Comment Text:
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Matt
Wednesday, April 14, 2010 2:16 AM
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Reporting Anti-trust Concerns to the Department of Justice
To the US Department of Justice,
I am contacting the DOJ reguarding the current fraud we are experiencing in the silver and gold
market. Below you will find the questions as requested on your website
at http://www.justice.gov/atr/contact/newcase.htm#submit
and the answers to those questions. I
suggest the DOJ begin looking into this issue immediately.
Respectfully,
Matt Fultz
Following information provided by: Jason Hommel of www.silverstockreport.com
Step !: Fully Describe Your Concern
1. What ore the names of companies, individuals, or organizations that ore involved?
The CFTC, the Commodity Futures Trading Commission, is withholding the names, with
the excuse given that they cannot reveal the names, because of statute. But, a statute,
which may violate other laws, is no excuse for obstruction of justice, dereliction of duty,
misprison of fraud, or conspiracy to defraud the United States.
The COMEX, owned by the CME Group, also has the data on who is primarily involved,
as the antitrust violaters trade on their exchange,
http://finance.yahoo.com/q?s=cme10-005
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JPMorgan Chase & Co. has been named by thousands of writers in the private sector, all
over the internet, based on the reports of the BIS, the Bank of International Settlements
and the OCC, the Office of the Comptroller of the Currency at the US Treasury, that they
manipulate the precious metals markets by fraudulently selling metal that does not exist.
This Bank report indicates that JPMorgan Chase & Co. is heavily involved, far more than
any other, in derivatives, exceeding $72 trillion.
JPMorgan Chase & Co.
270 Park Avenue
New York, NY 10017
http://www.occ.treas, g ov/ftp/release/2009-161 a.pdf
2. How do you believe they have violated the federal antitrust laws ? (For details on federal
antitrust laws, see Antitrust Laws and You.)
h ttp.//www.ju s tic e. g o v/a tr//a ws. htm
RE. Sherman Antitrust Act
This Act expresses our national commitment to a free market economy in which
competition free from private and govemmenta/ restraints leads to the best results for
consumers. This Act outlaws all contracts, combinations, and conspiracies that
unreasonably restrain interstate and foreign trade. This includes agreements among
competitors to fix prices, rig bids, and allocate customers, which are punishable as
criminal felonies.
JPMorgan Chase & Co. holds a large, concentrated, short position in silver futures
contracts at the COMEX that allows them to unreasonably fix prices for silver lower than
they should be, which resulted in widespread shortages of retail bullion, and 1000 oz.
silver bars, over several months in 2008, at which time, I became a bullion dealer to help
relieve the shortages caused by this price manipulation. I had to wait up to 5 weeks for
delivery of 1000 oz. bars from one of the world's largest wholesale suppliers at the time.
It has been estimated that JPMorgan Chase & Co. has held up to, and over, 90% of the
commercial short interest in silver futures contracts, essentially dumping silver on the
market, silver that does not exist, in an attempt to contain, thwart, suppress, and
manipulate the price of silver lower than it should be, and otherwise would be.
RE. The Sherman Act also makes it a crime to monopolize any part of interstate
commerce. An unlawful monopoly exists when only one firm controls the market for a
product or service, and it has obtained that market power, not because its product or10-005
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service is superior to others, but by suppressing competition with anticompetitive conduct.
World silver prices are monopolized by this price manipulation that takes place at the
COMEX, and also in the London market, which is even more heavily leveraged due to
excessive selling of silver on paper that does not exist in the real world. Their primary
product, "silver on paper" is clearly inferior to real silver, in that the key difference is that
real silver does not depend upon the financial solvency of JPMorgan Chase & Co. for its
value; and paper silver will lose all value if JPMorgan Chase & Co. goes bankrupt.
Competition for real silver as an asset is suppressed by their choice to sell paper silver at
a discount to the costs of delivering real physical silver, which must include shipping,
manufacturing, and mining costs. Other popular forms of silver for investment, such as
100 oz. bars, and 10 oz. bars, and 1 oz. rounds also include manufacturing costs, which
are also not included in their "paper silver" investment products, such as the ETF, SLV,
futures contracts at COMEX, options on futures contracts at COMEX, and the standard
LBMA "unsecured bullion accounts".
RE. The Clayton Act
This Act is a civil statute (carrying no criminal penalties) that prohibits mergers or
acquisitions that are/ike/v to lessen competition.
Under this Act, the government
challenges those mergers that careful economic analysis shows are likely to increase
prices to consumers.
A//persons considering a merger or acquisition above a certain size
must notify both the Antitrust Division and the Federal Trade Commission. The Act also
prohibits other business practices that may harm competition under certain
circumstances.
The Clayton Act was likely violated when JPMorgan Chase & Co. acquired Bear Stearns,
and inherited their short position in silver, giving JPMorgan Chase & Co. even more
control over silver market prices, due to their even larger and more concentrated short
position. "Higher prices for consumers" is a result if the consumers are silver investors,
and if they lose the value of their silver, and thus, have to pay relatively higher prices for
everything else in the economy as a result.
RE."
The Department of Justice also often uses other laws to fight illegal activities, including
laws that prohibit false statements to federal agencies, per/ury, obstruction of/ustice,
conspiracies to defraud the United States and mail and wire fraud.
The BIS, the Bank of International Settlements indicates that the notional value of "other
precious metals" (silver) in the "over the counter" category increased to $203 billion by
June of 2009.
http://www, bis.org/statistics/otcd er/dt21 c22a. pdf10-005
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Yet, the entire world's annual production of silver, at about 600 million oz., at $17/oz., is
barely $10 billion, which is a mere 1/20th of the amount owed in these bullion accounts,
which are dominated by JP Morgan. But the $203 billion of mostly silver, is 12 billion
ounces of silver, which is 24 times world annual production, and perhaps 100 to 160 times
the actual supply of physical silver held in London for delivery against such accounts,
which may be as little as 75 million ounces or less.
JPMorgan Chase & Co. is also the custodian of the ETF, SLV, which is supposed to have
up to 300 million ounces held by JP Morgan, which is also likely not there.
JPMorgan Chase & Co. is thus likely engaged in a Ponzi scheme of selling silver to
clients, without actually purchasing the real physical silver in the marketplace, which is a
totally fraudulent and illegal activity.
JPMorgan Chase & Co. is likely engaged in sending false brokerage statements to
account holders of unsecured bullion accounts, and thus, is likely engaged in both mail
fraud and wire fraud.
JPMorgan Chase & Co. is likely engaged in
defrauding the United States Government by
manipulating silver prices low, by selling excessive amounts of "paper silver", which
creates the false illusion of abundance of silver, which creates the illusion of a false sense
of availability of silver, which is likely needed by the Department of Defense for the
national security of the United States, as silver is vital and necessary element for the
defense industry.
3. Can you give examples of the conduct that you believe violates the antitrust laws ? If so,
please provide as much detail as possible.
Yes. Andrew Maguire, a silver trader, who knows the silver traders who work for
JPMorgan Chase & Co., testified to GATA, and to the CFTC in the recent hearing on
March 25th, 2010.
See
A London trader walks the CFTC through a silver manipulation in advance
By: Bill Murphy, Gold Anti-Trust Action Committee
http://news.silverseek.com/SilverSeek/1269625544.php
Andrew provides detailed, blow by blow acts of price manipulation, giving specifics, in real
time, through emails to the CFTC about the manipulation in progress. His report is highly
detailed.10-005
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4. What is the product or service affected by this conduct? Where is the product manufactured
or sold, or where is the service provided?
Good question. The product is silver. Real silver is sold through approximately 4000 coin
shops nationwide in the USA. A low, manipulated price, hurts and suppresses the
business volumes of those businesses. Even more directly, a low silver price hurts the
worldwide industry of silver mining. Most silver, about 75% is produced as a by-product of
copper, lead, and zinc mining. And many primary silver mines produce gold, copper, lead,
and zinc as by-products. Thus, a low silver price that suppresses silver mining also
restricts the supplies of gold, copper, lead, and zinc, which leads to higher prices for all of
those other commodities than would otherwise be the case. The world could have more
abundant, and thus cheaper, gold, copper, lead, and zinc, which are desperately needed
for the continued industrialization of the entire world, if it were not for the silver price
suppression manipulation scheme in progress.
Silver is primarily produced in North and South America, so this is a direct assault on a
large section of the world's economy, which is, of course, a much smaller industry as a
result.
5. Who are the major competitors that sell the product or provide the service ?
The largest refiner of silver in the world is likely Penoles of Mexico, who may refine about
70 million ounces of silver per year, over 10% of the world's supply. The second largest
source is likely the Cannington silver mine owned by BHP Billiton, which produces about
30-40 million ounces of silver per year. The largest silver refiner in the USA is Johnson-
Matthey, who also might have been engaged in illegal allocation of 100 oz. silver bars
back in 2008, as their primary retailer had a wait list of over 2 months for delivery in 2008
as a result of their complicit actions in the price fixing scheme. They refused to allocate
silver to the highest bidder at the time. At that time, I helped pioneer the development of a
silver auction website, with the owner of silverseek.com, who created seekbullion.com,
which sold over 10,000 oz. of silver per day to the highest bidder for a few days during a
time of a national and worldwide silver shortage that resulted from the illegal price fixing.
6. What is your role in the situation in question ?
Another very good question. I invested in silver, starting in 1998. I have been advocating
silver as an investment since then, as can be seen at silverstockreport.com, which also
has an email newsletter that reaches out to 80,000 readers. The price manipulation has
negatively impacted the success of my own investment choice, and the investments of10-005
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hundreds of thousands of other people around the world. I have been working to expose
this manipulation since 2002, as I wrote, and spent over $500,000 to publicize, articles
such as:
The Moral Failures of the Paper Lonqs Jan 22, 2003
CFTC Response to Silver Problem Jan 14, 2003
People Talking About $32,567/oz Jan 10, 2003
Letter To Authorities of Silver Markets Jan 6, 2003
Why no talk of $32,567/oz ? Jan 2, 2003
Refuting Myths about Gold Oct 28, 2002
Controlling Gold with Paper June 10, 2002
Impending Gold Futures Default May 29, 2002
Who is harmed by the alleged violations ? How are they harmed?
As I have said, silver investors who need to sell their silver for their retirement are
primarily the ones harmed. But also,
silver mining is suppressed, which hurts companies
working to develop technology to explore for silver. It hurts engineers and builder who
develop mines. It hurts and restricts the production of silver byproducts, which raises the
prices for gold, copper, zinc, and lead, which restricts industrial development worldwide.
But primarily, it will catastrophically hurt holders of American dollars in the future, as they
are currently being lulled into a false sense of security about the false and fraudulent
value of US Dollars, or more accurately, Federal Reserve Notes, which stand to lose
value rapidly as the fraud of selling silver that does not exist gets exposed.
Thus, the silver fraud is a small part of the Ponzi Scheme on which rests the much larger
Ponzi scheme of the US Dollar itself, a $14-16 Trillion fraud, and also, the much larger US
Bond market, which may exceed $30-40 trillion. Further, the $70 Trillion "interest rate
derivative" fraud is also supported by silver price manipulation. Inflation-indexed bonds
are also sold as a competing investment to silver, and so, by hurting the silver price, or by
making the silver price seem dangerously volatile by way of direct price manipulation,
JPMorgan Chase & Co. supports its entire mountain of paper investment products, which
it clearly dominates in world trade.
The silver price suppression scheme, and the resulting failure of paper money, and the
resulting collapse of commerce and world trade risks sending the entire world into a
severe depression that risks famine on a world scale unlike what has ever been seen
before in world history, and could therefore cause the direct deaths of anywhere up to a
third of all humans on earth, or even more.
Please pause now, and reflect on that for a moment. You may wish to consider and ask
yourself if you want that on your conscience, or if you want to be blamed for that, by God10-005
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himself, in the eternal reckoning that must come due for all men, if you decide to do
nothing to stop the fraud on progress, that could potentially cause so much devastation.
For more information, please see the followinq articles, or excerpts:
The Silver Boom Is Coming!
by Richard Daughty
April 6, 2010
http://www.lewrockwell.com/daughty/mogambo38.1 .html
Key Excerpt:
Jeff Nielson, writing in the James Cook Market Update newsletter, who says that because
silver kills the bacteria that causes body odor, "the use of silver in sportswear has
exploded into one of the largest single applications of silver. This one usage already
consumes more than 1,200 TONS of silver per year."
1200 tonnes x 32,151 oz./tonne = 38,581,200 oz.
Silver Short Squeeze Could Be Imminent
April 3, 2010
http://inflation.us/silvershortsqueeze.html
Key Excerpt:
NIA believes the precious metals markets are currently being artificially suppressed by
paper gold and silver that doesn't physically exist. At last week's CFTC hearings, Jeffrey
Christian of the CPM Group admitted that banks have leveraged their physical bullion by
100 to 1. This means for every 100 ounces of paper gold/silver that trade, there could be
as little as 1 ounce of physical gold/silver in the vaults backing it. However, Mr. Christian
sees no problem with this because he says "it has been persistently that way for decades"
and there are "any number of mechanisms allowing for cash settlements".
Kingdom Economics B/og: Biggest Fraud in History Exposed
FED and JP Morgan Chase appear to be manipulating Gold/Silver Market
4-5-2010
http://blog, kin g domeconomics, info/2010/04/05/big gest-frau d-in-history-exposed .aspx
Key Excerpt:
What does this mean for the future price of gold and silver? Now that this fraud on the10-005
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market has been exposed for what it is -- traders will eventually call the bluff of the
manipulators and expose their naked short position. This could mean that the
manipulators will need to find physical gold and/or silver to cover their position. And with
these metals now being in short supply (relative to demand) we could see the PRICE of
silver and gold increase dramatically in the next few months. Silver is currently at
$17.97/ounce and gold is $1128.80.
I would not be surprised to see silver exceed $25 by the end of 2010 and gold exceed
$1500. And this may be just the start of the increases in price for these metals. What we
have today is psychological money and it moves globally with the emotions of traders.
Prices are artificial (imaginary) and the market is very volatile and emotional today. Except
some 'fireworks' in the silver/gold markets in the near future. See this web site for more
details on this issue:
Will fraud lift gold prices to $1 O, O00/ounce ?
April 03, 2010
http://www.com modityon line. com/news/Will-frau d-lift-gold-prices-to-$10000ou n ce-27107-
3-1 .html
Key Excerpt:
In fact, there is no gold left in this world if all the Gold ETFs ask for physical delivery. And,
if that happens only god knows what will be the gold prices in the coming months --
$10000 per ounce? Maybe, even more. Because, price of a commodity which is not
available at all can go up to any level due to the sheer fact that it is not there in the
market.
Now read about the Commodity Futures Trading Commission (CFTC) hearing last week
about a London whistle-blower who had explained to the CFTC how JP Morgan Chase
has been manipulating/capping precious metal prices. In a shocking parallel to the
inaction by the US Securities and Exchange Commission (SEC) after receiving warnings
from Harry Markopolos about the Madoff ponzi, the CFTC has apparently been sitting on
the information on gold cartels.
Did you visit the websites of GATA and CFTC this week? If you do, you can see a lot of
articles and responses from investors who have been keenly watching the developments
in bullion market.
Gold, Silver, the CFTC & Conspiracy Theories
April 2, 201010-005
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http://n ews. goldseek, com/Gold See k/1270188480.php
Key Excerpt:
Well, if you read the Wall Street Journal, you'll never know what happened at the hearing
and whether the CFTC paid any attention to them, but, if you look elsewhere, you'll read
about all kinds of interesting developments during and after the meeting.
Here's a partial list:
GATA's evidence of silver and gold manipulation at CFTC hearing - Mineweb
CFTC Gets Facts of Bullion Manipulation
- Numismaster
JP Morgan Chase Caught Manipulating Gold & Silver Market -
Firedog Lake
Whistleblower Speaks Out On JP Morgan Market Manipulation
- Jesse's Cafe
Former Goldman Analyst Confirms LMBA Gold Market Is "Paper Gold" Ponzi
- Zero Hedge
Whistleblower in Silver Manipulation Struck by Hit and Run Car In London
- Jesse's Cafe
King World Interview with Andrew Ma,quire the Silver Market 'Whistleblower'
- Jesse's Cafe
King Interview With GATA On The Biggest Gold Manipulation Story Disclosed
- Zero Hedge
