In 1999, after working at J. C. Bradford in Greensboro, North Carolina, George Hartzman, the son a Ph.D. Nuclear Engineer who taught him what a normal equity valuations were supposed to be for publicly traded stocks, found financial markets way out of whack.
As the top of the stock market peaked in 2000 after the Y2K scare, George set up stop loss triggers in many of the most overstretched names in his book of business at Merrill Lynch, which ended up working out very well for most of his clients.
It's documented.
Hartzman was recruited by IJL/Wachovia in early 2001, which later became Wells Fargo.
Hartzman was recruited by IJL/Wachovia in early 2001, which later became Wells Fargo.
On 3/13/2007, George purchased shares of SDS in his personal account. SDS is a leveraged inverse Exchange Traded Fund (ETF), whose objective is to rise 2% for every 1% the S&P 500 falls. In the fourth quarter of 2008 he sold SDS in two blocks, realizing a total gain of about 51%.
To “Short” is to invest, usually as a hedge, to profit when other “long” or traditional investments, like shares in the stock market fall.
In July, 2007, George shorted Bear Stearns for a 97% profit on 3/7/2008. He shorted Pulte Homes, KB Homes and Lennar, and realized about a 65% gain.
Between 2008 and 2009, he executed short trades in Goldman Sachs, Capital One, MBIA, Merrill Lynch, Moody’s and State Street Corporation, as well as buying and selling inverse ETF’s covering financials and real estate.
The solid blue lines on the performance report charts, which are now public records, show how much more these clients made and\or lost compared to the dotted lines below which represent selected indices at the time;
He was one of the only advisors at Wells Fargo who did well in the downturn.
Many of his clients entered into many similar trades at relatively the same time as the account performance reports show, which illustrate some of the best un-audited Asset Advisor performance reports in his book of business as of June, 2010.
Hartzman began working as a financial advisor in 1993 and taught CPA and attorney financial ethics in North Carolina for 10 years.
On 3/31/2009, total assets under management in Hartzman's book of business was $35,595,572.83, including both fiduciary and non fiduciary accounts.
These accounts were governed by the Investment Advisers Act of 1940, which requires stock brokers be held to fiduciary standards for advisory accounts, requiring actions solely in the best interest of clients.
Advisers must disclose any conflict, or potential conflict to their clients prior to and during a business engagement.
Both Wachovia and Wells Fargo borrowed from the Federal Reserve's Term Auction Facility (TAF), whose loans were not disclosed to the public until December 1, 2010, subsequent to congressionally mandated legislation and civil legal action.
Wachovia, Wells Fargo, KPMG, the Securities and Exchange Commission (SEC), The Financial Industry Regulatory Authority (FINRA) and the Federal Reserve amongst others illegally misled Wachovia’s shareholders.
Not reporting Federal Reserve material borrowings, credit lines, terms and interest rates is a violation of Sarbanes/Oxley laws.
The Federal Reserve approved Wachovia’s merger with Wells Fargo on October 12, knowing of unreported Fed loans to both companies.
Wells Fargo's purchase of Wachovia closed on December 31, 2008. The Wall Street Journal reported "about $100 billion in wealth disappeared from the Carolinas alone when Wachovia collapsed."
Wachovia’s shareholders were misled by Wachovia and Wells Fargo’s management, KPMG, and at least the Federal Reserve and the U.S. Treasury Department.
Wachovia stock price on date of first TAF loan: 3/27/2008 - Last Trade: 27.07
Wachovia price on date of completed merger with Wells: 12/31/2008 - Last Trade: 5.54
As of January 31, 2008, there were 1,981,983,990 Wachovia shares outstanding.
27.07 - 5.54 = 21.53 x 1,981,983,990 = $42,672,115,304.70 Wachovia market capitalization lost between the first undisclosed TAF loan and Wells merger.
The CEOs and CFOs of America’s largest banks certified their reports didn’t contain any material misstatements or omissions. External auditors attested to the assessments.
Wachovia’s, Wells Fargo’s and multiples of other firm's securities filings did not account for the loans, total credit lines, interest rates, collateral pledged or amounts of loans outstanding.
The solid blue lines on the performance report charts, which are now public records, show how much more these clients made and\or lost compared to the dotted lines below which represent selected indices at the time;
He was one of the only advisors at Wells Fargo who did well in the downturn.
Many of his clients entered into many similar trades at relatively the same time as the account performance reports show, which illustrate some of the best un-audited Asset Advisor performance reports in his book of business as of June, 2010.
Hartzman began working as a financial advisor in 1993 and taught CPA and attorney financial ethics in North Carolina for 10 years.
On 3/31/2009, total assets under management in Hartzman's book of business was $35,595,572.83, including both fiduciary and non fiduciary accounts.
These accounts were governed by the Investment Advisers Act of 1940, which requires stock brokers be held to fiduciary standards for advisory accounts, requiring actions solely in the best interest of clients.
Advisers must disclose any conflict, or potential conflict to their clients prior to and during a business engagement.
Both Wachovia and Wells Fargo borrowed from the Federal Reserve's Term Auction Facility (TAF), whose loans were not disclosed to the public until December 1, 2010, subsequent to congressionally mandated legislation and civil legal action.
Wachovia, Wells Fargo, KPMG, the Securities and Exchange Commission (SEC), The Financial Industry Regulatory Authority (FINRA) and the Federal Reserve amongst others illegally misled Wachovia’s shareholders.
The information has been taken down by Bloomberg
Not reporting Federal Reserve material borrowings, credit lines, terms and interest rates is a violation of Sarbanes/Oxley laws.
The Federal Reserve approved Wachovia’s merger with Wells Fargo on October 12, knowing of unreported Fed loans to both companies.
Wells Fargo's purchase of Wachovia closed on December 31, 2008. The Wall Street Journal reported "about $100 billion in wealth disappeared from the Carolinas alone when Wachovia collapsed."
Wachovia’s shareholders were misled by Wachovia and Wells Fargo’s management, KPMG, and at least the Federal Reserve and the U.S. Treasury Department.
Wachovia price on date of completed merger with Wells: 12/31/2008 - Last Trade: 5.54
As of January 31, 2008, there were 1,981,983,990 Wachovia shares outstanding.
27.07 - 5.54 = 21.53 x 1,981,983,990 = $42,672,115,304.70 Wachovia market capitalization lost between the first undisclosed TAF loan and Wells merger.
The CEOs and CFOs of America’s largest banks certified their reports didn’t contain any material misstatements or omissions. External auditors attested to the assessments.
Wachovia’s, Wells Fargo’s and multiples of other firm's securities filings did not account for the loans, total credit lines, interest rates, collateral pledged or amounts of loans outstanding.
Bloomberg estimated the profits from the undisclosed Federal Reserve Loans was $878.2 million for Wells Fargo, and $149.4 million for Wachovia.
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