The Banksters

CSFB, as the lead underwriter of hot IPOs for companies  
 such as VA Linux Systems Inc., Selectica, Gadzooks Networks,  
 and MP3.com, had control over the allocation of most of the  
 shares in these IPOs. In exchange for some of the highly-  
 coveted stock in such hot IPOs, CSFB wrongfully extracted  
 from certain customers a large share of the huge profits  
 those customers made in quickly selling (or flipping) the  
 IPO stock bestowed on them by CSFB.  
 * Specifically, CSFB allocated shares of IPOs to more  
 than 100 customers who, in return, funneled between 33 and  
 65 percent of their IPO profits to CSFB. These customers  
 typically flipped the stock on the day of the IPO, often  
 gaining tremendous profits. They then transferred a share  
 of their flipping profits to CSFB by way of excessively high  
 brokerage commissions (ranging from $0.19 per share to $3.15  
 per share  in contrast to the typical rate of about $0.06  
 per share). The customers paid these commissions on  
 uneconomic, limited-risk trades in highly liquid, exchange-  
 traded shares unrelated to the IPO shares  trades that they  
 effected for the sole purpose of paying IPO flipping profits  
 back to CSFB. For more info visit https://www.sec.gov/news/press/2002-14.txt