The intent of this message board is to inspect the anatomy of the latest securities manipulation scheme coined the - Float Lock Down (FLD).
One of the most recent and prominent advocates of these illegal FLD schemes were apparently implicated by the SEC--Monk's Den:
November 4, 2010
"The Commission temporarily suspended trading in the securities of 8000, Inc. because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things, a cash dividend the company announced it would pay stockholders and Monk’s Den, an investment program and online investor network the company disclosed it acquired in September 2010. The Commission’s investigation in this matter is ongoing."
8000, Inc. (EIGH) is just one of several publicly traded securities allegedly touted as a FLD by this "online investor network".
Since Monk's Den public domain debut, I intend to dissect the EIGH FLD and any other potential Monk's Den FLDs that may be uncovered and identified by law enforcement of regulatory agency.
In response to the SEC release, 8000, Inc. (EIGH) published a press release titled Statement to all Shareholders of 8000inc (EIGH.pk). EIGH's CEO, Thomas Kelly, publicly stated:
November 22, 2010
- It is not and has never been involved, independently or in combination with Monks Den or its principal(s), in any illegal stock profiting scheme (commonly called "pump and dump").
- The Company has not to date paid for any promotional activity and does not engage in any such activity.
- Nonetheless, neither the Company nor the Subpoenaed persons have engaged in illegal stock profiting or market manipulation.
I read on an internet chat room or website that a specific security has a large number of fails; are these sources reliable?
Investors should always be cautious that issuers, promoters, or shareholders may be seeking to stimulate buying interest by making false, misleading or unfounded statements in internet chat rooms or other such forums about alleged large naked short positions in some smaller issuers, particularly those trading on the OTCBB or Pink Sheets. Some individuals may encourage other investors to buy these issuers' securities by claiming that there will be an imminent "short squeeze," in which the alleged naked short sellers will be forced to cover open short positions at increasing prices. These claims in fact may be false.
Will close-out purchases required by Regulation SHO drive up a security's price?
Although some short squeezes may occur naturally in the market, a scheme to manipulate the price or availability of stock in order to cause a short squeeze is illegal.
Dodd–Frank Wall Street Reform and Consumer Protection Act
Title IX - Investor Protections and Improvements to the Regulation of Securities
Subtitle B - Increasing Regulatory Enforcement and Remedies
"Subtitle B gives the SEC further powers of enforcement. This includes a "whistleblower bounty program" which is based upon a similar program established by the IRS in 2006; the program allows persons who provide information which leads to a successful SEC enforcement to receive 10 to 30% of the monetary sanctions over $1 million."1