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The Greek Sovereign Debt Financial Scam :
How market speculation turned into a financial fraud crime, transforming market profits in money laundering, and the national sovereignty of an EU country in a financial slavery scam !

Dr. Kiriakos Tobras
On April 09, 2010, in Athens, together with the Greek Attorney Mr. George Noulas, we alleged a Criminal Fraud Complaint, being endorsed and filed to the Attorney General of the Supreme Court. The action arises out from the defendants’ (Fraudulent Speculators and their Accomplices, Greek Partners and Government Officers) actionable conduct who, by running an organized criminal plan, with consecutive actions and omissions to act, they manipulated the Greek Government Bonds Market, with the intent to perform multiple financial profits, deceiving and damaging Greek National Economy and Greek Citizens and Taxpayers wealth.
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The Greek sovereign debt crisis analysis, could help the world to realize the today’s extreme vulnerability of all national economies. We now understand how sovereign countries can be easily destroyed and brought to financial slavery by some ordinary fraudsters, through the combination of both (a) naked CDS trading and (b) naked short selling of Government bonds, issued by the Governments in order to finance their sovereign debts and the economic development of their countries. The most important lesson we learned from the Greek case study, is the definition of the limit between market speculation and financial crime. This explains how financial speculation turns into a fraud crime, transforming fraudulent market profits in money laundering, and changing financial sovereignty of a country in a financial slavery scam.

The crime
The crime is a typical financial fraud against the Sate, consisting in the manipulation of the Greek Government debt by a group of fraudulent Speculators and their Accomplices, Greeks, foreign citizens and Government Officers. Those persons, by running an organized criminal plan, represented falsities on the existing Greek sovereign debt and national economy facts and figures of the year 2009, with the intent to manipulate the Greek Government Bonds Market, in order to perform multiple and consecutive financial profits, with the knowledge and the purpose to deceive and damage Greek National Economy and Sovereign Debt, Greek GDP and, consequently, Greek Citizens and Taxpayers wealth. The direct and consequent damage, limited to the year 2010, has been calculated at 13 billion euro, stretching Greek National Economy and Growth, Next Generations Wealth and Financial Sovereignty of the country.
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The Greek Government debt financial scam fits with all fraud elements, as required by the most EU criminal laws regulating financial crimes. Fraudulent Speculators and Accomplices made representations of existing facts with the knowledge of their falsity and with the intent that it shall be acted upon by third parties ignoring the falsity, their reliance on the truth of those false representations, their right to rely upon it and the consequent damage suffered by the Greek citizens and taxpayers. Each of the above mentioned elements has been pled with particularity and proved with clear, cogent and convincing evidence, in order to establish the case. Some of the persons, corporations and institutions involved in the Greek case, have been recently charged with similar prosecutions in the USA and EU, following to investigations of Justice and other State and International Authorities.

The Fraudulent Actions & the Omissions to Act
The crime consists in a double financial scam, committed under consecutive actions by the persons identified as fraudulent speculators. First, acting with speculative Naked Sovereign CDS multiple trading, in order to manipulate CDS and spreads rates. These fraudulent transactions pushed the lending cost of the Greek sovereign debt to unacceptable interest rate levels, higher than 15%. Second, acting with simultaneous multiple Naked Sovereigns’ Short Selling transactions, in order to manipulate the Bonds Market itself.

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The fraudulent Sovereigns’ short selling created a fake and artificial bonds offer in the international markets, with the intent to depreciate Greek Govt Bonds values and pricing by up to 30%-40%. In both those circumstances, some of the physical persons directly or indirectly identified as responsible persons of the crimes committed, were at that time (2009-2010) representing as principals, managers, officers, delegates and brokers some Prime Dealers of the Greek Govt Debt, the international Banks who under agreements with the Greek Government, were placing the Greek Sovereign Debt to the international markets. This one is the most important of the accusations, as the same persons responsible for the placement of the Greek Sovereign Debt in the international markets, were - at the same time - double dealing with CDS and Govt Bonds Short Selling, under covered or naked transactions, acting against the interest of their customer, that means Hellenic Republic, omitting intentionally to inform any of the local Supervision and Regulation Authorities regarding their double dealing position and their direct conflict of interest. The Greek case represents the most evident and direct issue of (a) conflict of interest, (b) insider trading and (c) financial scam, as the same persons and corporations were first dealing with their customer (Hellenic Republic) Govt Bonds and, at the same time, were double dealing against their customer interest, selling the customer’s default (Hellenic Republic) to their other customers, taking advantage of the inside information and the knowledge they had on the facts, the particular circumstances and the expires of the Greek Sovereign Debt, as a result of their official position as Prime Dealers of the Greek Govt Bonds. This is the main reason we accused them to act under a precise and organized criminal plan. The persons we charged are the same fraudsters involved in the USA crisis scam during the years 2007-2008, speculating on the CDOs and
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the CDS issued on the USA subprime mortgages that brought to the Lehman and AIG collapse and to the world financial crisis. Same persons, same actions, same criminal plan, same money, same scam, same kind of damage. That means, in the Greek case there were knowledge, manipulation experience, inside information and organization. The one and sole difference consists in the fact that the Greek case was the first financial scam where market manipulation has been organized in order to destroy a sovereign country, instead of a bank or a private corporation. And instead of the CDOs, the crime was committed double dealing with the Greek Govt Bonds. All those fraudulent actions tool place through a series of multiple and consecutive transactions, consisting in buy and sell orders, covered or naked and then recycled, which were left to happen thanks to the omission to act of the Greek Supervision and Regulation Authorities, such as Bank of Greece, Ministry of Finance and Public Debt Management Agency in first. Those combined fraudulent actions, consisting mainly in both Naked CDS and Naked Short Selling transactions on Greek Govt Bonds by the Prime Dealers of the Greek Sovereign Debt, created the financial bomb exploded on Greek Economy, destroying the country. This is the reason we identify this scam as a financial terrorism crime.

The persons we charged
All physical persons identified as fraudulent speculators on the Greek Sovereign Debt manipulation. That means all responsible principals, officers, managers, delegates, brokers, etc., of the major commercial and investment banks involved in the scam, hedge funds and, together with them, Rating
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Agencies, Greek partners, representatives, brokers and other physical persons identified as accomplices, such as Greek Banks and Funds principals, officers, managers, traders and, more than them, blue chips business, experts and financial analysts, politicians, Govt Officers, Media, etc.

The direct damage
Following to the first direct and consequent damage of 13 billion euro suffered by the Greek citizens and Taxpayers at the year 2010, on May 2010, Greece was forced to enter under a triple IMF, EU and ECB bailout scheme called «MNIMONIO». This bailout scheme is nothing the less than a tailor made Government lending program ruled by a Memorandum of Understanding (MOU) with the lenders, similar to those imposed in Argentina and other Latin America countries. The MOU has been imposed to Greece after a real parliamentary coup organized by the Greek Government in charge, violating the primary and most essential principles of the Greek Constitution map. There was not any referendum, Greek citizens were never being asked on that, and decision was made in Parliament without the quorum majorities required by the Greek Constitution for the international agreements signed by any Greek Government in charge. But the most terrible issue has been that persons, institutions and corporations identified as responsible for the fraudulent speculation and the financial crimes committed against the country, after years of proven debt manipulation and falsities with the Greek Statistics, have been self appointed as the country rescuers. That means Greek Government itself, Banks, Bank of Greece, ECB and EU Commission.

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The indirect damage – Debt Restructuring
Through the IMF, EU and ECB M.O.U. bailout sheme, Greek Sovereign Debt real restructuring procedure started on May 2010. This is a very important step, we need to understand. MOU bailout scheme modified both jurisdiction of the Greek Sovereign Debt. the nature and

This was the first, real restructuring proceeding started on the Government Debt of the country. Greek sovereign debt issued until 2010, was under a form of an uncover debt, simply issued with Government Bond Titles, without any underlying securities or any other kind of collateral assets. That means, all the existing Greek Sovereign Debt issued until the year 2010 was not collateralized. Going under the MOU bailout scheme, the 110 billion euro loan facility granted on May 2010, was the first Greek Sovereign Debt emission issued as a collateralized debt obligation, similar to a CDO contract, and approved only with the purpose of the down payment of the existing Government Bonds expires. That means Greece signed a new loan agreement, in order to pay older debts expires. That could a formal refinance operation. But the real truth beside is that previous debt was not collateralized and that new MOU debt it is. Through this sovereign refinance and restructuring, Greece will gradually transform all the existing non collateralized Sovereign Debt, in a new, collateralized one, offering as collateral securities all public properties, future revenues and all tangible and intangible assets of the country. This is how Sovereign Debt nature has been modified through the MOU bailout scheme.
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How that will happen ? After the first 110 billion MOU loan agreement signed on May 2010, a second one will follow. This will happen as Greece will not be allowed to return to the markets on 2012 and 2013. This is the reason why speculation against the country is continuing, even after the approval and the realization of the first MOU bailout scheme agreement. Government’s financial policy agreed with the lenders, encourage international speculators to continue with manipulation against Greek Economy and Sovereign Debt. Domestic market experiences a day to day continues downturn, private business are constantly closing or bankrupting, inflation and unemployment are blowing, recession is running on an average 4% year rate, poverty and criminality start booming. All this explosive, hard recession economic mix, introduces Greece in the vicious circle of a new and continue deficit generation, which will continue to create and accumulate new and additional Sovereign Debt, as deficits will never be financed by the future economic revenues of the country, considering that GDP forecasts are constantly negative for the next 3-5 years. After all that, there will never exist any market intended to finance a country in such a financial situation, and that means on the year 2012 a second MOU bailout scheme will follow the first one. And again, this one will be also issued as a collateralized debt. And again this will also be approved limited with the purpose to pay older Sovereign Debt expires, continuing through this refinance procedure to transform the whole Greek Sovereign Debt into a new, collateralized debt obligation. Only when over a 50% quote of the existing Greek Sovereign Debt will be restructured through this procedure in a collateralized debt obligation, default will be left to happen in Greece.

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Following to that, all Greek national assets and resources will become ownership of the country lenders, as the new loans under the various MOU bailout schemes and agreements, not only are 100% collateralized but they are also issued under the English Law. This is how jurisdiction of Greek government debt is gradually restructured, as existing debt is regulated by the Greek law. That means execution procedures on public assets, rights and any kind of tangible and intangible assets will now be agreed and confirmed, and Sovereign Debt Factoring and Assignment of any kind to third parties will also be a formal contractual clause. After all that, Greece will never return to be a Sovereign Country, as Sovereign Debt could be easily transferred under a regular factoring agreement to any third party, physical person, institution, corporation or to a country, and this third party will also have full execution rights on the Sovereign Debt Collaterals. We only hope in God, Justice and Constitution Article No 120.

In the name of the Holy and Consubstantial and Indivisible Trinity THE FIFTH REVISIONARY PARLIAMENT OF THE HELLENES RESOLVES _______________________________________


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1. This Constitution, voted by the Fifth Revisionary Parliament of the Hellenes, is signed by its Speaker and published by the provisional President of the Republic in the Government Gazette by decree countersigned by the Cabinet and shall enter into force on the eleventh of June 1975. 2. Respect towards the Constitution and the law concurrent thereto, and devotion to the Fatherland and to Democracy constitute a fundamental duty of all Greeks. 3. Usurpation, in any way whatsoever, of popular sovereignty and of powers deriving the refrom shall be prosecuted upon restoration of the lawful authority; the limitation from which punishment for the crime is barred shall begin as of the restoration of lawful authority. 4. Observance of the constitution is entrusted to the patriotism of the Greeks who shall have the right and the duty to resist by all possible means against anyone who attempts the violent abolition of the Constitution.

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