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Anatomy of the FLD

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Last Post: 7/13/2015 5:18:43 PM - Followers: 23 - Board type: Free - Posts Today: 0

GOAL
The intent of this message board is to inspect the anatomy of the latest securities manipulation scheme coined the - Float Lock Down (FLD).

BACKGROUND
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."
http://www.sec.gov/litigation/suspensions/2010/34-63242.pdf

8000, Inc. (EIGH) is just one of several publicly traded securities allegedly touted as a FLD by this "online investor network". 

MOVING FORWARD
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.

PARTING THOUGHTS

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.

http://www.sec.gov/spotlight/keyregshoissues.htm


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

1http://en.wikipedia.org/wiki/Dodd%E2%80%93Frank_Wall_Street_Reform_and_Consumer_Protection_Act
1http://www.sec.gov/about/laws/wallstreetreform-cpa.pdf

PostSubject
#360   - Williams pay to the Commission an administrative scion 07/13/15 05:18:42 PM
#359   Pacer update 26 Feb 14 - SEC v. scion 02/26/14 02:38:33 PM
#358   The Commission’s complaint alleged, among other things, that scion 02/20/14 01:35:56 PM
#357   In the Matter of JERRY S. WILLIAMS, scion 02/20/14 01:08:04 PM
#356   Monk Ordered to Pay Over $9,000,000 scion 02/20/14 11:54:07 AM
#355   The judgments order the defendants to pay a scion 02/19/14 06:03:56 PM
#354   Connecticut-Based Stock Promoter Ordered to Pay Over $9.6 scion 02/19/14 06:01:54 PM
#353   02/12/2014 72 JUDGMENT entered in favor of Securities scion 02/18/14 12:17:53 PM
#352   02/12/2014 70 FINAL JUDGMENT AS TO DEFENDANT JERRY scion 02/18/14 12:07:20 PM
#351   Pacer update 18 Feb 14 - SEC v. scion 02/18/14 12:03:13 PM
#350   SEC reaches $4.9-million (U.S.) deal with Williams scion 02/14/14 04:38:13 PM
#349   Pacer update 12 Feb 14 - SEC v. scion 02/12/14 11:12:50 AM
#348   02/11/2014 68 MOTION to Dismiss Partial as to scion 02/11/14 11:23:13 AM
#347   02/11/2014 67 PROPOSED ORDER FIRST IN AWARENESS CONSENT scion 02/11/14 11:22:41 AM
#346   02/11/2014 66 PROPOSED ORDER MONK'S DEN, LLC CONSENT scion 02/11/14 11:22:09 AM
#345   02/11/2014 65 PROPOSED ORDER WILLIAMS CONSENT TO ENTRY scion 02/11/14 11:21:46 AM
#344   Pacer update 11 Feb 14 - SEC v. scion 02/11/14 11:21:06 AM
#343   Pacer update 22 Nov 13 - SEC v. scion 11/25/13 11:06:19 AM
#342   Pacer update 21 Nov 13 - SEC v. scion 11/21/13 12:28:42 PM
#341   11/14/2013 60 Joint STATUS REPORT and REQUEST FOR scion 11/14/13 03:28:07 PM
#340   Pacer update 17 Oct 13 - SEC v. scion 11/14/13 03:27:03 PM
#339   By 11/14/2013, the parties shall submit a joint scion 11/14/13 10:41:21 AM
#338   10/17/2013 59 Minute Entry for proceedings held before scion 11/06/13 10:28:00 AM
#337   Pacer update 17 Oct 13 - SEC v. scion 10/17/13 03:42:51 PM
#336   Pacer update 15 Oct 13 - SEC v. scion 10/16/13 02:26:09 PM
#335   09/27/2013 56 Recommended ruling recommending that the plaintiff's scion 10/01/13 12:32:00 PM
#334   Pacer update 27 Sep 13 - SEC v. scion 10/01/13 12:27:43 PM
#333   08/06/2013 53 RESPONSE re 50 MOTION for Hearing scion 08/06/13 02:19:35 PM
#332   Pacer update 06 Aug 13 - SEC v. scion 08/06/13 02:16:39 PM
#331   07/30/2013 52 ORDER REFERRING CASE to Magistrate Judge scion 07/31/13 08:36:32 PM
#330   Pacer update 30 Jul 13 - SEC v. scion 07/31/13 08:33:27 PM
#329   07/26/2013 50 MOTION for Hearing by Jerry S. scion 07/29/13 07:14:23 PM
#328   Pacer update 29 Jul 13 - SEC v. scion 07/29/13 07:12:26 PM
#327   Pacer update 29 Jul 13 - SEC v. scion 07/29/13 07:11:15 PM
#326   07/29/2013 51 Docket Entry Correction re 50 MOTION scion 07/29/13 07:10:35 PM
#325   07/26/2013 50 MOTION for Hearing by Jerry S. scion 07/26/13 03:23:55 PM
#324   Pacer update 26 Jul 13 - SEC v. scion 07/26/13 03:23:26 PM
#323   IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED scion 07/24/13 07:55:38 PM
#322   IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED scion 07/24/13 07:53:05 PM
#321   07/19/2013 49 PROPOSED ORDER re 44 MOTION for scion 07/24/13 11:47:40 AM
#320   Attachments: # 1 Exhibit A (Williams Testimony), scion 07/24/13 11:41:36 AM
#319   07/19/2013 47 AFFIDAVIT re 44 MOTION for Default scion 07/24/13 11:15:16 AM
#318   07/19/2013 45 Memorandum in Support re 44 MOTION scion 07/24/13 11:05:20 AM
#317   Pacer update 19 Jul 13 - SEC v. scion 07/24/13 10:56:21 AM
#316   Pacer update 11 Jul 13 - SEC v. scion 07/11/13 03:50:09 PM
#315   06/28/2013 38 Memorandum in Support re 37 MOTION scion 07/01/13 10:17:40 AM
#314   06/28/2013 37 MOTION for Sanctions against Jerry Williams scion 07/01/13 10:14:54 AM
#313   06/24/2013 35 MOTION for Default Entry 55(a) as scion 07/01/13 10:11:06 AM
#312   Pacer update 28 Jun 13 13 - SEC scion 07/01/13 10:06:39 AM
#311   Pacer update 04 Apr 13 13 - SEC scion 04/08/13 08:31:41 AM
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