by Pam Martens and Russ Martens
Wall Street on Parade
There were a lot of sweaty palms on Wall Street yesterday. As the Government Accountability Office released a report suggesting that regulation of Wall Street is a complex maze of inefficiency and fragmentation leaving gaping holes in which crooks can find fertile ground, the U.S. Justice Department was perp-walking a 2002 Harvard Law School graduate (whose family name resides on the student center there) on charges reminiscent of a Bernie Madoff startup.
According to the unsealed complaint from the U.S. Justice Department’s regional U.S. Attorney’s Office for the Southern District of New York, 39-year old Andrew Caspersen, whose father and grandfather were the former heads of Beneficial Corp., is alleged to have defrauded approximately $24.6 million from a charitable foundation by setting up a fake account, transferring $17.6 million of that amount to his “personal brokerage account” at an unnamed brokerage firm, then churning the hell out of options on the S&P 500 Exchange Traded Fund (SPY), which racked up losses of $14.5 million. What else Caspersen traded is not mentioned, but the complaint notes that as of December 31, 2015, his personal brokerage account had a “net loss of approximately $25 million.”