Medinah Minerals (MDMN)

[Toxic Avenger]

Gagged T/A is a sign of dilution, but if the T/A was aware of the illegally issued shares, then they were in on it and they weren't providing an accurate count in the financial statements.

Ungagging them so they could provide inaccurate figures more frequently would have made it worse.

I pointed out years ago at the first meeting where "everyone added up their shares and there was definitely naked shorting" that insiders never providing their holdings publicly or trades was a bad sign.
Apparently this is yet another example of how "naked shorting" REALLY works. It's not offshore hedge funds and nefarious geniuses who figure out how to counterfeit shares in these stinky pinkies, it's insiders and the T/A.

The problem now is that most of those counterfeit shares have probably been sold off, possibly several times. There's no way to claw them back, they're held by legitimate buyers who paid for them. So whoever did this may get fined or jailed (though sadly, even that remains unlikely), but stockholders are still screwed and the O/S will remain inflated.