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To the US Department of Justice.
(The World's Biggest Fraud!)
Silver Stock Report
by Jason Hommel, April 8th, 2010
antitrust.complaints~usdoi.~.ov
Citizen Complaint Center
2-mtitrust Division
950 Pennsylvania Ave., NW
Room 3322
Washington, DC 20530
Re: Reporting Antitrust Concerns
http:/iwww.justice.sov/atr/contact/newcase.htm#submit
Step 1" Full), Describe Your Concern
l. What are the names of companies, individuals, or organizations that are involved?
The CFTC, the Commodity Futures Trading Commission, is withholding the names, with the
excgse 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 COIvIEX, owned by the CME Group, also has the data on who is primarily involved, as the
antiu'ust violaters trade on their exchange, http://finance.yahoo com/q?~=cme.
JPMorgan Chase & Co. has been named by thousands of writers in the private sector, all over
the interact, based
on
the reports of the BIS, the Bank of International Settlements and the OCC,
the Office of the Comptroller oft.he 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 ,IPMorgan Chase & Co. is heavily involved, far more than any other, in
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derivatives, exceeding $72 trillion.
,]-PMorgan Chase & Co,
270 Park Avenue
New York, NY 10017
http ://www, occ.treas, gov!ftp/release/2 O0 9-16 ! a,p,df.
2. How do you believe they hm, e violated the federal antitrust laws? (riot' details" on federal antitrust
laws, see Antitrust Laws and You.).http://www.iustice.!~ov/atr/laws
htm
RE: Sherman Antitrust Act
This Act expresses our national commitment to a free mar'ket economk #~ which competition free fro!
private and governmental restrab~ts leads to the best re~.'ults for consumers, This Act outImvs all
contracts; combinations, a~M conspiracies that unreasonably restrain interstate and foreign trade. This
includes agT'eemet~ts among competitors to fix prices, rig bids, and allocate em'tomers; 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 XPMorgan 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 teat does not
exist, in an attempt to contain, thwart, suppress, and manipulate the price of silver lower than it should be,
mad otherwise would be.
RE: The Sherman Act also makes it a crime to monopolize anypart ojinterstate commerce. An unlm@l
monopoly exists when only one firm eono'ols the market for a product or service, and it has obtained that
market power, not because its product or sera, ice is superior to others, but by suppressing competition
with antic_om~etitive 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 finaacial solvency of
JPMorgan Chase & Co. for its value; and paper silver will lose all value ifJPMorgan 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
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This Act is a civil statute (carrying no criminal penalties) that prohibits mer,gers or acquisitions that
are likely to lessen competition.
Under this Act, the government challenges those mergers that earefid
economic analysis shows are likely to increase prices to consumers.
All 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
eireumstanee.~'.
The Clayton Act was likely violated when ,lPMorgan Chase & Co. acquired Bear Stearns, and inherited
their short position in silver, giving lPMorgan 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.
The Department of Justice also often uses other laws to fight illegal activities, including lm~,s that
prohibit.false statements to federal agencies, perjur~, obstruction o[iustiee, conspiracies to defraud ~he
United States and mail q~:~d,, w.ire fraud.
The BIS, the Bank of International Settlements indicates that the notionaI value of "other pi-ecio~s
metals" (silver) in the "over the counter" category increased to $203 billion by Ytme of 2009.
httl) ://www ,bis. org,/statistics/otcder/ dl21
c22a.pdf
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 1i20th of the amount owed in these bullion accotmts, 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 our~ces 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 Portzi scheme of selling silver to clients, without
actually purchasing the real physical silver in t_he marketplace, which is a totally frauduIent and illegal
activity.
JPMorgan Chase & Co. is likely engaged in sending false brokerage statements to account holders of
unsecured bullion accoums, and thus, is 1.ik 1¥ engaged in both mail fraud and wire fraud.
JPMorgan Chase & Co. is likely engaged in defrauding~.ll~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 illdustry.
3. Can you give examples of the conduct that yotl 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.
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See
A London trader walks the CFTC through a silver manipulation in advance
By: Bill Murphy, Gold Anti-Trust Action Committee
http://news.silverseek.eom/SilverSeek/1269625544.php
Andrew provides detailed, blow by blow acts of price manipulation, givir~g specifics, in real time,
through emails to the CFTC about the manipulation in progress. His report is highly detailed.
4. What is the product or service affected by this conduct? Wl~ere 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 manipulatior~ 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 of hundreds of thousands of other people aroand the world. I
have been working te expose this manipulation since 2002, as I wrote, and spent over $500,000 to
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publicize, articles such as:
The Moral Failures of the Paper L, on~ Jan 22, 2003
CFTC Response to Silver Problem Jan 14, 2003
.People Talkin£ 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
Refutin~ Myths about Gold Oct 28, 2002
Controllin~ Gold with Paper June 10, 2002
Im~endinz CMay 29, 2002
7. \Vho 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 tech~aology 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 catastrop.hicall7 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 Pon.zi 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" fi'aud is also supported by silver
price manipulatioa. 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, J-PMarl~an 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 rislcs
sending the entire world into
a severe depression that
risks famine on a world scale ualike what has ever
been seen
before in world history, and could
therefore cau,~e 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 God 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 following articles, or excerpts:
The Silver Boom Is Coming!
by Richard Daughty
April 6, 2010
http://www.lewrockwell.corn]daughtWm.ogambo38.1 .html
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Key Excerpt:
JeffNielson, 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./torme = 38,581,200 oz.
Silver Short Squeeze Could Be Imminent
April 3, 2010
http://inflation.usisilvershortsqueeze.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 l~een persistently
that way for decades" and there are "any number of mechanisms allowing for cash settlements".
Kingdom Economies Blog: Biggest Fraud in History Exposed
FED and JP Morgan Chase appear to be manipulating Gold!Silver Market
4-5-2010
.http:!/blo ft..kin, gdomeconomi cs.info/2010/04/05/bi~Rest-fraud-in-history-expo
sed.aspx
Key Excerpt:
What does this mean for the future price of gold and silver? Now that this fraud on the market has been
exposed for what it is -- traders wili eventually call the bluff of the manipulators and expose their naked
short position. This could mean that the mmaipulators will need to fred 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 $i 128.80.
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 ha~,e 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, t~xcept some °f~eworks' 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 $10,000/ounce?
April 03, 2010
.http :/iwww, commodit¥online.corn/news/Will-fraud.lift:f!old-prices_to.$10000otmce-271.
07-3-1 .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 -- $10000 per mince?
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Maybe, even more, Because, price of a commodity which is not available at all can go up to any level due
to the sheer fact that it is not there in the market.
Now read about the Commodity Futures Trading Commission (CFTC) heanng last week about a
London
whistle-blower who had explained to the CFTC how JP Morgan Chase has been manipulating/capping
precious metal prices. In a shocking parallel to the inaction by the US Securities and Exchange
Commission (sEe) after receiving warnings from Harry Markopolos about the Madoffponzi, the CFTC
has apparently been sitting on the information on gold cartels.
Did you visit the websites of OATA and CFTC this week? If you do, you can see a lot of articles and
responses from investors who have been keenly watching the developments in bullion market.
Gold, Silver, the CFTC & Conspiracy Theories
April 2, 2010
http://news, goldseek.com/GoldSeeld1270188480.php.
Key Excerpt:
Well, if you read the Wall Street Journal, you'll never know what happened at the hearing and whether
the CFTC paid any attention to them, but, if you look elsewhere, you'll read about all kinds of interesting
developments during and after the meeting.
Here's a partial list:
OATA'$ vvi.qt~l~qe o['silver and gold manipulation at CFTC hearing
- Mineweb
C FTC Gets Fact~ O
f
B~llign M, gnJpplation-
Numismas~er
JP Morgan Chase Cau,:ht Mail.~kgtin_~
Gold & Silver Market - Firedog Lake
3~thistleblower Speaks Out On JP Morgan Market Mani~u, kg;'o,[0~ - Jesse's Care
Former Ooldman,3,naly.st Confmms LMBA Gold Market ls "Paper Gold"
Ponz~ - Zero Hedge
Whlstleblower in Silver M~nil?~lation Struck by Hit and Run Car .tn London
- Jesse's Care
.K. in£
World lnterv[qw wj~.lk~bndrew
Ma.~u[re the Silver Market 'Whistleb!ower'
- Jesse's Cafe
King Interview With GATA .On The BiRaest GoId Manipulation Stow Di{elg~t
- Zero Hedge
Perhaps we all ought to submit this story to americanKreed@cnbc,com ?
http://www.cnbc.com/id/22680.9__20i
Then again, they are about as likely to expose this story as the Russian media was about to expose
communism in government. What's ironic is that pravda is more likely to cover this story than the
mainstream US media.
h_ttp:/!english.pravda.ru/
[email protected]
amerieanareed@cnbc, corn
4/8/2010
