Wells Notice is issued to warn companies of potential criminal investigation. If a company receives Wells Notice, the event itself is deemed a news of material consequence on a firm’s business. All news of material consequence must be filed with SEC.

Goldman received its Wells Notice in September 2009 and never filed with SEC about the Notice. When SEC filed fraud case on Goldman, they defended their decision to not file10-Q with SEC by stating that the Wells Notice was not believed to have material impact on the business. Goldman is being sued by some investor groups for this and other reason.

You might recall, at the center of financial turmoil is sleazy shenanigans by rating agencies like S&P and Moody’s. Late Friday (May 7th) Moody’s filed a 10-Q form with SEC disclosing that it received a Wells Notice from SEC. Moddy’s received the notice on March 18th.

Look at the action in Moody’s stock for the past few months. Pay specific attention to volume and price action March 18, April 16 and April 19. There was no news on April 16th and 19th when the stock was down significantly on very high volume, except that CNBS noted a spike in volume.

I am almost certain that Moody’s stock will be absolutely killed when trading opens on Monday. Let me repeat the rhetorical question: Do you really believe that you can beat the insider to the punch bowl?

Guess who sold after Moddy’s received Wells Notice? Warren Buffet!!

Ladies and gentlemen, this casino called Wall Street is rigged. Fraud Street it is!