To the US Department of Justice!
(The World's Biggest Fraud!)
Silver Stock Report
by Jason Hommel, April 8th, 2010
Re: Reporting Antitrust Concerns
Step 1: Fully Describe Your Concern
1. 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 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.
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.
2. How do you believe they have violated the federal antitrust laws? (For details on federal antitrust laws, see Antitrust Laws and You.) http://www.justice.gov/atr/laws.htm
RE: Sherman Antitrust Act
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
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".
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.
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.
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.
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.
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 of 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
7. 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.
The Silver Boom Is Coming!
1200 tonnes x 32,151 oz./tonne = 38,581,200 oz.
Silver Short Squeeze Could Be Imminent
Kingdom Economics Blog: Biggest Fraud in History Exposed
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 $10,000/ounce?
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
Here’s a partial list:
GATA’s evidence of silver and gold manipulation at
CFTC hearing – Mineweb
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.