srinsocal
52 minutes ago
This will help you understand the system
<<<<<< Funny, that stock didn't materialize out of thin air >>>>>>
Counterfeiting Stock 2.0
Illegal naked shorting and stock manipulation are two of Wall Street’s deep, dark secrets.
These practices have been around for decades and have resulted in trillions of dollars being
fleeced from the American public by Wall Street. In the process, many emerging companies have
been put out of business. This report will explain the magnitude of this problem, how it happens,
why it has been covered up and how short sellers attack a company. It will also show how all of
the participants; the short hedge funds, the prime brokers and the Depository Trust Clearing
Corp. (DTCC) - make unconscionable profits while the fleecing of the small American investor
continues unabated.
Why is This Important? This problem affects the investing public. Whether invested directly in
the stock market or in mutual funds, IRAs, retirement or pension plans that hold stock – it
touches the majority of Americans.
The participants in this fraud, which, when fully exposed, will make Enron look like child’s
play, have been very successful in maintaining a veil of secrecy and impenetrability. Congress
and the SEC have unknowingly (?) helped keep the closet door closed. The public rarely knows
when its pocket is being picked as unexplained drops in stock price get chalked up to “market
forces” when they are often market manipulations.
The stocks most frequently targeted are those of emerging companies who went to the stock
market to raise start-up capital. Small business brings the vast majority of innovative new ideas
and products to market and creates the majority of new jobs in the United States. It is estimated
that over 1000 of these emerging companies have been put into bankruptcy or had their stock
driven to pennies by predatory short sellers.
It is important to understand that selling a stock short is not an investment in American
enterprise. A short seller makes money when the stock price goes down and that money comes
solely from investors who have purchased the company’s stock. A successful short manipulation
takes money from investment in American enterprise and diverts it to feed Wall Street’s
insatiable greed - the company that was attacked is worse off and the investing public has lost
money. Frequently this profit is diverted to off-shore tax havens and no taxes are paid. This
national disgrace is a parasite on the greatest capital market in the world.
10. Fails-to-Deliver – The process of creating shares via naked shorting creates an obvious
imbalance in the market as the sell side is artificially increased with naked short shares or
more accurately, counterfeit shares. Time limits are imposed that dictate how long the
sold share can be naked. For a stock market investor or trader, that time limit is three
days. According to SEC rules, if the broker dealer has not located a share to borrow, they
are supposed to take cash in the short account and purchase a share in the open market.
This is called a “buy-in,” and it is supposed to maintain the total number of shares in the
market place equal to the number of shares the company has issued.
Market makers have special exemptions from the rules: they are allowed to carry a
naked short for up to twenty-one trading days before they have to borrow a share. When
the share is not borrowed in the allotted time and a buy-in does not occur, and they rarely
do, the naked short becomes a fail-to-deliver (of the borrowed share).
The Creation of Counterfeit Shares – There are a variety of names that the securities industry
has dreamed up that are euphemisms for counterfeit shares. Don’t be fooled: Unless the short
seller has actually borrowed a real share from the account of a long investor, the short sale is
counterfeit. It doesn’t matter what you call it and it may become non-counterfeit if a share is later
borrowed, but until then, there are more shares in the system than the company has sold.
The magnitude of the counterfeiting is hundreds of millions of shares every day, and it may
be in the billions. The real answer is locked within the prime brokers and the DTC. Incidentally,
counterfeiting of securities is as illegal as counterfeiting currency, but because it is all done
electronically, has other identifiers and industry rules and practices, i.e. naked shorts, fails-todeliver, SHO exempt, etc. the industry and the regulators pretend it isn’t counterfeiting. Also,
because of the regulations that govern the securities, certain counterfeiting falls within the letter
of the rules. The rules, by design, are fraught with loopholes and decidedly short on allowing
companies and investors access to information about manipulations of their stock.
https://www.sec.gov/comments/s7-07-23/s70723-20162302-331156.pdf
edbi46
4 hours ago
NOPAIN Act
https://www.congress.gov/bill/117th-congress/house-bill/3259/text?s=2&r=1&q=%7B%22search%22%3A%22NOPAIN+ACT%22%7D
Just to highlight a few points::
(G) ACCESS TO NON-OPIOID TREATMENTS FOR PAIN.—
“(i) IN GENERAL.—
Notwithstanding any other provision of this subsection, with respect to a covered OPD service (or group of services) furnished on or after January 1, 2022, and before January 1, 2027, the Secretary shall not package, and shall make a separate payment as specified in clause (ii) for, a non-opioid treatment (as defined in clause (iii)) furnished as part of such service (or group of services).
“(ii) AMOUNT OF PAYMENT.—
The amount of the payment specified in this clause is, with respect to a non-opioid treatment that is—
“(I) a drug or biological product, the amount of payment for such drug or biological determined under section 1847A; or
srinsocal
20 hours ago
If you are citing the OTC Markets Cromwell Coulson article, he is the President, CEO, and Director of the OTC Markets. His job is to make investors comfortable with the OTC so that they will spend more money. He is not going to tell you how many times Market Makers have been caught abusing their power / violating Shorting Regulations and that many times the violations go on for years and years before they are caught if they are ever caught.
SEC Charges Citadel Securities for Violating Order Marking Requirements of Short Sale Regulations
Washington D.C., Sept. 22, 2023 —
The Securities and Exchange Commission today announced settled charges against broker-dealer Citadel Securities LLC for violating a provision of Regulation SHO, the regulatory framework designed to address abusive short selling practices, which requires broker-dealers to mark sale orders as long, short, or short exempt. These records are routinely used by regulators in policing prohibited short selling activity. To settle the SEC’s charges, Miami-based Citadel Securities agreed to pay a $7 million penalty. According to the SEC’s order, for a five-year period, it is estimated that Citadel Securities incorrectly marked millions of orders
“Compliance with the order marking requirements of Reg SHO is a key component of regulatory efforts to curtail abusive market practices, including ‘naked’ short selling,” said Mark Cave, Associate Director of the SEC’s Division of Enforcement.
Goldman Sachs fined $3M by FINRA over mismarked short sales
Wed, Apr 5, 2023 10:36 AM
Goldman Sachs was fined $3 million by the Financial Industry Regulatory Authority (FINRA) for mismarking nearly 60 million short sell orders as long and related supervision failures. From 2015-18, Goldman Sachs’s automated trading software mismarked sell orders following a system upgrade intended to simplify order flow, according to FINRA.
Merrill to Pay $850K FINRA Fine Over Short Sale Violations
October 07, 2021 at 02:37 PM
Merrill misapplied the SEC-approved Multi-day Approach on at least 6,000 occasions, FINRA alleged. From September 2013 until July 2016, Merrill violated Rule 204 of Regulation SHO and FINRA Rule 2010. Also, from January 2005 until January 2015, Merrill violated Rule 200(f) of Regulation SHO.
JNdouble1
1 day ago
Now Srinsocal, you know full well that those trades will be covered and closed well before the required time period, most likely within minutes. That is why there will not be any “fail to delivers” on the monthly short interest report ( the one that matters, as opposed to the daily report you are so fond of). This has been discussed as nauseam.
The point is that some one sold all of those shares at a very low price. Whether the MM had the shares in their account at the moment of the sale, or a minute, or a day later doesn’t change any of the facts.
art2426
2 days ago
Yeah but this 'fell' into a very DEEP HOLE (ie. $39,000,000 accumulated deficit). It is going to take one great rescue team to bring this back up from where it has descended. And now it looks like the stockholders will have to wait one whole year to see financials again and find out if there is any improvement. No word from the CEO to the stockholders of any news or as to why this all has regressed this far. A publicly traded company that now keeps the public and its stockholders guessing for a year as to how their investment is doing. THEY chose the publicly traded route for funds to incorporate, thus they owe the public/stockholders communication on what is happening, all things business. No updates, no explanations, nothing. You would think that IF there is some positive to talk about, this would be a great time to announce such, due to this rock bottom stock price it is trading at now. Sad that there seems to be none.