good afternoon and welcome to capital account i'm lauren lister here in washington d.c. and these are your headlines for march thirteenth two thousand and twelve informants are running to u.s. regulators to report allegations of accounting fraud and market manipulation lured by the possibility of multimillion dollar payouts under a dodd grant program that's according to a financial times story at least we'll have to see where that all goes but we'll talk to someone who's been blowing the lid off of banking a hedge fund corruption for years terry buel is here to bring us into that world firsthand and tell us about her latest story of sex and scandal it's already been sued over and kone two thousand and twelve fastest growing viral video in history

of internet campaign about the lord's resistance army leader fronted by a handsome activist filmmaker has also drawn its fair share of criticism ok here's jon stewart talking about the flak it's received from the mainstream media. mainly . just seems annoyed that it took this guy to get people to listen to a lot of major news organizations have talked about joseph kony and talked about the right way. well for those of you would stop paying attention to the mainstream media look at one of the new journalists are turning to to circumvent it it's called crowdfunding we'll talk about how it's being used to possibly expose financial crime and the m.f. global plot thickens as as c n b c contributor and c.e.o. of the n.b.a.'s clearing group is sued by the commodities futures trading commission his firm accused of failing to properly segregate customer accounts from

its own we'll talk about it let's get to today's capital account. ok as wall street heads post mantle crisis highs today that was the headline let's talk about the lows because they are still with us today let's go to the land first remember that nineteen ninety's movie ice storm if not watch this very little going to the next round if you're a part of the strictly volunteer force keep turning them into their car keys in a bowl and at the end of even the women who are not fish from the. and while we're on the subject of so winning in new canaan connecticut let's talk

to the journalist who's investigating what you could call the modern day version it involves a trader who's been busted by regulators and banned from the business in the past but that hasn't stopped him it looks like from trading or from getting in trouble as he tries to bust his stripper assistant first stealing after she was allegedly paid to have three somes with him and his fiance who also happens to be the sister of a convicted insider trader it's quite the plot and also we want to know does it point to any kind of bigger picture issue too here to tell us is terry buell she's the investigative journalist who is investigating all of this terry first welcome to the show and thanks for being on hi lauren it's great to be here right yeah so terry for our audience first because you are an investigative reporter you've been your work has been published in publications from forbes to the atlantic to the new york post and you also have an entrepreneurial background too so for those of our viewers who don't know you just give us your real brief background and how you got into this field of blowing the lid off financial corruption. sure i

became a journalist by accident i think in two thousand and seven i was at a trader monthly party where they promoted excess and leverage in how these millionaire traders spent it and the editor magazine approached me and said hey come right for us to do profiles on some of the players now that i have outed is cheating investors or stealing from banks or trader monthly in two thousand and eight a winner of the new york post and broke open their everything that was happening in the financial crisis with bank fraud except era and from there became a financial journalist writing for most mean street publications and it's interesting because you're going about this a little bit of a different way which i want to get into later in our show but first let's talk about this story you're working on now because it literally thousands like the plot of the most salacious movie you've ever seen it has a lot of in the now it's a focus is on this guy. who has had

a very flamboyant career on law on wall street it sounds like as well as one off of the street a flamboyant lifestyle he's had run ins with regulators since his twenty's which i want to get into later but let's fast forward to his latest troubles in this latest saga that you're writing about in your story swinging in new canaan give us a little bit of the juicy details there. children you know this story started out in the local papers in in fairfield county as a headline of sex and checks and when i saw the someone from new keenan was involved in turning in his assistant for allegedly stealing from him i just had a feeling that it was going to be a traitor. i took a look at the warren report i found his name it honestly took about six hours to do a check in in broker check to the c f t c that says regulator and the f.c.c. to find out this man has a history of breaking the law and i just i just found that kind of all odd and

questioned his story that he was telling the local new canaan police. we also weren't sure about this alleged fiance i'm actually not even sure if they really gauged they do live together in a seven million dollar house in new canaan and i looked into it you know who are these two people all alleging this crime of their assistant you know and and what are they doing. so i wrote a short post it to review all dot com didn't think it was going to get any attention and it did. c.b.c. contributing writer john carney picked up the story broadcasted. i don't know on the site for about five days i think we had fifty thousand viewers within the first two days reading the story and from there it snowballed yet certainly did so voluntary if it's no fault in a way that affected you a brought you into the story we have the n.b.c.

post if we can throw it out that you're talking about because you and the n.b.c. were sued and you were also you had an injunction pursuit against you which ended up being dropped but it could've kept you from talking about this investigation to tell us what happen there. cher after we posted this story i got a call from mr vast close attorney mark sherman an attorney i know before i've worked with him on stories before just he had some questions about the way the language was written about mr c f t c for five years we had a little nice conversation he actually begged me to take the story down explained that's not the way journalism works us not the way i work i'm not going to do that we went back and forth for a bed i hadn't i said ok i'll update some of the lines in the sentences and that was it. i started digging more i stared to get more to people from you keating kept writing the you with information about mitch does close and his live in girlfriend candlelit she aussie clients of his trading brace for exposure dealer started to

write me about problems they had in lawsuits that they had brought against him and they start to look at some of his financial transactions the way he moved around some of his business is a move money around at that point then i started to call his lawyer and say ok i have some questions if you want to comment all i know is a week later i get hit with a defamation lawsuit and a temporary injunction i never even heard of a temporary injunction before. the point was he wanted to stop me from printing anything else he wanted to get his name out of the google tags in the story so it didn't come up first in a search on him or his company and that just a pound ation of our first amendment right the psychs saying ok you know there's no judge this said you can't say this court is not allowed this we're going to stop you anyway yeah yeah so i contacted the harvard digital media law center who thank goodness jumped in within twelve hours they put me on

a pro bono lest it did take two weeks i got a little worried i was going to have to represent myself although i was willing to do that and boom i get this incredible lawyer carroll head from being a large national law firm. who represents the boston globe and they're like we're here to help you terry yeah when mr bassett was a lawyer mark sherman found out all i know is the day of the hearing for this temporary injunction he's dropped it and i think he got scared yeah they're going to continue with a defamation suit with which we obviously we deny there's anything libelous and c n b c from my understanding is going to fight this with us and i'm moving forward and moving forward on the next pieces of the story which i i think are going to is going to blow the lid open on a sexy sig adults swing life in ukraine in connecticut funded off the backs of some questionable ways that mitch makes money in his four x.

dealer especially all of mom and pop investors in third world countries ok and tell us a little bit about those really juicy details because there's a stripper maybe an ask or who was maybe having threesomes with the guy and his fiance and she's the sister of someone who is in prison for jail for insider trading so give us the juicy details. ok so mitch is mitch did hire a go friday girl a color assistant she only worked about twenty hours a week he happened to meet her a few years ago in a new york strip club. and we when she was arrested you know and he claims that you know he stole he gave her access to his credit cards and this is a checking account when she was arrested she was driving a porsche boxster and i thought that was interesting that she could afford that right and she says no no no no no no i didn't steal anything i was paid to have sex with mitch says in his live in girlfriend she aussie and he told me to write

a check for what he thought i was worth this is according to the warren report ok so there that's a he said she said. is the sister of daniela chiasson who is now in jail for being involved in the inside of the largest insider trading ring we've ever seen with from daily on so i mean i thought that was interesting the whole look of the how are using they're both very pretty ladies intelligently these how they use their looks to get access to money and information and nothing really interesting an interesting angle of it terry what i want to add to this is obviously a very salacious story and there's just a lot of moving parts to it it is said she's right now it's you know yeah but my question is you've been doing this for a really long time is this somehow more representative or more or more broadly indicative of the things that are going on in the hedge fund world and the baking world in regards to kind of what you're saying about using customer money and and

using the profits that are maybe you know questionably gotten to do you know crazy things that are a little like this. well lauren let's let's look at the new york madam running right maybe being funded by someone at morgan stanley and then the list the clients coming from bankers about what's going to help and i think that sex and money would traders who often you know they need action they like the new thing they want the next shakes i think in the mic best clothes story it could be a symptom of something we always heard about and saw in the movies frey but now we're seeing how real it is i will say it was shocking for me i've lived in new canaan for five years i had no idea there's this very active adult participatory swing life going on between couples married couples in between their thirty's and forty's mainly the husband's work on wall street that was actually something i read about thought about heard about the now i'm seeing it play out real life in real life it's pretty crazy i want to continue on we have to go to break shortly but

when we get back i want to talk to you more about some of the financial wrongdoing in a bigger trends there and also the way you're funding this because it's really interesting and innovative so we will be right back with terry buell investigative journalist and still ahead go away because march madness is here u.s. president barack obama is taking british prime minister david cameron to a game in swing state of iowa of ohio to reportedly showcase the special relationship meanwhile a doctor's office is capitalizing on the internet a different way with baths that don't need madness no joke a clinic says vasectomies increase by fifty percent during this time of year we'll talk about which campaign will be more successful in capitalizing on march madness but first your closing market numbers.

just put a picture of the need for those like nine years old on the job. true. and i am a total get over that i love rap and hip hop is a lie and. he was kind of the jester but. i'm very proud of the little al-jazeera as played. oh. you know sometimes you see a story in the scene so you think you understand it and then something else hears you some other part of it and realize that everything is ok and you don't know i'm sorry welcome to the big picture see.

what drives the world the fear mongering used by politicians who makes decisions comfortable breakthru it's already made who can you trust no one will is your own view with a global missionary see where are we heading state controlled capitalism is called sessions when nobody dares to ask we do our t. question more. welcome back we're talking about scandals sex and lawsuits in the hedge fund land and also i should mention a new model for doing this kind of journalism because my guest is an investigative journalist and she is going about this latest story of hers and an alternative way

as opposed to pitching it to a publication she's getting funded through crowd funding so readers are essentially investing through this web site you're looking at pirate my film which i should mention max kaiser is c.e.o. and founder of and this is the way that she is being funded to do this kind of journalism as opposed to traditional mainstream groups so let's bring terry buell investigative journalist back in to talk about it and terry before i get there crowdfunding i just want to ask one more question on the subject of the financial aspects of this story you're working on because you talk a little bit about this guy mitch bass was and his past in a shady way he may be got this money that he's using to engage in this crazy lifestyle of his he was banned from the industries both by the f.c.c. and the c f.t.c. for a few years each time for various issues that he settled over one of the things that really stuck out to me is and in those situations he never had to admit wrongdoing he didn't have to admit guilt or deny and then he's back to practicing in the

financial industry not something that we've seen again and again and again so i'm wondering from you who has been covering this industry for years and really you know seen this all firsthand are the same practices going on when people don't have to admit or deny guilt they just go back to business as usual. i think they are fortunately you know in this situation you can just go and start another business overseas the u.s. regulators can stop you but maybe other regulators can't so i mean i personally believe it's going to have to be the market is going to have to police itself. i don't have a lot of faith in the c.f. t.c. or the f.c.c. or sometimes even the deal j. right now to stop to put bankers in jail yet when they've clearly committed. criminal crimes you know when you steal from someone i think that's a crime right so i think it'll be interesting to see how the market reacts keep

hiring people to not give the go into business with broker dealer or anyone else like that but i think us the only way right now that we're going to stop there yeah and i think it's interesting just looking back i was reading an article of yours for over a year ago where you were talking about big the new york attorney general may press criminal charges against some of these banks over the fraud and i'm sure as you're going to say you were probably surprised that nobody ever really got prosecuted with criminal charges when it came to the banks or the major players in the financial crisis you're like the traders of bear stearns. first allies or that actually is an active new york age investigation that's won the i have some good feelings about the martin act might be brought against those guys for stealing billions from their own clients. i mean the jury's still out you know i hope they step up and do their job but i'm not counting on ok let's switch gears to maybe something that you are counting on which is crowdfunding and it's

a really interesting way that you are funding this story so i'm curious what's the advantage to you as a journalist having your story versus going to traditional route of pitching it to a publication and getting paid as a normal story would be done going that route. sure usually i investigate a story i figure out who's going to be on the record you know what documents i have and what publication that would fit for i have to then go out and pitch a couple of publications the new york magazine forbes fortune and new york post every one i've written for and then negotiate a price and at that point they own the story they get to change the headlight a they edit out the guts of the story you name it so this time i tried something different and amazingly it's working by crowdfunding my story and printing it terry bill dot com. i will be the publisher you know i will be choosing the information that goes into the headline and i will be asking the reader what they want to see

and how they want to see it do they want a video how much information do they want to hear is this a subject that they're interested in so i put it on pirate my film which was created by max keiser within a week we were we're fully funded so we've expanded some of the funding requests for a few more hundred dollars hopefully so we can even have a short documentary film go a little longer or even hire a better producer who knows so i mean this is the first time i've ever tried in thing like this i wasn't sure how my readers would react and they're supporting it and i just think it's amazing yeah i'm curious just what the difference is between what may be the added hers that you work with want and what your readers want. is always worried about getting sued. they are. the editors worried about words write the number of words in a print story if you put it online you have more words things like by you know the editors don't always know the subject yeah right they don't understand the

financial accurate and fortunately those going in there so so. i'm going to lead on that and go back to you know i. think they know what the reader wants but sometimes i don't think we asked the reader what they want yeah so that's what i'm doing and i think it's going to be an amazing story yeah and i just think all to the readers who are who are participating there are people who are been long time readers who are writing me letters thanking me and supporting me and donating and there's a whole new set of readers that max kaiser and rush today is introduced me to and i look forward to informing them also we appreciate you coming on the show to talk about it i just think it's interesting to note to our readers what you said that through crowd funding you've raised more money that you were then you originally asked for and with a defamation suit from the hedge fund guy you got a pro bono attorney so it's kind of this david versus goliath story and you've been david it looks like you're winning so thanks for coming on the show and and telling us everything you're working on that was terry buel investigative journalist.

all right before we go let's wrap up with some loose change i got to meet tree and shannon to tell everybody what they think about this so tonight marks marks the start of march madness with president obama taking david cameron to ohio it's the site of one of the first four games and it's not just the president who wants to catch a glimpse of basketball during march madness who is using it to achieve a certain goal experts say the number of men became vasectomies jumped by fifty percent this time of year and they're trying to cash in take a look. at least half the guys that i've got scheduled for later in the week it

knowledge that they are here specifically for that reason and in fact the guy this morning said absolutely that's on the schedule for friday. yeah so some people are trying to cash in with a vasectomy madness hey that was a clip from the cleveland clinic who was talking about how much the procedures go up and that was an ad that you just saw right here for a vasectomy madness did you think it could be more successful obama and kind of his p.r. move diplomacy or best acting about it and getting men to get their surgeries and sit on that couch for america i was really remarkable this is like the next step in the bread and circuses bread circuses that infrastructure is not only because the present class now get fed bread and these kind of bloodletting ceremonies but they also get they're going to get castrated not really the end of the blood line yeah. i think the insurance companies are also cash because i took a look it seems that most insurance programs do cover sex me so it's probably

included in the existing benefits for these obviously a good deal for the insurance companies don't really cause so much. i wonder why we don't hear rick santorum complaining about being covered by insurance more had one maybe want to take it up with him meanwhile this is really meter news pay to see f.t.c. is expanding its m.f. global inquiry and it's got what looks like its first popular contributor to c n d c r fisher i know i just don't know all these alleged. he knows he's a legend they say you're a legend when you're gone for good but i'm only fifty god like seven years ago when you saw the truly when you were like thirteen. so there he was on c. and b. c. ok fisher's m.t.f. clearing corp has allegedly been performing the same vaporisation activity m.f. global engaged in is being sued by the c f t c and there is a saying that he didn't segregate customer money from his own accounts but

apparently this just came out which had a chance to look at it but apparently he he pulled money and put it into j.p. morgan during during and after the financial crisis for about two years and he didn't take care to make sure that those accounts were segregated in other words j.p. morgan would have been able to use that money for their own positions or whatever it is so i think i think this is this is really interesting for getting more of these probes and i think it also speaks to the whole thing about the mainstream media who are these people who have always contributors i don't manage someone else's money i don't pyramid. some of the guys cash so you know their capital account does just write a note to you viewers you should be aware of when you're watching these other channels and also why does the money always go back to j.p. morgan why are they always involved in any of these money trails with m.f. global with this guy yet they're never a punishment like you gambino family they're like they're how do you like the top family i think they like goldman sachs is more like a specialty little especially operation like them of schoolboys like the big honcho

ok so i mean on them of course very j.p. morgan so i'm not surprised we heard what they did with. customer accounts and custom on you so ok while we're on the media some of our viewers i actually noticed and so did dimitri we noticed that they wanted to hear our opinion on the whole coney story of course it's a documentary that was this huge viral sensation created by the invisible children group about just a colony of uganda became viral less than two days jon stewart may have taken the words right out of our mouths when it comes to the mainstream media response. we've seen and been following for years we've done stories about for years or i worked in central africa for years as somebody who asked president obama about this last october and there was very little interest in getting that question an answer out there for the public very little interest for the public. career that's. why don't i do is go viral the thing is about the economy video it does seem like there are concerns about this group and how

they do use their money simplification of this issue and i tend to think that those are major concerns about you well. they're crying and bitching because just like david gaiman there if they feel entitled all right so they want to have their audience share and they're upset that some guy made a documentary and the people want to watch it because it's actually interesting unlike the crap that they sell you because they have they have their the mainstream media they have the budgets they have the coverage the cable companies and we don't and they don't like that they want to target people actually like we have to produce so just more behavior in my view or tell behavior at the same time no this isn't some one guy i mean he has an organization and nonprofit they have their own goals obviously in their own agenda so i mean you're not really ever escaping an agenda you just need people going about it different ways but all my point is people actually want to watch a documentary and that bugs me the most c.n.n. m.s.m. better pay somebody i'm sure you spend a fraction all right we'll leave it at that that's all we have time for

a separate show thanks so much for tuning in do not forget to falling on twitter at laura mr and give us feedback on the show at youtube dot com slash capital account and from everyone here at the show thank you so much for watching come back tomorrow have a great night. wealthy british soil. market dynamics. find out what's really happening to the global economy with max cause or for a no holds barred look at the global financial headlines to cause a report on our key. download the official monte allocation show on the phone on

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