Captured Stock Fraud Jon Carnes Mocks Law Enforcement, Blames the SEC
Martin Scorsese’s Oscar-nominated “The Wolf of Wall Street” tells the riveting story of stock fraud in the 1990s. The protagonist is a thief who gets caught stealing millions and sells out his friends in exchange for a reduced sentence.
What would a thief do in the year 2014 if he got caught stealing hundreds of millions from the investing public? He might blame the cops and law enforcement officials for having caught him. This may sound strange, but that’s exactly what the brazen stock short seller and swindler Jon Carnes did.
Jon Carnes: “Regulators Need to Be Held Accountable For Their Actions”
According to a source, at a recent event, captured stock fraudster Jon Carnes lashed out at securities regulators in Canada and the U.S., calling Canada’s chief securities regulator Paul C. Bourque “ignorant” while waiving a “middle finger” at SEC chief Mary Jo. White, calling her “unfair and stupid.” Carnes vowed to “hold accountable those public servants at the BCSC who have ignored my warnings about SVM.”
Why does Carnes hate regulators so much? Well, they caught Carnes lying, cheating and stealing from investors to the tune of hundreds of millions of dollars. The law enforcement agencies accused Carnes of having orchestrated massive investment frauds, blatantly robbing the life savings of many investors in one of the largest stock-manipulating “short and distort” schemes in recent history.
A Thief Was Caught
On Dec. 19, 2013, officials at the British Columbia Securities Commission (BCSC), the Canadian equivalent of the U.S. Securities and Exchange (SEC), put out a press release alleging fraud charges against Carnes. The Canadian regulators had this to say about the con man:
“BCSC alleges that beginning in 2010, Carnes began writing negative reports about issuers traded on a North American exchange with business operations in China. Carnes attempted to profit from his negative reports by shorting the issuer’s securities before publishing the negative report, and then covering his short position after the issuer’s share price dropped in response to his negative report. When two mining experts failed to support his theory and with his put options about to expire, staff maintains that Carnes wrote a false negative report about Silvercorp and published it anonymously on September 13, 2011 on Alfredlittle.com, a financial blog controlled by Carnes.”
The BCSC continued: “The BCSC wishes to thank the U.S. Securities and Exchange Commission for its assistance throughout the investigation.”
Law Enforcement: Jon Carnes Is a Wolf in Sheep’s Clothing
Carnes seems to have a brazen attitude toward life. A balding and heavyset man, Carnes may not physically resemble Jordan Belfort, but could certainly fit the personality type of someone who loves cocaine and fast-action ladies. For years, no one even knew his name, until someday, out of nowhere, a mysterious character calling himself “Alfred Little” emerged as an “investigator on frauds.” “Alfred Little” proclaimed to have a stellar background: “Having 35 years of investing experience; Being a former accountant at Deloitte; Having represented Coca-Cola, Proctor & Gamble, and Budweiser on their investments in China…” It certainly sounded convincing, except it turned out, according to investigations by the regulators, “Alfred Little” was Carnes’s fake identity and the “impressive” bio was a total fabrication.
Jon Carnes’s Response: Law Enforcement Officials are “Ignorant”
According to law enforcement, Carnes made at least $10 million in illicit profits. Instead of a confession, the defiant fraudster stated publicly: “I am taking legal action to both defend my reports and to hold accountable those public servants, particularly the ignorant Paul. C. Bourque at the BCSC.” Bourque, a highly regarded securities regulator in Canada, is the Executive Director of the British Columbia Securities Commission (BCSC). According to the BCSC’s website, Mr. Bourque has an extensive regulatory and law enforcement background.
Bloomberg’s Dune Lawrence Writes About Carnes Like He’s a Hero
While Carnes feasted on investors’ life savings and was chased by the securities cops, he was practically hailed as an American hero in a glowing Bloomberg article written by a questionable reporter by the name of Dune Lawrence. Why? Carnes calls Lawrence “a close friend and a trusted voice.” Could it have been that Lawrence was helping her buddy Carnes promote the frauds?
Since TheBlot Magazine exposed Dune Lawrence’s biased attitudes towards the Chinese and China, the usually outspoken reporter has been silent. Despite repeated requests for comments, Lawrence has refused to provide her side of the story about Carnes. Since Carnes’s legal woes started, Lawrence has also refused to provide any comments about her relationships with Carnes. Bloomberg News has also refused to comment on Lawrence’s actions. Readers may wonder just how long and how far Lawrence would run from the truth to protect a con man.
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