1. This is a complaint for damages and injunctive relief arising out of manipulative activities in the gold market from 1994 to the present time orchestrated by government officials acting outside the scope of their legal or constitutional authority and certain large bullion banks active in the over-the-counter gold derivatives markets and on the Commodities Exchange ("COMEX") in New York.
The complaint alleges horizontal price fixing in violation of Section 1 of the Sherman Act,securities fraud in violation of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 ("Exchange Act"),common law fraud and breach of fiduciary duty by the directors of the Bank for International Settlements with regard to holders of its American officials acting under color of federal law but wholly outside the scope of their legal or constitutional authority.
Subject matter jurisdiction of the federal claims is based on 15 U.S.C. s. 15(a) (antitrust) and s. 78aa (violations of the Exchange Act), 28 U.S.C. s. 1331 (federal question),s. 1337 (commerce and antitrust) and s. 2201(declaratory relief), and 12 U.S.C. s. 632(international banking and financial transactions).
Supplemental jurisdiction of the common law claims is based on 28 U.S.C. s. 1367.
II. Parties, Venue and Standing
2. The plaintiff, Reginald H. Howe, is an American citizen,
residing currently and at all times material hereto at 49 Tyler Road, Belmont,
Massachusetts 02478. He is suing in his individual
capacity as: (1) the duly registered holder of six
shares of the American issue of the Bank for
International Settlements; and (2) the holder of
1200 depositary shares of Gold-Denominated
Preferred Stock, Series II, of Freeport-McMoran
Copper & Gold, Inc. The plaintiff is the proprietor
of The Golden Sextant (www.goldensextant.com), an
internationally recognized website containing
commentaries, essays and analyses relating to gold,
and a member of Golden Sextant Advisors LLC. The
plaintiff has engaged in research and analysis on
gold derivatives, which are instruments such as
forward contracts, futures, options and swaps whose
value is tied to-or derived from-the price
of gold, and in this connection has uncovered
considerable evidence of their use to manipulate gold prices.
3. While the plaintiff has not assigned any part
of this action to others and retains full control
thereof, he has received and expects to continue
to receive support, both financial and
informational,from the Gold Anti-Trust Action Committee Inc.
("GATA"), a civil rights and educational organization
formed under Delaware law in January 1999 to expose
manipulation of the gold market by certain bullion
banks. The plaintiff was a contributor to GATA's
study on the gold market, Gold Derivative Banking
Crisis, which is posted at its website (www.gata.org)
and has been downloaded in full PDF format more
than 20,000 times. The plaintiff was also a member
of the GATA delegation that met with the Hon.
Dennis L. Hastert, Speaker of the U.S. House
Representatives, in May 2000 to present to him
the conclusions of the GATA study. Much of the
evidence cited in this complaint comes from GATA's
many friends and supporters worldwide.
Wherefore, the plaintiff requests the following relief:
(1) A permanent injunction enjoining Alan Greenspan, William J. McDonough, their subordinates and their successors in office, and the Secretary of the Treasury, acting through the Exchange Stabilization Fund or otherwise, from intervening in the gold market, directly or indirectly, for the purpose of affecting or with intent to affect gold prices;
(2) A permanent injunction enjoining J.P. Morgan & Co. Inc., Chase Manhattan Corp., Citigroup, Inc., Goldman Sachs Group, Inc., and Deutsche Bank AG, or any of their officers, employees, agents or subsidiaries, from manipulating or trying to manipulate gold prices, directly or indirectly, on theCommodities Exchange in New York or elsewhere;
(3) An order directing Alan Greenspan and William J. McDonough to resign forthwith as directors of the Bank for International Settlements, to withdraw their designations of alternates to serve in their absence, and to refrain from any further participation in its affairs or activities;
(4) An order directing the Bank for International Settlements to redeem and cancel all shares of its American issue, including the six shares owned by the plaintiff, paying for each share in gold an amount equal to its net asset value in gold francs, plus an appropriate amount for goodwill;
(5) An award of damages to compensate for the decrease in the gold franc value of the plaintiff's shares of the American issue of the Bank for International Settlements resulting from the illegal manipulation of gold prices by the defendants;
(6) An award of damages to compensate for the decreased dividend payments received by the plaintiff on his depositary shares of Gold-Denominated Preferred Stock, Series II, of Freeport-McMoran Copper & Gold, Inc.,resulting from the illegal manipulation of gold prices by the defendants;
(7) An award of treble damages, costs and attorneys' fees on the plaintiff's price fixing claims;
(8) An award of punitive damages on the plaintiff's common law fraud and breach of fiduciary duty claims;
(9) Such other relief as the Court may deem appropriate.
Demand for Jury Trial
The plaintiff demands trial by jury for all issues so triable.
By the plaintiff,
/s/ Reginald H. Howe
Reginald H. Howe, Pro Se
49 Tyler Road
Belmont, Massachusetts 02478