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Illegal and corrupt Congressional insider trading tends to be something we don't hear about until it's hit the big news networks and newspapers as the SEC goes for the throat of the accused. By then, unfortunately, those committing it have made their gains, usually in the multi-millions of dollars, and the damage has been done to the stock, its company and investors.

The United States Department of Energy, In the Solyndra Era, engaged in these crimes more than any other agency!

And quite frankly, the jail time assessed doesn't correct the damage done, and the fines rarely aid the investors, or the voters, in getting their money and their democracy back. Many of those hurt are Average Joe's and Jill's who were just trying to save their retirement nest eggs.

The act involves a Nancy Pelosi, Kamala Harris or Dianne Feinstein investment banker husband using information, which was not available to the public, buying and selling a company's stock. It is particularly onerous when one of those Senators buys Tesla or Solyndra stock, makes laws that only benefits Tesla or Solyndra, while sabotaging their competitor constituents. Because the dealings involved are pretty much done on the sly, it's been difficult for the governing body of the SEC to prove illegal insider trading, unless one of the cohorts tattles on the others or their actions become glaringly obvious. In some cases, a sharp mind around the action may take notice and become what's called a whistleblower.

Previously, writes Andrew Beattie of Investopedia: "... insider trading is often difficult for the SEC to spot. Detecting it involves a lot of conjecture and consideration of probabilities."

However, now, with spy agency-class software we have open-sourced, detecting illegal insider trading may actually be less complicated than it sounds, at least to the eyes of a our new keen AI observer who is familiar with the culture of financial entities and is hip to some of the tools available via artificial intelligence. We have automated AItemporal matching of the trade to its information source, politician finances, communications and policy partitipations.

The technology Core Evaluation Points:

  • Analyst estimates - these come from what an analyst estimates that a company's quarterly or annual earnings will be. They are important because they help approximate the fair value of an entity, which basically establishes it price on the stock exchange.
  • Share volume - this reflects the quantity of shares that can be traded over a certain period of time. There are buyers and there are sellers, and the transactions that take place between them contribute to total volume.

How The AI Detects Congressional Insider Trades

Metricized signs of illegal insider trading occur when trades occur that break out of the historical pattern of share volume traded compared to beneficiary participation's of those connected to company and political entity. Another clue of the illegal insider trading is when a lot of trading goes on right before earnings announcements. That tends to be a sign that someone already knows what the announcement is going to indicate, and it's an obvious violation.

Our software red alerts are issued when trades are linked closer to the actual earnings instead of what the predicted earnings were. In this case, it's clear the trades - especially made by politicians close to the company - stemmed from information that was not readily available to the general public.

In other words, at the time an insider makes a trade, the trade has a stronger relationship to earnings guidance rather than to earnings results achieved.

Part Of Our Insider Trading Detection AI Uses 'Dynamic Time Warping (DTW)'

In econometrics, which is a concept frequently used by quantitative analysts to evaluate stock market prices, dynamic time warping (DTW) is an algorithm that can be used for measuring similarity between two data sequences by calculating an optimal match between the two. This sequence "matching" method is often used in time series classification to properly "line things up."

The method, coupled with AI machine learning ensemble methods, can provide a clear path between the trades made by insiders and public data used to make the trades.

This is a product of artificial intelligence that has been expanded by Indexer, a Houston-based firm fast becoming an expert in products that can be used to advance the art of predicting trends in business and markets by using social media, financial data and news stories. Our process has taken that sort of approach to the next level and targeted every member of Congress, their staff, family and friends. Our first emphasis is on California and Washington, DC public figures.

The graph below shows a hypothetical example, where a group of executives most likely failed to trade by industry standards by leveraging material non-public information. Although consensus estimates called for higher commodity prices at the end of 2015, it appears key executives traded for their personal accounts as a result of the forecast provided by a specialist system within the firm that was adept at predicting prices.

In the hypothetical scenario below, we aggregate executive trades in 2014 and 2015 and find a strong link between buys and sells of executive stock options, which line up with material non-public estimates of commodity prices that were provided by the specialist system.

For example, in the "Exec Sell and Exec Buys" graph, the green line represents sells, while the black line represents buys. In the corresponding period, we find the red line represents unrevised prices provided by the specialist system, and green line represents consensus estimates.

During Q1-2014, there was $28M in purchases of executive stock options, while in Q2-2014, there was $25M in sales of executive stock options. As illustrated in the graph below, the specialist system called for Q3-2014 commodity prices to make a precipitous decline going into the end of 2014. Remember, under this scenario, no revisions were made to the specialist systems' price forecast. In this example, executives were afforded a significant advantage using price predictions from the specialist system.

In the final bullet chart, there was a dynamic time warping distance between trades and consensus estimates of 7.23, but this distance is only 2.19 when comparing specialist system estimates and executive trades. Please note, the closer the distance score is to zero, the more similar the trades are to the estimates they are measured against.


We have applied this process to companies well-known for influence buying like, Google, Tesla and Facebook

It's obvious that tech executives involved did not follow industry standards in their actions and make public the "insider" information they had access to prior to the trades they made. These are the kind of violations the SEC and other governing bodies can look to in attempting to protect the trading public and the integrity of financial marketplaces. Artificial intelligence tools are a major factor in assisting the tracking of insider trading.

"Every facet of our everyday lives has been impacted, infiltrated and greatly influenced by artificial intelligence technologies," says Vernon A. McKinley, a multi-jurisdictional attorney, based in Atlanta. "In fact, the U.S. government and its multiple agencies have developed specialized intelligence units to detect, track, analyze and prosecute those unscrupulous individuals seeking to profit from the use of such tools, specifically in the financial industry, and to protect the integrity and strength of the U.S. economy and its investors."

The public can now detect trading anomalies in financial situations using artificial intelligence on their desktop computers. No public official will ever be able to do these kinds of corruptions, again, without getting caught.

We have already had an impact on how political insiders trade on Wall Street and in financial markets around the world. We will end this corruption forever with this technology!


Cleantech Investing Gets Its Day in the Sun As Congressional Insiders Pump And Dump Like Mobsters

By Zachary A. Goldfarb
Washington Post Staff Writer


Everybody seems to be looking for ways to make money on technologies that are said to reduce fossil-fuel emissions, wean the country from foreign oil and, generally, save the world. Venture capitalists have invested $3.64 billion nationally this year in search of promising ideas in what they call "greentech" or "cleantech."

Locally, a few prominent venture capitalists have invested in the field. But they are wary about the bubble-like feeling that has taken hold across the country. Such investing has its own unique risks.

Backing Web companies or software companies often requires only a few million dollars. But investing in greentech can require lots of research and development, as well as buying factories to make the technologies. Environmental laws regulating the industry can change rapidly, or not at all, making it tricky to pinpoint the right moment to release a product.

Michael R. Steed, founder of the District's Paladin Capital Group, said many greentech companies are overvalued. With the president promoting investment in alternative energy and Congress preparing an energy bill that could shift an enormous amount of money into the area, Steed said, "everyone is running in saying because of what Congress is going to do, my company is worth three times what it was."

Still, Paladin is one of the Washington area's largest investors in greentech with four companies in its portfolio. Last month, it led a group of investors putting $77 million in HelioVolt, an Austin firm.

HelioVolt builds thin solar panels made of a material known as copper indium gallium selenide that is said to produce the same amount of energy for almost half the cost of electricity, at 50 cents per watt, possibly enabling the widespread expansion of solar technology to buildings and homes. Silicon solar panels, which can cost $2 per watt, have been the target of investments for three decades.

"The best deals we're seeing are deals which bring to the table disruptive technologies," Steed said.

Paladin, with former CIA and NSA directors on board, invests with homeland security in mind. For example, Paladin wants power to be distributed widely and stored where it's needed in cases of emergency, rather than at central power plants.

"It isn't that we'll just do anything in the alternative energy base," Steed said. "We want to support products and services that focus on distributed power as opposed to core power."

That kind of specialized approach to investing in greentech is typical of local firms. "It's a big and important space that investors are going to be looking at for many years to come," said Jonathan Silver, founder of the District's Core Capital Partners.

Core Capital was part of a $35 million investment in Infinite Power Solutions, a Littleton, Colo., firm that is creating thin film batteries that the company claims significantly reduce the space that electronic devices need for batteries. By next year, Silver expects to have invested in three or four more cleantech companies.

Still, he sees risks.


Insider trading on green energy in Harry Reid, Nancy Pelosi and Dianne Feinstein offices


The Wall Street Journal reported about a staffer in Harry Reid’s office who nearly doubled his $3,500 investment in a renewable energy firm in 2008. Sen. Reid helped pass legislation that benefitted the firm.


Congressional Staffers Gain From Trading in Stocks


WASHINGTON—Chris Miller nearly doubled his $3,500 stock investment in a renewable-energy firm in 2008. It was a perfectly legal bet, but he's no ordinary investor.

Reid’s spokesman tried to defend the staffer, Reid’s top energy policy adviser, by asserting that he had no influence over tax incentives for renewable energy firms.


Under federal securities law, of course, it is not important whether the staffer had any influence over legislation, Sen. Reid or anyone or anything else.

If it can be shown that the staffer breached a duty of confidentiality in using “inside information” as the basis for buying and selling the stock, then he may very well be guilty of the crime of insider trading.

In May 2009, the Associated Press reported,

Federal prosecutors and the FBI have been investigating possible illegal insider trading by two Securities and Exchange Commission enforcement attorneys who were in a position to receive sensitive information about agency probes of public companies.

Similarly, if the staffer had material information that the public didn’t have and he took advantage of it in the buying and selling of securities, he could have committed a serious crime — as well as anyone he may have tipped off.

Reid’s staffer has denied wrongdoing, but that should not be dispositive.

The Department of Justice, FBI and U.S. Securities and Exchange Commission ought to be investigating the staffer as well as any other potential insider trading violations described in the WSJ article.

At the very least, the staffer should be afforded the same opportunity as Martha Stewart to chat with federal investigators — that worked out so well for her.

Don’t expect this to happen, however, as Sen. Reid and other members of Congress will no doubt quietly work to quash any investigation.

Big Brother Has Turned Green

The environmental movement has cultivated a warm and fuzzy public image, but behind the smiley-face rhetoric of "sustainability" and "conservation" lies a dark agenda. The Greens aim to regulate your behavior, downsize your lifestyle, and invade the most intimate aspects of your personal life.

In this stunning exposé, Steve Milloy unveils the authoritarian impulse underlying the Green crusade. Whether they're demanding that you turn down your thermostat, stop driving your car, or engage in some other senseless act of self-denial, the Greens are envisioning a grim future for you marked by endless privation.

Steamrolling nearly all opposition with its apocalyptic predictions of environmental doom, the Green movement has gained influence throughout American society--from schools and local planning boards to the biggest corporations in the country. And their plans are much more ambitious than you think, says Milloy. What the Greens really seek, with increasing success, is to dictate the very parameters of your daily life--where you can live, what transportation you can use, what you can eat, and even how many children you can have.

Citing the tactics and goals of Green groups as explained by their own activists and leaders, Green Hell demonstrates:

* How Green pressure campaigns threaten the safety of your home and your car, and public health overall
* Why the election of President Obama portends a giant leap forward for coercive Green policies
* Why Greens obstruct the use of all forms of energy--even the renewable sources they tout to the public
* How wealthy Green elites stand to profit fabulously from the restrictions and regulations they seek to impose on the rest of us
* How Green pressure campaigns are hamstringing the military and endangering our national security
* Why big business is not only knuckling under to the Greens, but is aggressively promoting the green agenda to the detriment of its own stockholders
* What you can do to help stop the great Green machine

A one-of-a-kind, comprehensive takedown of the entire environmental movement, Green Hell will open your eyes to a looming threat to our economy, our civil liberties, and the entire American way of life.


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