Whistleblower appeal to the SEC over a denied award claim, April 2020

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GGSI Bahamas is Now Offering Pink Sheet Clearance¶

Offshore Broker Adds to Buying and Selling Services¶

www.pr.com¶

https://www.pr.com/press-release/369649¶

GGSI Bahamas Provides State-of-the-Art Security for OTC PINK Transactions and Communication¶

GGSI (Gibraltar Global Securities Inc.) has just announced the release of their latest security measures designed to protect their client’s personal data, and to secure electronic communication.¶

www.pr.com¶

The SEC KNEW the Gibraltar/Opco trading activity went well beyond 2011 YET cut off its investigation at “well into 2010”. Thus, KNOWINGLY omitting material information in Gibraltar: FRAUD ON THE COURT.¶

Confirming my allegations of SEC criminal activity in handling my information. WHY? to protect NITE and UBSS. 2 criminal entities bailed out by the SEC.¶

Now, the SEC is using the completely fabricated reason for denying my award claim for covered action 2015-016: “The investigators never saw the claimants information”.¶

WHEN the explicit and exclusive responsibility to distribute whistleblower information within the SEC falls on the OWB itself.¶

More criminal activity.¶

Criminals bailing out criminals while denying Whistleblowers due process and compensation.¶

Cheers!¶

Christopher J Dilorio¶

Whistleblower¶

From: Chris Dilorio¶

Sent: Sunday, April 26, 2020 9:36 AM¶

To:¶

Subject: Fw: Formal appeal for preliminary denial covered action 2015-016/ Knight Capital TCR & Appendix¶

From: Chris Dilorio <¶

Sent: Friday, April 24, 2020 8:18 AM¶

Subject: Formal appeal for preliminary denial covered action 2015-016/ Knight Capital TCR & Appendix¶

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I am in receipt of the SEC preliminary denial of my award claim for the Oppenheimer AML covered action 2015-016¶

This is my formal appeal of the SEC preliminary determination.¶

My award application was based on this very simple FACT:¶

The SEC (and FINCEN) Oppenheimer AML actions were based on the FINRA Oppenheimer AML action¶

FINRA¶

https://www.finra.org/sites/default/files/fda_documents/2009018668801_FDA_KMX39652.pdf¶

of - FINRA¶

which isFINRA a party, to the entry of findings and violations consistent with the allegations of the (asComplaint sanctions amended andby the Offer of Settlement), to the imposition of the set forth andbelow, understands fully that this Order will become part ofRespondent’s permanent disciplinary andrecord may anybe considered in future actions brought by FINRA. BACKGROUND …¶

www.finra.org¶

The SEC¶

https://www.sec.gov/litigation/admin/2015/33-9711.pdf¶

Before the SECURITIES AND EXCHANGE COMMISSION¶

Before the . SECURITIES AND EXCHANGE COMMISSION . SECURITIES ACT OF 1933 . Release No. 9711 / January 27, 2015 . SECURITIES EXCHANGE ACT O F 1934 . Release No. 74141 / January 27, 2015 .¶

ACCOUNTING AND AUDITING ENFORCEMENT . Release No. 3621 / January 27, 2015 . ADMINISTRATIVE PROCEEDING . File No. 3 -16361 . In the Matter of¶

www.sec.gov¶

FINCEN¶

https://www.fincen.gov/news/news-releases/fincen-fines-oppenheimer-co-inc-20-million-continued-anti-money-laundering¶

FinCEN Fines Oppenheimer & Co. Inc. $20 Million for Continued Anti-Money Laundering Shortfalls | FinCEN.gov¶

Washington, D.C. – The Financial Crimes Enforcement Network (FinCEN), working closely with the U.S. Securities and Exchange Commission (SEC), assessed a $20 million civil money penalty today against Oppenheimer & Co., Inc., for willfully violating the Bank Secrecy Act (BSA). Oppenheimer, a securities broker-dealer in New York, admitted that it failed to establish and implement an adequate …¶

www.fincen.gov¶

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In the summer of 2012, I had extensive correspondence with Robin Traxler at FINRA where I also cc’d Sean McKessy then SEC OWB Chief. The CURRENT OWB Chief and the SEC IG are in possession of this correspondence. My correspondence dealt with 2 penny stock shells cited in my Knight Capital TCR submitted by Berger Montague in March 2013 attached here: Colorado Goldfields and AppTech. Both shells were NITE and UBSS top traded OTCM shells in 2010-2013. These 2 shells were cited by FINRA in their Oppenheimer AML complaint. Again, the SEC and FINCEN Oppenheimer AML complaints were based on this FINRA complaint. In fact, per the FINRA Opco complaint above, customer “TC” was dumping worthless AppTech (APCX) certificates well into mid 2010. DIRECTLY overlapping with the NITE/UBSS APCX trading activity cited in my Berger 2013 TCR attached and discussed by me with Robin Traxler at FINRA. HOW is it possible that the SEC OWB didn’t share my information with SEC investigators? Current SEC OWB Chief Norberg was previously an assistant to then OWB Chief McKessy.¶

WHO ultimately executed the trades cited in the FINRA Opco complaint?¶

Further, the SEC Gibraltar Securities complaint raises more questions than answers as well.¶

https://www.sec.gov/litigation/complaints/2013/comp22683.pdf¶

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK SECURITIES AND EXCHANGE COMMISSION, 13 Civ. GffiRALTAR GLOBAL SECURITIES, COMPLAINT NATURE OF THE ACTION - SEC.gov¶

12. David Della Sciucca, Jr., age 27, is a resident of Fort Lauderdale, Florida. In . the Magnum d’Or complaint, the Commission charged Della Sciucca with acting as a nominee

www.sec.gov¶

The SEC Gibraltar Securities complaint references only 1 OTCM money laundering shell: Magnum d’Or. The complaint specifically states that Oppenheimer sold just 969,822 shares. Again, no mention of executing BD/MM.¶

The SEC Oppenheimer AML cites Gibraltar trading activity also.¶

The share amounts in the SEC complaint grossly under estimate that in the FINRA complaint. WHY?¶

The judge in the Gibraltar case said “the SEC’s requested amount CLEARLY UNDERESTIMATES the defendants ill-gotten gains…”¶

http://www.tribune242.com/news/2016/jan/13/bahamian-broker-25m-sanction/¶

Bahamian broker in $25m sanction | The Tribune¶

A former Bahamian broker/dealer and its principal have been hit with a combined $24.484 million in financial sanctions by a US court, which found that their “ill gotten gains” were likely …¶

www.tribune242.com¶

WHY didn’t the SEC go after ALL of the sellers in the FINRA Opco AML complaint? WHY did the SEC “strip out” $46 million from the Gibraltar ill gotten gains claiming the customers were “UNKNOWN”? WHO is the SEC protecting? WHO were the executing BD’s/MM’s in the FINRA Opco CGFIA and APCX trades? They certainly know who the customers were. Is customer “JK” Justin Keener/JMJ also in my March 2013 TCR attached? While the SEC Opco AML was based on the FINRA Opco AML, it stopped short of a thorough investigation of NITE and¶

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UBSS. In fact, the trading activity of NITE/VIRT and UBSS in the FINRA complaint: my information SHOULD have triggered an immediate investigation of NITE and UBSS. It did not. Did the SEC commit fraud on the court in its OMISSION of material information?¶

My Award application for the Oppenheimer AML SEC complaint was 5 years ago. That’s FIVE years ago. So, WHY NOW am I so blessed by the SEC with a preliminary judgement?¶

WHAT DOES THE SEC DO WITH WHISTLEBLOWER TIPS EXACTLY? Do they share whistleblower information with ENFORCEMENT as is mandated? HOW would ANY whistleblower know WHO to share information with at the SEC? Isn’t that the job of the SEC OWB?¶

Second, the fact that no one at the SEC contacted me DOES NOT mean the SEC didn’t use my information. This is a completely bogus argument. It certainly would NOT be the first time the SEC used my information now would it Jane?¶

Review and Analysis of OCIE Examinations of Bernard L. Madoff Investment Securities, LLC¶

Review and Analysis of OCIE Examinations of Bernard L. Madoff Investment Securities, LLC Executive Summary Background. On June 25, 2009, the Securities and Exchange Commission’s¶

www.sec.gov¶

AGAIN: The responsibility to properly vet Whistleblower information and get the information into the right hands at the SEC falls EXPLICITLY and EXCLUSIVELY with the SEC OWB itself and is NOT the responsibility of the whistleblower. Further, according to the previous SEC IG in the monumental Madoff failure: the responsibility to contact those supplying Tips and Complaints ALSO falls explicitly and exclusively with the SEC OWB and not the whistleblower. Using these excuses as the basis of denial of Award is completely contrary to SEC MANDATED protocols and procedures.¶

Is the SEC OWB admitting it doesn’t comply with those recommendations? Recall: the monumental SEC Madoff failure was NOT the fault of Whistleblowers either. OR is the SEC OWB scrambling for a 5 years in the waiting¶

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preliminary determination?¶

So, after 5 years of waiting for a preliminary determination for my award claim, this is what the SEC best and brightest come up with?¶

My Denial of Award for covered action 2015-016 was completely made up on the fly.¶

The SEC OWB has applied completely fabricated “rules” to issue this denial. Further affirmation of ALL of my allegations.¶

Also by SEC admission, the SEC allowed these 2 penny stock shells to remain a clear and present risk to the investing public. Were CGFIA and APCX ONLY money laundering shells for Oppenheimer in 2008-2010 and then suddenly they were no longer money laundering shells when NITE and UBSS traded billions of shares of both shells 2010-2013?¶

WHY did it take until September 2018 before the SEC finally revoked the CGFIA registration?¶

https://www.sec.gov/cgi-bin/browse-edgar?company=Garpa&owner=exclude&action=getcompany.¶

So, WHY was there no SEC investigation of NITE and UBSS trading activity in money laundering shells APCX and CGFIA? The SEC et al facilitated NITE “glitch” took place in August 2012. This SEC/Jefferies/JPM/BX/GS/SEC Chair Clayton Sullivan Cromwell colleague Jared Fishman et al bailout coincides directly with NITE trading activity in 2 SEC/FINRA/FINCEN acknowledged money laundering shells. AND the “bailout” penny stock esque reverse merger between Getco and Knight didn’t close until July 2013. HOW could the SEC conduct a COMPLETE and thorough investigation into the FINRA Opco AML complaint WITHOUT implicating NITE when NITE was CLEARLY trading billions of shares of OTCM money laundering shells BEFORE and coinciding with the SEC et al facilitated “glitch” bailout? For UBSS, the DOJ dropped its cross border AML DPA complaint in 2010. UBSS was trading money laundering shells well after the DOJ claimed UBSS was in compliance with the cross border DPA. To be clear: BOTH NITE and UBSS knew CGFIA and APCX were money laundering shells when they traded billions of shares of each 2010-2013. Is that FACT disputed by the SEC? The SEC OBSTRUCTED a thorough investigation into the ENTIRETY of trading activity of NITE and UBSS in CGFIA and APCX: MY CLAIMS. Josh Sason/Hanover/ Magna knew CGFIA was a money laundering shell also¶

https://www.sec.gov/Archives/edgar/data/1344394/000114420413041432/0001144204-13-041432-index.htm¶

ALSO in my claims: Joshua Sason/Hanover Magna. CGFIA. Also my NewLead TCR1426518350699 and FreeSeas TCR1440274395191 separate but related TCR’s where NITE was a top trader in both and BOTH TCR’s were filed well in advance (years prior) to the Sason/Hanover/Magna February 2019 complaint. Here’s one thing the SEC has been consistent about: The SEC ignores the role of executing BD’s and MM’s in these scams. WHY? Because NITE is the #1 OTCM shell trader. As far as the SEC is concerned Penny stock trading fairies convert worthless certificates into real money. NO! Executing BD’s/MM’s like NITE do. Did Oppenheimer sell this order flow to NITE? Who ultimately converted these worthless certificates to real money? As the number 1 OTCM money laundering shell trader it is statistically improbable the NITE has never been the focus of an SEC AML complaint. Per my TCR: what does the NITE Compliance Department do exactly? How many SAR’s has NITE filed in the last 10 years? In a 2015 SIFMA speech then SEC Enforcement Director Ceresney was “SHOCKED” by the number of BD’s filing 1 or ZERO SAR’s. That was just 5 years ago. WHEN would NITE file a SAR releted to the billions of shares of OTCM money laundering shells it trades like CGFIA and APCX: BEFORE or AFTER it trades those BILLIONS of shares?Does NITE pull markets and alert regulators OR continue to trade billions of shares of OTCM money laundering shells in the face of GLARING AML red flags? In fact, in December 2019 the top traded NITE/VIRT OTCM money laundering shell was ELTZ¶

https://www.sec.gov/cgi-bin/browse-edgar?¶

action=getcompany&CIK=0001607281&owner=exclude&count=40&hidefilings=0¶

The SEC knows the people/entities in ELTZ well https://www.sec.gov/litigation/admin/34-46993.htm¶