User:Cyruspak
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A Screenplay Writing Collaboration Invitation: In 1999, through an ostensible size, prestige, image, and advertising line, which ran, "we are putting our reputation online," the venture capital firm Donaldson, Lufkin, Jenrette (DLJ) created a phony tracking stock for its online stock-trading company, DLJdirect (Dir). It had a complex structure which hid the reality in order to bilk the small investors out of millions of dollars. The prospectus for this company promised that the shareholders of DLJdirect were a part of DLJ parent company, and then when DLJ sold itself to Credit Suisse First Boston for 13 billion dollars, it reneged on this promise. DLJdirect investors were told that since their stocks were non-voting (tracking), DLJ management had decided they were not entitled to any share of the lucrative merger sale. Naturally this raised the ire of shareholders and the creation of a bunuch of class action lawsuits. The new owner, Credit Suisse First Boston, renaming the company CSFBdirect, through an out of court rather than a trial court, forced the investors of DLJdirect to sell their stocks to it at bargain basement price of $6 per share. This way DLJ/Credit Suisse First Boston pocketed most of $385 million of investors’ IPO money (IPO sold at $20 per share). All this happened because class action lawsuit lawyers’ motivation was to collect easy contingency fees, judges’ motivation was to collect 'hidden bribes,' and the motivation of President Bush’s administration was to receive campaign contributions from the DLJ/Credit Suisse First Boston, and payback Bill Donaldson, the principal at DLJ, with a later appointment to the SEC chairpersonship. Meanwhile over 9000 small investors’ DIR complaints on Yahoo!Finance message board against this fraud went ignored by government and media, and Joe Roby, the CEO of DLJ/CSFB and creator of this fraud (on behalf of Bill Donaldson), making $13.5 million dollars a year, went back to create more of these fraudulent schemes against future unsuspecting small investors. For more information on this fraud, please read some of its hoodwinked class action lawsuits in the following link: http://www2.law.widener.edu/search?NS-search (In the Search-in box type All documents, and then DLJdirect or CSFB). The punishment for this daylight fraud should have been DISGORGEMENT, RESTITUTION and PUNITIVE DAMAGES to small investors and imprisonment for its perpetrators and not what happened. (CSFBdirect has since been sold to Harrisdirect, and then again to Etrade.)
Author's Note: This subtle and fraudulent behavior on part of our most 'reputable' Wall Street names deserves your input if you have access to some behind-the-scenes information about it. Maybe together we can make a book or screenplay out of it (I personally lost $75,000 of my own hard-earned retirement money to this fraud).
Retrieved from "http://en.wikipedia.org/wiki/Crime_Beyond_Justice:_Discoveries"
