This needs to get to our local paper business section, here is a copy of my letter, please feel free to use any content --------------------------------------------------------------------
I am reasonably sure others have written you letters regarding Naked Short Selling issues. The SEC asked for comments on how to adjust Reg SHO to put an end to this problem. Might I suggest you read these three submissions to the SEC specifically. There are many more at the fourth link I will provide you. If you are not the appropriate writer to cover this issue please feel free to forward my email on to the appropriate person.
If you should need a short course on naked shorting issues and consequences I offer this additional information. Here is a a short course on what naked shorting does to a company and why you need to act upon this issue.
UNDERSTANDING ILLEGAL NAKED SHORTING AND WHAT IT DOES TO THE MARKET PLACE; A definitive succinct overview course: The Dark Side of the Looking Glass, found at this link location:
Comes this excerpt from her letter to the SEC on Reg SHO.
" A national solution to this problem is preferable. However, if the Commission cannot deliver a national solution, this state will increase its efforts to identify those firms causing settlement failures and, when justified, bring enforcement action. While the filing of enforcement cases is not the optimal means of encouraging market discipline, it is our most potent option until regulatory requirements are implemented to prevent abuses."
WHAT ARE OTHER STATES ARE DOING BESIDES WHAT UTAH IS DOING? LA's & Az Rep. Rodney Alexander, U. S. Representative – Louisiana Rick Renzi, U. S. Representative – Arizona Found at these link locations:
THE SYSTEMS PROBLEMS AND DEFICIENCIES AS DESCRIBED BY EXPERTS: Dr. Susanne Trimbath's white paper on the deficiencies of our system, and the dishonesty of our clearing and settlement apparatus, as well as our regulator, found at this link location:
or Robert Shapiro issued forth a comment letter that is as comprehensive as it is coherent discussion. It is a damaging indictment of a system run badly amok, and is required reading found at this link location:
Global Links is a very tiny company, but it is one example of an intensifying debate that is going on in the markets and at the SEC about possible market manipulation. The consequences and FTD for Global Link found at this link location:
Links to Audio and Video testimony included in this letter.
To whom it may concern,
Please consider doing some research and investigation into a little known stock market scandal that is being suppressed by mainstream media and our elected officials. Investors and companies have lost billions, if not trillions, of dollars over the last decade as a result of this crime that has become the status quo business model for so many financial and investment firms falling under ever increasing pressure to produce investment gains for their clients.
All of the information contained herein is provided by review of publicly available information, which will be identified throughout this letter. This letter is not a subtle advertisement for some product or service. If you read this letter to the end, you will be more informed about electronic stock counterfeiting than most investment professionals on Wall Street, the SEC and our elected officials.
Electronic stock counterfeiting has proliferated throughout our markets for years. Those fighting to bring it to an end have referred to the entire scandal as "Stockgate". In summary, the operators and regulators of the stock market have purportedly been participating in, and endorsing (by failure to enforce regulations), the counterfeiting of public company stock. This is not to be confused with counterfeiting of paper stock certificates. The counterfeiting we are dealing with is facilitated electronically. In fact, the operators and regulators of Wall Street are moving swiftly to outlaw paper certificates under the guise of improved efficiency. In fact, the paper certificate is the first, last and only form of true stock ownership that threatens to expose the electronic stock counterfeiting shell game that has been picking the investment publics pockets for at least a decade.
The electronic stock counterfeiting practice, known by the investment community as "naked short selling" or "naked shorting", effectively dilutes the share structure of company stock and causes the price to decline. This often leads to the company filing for bankruptcy when they are unable to raise capital due to their declining market value. Of course, the employees of the assaulted companies and individual investors lose their jobs and investments. When this occurs, the entities that sold the counterfeit stock keep the money raised from their initial illegal sales of the stock. Make no mistake, this is clearly what it appears to be, this is financial terrorism.
It is important to differentiate “naked short selling” as counterfeiting of company stock, whereas “short selling” is a perfectly legal practice where an investor actually assumes a legal trading position. Protectors and participants of the counterfeit stock program will generally blend these two entirely different concepts together in an effort to confuse their detractors.
The entire process occurs as a result of illegal trading that has been allowed to proliferate since the inception of electronic trading. In short, there are few stock market transactions that involve the actual transfer of paper stock certificates today. Most transactions are processed using a series of electronic book entries. This enables fraud like "naked short selling" to migrate unchecked in a market where regulations either do not exist or are not enforced by the agencies responsible for such.
From a criminal investigative perspective, the US Secret Service, now part of Homeland Security, has investigative authority over counterfeiting of commercial securities under USC Title 18, Section 514.
Furthermore, electronic Stock Counterfeiting is a perpetual act that fits the definition of a RICO ACT crime to a tee,
"RICO addresses long-term, not one-shot, criminal activity. Not only must a RICO claim be based upon criminal activity, but the criminal acts must constitute a "pattern" of criminal activity. A single criminal act, short-term criminal conduct, or criminal actions that bear no relationship to each other will not give rise to a RICO claim. The United States Supreme Court has ruled that criminal actions constitute a "pattern" only if they are related and continuous. In order to be "related," the criminal acts must involve the same victims, have the same methods of commission, involve the same participants, or be related in some other fashion. A pattern may be sufficiently continuous if the criminal actions occurred over a substantial period of time or posed a threat of indefinite duration. The former patterns are referred to as closed-ended patterns; the latter patterns are referred to as open-ended patterns. Accordingly, even if you have been injured by a criminal act, you will not have a RICO claim unless that criminal act is part of a larger pattern of criminal activity."
Further, electronic stock counterfeiting violates a multitude of laws, including the most basic of internet fraud where a product is purchased, but not delivered. Investors pay for stock purchases, however counterfeit share markers are placed into their accounts with no connection whatsoever to the underlying company stock that the investor believes they have purchased.
This is a pyramid scheme, plain and simple, that relies upon shareholders to never demand delivery of their stock certificates in large enough quantity as to exceed the legal number of shares issued by the company (the shares outstanding).
March 14, 2005 (FinancialWire) When U.S. Senator Robert Bennett (R-Utah), Chief Deputy Whip for Senate Republicans, questioned U.S. Securities and Exchange Commission Chair William Donaldson this past week about a naked short selling article he read from FinancialWire, he indicated he was setting the stage for a full scale inquiry into the SEC's failure so far to halt the illegal activity. A video of the exchange between Bennett and Donaldson is at, tinyurl.com/3vfeg
------------------------------------------------------------------------------------------------- In addition, Illegal Naked Short Selling Interview with Wes Christian and Sean Greenwood on Corporate Strategies with Tim Connolly Sunday July 10, 2005
These are large 18MB MP3 audio files of the interview that are typically downloaded to a personal computer for listening:
Further, Mr. Mark Faulk, in a 2 hour recorded audio interview on June 20, 2005, does a good job explaining the electronic stock counterfeiting perpetuated against the average investor.
Here's an excerpt of Mr. Faulk's press release announcing his interview, followed by links to the archived audio interview,
By Mark Faulk June 17, 2005
In what is rapidly becoming a pattern in the Stockgate scandal, the major media has barely scratched the surface of what is without a doubt the single most important financial crisis facing our country today. It has been estimated that the practice of stock counterfeiting through naked short selling has resulted in investors being defrauded of nearly $1 trillion of their hard-earned money, yet the Securities and Exchange Commission has done absolutely nothing to stop it.
While the major media has been asleep at the wheel when it comes to covering this massive corruption, the rest of us have been working diligently to expose it on a daily basis, and the public outcry continues to grow. This story has been, and will continue to be, told from the ground up, by independent internet news sources and activists, disgruntled investors, and those who are brave enough to tell the truth, even as shows like NBC's Dateline, who has apparently killed their own expose' on the stock market scandal after over a year of empty promises, succumb to politics and corporate pressure.
Furthermore, below are links to an alleged conference call recording of Bear Stearns discussing about 1,000 companies, of which 800 are OTC BB and Pinks, that would be on SHO list if it was published that day. (Before Regulation SHO was implemented)
This was just days before the SHO list was made public with far less than 1,000 companies listed.
Key points of concern in this matter of electronic stock counterfeiting are:
1. The stock market is operated by the same financial institutions that receive fees for each of these illegal transactions. There is an inherent conflict of interest to rely on an organization to voluntarily terminate an illegal practice when they are profiting from it.
2. The SEC receives fees for many of these illegal transactions. There is an inherent conflict of interest to rely on an organization to regulate an illegal practice when they receive fees for those transactions.
3. Individual investors, purchasing stock in a company that has been subjected to this illegal practice, often lose their investment. Employees of the companies lose their jobs. New technologies never come to fruition as a result of many fledgling companies being forced into bankruptcy.
4. It is reported that Dateline NBC has been preparing an expose on this matter since January 2004. The reason Dateline has not aired the piece is a topic of much concern to the individual investor community.
5. On January 3, 2005, the SEC implemented Regulation SHO, after at least a half dozen years of outcry from the investing public. Effective January 3, 2005, companies that had their stock illegally manipulated via naked short (counterfeit) sale of their stock by others, appear on what is known as a "Threshold list" that is updated daily. This list represents companies that have had naked short (counterfeit) electronic book entry shares sold to investors that were never reconciled in the settlement system (counterfeit). Media and Securities professionals’ report Regulation SHO is not being enforced. Companies are listed on the Regulation SHO Threshold list, for months at a time, without action from the SEC or any other entity to correct the problem as required.
6. Law firms Christian, Smith, Wukoson and Jewell, and O'Quinn, Laminack and Pirtle, whose notches already include environmental targets, the breast implant industry and the tobacco industry are working publicly to expose "Stockgate".
Individual investors, and companies affected by this illegal market manipulation, are beginning to organize in an effort to expose these illegal practices. Two organizational efforts at the forefront of exposing illegal naked short selling are:
Year 1999 Comments received from the public on proposed SEC rules to address illegal naked short selling. Please note that individual investor comments support the proposed regulation while the market operator comments generally seek to avoid implementation of new SEC protections to individual investors (In my opinion). www.sec.gov/rules/concept/s72499.shtml
Year 2003 Comments received from the public on proposed SEC rules to address illegal naked short selling. Please note that individual investor comments support the proposed regulation while the market operator comments generally seek to avoid implementation of new SEC protections to individual investors (In my opinion). www.sec.gov/rules/proposed/s72303.shtml
As you can see, from the two links above, this manipulation of stock, to the detriment of millions of individual investors and employees, has been allowed to proliferate by the inaction of market regulators for a minimum of six years. It is likely that this fleecing of investors, companies, and their employees has been proliferating since the inception of electronic trading, well before 1999.
Only recently, under increasing exposure from the individual investor and small business communities, have politicians begun to take preliminary action on this incredible situation.
This site links to the NASDAQ "Threshold list", which is a list of company securities that have been sold and subsequently failed to clear in the settlement system. These settlement failures indicate that stock was sold without possessing the requisite access to the underlying shares of the electronic book entry. This is the equivalent of selling counterfeit currency, however in this case, stock is being counterfeited and sold to investors.
Please note that many companies, having been victims of naked short selling, are not listed on the threshold lists. This is because there is a requirement for a company to be current in their SEC filings to "qualify" for protections from counterfeit stock sales that Regulation SHO purports to provide. It is suspected that the majority of abused companies will fall into the category of stocks that are traded in Over the Counter (OTCBB) and Pink Sheet quotation services. Many of these stocks are penny stocks. Moreover, Regulation SHO purports to minimize future naked short selling and does little or nothing to address the virtual counterfeit stock sales that occurred prior to January 2005. These counterfeit electronic shares remain in the market and continue to negatively impact the capital structure of hundreds, if not thousands, of companies.
"Over the Counter Bulletin Board" (OTCBB) and "Pink Sheets" are quotation mediums that are not technically classified as stock exchanges. It is important to note that small Over the Counter Bulletin Board (OTCBB) and Pink Sheet companies have never, and do not currently benefit from many of the regulatory protections afforded to companies listed on a national exchange such as the NYSE, NASDAQ and AMEX.
As you can see from reviewing the link to the NASDAQ list above, illegal naked short selling is not limited to penny stocks. There are also some well-known companies on the list.
Please consider looking into this matter for the sake of thousands, if not millions, of citizens that have lost jobs and investment capital as a result of this most egregious stock market fraud that continues to proliferate unchecked today.
Individuals and organizations that have worked tirelessly to expose electronic stock counterfeiting:
johmond: So proboards wants a contribution now, how about they put back 1MM's......
Feb 24, 2021 18:00:23 GMT -4
mayz: Still here and keeping the faith.
Feb 24, 2021 18:35:01 GMT -4
Jed: Did you ALL know that Proboards was collecting and selling our personal information all these years??? Scroll to the very bottom of the donation page www.proboards.com/contribute See where it says “Do Not Sell My Personal Information"
Feb 24, 2021 20:16:41 GMT -4
narvo: Wondering if anyone here ever knew the shareholder last name Ehmann from the desert area of California? He was a good man and he liked fell off the face of the Earth. I am sensing a bad feeling. He held many shares. Thx, Narvo
Feb 25, 2021 0:20:13 GMT -4
bbildman: 2 Covid Moderna vaccine shot done, nd I am still alive
Feb 25, 2021 16:14:52 GMT -4
narvo: Another link with CMKX in it.QFS Schedule: According to Military Intel Contact Tier 4B should be notified to set redemption/ exchange appointments on Mon. 1 March or Tues. 2 March,though it may happen sooner.QuantumFinancialSystem anonup.com/thread
Feb 28, 2021 0:02:28 GMT -4