September 11 Commission Report - Gnostic Liberation Front

onds. (As an interesting note, at the time, Germany and Japan, whose currency was
used to finance the fraudulent transactions, were considered “enemies” of the US
foreign policy team. Zalmay Khalizad, who was drafting US policy statements at the
time for Wolfowitz and Bush, suggested that “competition with Japan and Germany
should be confined to economics; the United States should make sure it had no
military rivals.” [Rise of the Vulcans- The History of Bush’s War Cabinet, James
Mann, Penguin, 2004, p211.])
5. Cantor Fitzgerald had a track record of willingness to ignore multiple aspects of legal
and financial regulations. In 1997 and 1999, Cantor Fitzgerald was found guilty in
false representation of securities ownership, false documentation and related illegal
activities.
“The CFTC order finds that Cantor violated the Commodity Exchange Act (CEA) by aiding and
abetting the fraud and registration violations of First Republic Financial Corporation, formerly
known as Vancorp Financial Services (VFS), an unregistered commodity pool operator.
The CFTC order finds that, although Cantor became aware that VFS falsely represented the
ownership of a securities trading account VFS had opened in its own name, Cantor allowed the
account to be traded in VFS' name. The account was actually owned by a commodity pool, the
order finds. The order also finds that Cantor failed to determine the ownership of the VFS account,
and failed to obtain the trading authority needed to allow VFS to enter trades in this account. In
addition, the order finds that Cantor assisted VFS in obtaining $950,000 to which VFS was not
entitled by making wire transfer payments to First Republic Securities, a wholly owned subsidiary
of VFS, out of customer funds held in the account at Cantor.” [CFTC ACCEPTS SETTLEMENT
OF CANTOR FITZGERALD & CO. CHARGED WITH AIDING AND ABETTING FRAUD
AND REGISTRATION VIOLATIONS OF FEDERAL COMMODITY LAW, Release: # 3987-97
(CFTC Docket No. 94-14), January 28, 1997]
“Factual Summary: In connection with its activities as a Nasdaq market maker, Cantor Fitzgerald
& Co. engaged in the following activities …1. The Fraudulent Coordination of Quote
Movements….2. Undisclosed Arrangements to Coordinate Quotations….3. Best Execution
Violations (Cantor Fitzgerald & Co. failed, or caused the failure,to provide best execution in the
handling of customer orders in one or more of the respects) ….4. Failure to Honor
Quotations….5. Failure to Keep Accurate Books and Records….6. Failure to Reasonably
Supervise Nasdaq Trading….7. Unlawful Profits and Other Gains….” [SECURITIES AND
EXCHANGE COMMISSION, ADMINISTRATIVE PROCEEDING, File No. 3-9803, January
11, 1999]
These facts support the reports there were $240 billion in fraudulent securities being
handled by Cantor Fitzgerald, an organization proven to have abetted similar frauds
across multiple accounts. A year earlier, a group of Cantor Fitzgerald’s traders and
executives participated in providing analysis to the Office of Naval Intelligence and the
Council on Foreign Relations on the impact of a financial attack on the US. To do such,
they would have needed to create a massive computer simulations of trades, the programs
for which could easily be used to pump volumes of actual illegal trades into the real-life
system. With war games being held on September 11, staff at Cantor Fitzgerald may
have been running those simulations again. To anyone else, running those programs
during the actual war games would seem appropriate and justified. The only variable that
such a plot would require is an ability to totally disregard the SEC’s legal “settlement
process,” which could only be accomplished one way: to declare a national emergency
THE SEPTEMBER 11 COMMISSION REPORT Page 191