If you’ve been following my blog on the Charles Schwab auction rate security (ARS) fraud case in New York State Civil Supreme Count (just click the “Thieves” menu at the top of the page to read my previous posts on this subject), you know I’ve been watching the court case closely.
I’ve been hoping since the case was filed nearly two years ago that NY courts would do the right thing and force the gonifs at Charles Schwab to make restitution to the thousands of customers they lied to about the safety and liquidity of ARSs.
But frustration has begun to boil over due to the constant legal delaying tactics by Schwab in the case (click on the image to enlarge). Since at least April, 2010, Charles Schwab has used the courts to slow down justice by delaying a hearing on its own motion. It must be pretty obvious to its legal team that the motion to dismiss will be denied, so the next best thing is to never give the judge the chance to rule. (And think of the billable hours for Schwab’s laywers!) The motion has been repeatedly rescheduled without a hearing (“adjourned” in legalese). If only normal people like me could afford to stave off judgement day like these thieves are able to.
In Schwab’s twisted logic, its refusal to provide liquidity for its victims is an issue of “principle.” That is, it was only a transmitter of the toxic waste ARSs sold to trusting rubes like me. But it defies logic that any business can be “downstream” of offal and not smell it — or as in this case, bathe in it.
Schwab gladly sold me ARSs on Monday, February 18, 2008 — the day before the auctions collapsed completely — when it knew for certain the auctions had been in turmoil for weeks before. On that day, they were still telling me these ARSs were safe and liquid. They lied then; they are lying now. And there’s that smell in the air.
Now, they’ve not only retreated behind an alleged principle, they’re cynically preventing that principle from being tested in a court of law. My message to Schwab (I know you read this blog every time I post on this topic): stop hiding behind your lawyers’ skirts, man up and take the medicine. Your claim of “principle” is undone by your scorn and manipulation of the judicial process.