Illegal Activity
concerning
Blackmail
possible
Date
2020-09-23
Document Type
email
Model
gemini-2.0-flash-001
Processed
2026-02-07T18:44
Summary
This email chain represents a formal appeal by Christopher Dilorio regarding the denial of his award application related to the Oppenheimer AML covered action, alleging that the SEC is corruptly obstructing justice and protecting criminal enterprises like Knight Capital (NITE) while using his whistleblower information unethically. Dilorio accuses the SEC of facilitating illegal activities such as naked shorting and money laundering, and he demands a thorough investigation into the alleged misconduct and compensation for his information.
Metadata
- Subject
- Fw: Formal appeal for denial covered action 2015-016/ Knight Capital TCR & Appendix
- Sender
- Chris Dilorio
- Recipients
- —
- Document ID
- —
- Date
- 2020-09-23
Illegal Activity
- Severity
- concerning
- Description
- The document contains allegations of ongoing illegal activities, including securities fraud, money laundering, and obstruction of justice, directly involving the SEC and various companies and individuals. The whistleblower claims to have provided extensive evidence to support these allegations.
- Categories
- Securities fraudMoney launderingObstruction of justiceBSA violations
- Content Type
- first_hand
Evidence:
- Allegations of illegal naked shorting by NITE.
- Allegations of money laundering through OTCM shells.
- Allegations of securities fraud in KODK and other companies.
- Allegations of SEC obstruction of investigations into illegal activities.
- Allegations of BSA violations by NITE and other entities.
Blackmail Indicators
- Likelihood
- possible
- Description
- The document does not contain explicit blackmail or coercion attempts. However, the repeated accusations of SEC officials being part of a "Do Not investigate Club" and the allegations of SEC obstruction of justice could imply pressure or influence being exerted to protect certain entities from investigation.
Relationships 18
| Entity 1 | Relationship | Entity 2 | Description |
|---|---|---|---|
| Chris Dilorio | Whistleblower | SEC | Chris Dilorio is a whistleblower providing information to the SEC. |
| Steve Schwarzman | Leadership | Blackstone | Steve Schwarzman is associated with Blackstone. |
| Jason New | Board Member | Blackstone | Jason New is a board member of KODK and associated with Blackstone. |
| Trump | Personal | Schwarzy | Trump and Schwarzy are described as BFF's. |
| David Urban | Board Member | NITE | David Urban is on the Board of Directors of NITE. |
| Jay Clayton | Professional | Sull Crom | Jay Clayton worked at Sullivan Cromwell. |
| Jared Fishman | Professional | Sull Crom | Jared Fishman is associated with Sullivan Cromwell. |
| Dan Coleman | Professional | UBSS | Dan Coleman ran Equities at UBSS. |
| Rich Handler | Professional | Jefferies | Rich Handler is associated with Jefferies. |
| Dougie Cifu | Professional | Paul Weiss | Dougie Cifu is associated with Paul Weiss. |
| Lara Shalov Mehraban | Professional | Paul Weiss | Lara Shalov Mehraban is associated with Paul Weiss. |
| Alex Ioffe | Professional | IBKR | Alex Ioffe was CFO at IBKR. |
| Michael Farkas | Leadership | SkyWay | Michael Farkas was associated with SkyWay. |
| Jonathan New | Professional | NETE | Jonathan New was CFO of NETE. |
| Donald Engel | Professional | Drexel | Donald Engel worked at Drexel. |
| Terren Peizer | Professional | Crede | Terren Peizer runs Crede. |
| Oleg Firer | Professional | Acies | Oleg Firer is associated with Acies. |
| Martin Schlaff | Professional | Alpha Capital Anstalt | Martin Schlaff controls Alpha Capital Anstalt. |
Notable Quotes 3
My allegations are chock full of members of the SEC "Do Not investigate Club".
As a direct result of the SEC "Do not investigate Club", The KODK/Blackstone fraud on US Taxpayers (see below) was perpetrated on the public.
The massive SEC facilitated fraud on the public known as Knight/KCG/VIRT: NITE is reaching epic proportions in August 2020.
Red Flags 7
- Allegations of SEC officials being part of a "Do Not investigate Club".
- Repeated accusations of SEC obstruction of justice and corruption.
- Allegations of illegal naked shorting and money laundering by NITE and other entities.
- Connections between prominent individuals and alleged fraudulent activities.
- Discrepancies in financial reporting and SEC filings.
- Allegations of SEC using whistleblower information unethically.
- Allegations of SEC fraud on the court in Gibraltar.
Financial Information
Amounts:$14/sh$3$1.50/share$350 mil$354 million$6 million$765 million$8 mil$1.2 BILLION$2.562,721 billion$2.441,283 BILLION$121.438 MILLION$11.5 million$12M$20 million$25m$20 million
Assets:
- Knight stock
- KODK stock
- NITE receivable
- HotSpot
Transactions:
- Blackstone considered buying Knight north of $14/sh.
- Bailout deal with a %50 discount to $3: $1.50/share.
- Phlow receiving $350 mil in Government Covid funding.
- DFC considering "loaning" $765 million to KODK.
- BBH delivered 80%+ of the trades to executing BD's/MM's.
- NITE receivable was up 90% or $1.2 BILLION from Dec 2019 to $2.562,721 billion.
- NITE receivable roughly flat with 1Q2020 at 2.44 BILLION.
- Interactive Brokers LLC will pay an $11.5 million penalty.
- Trump $12M for Re-election.
- SEC approved a $20 million public offering for Urban/Trump: HUGE.
- SEC approved BLNK public offering.
- UBS agreed to pay a $5 million civil penalty to resolve the SEC's charges, and separately agreed to pay $10 million to the U.S. Treasury.
- SEC's requested amount CLEARLY UNDERESTIMATES the defendants ill-gotten gains....
- Bahamian broker in $25m sanction
- FinCEN Fines Oppenheimer & Co. Inc. $20 Million
Media & Journalist References
- References to news articles about Blackstone and Knight Capital.
- References to news articles about FBI concerned over laundering risks in private equity, hedge funds.
- References to news articles about Honig's Shell Factory Attorney Gregg Jaclin Barred as SEC lawyer.
- References to news articles about Inside the Hamptons Fundraisers That Netted Trump $12M for Re-election.
- References to news articles about Bahamian broker in $25m sanction.
Public Knowledge
- Context
- Some of the information, such as the Knight Capital "glitch" and the SEC's actions against certain individuals and companies, may be known to the public. However, the specific allegations of corruption and obstruction of justice, as well as the connections between various individuals and entities, are likely not widely known.
- Media Worthy
- Yes
Legal Compliance
- Allegations of SEC corruption and obstruction of justice.
- Allegations of illegal naked shorting and money laundering.
- Allegations of securities fraud.
- Allegations of BSA violations.
- Allegations of fraud on the government and taxpayers.
Raw Analysis JSON
click to expand
Themes
Political connections/influenceFinancial transactions/money flowLegal matters/litigationAllegations/complaintsIllegal activitiesCommunications/correspondenceBusiness dealingsCoercion/blackmail attempts
People 62
Chris DilorioJudges CaveNathanSteve SchwarzmanMr KamenskyJaneyJason NewTrumpRobert MooneyMilkenMr BestDick BestRobin TraxlerHoeckerJayMehrabanDougie CifuMalussoIoffeLara Shalov MehrabanAlex IoffeJay ClaytonJared FishmanColemanSean P GALVINViolaUrbanHutchinsLaneyDavid UrbanKushnerEpsteinMichael FarkasEngelSciglianoKeenerNordlichtGiulianiBill RichardsonJonathan FarkasCarlMcCannBergerMs NorbergSean McKessySteinAguilarGuyerApockinasGrinshpunAntonovRakishevCohenCromwell CoulsonAndrew WimpfheimerMr RoachMr ArpPeirceSchapiroJoyceKevin GoodmanWelshhans
Organizations 136
SECBlackstoneKnight CapitalNITEKODKOWBHanover/MagnaJMJ/KeenerFifeSouthridge/HicksOpcoUBSSHandler/JefferiesAkin GumpPhlowVA consortiumHHS/ASPR/BARDAAmpac Fine ChemicalsNew Richmond Ventures (NRV)Richmond BizSenseDFCDoJD E ShawFINRABBHVIRTSull CromFCMInteractive Brokers LLCIBKRWedbushKCGGSJEFJPMDTCCObligation Warehouse (OW)Sull CrommALLYCardWorksMerrick BankESQWireCardAQRNASDAQEsousaCobblestoneMullenCtiantuCH-AutoSeeThroughEquityZacksSkyWayAciesNETEAlfaCredePeizerMilkenHapoalimSBNYCardWorksESQWireCardAQRJMJIBCIronridge/CoulstonAlphaDutchessCredeACNHollywood ReporterBlink chargingDrexelAciesPutinRussianReutersUBSSEC Charges UBS Financial Services Inc.FINRA.orgTERI BUHLHigh TimesLadenburgGruntalSACFeinbergAlpha Capital AnstaltKY Div of MinesDeutsche BankCredit SuisseAIPACGerber/Hudson BayNordlichtAri Glass/Boothbay1MDBKhazanah NasionalGlobal Crown/Rani Jarkas/EFG/BSI/Optima/Max FangAG BarrKirklandBroidyTrumpParscaleBoNYSinexOCIEMerrillCMTSUNYDFSDBTCAIRSPOGOGen AtlanticGETCOCerberusJefferiesMoelisVirtueDrexelTreasuryMnuchinBlackESWWSullivan CromwellBATSWTFCFINCENColorado GoldfieldsGibraltar SecuritiesMagnum d'OrStrata Coal CompanyTerrence A. TeccoWesPac TechnologiesSEC Charges Broker-Dealer and Transfer Agent in Microcap Shell Factory FraudMG Partners Ltd
Locations 28
USRichmond, Va.PetersburgSwitzerlandNeuchatelHighlands Ranch COWoodlands TXBoca RatonLiechtensteinAustriaIsraelMiamiWashingtonChinaNew YorkSanta MonicaColumbus OHChicagoBelizeNM Zorro RanchHamptonLos AngelesClevelandSan Juan, Puerto RicoMiami Beach, FloridaBahamasNassauJersey City
Financial Entities 5
Swiss BanksJPMDeutsche BankCredit SuisseMerrick Bank
Text Analysis
- Tone
- Accusatory, critical, frustrated, sarcastic
- Purpose
- To appeal a denial of an award application and to expose alleged corruption and illegal activities involving the SEC, various companies, and individuals.
- Significance
- The document contains serious allegations of corruption, obstruction of justice, and illegal financial activities involving the SEC and prominent individuals and companies. It highlights the whistleblower's frustration with the SEC's handling of his information and the alleged protection of certain entities from investigation.
File Info
- File Name
- EFTA00096577.txt
- Dataset
- dataset_9
- Type
- Text
- Model
- gemini-2.0-flash-001
- Processed
- 2026-02-07T18:44:22.560606
- DOJ Source
- View on DOJ