SEC whistleblower emails alleging penny stock money laundering and obstruction

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Christopher J Dilorio¶

Janey,¶

how long have you been in possession of my Knight Capital TCR? Almost 7 years to the day. How many follow up e mails have I sent the SEC since then?¶

For 7 fucking years, the SEC has known about JMJ/Keener. I told them https://www.sec.gov/litigation/complaints/2020/comp-pr2020-72.pdf¶

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA SECURITIES AND EXCHANGE COMMISSION No. COMPLAINT SUMMARY - sec.gov¶

5. Justin W. Keener, age 45, resides in San Juan, Puerto Rico.During the Relevant Period, Keener was a resident of Miami Beach, Florida. Keener registered the name “JMJ Financial” as a fictitious name in Florida in 2008 and used it to conduct the business described

www.sec.gov¶

In February 2019, the SEC brought an action against Joshua Sason/NewLead I told the SEC about Magna/ Sason ALSO in my 2013 TCR.¶

https://www.sec.gov/litigation/litreleases/2019/lr24403.htm¶

Joshua Sason, et al. (Release No. LR-24403; Feb. 15, 2019)¶

Washington, D.C., February 15, 2019 - The Securities and Exchange Commission today announced charges against four individuals and related businesses for their roles in two microcap frauds and unlawful securities offerings.¶

www.sec.gov¶

AND, I filed separate but related NewLead and FreeSeas TCR’s in 2015¶

Then there’s the UBS AML complaint.¶

ALSO my claims. For which I sent 10 (TEN) separate Award applications from a commercial fax machine in April/May 2019. AND I have YET to receive even a preliminary determination from the OWB/Norberg IG, I see your “investigation” into my very very serious accusations of Obstruction related to my information was thorough. In short, the SEC has and still is ripping me off.¶

Janey, be a hun and update my TCR’s/Awards cited in this e mail.¶

And Ms Welshhans, a couple of questions for you:¶

1. Have you read the FINRA WTFC Keener complaint? Fictitious notes Ring a bell?

Same MO as Sason/Magna/NewLead/FreeSeas etc etc etc¶

2. WHO executed the Keener OTCM trades in your complaint? Penny stock trading fairies?

YES, NITE was a top trader in BOTH FreeSeas and NewLead¶

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The core business at NITE/VIRT is and ALWAYS has been: abusive naked shorting OTCM (and other) shells to facilitate money laundering.¶

In short Ms Welshhans, NITE/VIRT converts these worthless certs into real money. NONE of¶

JMJ/Sason/IBC/Ironridge/Asher etc etc etc activity takes place without a willing,corrupt, criminal, executing BD/MM like NITE/VIRT,CDEL etc¶

Finally, The Keener SEC complaint is FURTHER evidence that FINRA has NO business enforcing US securities LAWS. When FINRA “invited” Keener to a disciplinary hearing almost 7 years ago, Keener told them to “fuck off”. FINRA bar meant nothing the last 7 years. EXCEPT JMJ/Keener/NITE ripping off more investors.¶

Obviously the SEC has/is using my information. I expect to be compensated.¶

Cheers!¶

Christopher Dilorio¶

Whistleblower¶

Mr Peirce,¶

Congratulations on your nomination as SEC Commissioner. I have read your paper on FINRA lack of accountability. I believe the SEC has abdicated its responsibility to enforce Broker Dealer compliance with the BSA to FINRA BECAUSE it is not accountable. The SEC has not initiated a single stand alone AML complaint. The Brown Brothers Harriman AML complaint IS my claim. ALL of the entities in the complaint are un named WHY? My SEC and IRS Whistleblower complaints explain why.¶

Hello, My name is Chris DiIorio. I have filed extensive SEC and IRS Whistleblower complaints alleging a direct link between penny stock money laundering, domestic and foreign entities, Swiss Banks, and executing brokers like KCG and UBS. I can provide overwhelming evidence of SEC obstruction. Please read the FINRA Brown Brothers Harriman AML complaint. This is my claim. All of the entities in the complaint are un named. Why? The SEC is not only obstructing an investigation, they are aiding and abetting the activity. These are not far flung theories. The UBS Whistleblower Birkenfeld and his attorney sent 52,000 accounts to the SEC and DOJ. The DOJ at the influence of President Obama and Hillary Clinton entered into the UBS DPA based on just 4400. What is so egregious is the activity continues un abated today.¶

Start with the so calledAugust 2012 Knight/KCG trading “glitch”. Initial reports say the NYSE was breaking the trades. WHY did they stop. Former KCG CEO Joyce said he had a very frank discussion with then SEC Chair Schapiro where the SEC wanted to send a very strong message to market participants. Why not just continue to break the trades and hit KCG with a hefty fine? That would not create the conditions to grant KCG exception after exception to do their emergency funding which transferred 74% of the company to “glitch” funding participants and ultimate reverse merger partner GETCO. AND, despite claiming to having a “highly liquid balance sheet” KCG had to raise the entire amount of the loss.¶

A very significant and public event was cited in a WSJ article where immediately following the “glitch”KCG inadvertently sent 4000 worthless securities to JPM in an attempt to secure a tri party financing where JPM guaranteed the loan. This is discussed in my attached TCR’s and also the topic in a March 2014 letter I sent to the SEC. In the end, the emergency funding was NOT collateral based. The participants knew exactly what a fraud the KCG balance sheet was. After the stock was decimated to $3, the deal was a convertible with a conversion price at a 50% discount or $1.50/share.¶

There is much more, but this is a good start.¶

Recently, KCG did a modified Dutch auction where they “sold” an asset (HotSpot) to an entity both KCG and GETCO were a major shareholder (BATS) KCG CEO Coleman called it a “highly competitive process”.¶

Virtually all of the proceeds went to buy back stock from “glitch” financing participants. The purchase price was¶

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$14/share. The stock had never traded there and hasn’t since. Reports say 82 million shares were tendered at or BELOW $14. But they chose to repurchase 23 million shares AT $14???? I have overwhelming evidence that supports my allegations that the SEC is engaging in criminal obstruction to protect KCG.¶

1. Current KCG Dan Coleman ran Equities at UBS during the massive REG Sho violations as well as the cross border activity detailed by Whistleblower Birkenfeld. White and Ceresney represented UBS prior to joining the SEC

2. At June 30 2011 KCG/Knight reported just 105 million in working capital with hundreds of millions in worthless securities sitting on its balance sheet. KCG was insolvent

3. The SEC orchestrated the emergency funding for KCG following the so called Aug 2012 trading “glitch”

4. Read FINRA AML complaints against Brown Brothers Harriman. This is my claim. It links penny stock money laundering to executing brokers like KCG, domestic and foreign entities, and Swiss banks. ALL of the entities in the complaint are un named. WHY?

5. The FINRA World Trade Financial AML complaint discusses several entities cited in my claims. The customer the complaint focuses on is Justin Keener. Still very much in business. The red flags cited by FINRA were cited in my claims as well. Yet still no investigation.

6. in July 2015 I contacted Kevin Goodman Dir OCIE for Broker Dealrsat the SEC. He had never seen my information. The IG OCIE Madoff report mandated the OCIE to vet information. McKessy and Ceresney never sent my info to him

7. I’m sure you are familiar with the Manning v Merrill,KCG,UBS et al litigation. The SEC does not want an investigation into my claims while the litigation is pending.

8. My claims detail ex clearing trading activity by KCG and UBS. despite the glaring red flags in doing so. Ex clearing s the Obligation Warehouse. A NON GUARANTEED SERVICE set up by the SEC and DTCC to allow firms like KCG to circumvent close out requirements of Rule 204. Clearly contrary to the intent of the SEC authorization in Sec 17a of the 1934 Act to create a system of prompt and timely settlement and to remove impediments there of.

In short, I told the SEC KCG was insolvent in 2011. Rather than investigate and prosecute, they chose to obstruct. The activity in my TCR’s pre dates the “glitch”. An investigation would show the SEC bailed out a criminal enterprise. Because of the obstruction, the activity continues today unabated in stocks like STBV,VELA,NEWL,FREE, and dozens more. The investing public remains at risk¶

More to come¶

Chris DiIorio¶

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