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Reply #89: Thomas E. Burnett & Peter Kellogg [View All]

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DrDebug Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jul-14-06 08:24 PM
Response to Reply #87
89. Thomas E. Burnett & Peter Kellogg
Thomas E. Burnett Jr., 38 from San Ramon, Calif. was the senior vice president and chief operating officer Thoratec Corp and on flight 93.

Thomas E. Burnett switched flights. On the board of directors and as the top shareholder of Thoratec we find Peter Kellogg.

Peter Kellogg is member of the New York and American stock exchanges, and sits on several boards including Goldman Sachs Advisory, Berkshire School, U.S. Olympic Ski Team and Nam Tai Electronics.

Did Thomas discover the following game which was played prior to 9/11?

The NASD complaint charged that between Aug. 1, 2001, and Aug. 13, 2001, Kellogg placed matched orders to buy and sell millions of shares of Thoratec Corp. common stock for four accounts he controlled, and in which he and his family had ownership interests. These trades resulted in minimal change of ownership in the shares of Thoratec, were executed at prices unrelated to market supply and demand, and created the false appearance of market activity in the stock. Kellogg indicated to NASD he directed these trades to recognize non-taxed capital gains in Thoratec stock held by I.A.T. Reinsurance Syndicate, Ltd., a Bermuda corporation owned by Kellogg's children, and Equity Holding, Inc., whose parent company, MCM, Inc., was owned in part by IAT. Kellogg also indicated that the trades were directed between accounts he controlled so that IAT and EH could recognize non- taxed gains while the accounts Kellogg controlled retained ownership of the Thoratec stock.

On Aug. 1, 2001, Kellogg directed Equity Holding to sell 700,000 shares of Thoratec to IAT. Six days later, Kellogg directed IAT to sell 1 million, shares of Thoratec back to Equity Holding. On August 9, Kellogg directed IAT to sell 1 million shares of Thoratec, in two 500,000-share trades, to Kellogg's personal account and to MMK Reinsurance, a company owned by IAT. Four days later, Kellogg reversed those trades by directing the sale of the 1 million shares back to IAT. (..)

The complaint alleges that Kellogg, through these series of wash and matched trades, violated the antifraud provisions of the NASD rules and federal securities laws, and the NASD rule prohibiting the publication of reports of non-bona fide securities transactions.

Mr. Kellogg was a Senior Managing Director of Spear, Leeds & Kellogg, a registered broker-dealer in the United States and a specialist firm on the NYSE until the firm merged with Goldman Sachs in 2000

June 2001

The company's shares are listed on NASDAQ, and its largest shareholder is Peter R. Kellogg, senior managing director of Spear, Leeds & Kellogg, New York, with a reported stake of about 26%.

In addition to North American iron ore and real estate interests, the company owns MFC Merchant Bank SA, Geneva.

It acquired MFC Merchant Bank, then called Lehman Brothers (Suisse), in February 1997 for C$27.4 million. In September 1997, it acquired Bank Rinderknecht (then in liquidation) for C$9.6 million and merged the two operations. With Bank Rinderknecht, it obtained C$44 million of tax-loss carry- forwards.
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