EFTA00083356.txt Text dataset_9 View on DOJ

Illegal Activity
concerning
Blackmail
possible
Date
2021-02-19
Document Type
email
Model
gemini-2.0-flash-001
Processed
2026-02-07T18:44
Summary
Chris Dilorio alleges that NITE/VIRT is engaged in ongoing securities fraud and money laundering, with the SEC actively obstructing investigations and protecting these entities. He claims the SEC is using his whistleblower information unethically, both to bring complaints and obstruct investigations, and is appealing the denial of his whistleblower award while demanding immediate action against the involved parties.
Metadata
Subject
Fw: Formal appeal for preliminary denial covered action 2015-016/ Knight Capital TCR & Appendix
Sender
Chris Dilorio
Recipients
—
Document ID
EFTA00083356
Date
2021-02-19
Illegal Activity
Severity
concerning
Description
The email contains first-hand accusations of ongoing illegal activities, including securities fraud, money laundering, and obstruction of justice, allegedly perpetrated by NITE/VIRT and facilitated by the SEC.
Categories
Securities fraudMoney launderingObstruction of justiceMarket manipulationBSA violations
Content Type
first_hand
Evidence:
  • Abusive naked shorting of OTCM shells to facilitate money laundering
  • Misclassification of liabilities as assets
  • Circumventing close out requirements of Rule 204
  • Engaging in illegal activity both BEFORE and AFTER the SEC et al orchestrated August 1 2012 "trading glitch"
  • Pledging worthless securities as collateral
  • Facilitating fraud public offerings
  • Money laundering/transaction laundering fraud
  • Failure to disclose AML risks in SEC filings
Blackmail Indicators
Likelihood
possible
Description
The email suggests potential threats or promises of business to analysts to influence their ratings on NITE/VIRT.
Evidence:
  • Did Cifu threaten you if you bring it up again? Please forward your model including these share volumes so we can compare notes. Who else has been threatened with retaliation by Cifu/Handler? Who has been promised business? Mr Repetto/Fannon? Who has BUY ratings on NITE/VIRT currently?
Relationships 29
Entity 1RelationshipEntity 2Description
Chris Dilorio Whistleblower SEC Chris Dilorio is a whistleblower who has filed complaints with the SEC.
NITE/VIRT Accusation SEC Chris Dilorio accuses NITE/VIRT of engaging in illegal activities and the SEC of obstructing investigations into these activities.
Handler/Jefferies Accusation SEC Chris Dilorio accuses Handler/Jefferies of having a corrupt relationship with the SEC.
Clayton Conflict of Interest Sull Crom Chris Dilorio accuses Clayton of having conflicts of interest due to his firm Sullivan Cromwell's involvement with Knight/KCG/VIRT.
NITE Trading Activity UBSS NITE and UBSS are accused of trading in the same stocks, particularly OTCM shells.
NITE Trading Activity Hanover/Magna NITE and Hanover/Magna are accused of being involved in money laundering schemes.
SEC Accusation Whistleblowers The SEC is accused of using whistleblower information unethically and illegally, both to bring complaints and obstruct investigations.
NITE/VIRT Business Model OTCM NITE/VIRT's core business is alleged to be abusive naked shorting of OTCM shells to facilitate money laundering.
SEC Regulatory DTCC The SEC authorized the DTCC to create the Obligation Warehouse, which is alleged to facilitate illegal naked shorting.
Clayton Professional Fishman Clayton and Fishman are colleagues at Sullivan Cromwell.
NITE Financial JPM NITE inadvertently sent worthless securities to JPM to secure emergency bridge financing.
NITE Merger GETCO NITE and GETCO underwent a reverse merger to form KCG.
Coleman Employment UBS Coleman ran Equities at UBS during the Reg Sho violations.
Handler Professional Milken Handler is a Milken/Drexel protege.
Trump Financial Milken Milken is connected to Trump through casino junk bonds.
Urban Employment NITE Urban sits on the NITE BoD.
Coulson Employment FINRA Coulson chaired the FINRA market Regulation Cmte.
Keener Legal FINRA FINRA brought a complaint against Keener.
Sason Legal NewLead The SEC brought an action against Sason/NewLead.
Dilorio Communication Traxler Dilorio had extensive correspondence with Robin Traxler at FINRA.
Dilorio Communication McKessy Dilorio cc'd Sean McKessy in correspondence with Robin Traxler.
Dilorio Communication Norberg Dilorio is appealing a preliminary denial from Norberg.
Dilorio Communication Hoecker Dilorio has filed complaints with IG Hoecker.
Dilorio Communication Goodman Dilorio contacted Kevin Goodman at the SEC.
Dilorio Legal Berger Dilorio submitted a TCR with Berger Montague.
Dilorio Communication Welshhans Dilorio asks Welshhans questions about the Keener complaint.
Dilorio Communication Peirce Dilorio congratulates Peirce on his nomination as SEC Commissioner.
Dilorio Communication Arp Dilorio communicates with Arp regarding his analysis.
Dilorio Communication Roach Dilorio communicates with Roach about the SEC using his information.
Notable Quotes 3
Griffin yesterday: the SEC eliminated illegal naked shorting with Reg Sho:KNOWINGLY LIED
Cifu said: "Like really who is NOT benefitting from that system. AND we're putting risk capital up to provide that service."
The SEC is a grossly corrupt, criminal enterprise facilitating illegal activity detailed by me so that this activity can continue.
Red Flags 10
  • Allegations of SEC obstruction of justice
  • Accusations of money laundering and securities fraud
  • Conflicts of interest involving SEC officials
  • Unusual transactions and accounting practices at NITE/VIRT
  • Expunged data from SEC filings
  • Multiple CFOs in a short period
  • High receivable balances at NITE/VIRT
  • Connections to known fraudsters and money launderers
  • Use of OTCM shells for illegal activities
  • Allegations of naked shorting and market manipulation
Financial Information
Amounts:359 Million$1.4 billion$4 billion2.5 BILLION+$100 mil$1.88 billion$675 million$1.2 billion$2/sh$850 mil$20 million$24.484 million$105 mil400037 BILLION$900,000$50 bil
Assets:
  • Trading assets
  • Trading liabilities
  • Receivable
  • Settlement
  • Worthless securities
  • Tangible book
Transactions:
  • Abusive naked shorting OTCM/other shells to facilitate money laundering
  • Money laundering on a MASSIVE scale
  • Russian Mirror trades
  • KCG acquisition by VIRT
  • Sale of unregistered penny stocks
  • Reverse splits to perpetuate and facilitate illegal activity
  • Pledging collateral to secure financing
  • Reverse merger with a CA EV manufacturer
  • Pump and Dump promotion of NETE
  • Reverse merger with a CA electric car company
  • Sale of HotSpot to BATS
  • Stock buyback from glitch financing participants
Media & Journalist References
  • References to news articles about GameStop shares failing to deliver
  • References to articles about the KCG/Virtu merger
  • References to articles about SEC actions against various entities
  • References to articles about the Gibraltar case
  • References to articles about Honig's Shell Factory
  • References to articles about SeeThroughEquity and Net Element
  • References to articles about Otkritie Capital and SunGard
  • References to articles about the SEC's action against Keener
  • References to articles about the SEC's action against Sason/NewLead
  • References to a WSJ article about the Knight/KCG trading glitch
Public Knowledge
Context
The information, if true, would be of significant public interest due to the potential implications for the financial markets and regulatory oversight.
Media Worthy
Yes
Legal Compliance
  • Securities fraud
  • Money laundering
  • Obstruction of justice
  • BSA violations
  • Failure to disclose conflicts of interest
  • Fraud on the court
  • Violations of Rule 204 of Reg SHO
Raw Analysis JSON click to expand
Themes
Political connections/influenceFinancial transactions/money flowLegal matters/litigationCommunications/correspondenceAllegations/complaintsIllegal activitiesBusiness dealingsCoercion/blackmail attempts
People 82
Chris DilorioKen GriffinJoyceJudge PreskaJudge NathanMr KamenskySean GalvinJaneyJudge CaveJudge JonesMr BlosteinDougie CifuReppettoFannonAdena FriedmanSchwarzmanGlenn HutchinsGreifeldJay ClaytonHoeckerHandlerRich HandlerBergerMs NorbergRobin TraxlerSean McKessySteinAguilarArpRoachWelshhansPeirceBirkenfeldSchapiroDan ColemanAcosta DowningWhiteCeresneyKevin GoodmanKhuzamiKirklandJohn McCarthyCromwell CoulsonAndrew WimpfheimerOleg FirerApockinasGrinshpunAntonovRakishevTrumpKushnerCohenParscaleEconomouGerberHudson BayAri GlassBoothbayRani JarkasMax FangAG BarrBroidyMnuchinLeon BlackMoelisDavid UrbanBannonKotzMadoffTerren PeizerMichael WachsGuyerAurelioTerrence A. TeccoDavid Della Sciucca Jr.Marc P BergerMarc ManuelAbitebolPeikinAudrey StraussRabbittCarpenito
Organizations 121
CDELKnight CapitalKCGNITEVIRTBroadcortMerrillSECRHOTCMCDEL SecuritiesLLcPershingBoNY MellonDUAutranetCS First BostonDTCCNSCCBloombergGameStop Corp.Virtu Financial IncThe Motley FoolSONY CourtsAQRBlackstoneJefferiesSilver LakeSunGardFISNASDAQAutomated Securities Clearance LtdCompanies HouseBRUT ECNOtkritie CapitalFinextraN IslandSDNYCleary GottliebGoldman, Sachs & Co.LexologyU.S. Attorney's officeFINRABrown Brothers HarrimanUBSSJMJKeenerHicksFifeWorld Trade FinancialOffice of Hearing OfficersBlink Charging Co.New Image ConceptsDrexelAlpha CapFrostLadenburgGruntalSACFeinbergMillenium Bio/lnergeticsTERI BUHLClarus SecuritiesSeeThroughEquity, LLCACCESSWIREEsousaCobblestoneWireCardHapoalimSBNYCardWorksESQAlfaCredePeizerMilkenALLYMerrick BankMullenCdantuCH-AutoKY Div of MinesIRSPOGOJPMGen AtlanticGETCOOCIENYSEWSJBATSDOJDPAKY Div of MinesFINCENWTFCIBCIronridgeAsherBSIOptimaEFGAIPACNordlicht1MDBKhazanah NasionalGlobal CrownKirklandTreasurySull CromGibraltar Global Securities Inc.SEC OWBGAOThe TribuneMG Partners LtdPallasMAGNA GIBRALTAR INVESTMENTS LLCStrata Coal CompanySEC EnforcementFINRA World Trade FinancialFINRA Opco
Locations 34
USRussiaChinaWashingtonSwitzerlandUKNJEuropeRussianAustriaIsraelUkraineDenverNeuchatelHighlands Ranch COWoodlands TXBoca RatonBahamasNassauNew YorkSan JuanPuerto RicoMiami BeachFloridaJersey CityAustin TXChicagoDCMiamiLittletonColoradoLiechtensteinCanadaPakastani
Financial Entities 5
Swiss BanksDeutsche BankCredit SuisseJPMUBS
Text Analysis
Tone
Accusatory, frustrated, urgent
Purpose
To expose alleged corruption and illegal activities involving NITE/VIRT, the SEC, and other entities, and to appeal the denial of a whistleblower award.
Significance
The document contains detailed allegations of securities fraud, money laundering, and regulatory obstruction, potentially implicating major financial institutions and government agencies.
File Info
File Name
EFTA00083356.txt
Dataset
dataset_9
Type
Text
Model
gemini-2.0-flash-001
Processed
2026-02-07T18:44:26.486075
DOJ Source
View on DOJ