At SEC, the system can be deaf to whistleblowing - Is the SEC Listening to WHAT will Cost Shareholder Billions?

"" By Zachary A. Goldfarb

Washington Post Staff Writer Thursday, January 21, 2010
Eric Kolchinsky was an executive at Moody's, the credit rating company, when he called a top official at the Securities and Exchange Commission in September to warn that his firm might be violating securities law.

He reported that Moody's was blessing mortgage-backed investments that it knew were dangerous, according to a person familiar with the conversation. The SEC official assured Kolchinsky that someone from the agency would call him back shortly.
But the call never came, Kolchinsky later told congressional investigators who were examining how the credit rating industry's failures contributed to the financial crisis. He had gone to Congress after losing patience with the SEC.

Kolchinsky is one in a series of whistleblowers who in recent years tried to tip off the SEC to potential wrongdoing, only to be ignored, misunderstood or left to wonder whether they were being listened to. The SEC has no system in place to guide how officials should handle tips and complaints from outsiders, making it difficult for investigators to take advantage of an invaluable source of information.

This failure helped to continue two of the most celebrated frauds of the last decade for several years, potentially costing unwitting investors millions of dollars. Countless others may have been left vulnerable to shysters because of warnings that went unheeded.

Since SEC Chairman Mary L. Schapiro took office last year, she has said that fixing the holes in the process for handling tips and complaints has been a top priority. But improving the way hundreds of thousands of tips are analyzed and pursued has proven difficult.

The SEC's enforcement division got back in touch with Kolchinsky about his allegations only after he told the story publicly to a congressional committee last fall, according to a person familiar with the matter.

The SEC said it responded to Kolchinsky's concerns but declined to provide details or to say how fast it did so. Moody's said it examined his allegations and found nothing improper.
The SEC has a haphazard, decentralized system for analyzing outsider information. Tips arrive by phone, mail and e-mail to officials throughout the agency -- investor education to enforcement divisions.

A study commissioned by the SEC last year and conducted by Mitre, a nonprofit group that does research for the federal government, found that the SEC lacks technology to analyze tips and complaints, as well as cohesive policies for what officials should do when they get information.
Whistleblower complaints are one of the main ways that investigators should be tipped to wrongdoing, SEC officials say, along with inconsistencies in financial filings and alerts from financial exchanges about suspicious trading patterns. But the SEC lags behind some other federal agencies in handling tips.

The Internal Revenue Service, for instance, pays reward money to whistleblowers who provide credible information about tax fraud. The Federal Trade Commission has set up a call center for tips and complaints.

On top of structural problems at the SEC, agency officials individually made mistakes in handling several recent cases, sometimes violating agency rules.

Members of Schapiro's management team said they recognized problems with the system for handling whistleblowers shortly after taking over.

"There was no uniformity to it. Every division and office had its own system of recording, tracking or handling tips and complaints. That system was pretty rudimentary," said Steve Cohen, the official tasked by Schapiro to overhaul the agency's tips, complaints and whistleblower program. "We're already working to acquire and deploy technology that centralizes all of the agency's tips and complaints so they can be sorted, reviewed, analyzed and tracked." "

Full Article and Source
http://www.washingtonpost.com/wp-dyn/content/article/2010/01/20/AR2010012005125.html

Warner Bros. Signed Non Disclosure Agreements with Iviewit, Warner Violated those Agreements. Warner Signed License and Service Agreements..

Is the SEC Listening, LOOKING... do they even Care.. or will Mary Schapiro and the SEC just sit and wait for a Multi-Billion to Trillion Dollar Scandal and they say Whoops.. We had NO WAY to Know.. and then Of Course Investigative Blogger, Crystal L. Cox will have to Say What a Crock That is - Because does ANYONE at the SEC know How To work GOOGLE... ??? or any Search Engine Really.. or Possibly READ Complaints... ???

Warner Bros. - has broke the Law and in the process put shareholders at HUGE risk, why is Jeffrey Bewkes ignoring this blatant proof of Fraud.

Warner Bros signed multiple Iviewit Non Disclosure Agreements and Warner Bros. Signed License and Service Agreements with the Iviewit Company. 9 years have passed and Warner Bros. Blatantly and Illegally Violated those agreements long ago, why?

And Now Eliot Bernstein Founder and one of the Inventors it the Iviewit Stolen Patent has filed a very informative, incredibly detailed SEC Complaint. One that for Now Mary Schapiro and the SEC seems to be ignoring... I am not sure why just yet.. but hope to get tips on this soon...

Some of the Warner Bros' Iviewit Timeline and more details
of the Warner Bros. Relationship with the Iviewit Company.

" " TIMELINE OF WARNER BROS ET AL. RELATIONSHIP WITH IVIEWIT

The following Timelines are presented to give a factual timeline to the allegations herein, the exhibits are linked online and all Uniform Resource Locators (“URL”) and Exhibited Links throughout this document are hereby incorporated, in entirety by reference herein, including over 1000 evidentiary links on the homepage at www.iviewit.tv with exhibits that contain thousands of pages of factual evidence[5].

The timeline will also reveal facts regarding the relationships between many of the Defendants in my Federal RICO and ANTITRUST Lawsuit and Warner Bros et al., including relations to the main perpetrator of the alleged crimes, the law firm Proskauer Rose.

*Note Warner Bros et al. relevant mergers, acquisitions and breakups to these matters in the timeline below are in bold italics.

1998-2002
Relevant Communications Between Iviewit and Warner Bros et al.

· 1998-2001
Inventions in Imaging and Video Discovered and Intellectual Property Filings begin in 1998. Proskauer Rose was retained Intellectual Property counsel for Iviewit for filing of Intellectual Properties.

· 2000-2002
Warner Bros et al. signs multiple Iviewit Non Disclosure Agreements.

Non-Disclosure Agreements @
http://iviewit.tv/CompanyDocs/Patents/Confidentialities/confidentialities%20total.pdf
Pages 1-5, 10, 61-62, 80, 108-109, 234

· November 02, 2000 ~ Letter to GS regarding Warner Bros. Technological Calls to Iviewit Investors by Warner Bros. employees, describing the efficacy of the Inventions and the results of the review by Warner Bros., including the anticipated uses by Warner Bros et al.

http://iviewit.tv/CompanyDocs/20001101%20Goldman%20Friedstein%20Letter%20from%20Buchsbaum%20re%20AOLTW%20Colter%20meetings.pdf

· January 11, 2001 ~ America Online and Time Warner Complete Merger to Create AOL Time Warner
http://www.timewarner.com/corp/newsroom/pr/0,20812,668364,00.html

· February 08, 2001 ~ Letter from David J. Colter (“Colter”) ~ Vice President Technology - Technological Operations Warner Bros. to Founder of AOL, Ted Leonsis (“Leonsis”), regarding the efficacy of the Iviewit technologies.

http://iviewit.tv/CompanyDocs/20010208%20Colter%20to%20Leonsis%20Warner%20Bros%20AOL.pdf

· February 15, 2001 EFFECTIVE DATE - Signed Warner Bros. License And Service Agreement @
http://www.iviewit.tv/CompanyDocs/20010822%20-%20SIGNED%20Warner%20Bros%20Agreement%20AOL.pdf

August 15, 2001 Irell & Manella LLP Bills for Services for Warner Bros et al. and Sony Licensing Agreements @

http://www.iviewit.tv/CompanyDocs/Patents/Paul%20Allen/old%20patent/LEGAL/Irell%20&%20Manella/Bills/2001%2008%2029%20-%20Irell%20Bill.pdf

It is imperative for the SEC to note that after the Signed Licensing and Service Agreement, Iviewit opened a California Office inside a Warner Bros. building, in order to take over encoding operations for their online content, and more.

Iviewit began billing according to the Licensing and Service agreement. Please note the language in the Licensing and Service agreement pertaining to the Proprietary nature and Confidentiality of the Iviewit inventions.

Suddenly, after the agreements were signed and operations were underway, Wayne M. Smith ~ Vice President and Chief Patent Counsel at Warner Bros. began seeking a re-review of Proskauer Partner Kenneth Rubenstein ’s (“Rubenstein”) prior patent opinions regarding the Iviewit inventions to Warner Bros. employees.

Smith then claimed to Colter that he found problems while reviewing Rubenstein’s opinion with the patents on file at the US Patent Office[6]. At this point, allegedly, a coordinated conspiratorial effort between Smith, Rubenstein and others began to derail the already signed Iviewit agreements with Warner Bros et al.

Allegedly, former “Acting CEO” of Iviewit, P. Stephen Lamont, (a referral emanating from AOL’s Leonsis) Smith and Rubenstein then worked to derail the Licensing and Service Agreement. Warner Bros. then further attempted to deny the existence of this BINDING CONTRACTUAL OBLIGATION as further evidenced in letters exhibited herein, whereby the Signed and Binding agreement is wholly denied.

The amount owed in service fees since the signing of the contracts would be an enormous amount over the almost 10 years of use and where Warner Bros et al. have never notified Iviewit they were cancelling such contract, it may still be considered effective. Yet, it would difficult to cancel what one tries to deny the existence of and perhaps the reason no cancellation was formally completed.

o The emails forward from this point in the timeline begin to attempt to hide from the fact that Licensing and Service Agreements were already in place while also hiding these facts and liabilities from Shareholders and Auditors.

The alleged fraud may again have catastrophic effect on these highly traded stocks, reaching back to this point in time and possibly further back.

· April 04, 2001 Letter from Colter to William J. "Bill" Raduchel (“Raduchel”) ~ Chief Technology Officer and Executive Vice President at AOL. AOL’s Leonsis referred Raduchel to do further due diligence for an investment in the Iviewit companies, in addition to the Licensing and Encoding deal already signed.

http://iviewit.tv/CompanyDocs/20010404%20Colter%20to%20Raduchel%20Leonsis%20referral%20AOL%20Warner%20Bros.pdf

· May 25, 2001 Letters to and from Douglas Chey (“Chey”), Senior Vice President of Technology for Sony Pictures Digital Entertainment and Divisional CIO, Motion Pictures and Television Productions of Sony Pictures Entertainment. Chey, formerly with Warner Bros. was working with Iviewit at Sony (also under Signed Agreements) together with Warner to do a Five Studio Movie Download Project, Movielink, where the Iviewit inventions were to be the backbone enabling technologies to make digital download and streaming possible as a commercial endeavor.

Since that time, Warner Bros et al. and Sony have both done similar digital downloading projects, in violation of Signed Agreements with Iviewit.

http://iviewit.tv/CompanyDocs/20010525%20Sony%20Doug%20Chey%20Endorsement%20of%20Tech%20and%20Advisory%20Board%20Option%20letter.pdf

http://iviewit.tv/CompanyDocs/20100120%20Douglas%20Chey%20Sony%20Bio.pdf

The SEC should also begin FORMAL INVESTIGATION of Sony’s involvement in these matters. Similar calls to those described herein to Warner Bros et al. for sound business discussions to attempt to alleviate shareholder liabilities have gone wholly ignored by Sony’s In House Counsel, Executives and Auditors.

I will be filing a more formal complaint shortly with the SEC but this should not delay immediate investigation by the SEC, in order to preclude Massive Liabilities to Shareholders of Sony.

The SEC and all other investigators and committees addressed herein, can take this Formal Complaint additionally as a FORMAL COMPLAINT AGAINST SONY. ""

Source of Post and of Warner Bros SEC Complaint

So Where is Mary Schapiro on this One ?
jeffrey bewkes

Immediate Attention to TWX, AOL, Warner Brothers, and Time Inc. Shareholders. SEC Complaint Against AOL,TWX, Time Warner... Pay Attention.

Eliot Bernsteing of Iviewit Technologies Filed and SEC Complaint Regarding Time Warner, Jeffrey Bewkes, Wayne Smith and YOUR MONEY...

This Complaint Alleges and Seems to Prove Massive Shareholder Fraud, and Could Lead to a Total Financial Collapse of Time Warner and AOL.

"" Time Sensitive Urgency to this Complaint; Potential Catastrophic Effects to the Shareholders of Warner Bros et al.; Fraud could Trigger Rescissory Shareholder Rights

To further establish the urgency and Time Sensitive nature of this FORMAL COMPLAINT, please note that the criminal fraud and other crimes described herein will likely trigger Rescissory Rights of Shareholders at all of the respective and related companies of Warner Bros et al., which likely will have Catastrophic impact on both the companies and its Shareholders.

Therefore, the SEC must instantly investigate these matters and instantly bring the matters to the attention of the Warner Bros et al. Shareholders, Auditors, Financial Institutions and all other parties with potential liabilities resulting from the allegations herein and whereby if the companies and their Executives fail to notify Shareholders and Regulators, the SEC must act quickly to notify them.

The SEC must begin immediate investigation of the Securities Frauds described herein and prevent ongoing and future fraudulent corporate transactions from further harming Shareholders of Warner Bros et al.

Further, I point out to the SEC herein what looks like a recent pattern of Shareholder Fraud and Deceit done with Scienter, beginning on or about March 2009, by Officers, Directors, Counsel and Auditors for Warner Bros et al., which are alleged to have been done in order to commit further fraud upon the Warner Bros et al. Shareholders. That these recent corporate restructurings may be the result of Key Executives of Warner Bros et al. attempting to abscond with corporate assets through a series of recent complex corporate breakups.

The breakups began immediately after I contacted Warner Bros. in March 2009 with my business consultant Kevin Hall, Esq. (“Hall”), regarding massive unreported liabilities to their Shareholders[4].

Liabilities resulting from Warner Bros et. al’s involvement in my Twelve Count Twelve Trillion Dollar Federal RICO and ANTITRUST Lawsuit and additional liabilities resulting from the knowing infringement of my Intellectual Properties and for their failure to report these liabilities under FASB No.5 and other laws.

This Formal Complaint for Investigation of Warner Bros et al. on this day, Friday, February 12, 2010comes after Hall and I made repeated Good Faith attempts since March 2009 to address the Business and Corporate Responsibility issues with Executives, Officers, Board Members and Auditors at the respective companies.

Warner Bros et al. was contacted in order to find possible solutions to avoid catastrophic events from occurring to their Shareholders, if possible, prior to further actions with investigators, including the SEC.

The following timeline of events will establish the correlations between the allegations of fraud described herein, in relation to the timing of the corporate restructurings of Warner Bros et al. Correlations in time with both the 2001 merger and now in the 2009 breakup with the frauds described herein, will provide the SEC a basis, mired in factual evidence, to begin immediate investigation of this complaint for massive securities fraud, in order to protect Shareholders from further possible related losses in these highly traded blue chip stocks. ""

Full Warner Brothers, Jeffrey Bewkes SEC Complaint Click Here

Who is Looking out for AOL and Warner Brothers Shareholders? Well we know it is not Mary Schapiro of the SEC.