives data. Doesn’t say conspiracy. It’s really like Al-Queda - a network of people.

Everyone agrees with Patrick: Naked shorting exists and everyone agrees that zillions of dollars have been lost. The “internal affairs” department of the SEC is now investigating the SEC for failing do to anything about naked shorting. Again - anyone who brought up the issue of naked short selling became an SEC target.

The financial press makes Patrick “throw up in his mouth a little.” Herb Greenberg, Roddy Boyd… they’re in on the cover-up. [Start at 17:55] A “guy” from Columbia Journalism Review studied Herb Greenberg and concluded that he has spent the last 20 years writing on behalf of a few hedge funds. He’s a pawn who writes what they tell him to.

And we’ve got the secret computer! There are 8,000 emails on it that prove a “certain hedge fund” operating through a “law firm.” Michelle McDonough (a “convicted stock swindler”) who “gives instructions” to “certain message board posters” about “what to say.” She also gives instructions to reporters like Roddy Boyd, and tells them what to write.

Gary Weiss is “absolutely” taking his orders from a hedge fund.

I listened to the whole thing, but the conspiracy theories (which Patrick doesn’t call conspiracy theories - GET IT RIGHT PEOPLE) are so loopy that it’s hard to sum up the rant decently.

But it’s not a conspiracy. It’s like Al-Qaeda. Not a conspiracy. Yeah. Not a conspiracy. (Anyone having flashbacks to the movie Rain Man?)

This is also a good time to mention that the guy “from the Columbia Journalism Review” is apparently Mark Mitchell, Byrne’s paid shill, who was escorted (completely metaphorically, of course) from CJR under mysterious circumstances. Obviously, what he says about Herb or anyone else is highly suspect.

Full post as published by The FRAUDfiles Blog on June 30, 2008 (boomark / email).