Cobs NSS Solutions

[NYBob]

People & Power - Rigged Markets - 20 May 07 - Part 1 -

[NYBob]

The Naked Truth on Illegal Shorting -

pol-ticz666nss911killers of US Freedom and Liberty -
http://tinyurl.com/2z77xq
http://www.fool.com/investing/high-growth/2005/03/24/the-naked-truth-on-illegal-shorting.aspx
Imo.
http://www.888c.com/
God Bless

[NYBob]

NASD Hearing Panel Sanctions Former Knight Securities Executives for Supervisory Failures

An NASD Hearing Panel issued $100,000 in fines against Kenneth Pasternak, former CEO of Knight Securities, L.P. (now known as Knight Equity Markets, L.P.), and John Leighton, former head of the firm's Institutional Sales Desk, for supervisory violations in connection with fraudulent sales to institutional customers in 1999 and 2000.

In addition, Pasternak was suspended in all supervisory capacities for two years, while Leighton was barred in all supervisory capacities.

In March 2005, NASD's Department of Market Regulation charged Pasternak and Leighton with failure to supervise the firm's leading institutional sales trader, Joseph Leighton, who is John Leighton's brother. The NASD complaint also charged Pasternak with failing to establish and enforce a supervisory system designed to ensure compliance with federal securities laws and NASD rules.

In a 2-1 ruling, the panel found that Pasternak and John Leighton failed to supervise Joseph Leighton's trading activities. "For all intents and purposes, Joseph Leighton ran the Institutional Sales Department as he saw fit," the majority ruling says. "Pasternak, John Leighton, and Joseph Leighton each concluded that as long as the customers did not learn of the extraordinary profits Knight earned on their orders, there was no limit to the amount the firm could make on an institutional order."

The majority also found that Pasternak's response to numerous red flags was "woefully inadequate," that Pasternak and John Leighton "never questioned Joseph Leighton's activities or confirmed he was providing his customers with best execution and a fair price," and that the overall supervisory void "allowed Joseph Leighton to take advantage of his customers over a 21- month period by filling orders at prices that netted Knight unreasonably high profits."

In April 2005, Joseph Leighton agreed to a bar from the securities industry and a payment of more than $4 million to settle charges by the Securities and Exchange Commission (SEC) and NASD that he made millions of dollars in fraudulent trades with Knight's institutional customers. The SEC and NASD found that Joseph Leighton generated excessive profits by pricing trades with institutional customers in a manner contrary to customers' expectations and industry custom, and using deceptive trading practices to disguise both his pricing and the amount of Knight's profits.

In December 2004, Knight paid more than $79 million to settle SEC and NASD charges against the firm arising from Joseph Leighton's fraudulent and deceptive conduct.
More than $3.3 million of Joseph Leighton's monetary sanction and more than
$66 million of the firm's monetary sanction was paid into a Fair Fund established by the SEC to compensate investors harmed by Joseph Leighton's fraud.

Unless the matter is appealed to NASD's National Adjudicatory Council (NAC), or is called for review by the NAC, the hearing panel's decision becomes final after 45 days.

http://www.stockbrokerfraudblog.com/2007/04/nasd_hearing_panel_sanctions_f.html

http://www.stockbrokerfraudblog.com/

http://www.stockbroker-fraud.com/

Why get multi-million criminals only fines??? -
Why is only Martha Steward going to jail???
100 years in jail plus stripping of all assets -
should be more appropriate -
the court system has to be all revived -
last 10years old case has to be reviewed!!!
NO 666nss911evilz going to jail -
the 666nss911devilz only paying fines???
Imo. Tia.

http://www.investorshub.com/boards/board.asp?board_id=4887

http://www.investorshub.com/boards/board.asp?board_id=7537

http://www.siliconinvestor.com/readmsg.aspx?msgid=23606210

[Hilander]

Very Good Read:

Let's hope "they" don't have this information removed from the internet.
This is good knowledge for us to know about and to stay informed. Thanks!

[NYBob]

Must reading Gary Aguirre - cover-up and investigation page

http://thesanitycheck.com/SECGaryAguirreCoverUp/tabid/114/Default.aspx

[NYBob]

To 'TechKim' -

thanks for the info -

The Crackdown on Stock-Loan Schemes
A criminal probe by the feds may reveal some of the mysteries of short sellers
by Matthew Goldstein

It may not have the cachet of mergers and acquisitions or leveraged buyouts, but the little-known business of securities lending is one of Wall Street's most lucrative. Investment banks rake in roughly $10 billion a year on the fees they collect for lending stocks and bonds to so-called short sellers—intensely secretive hedge funds and other professional traders who bet on falling prices.

Now a long-running criminal investigation may reveal some of what actually goes on among the traders, Wall Street investment firms, and independent intermediaries who help make the mysterious deals happen. BusinessWeek has learned that federal prosecutors in Brooklyn, N.Y., may be close to charging a number of current and former employees of several Wall Street firms with taking part in a complex kickback scheme that may have collectively cost the financial houses and short sellers millions of dollars in higher and unnecessary fees. Already, at least three people have taken pleas in exchange for cooperating with prosecutors, according to some people close to the nearly 18-month-long probe. Drawing the most scrutiny from investigators are current and former employees at the stock loan desks of Bear Stearns (BSC) and Morgan Stanley (MS), say sources close to the investigation. Former and current employees of Goldman Sachs (GS), Janney Montgomery Scott, Merrill Lynch (MER), and Nomura Securities are also being investigated. Officials at all of the financial firms and a spokesman for Roslynn Mauskopf, U.S. Attorney for the Eastern District of New York, declined to comment.

Sources say authorities from the U.S. Attorney's office are looking into allegations that some employees on the stock loan desks received kickbacks or other improper cash payments from so-called stock-loan finders, independent middlemen who sometimes track down shares for Wall Street firms to lend to investors. It is anticipated that the prosecutors will likely claim that some employees on the stock loan desk unnecessarily referred work to the finders, who did little to justify their fees and only added to the cost of arranging a stock loan.

A Word of Warning
In a classic short sale, a trader borrows shares from an investment firm and sells them. If the stock falls as expected, the short seller can pay back the loan and make a profit by repurchasing the shares at a lower price. When the investment firms don't have enough shares on hand in their inventory, they sometimes seek out independent finders, who work the phones, calling friends, relatives, and buddies at other stock loan desks to make up the difference. This chummy relationship between finders and stock loan employees, say people familiar with the investigation, is what first piqued the interest of prosecutors, who may worry that the finders aren't providing a legitimate service.

This isn't the first time that the business has come under fire. Two years ago the New York Stock Exchange (NYX) issued an advisory opinion, cautioning Wall Street firms about continuing to do business with finders, saying: "We have seen only limited instances where a finder is actually providing services that an effective [in-house] stock loan department could not provide." The NYSE then began cracking down on abuses, fining two firms with paying "unjustified" and "sham" finders' fees to arrange stock loans. But regulators at the NYSE, along with the Securities & Exchange Commission, put much of their investigation on hold as the criminal inquiry into the alleged kickback scheme began heating up.

Michael Bachner, a New York criminal defense attorney who represents two individuals involved in the current investigation, says he's still hoping prosecutors will determine that what they've found amounts to nothing more than regulatory infractions. John Tabacco Jr., chief executive officer of Locatestock.com, a company whose software program helps brokers and hedge funds track down shares of hard-to-borrow stocks that traders are interested in shorting, says that until recently securities lending was "loosely regulated." He says he fears prosecutors "are going too far in pursuit of criminal charges."

Matthew Goldstein is an associate editor at BusinessWeek, covering hedge funds and finance.

TechKim -
so far the banksters nss schemes in courts -
have only since 911 given them -

about a mil. fine for every bil. they robbed -

the courts have operated in 99% the 666 favour -
and the banksters been laughing all the way to
their bank home -

to me it would be good if the banksters -
get 100yrs in jail for every mil. they robbed -
plus 10 times minimum in fines - for the damages their
nss robberies caused all Long Shareholders -

nothing less will put a stop to the 666nss911 -
terror of the banksters hedge funds schemes -
Imo. Tia.

[lifegear]

what do you need my child?

[Little Nellie]

Anyone home?

[lifegear]

LOL

[GOLDENBOLLOX]

WOW - 1 WHOLE SHARE TRADED WOOPEEE DOOOOO

[FORDGT]

(( AVGE )) http://www.commanderpremier.com/ I have watch this stock shoot from .0001 to 5.58 and back again.. Small float and check the press release about the company being able to make FAA approved airplane parts... This one could end up at 40.00 per share..

[GOLDENBOLLOX]

From what I understand "short interest reports" represent legitimate short sales. The concern for investors should be innacurate reporting and the exemptions.

Until full transparency of disclosure is legislated for, I do not trust the short interest numbers. In fact, I really do not see the point in publishing information to "Joe Public" which is incomplete, one could conclude that doing so is misleading.

GB

[lifegear]

so the knobias short interest reports are only tips of icebergs?

[GOLDENBOLLOX]

lifegear

I don't know whether you noticed, Bear Sterns were just fined $250,000 by NASD for incorrect short interest reporting.

How reliable that short interest data is, is anyones guess. It also does not cover repo agreements.

GB

[lifegear]

there's the Reg SHO list for fails to deliver shares and also knobias.com reports short interest for affected stocks on a monthly basis

you have to ask the moderators here for your enforcement question

[StockBetz]

lifegear, as i am still a little uneducated with Naked Short Selling how do you pick stocks that could be clean of naked short sellers? Also, so this article means that naked short selling will be Enforced in the future since it is not really enforced now?

Thanks for your advice i always like to see what you pick next!!

[StockBetz]

WOW Glad i read, and understood that!

[GOLDENBOLLOX]

Pressure is mounting. If this Oklahoma bill gets through then watch out for a flood of similar ones from other states.

I think they will string it out for another 12 months or so.

GB

[lifegear]

will the grandfather clause be ever abolished this year?

[GOLDENBOLLOX]

Oklahoma Bill.

http://www.faulkingtruth.com/Articles/Investing101/1074.html

[lifegear]

Excellent article...thanks!

[GOLDENBOLLOX]

DONG DONG DONG

http://www.sec.gov/comments/s7-12-06/s71206-789.htm

[NYBob]

SEC Seeks To 'Modernize' Short-Selling Regs - Official



By Daisy Maxey, Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- The Securities and Exchange Commission is taking a " carefully honed approach" in its efforts to address short-selling abuses with as little restriction as possible and is hoping to make recommendations by late spring, an SEC official said.

The goal is to modernize regulations to prevent abusive and manipulative short-selling practices with minimal impact on liquidity, James Brigagliano, an associate director in the SEC's market regulation division, said Thursday. Brigagliano made his comments at an educational seminar on regulatory issues for hedge fund managers sponsored by the Managed Funds Association, a hedge fund trade group.

On the sidelines of the conference, held at the City University of New York, he also discussed briefly the commission's efforts to look into the practice of some big investors, including hedge funds, to vote shares that they have borrowed, but don't own.

Short sellers borrow shares, then sell them, hoping that they can buy the shares back later at a lower price to repay their loan. Some sell shares that they haven't actually borrowed, which is known as naked short selling. Short selling is a common practice among many hedge funds.

The SEC has proposed changes to three regulations - one governing short selling in connection with public offerings; another governing failure to deliver shares on time after a stock transaction; and a short-sale price test, which restricts the prices at which short sales may be executed.

The commission proposed in December that Rule 105, which governs short selling in connection with public offerings, be altered. The rule bars a person who sells short just before an offering is made from covering that short sale using securities purchased in the offering. It's meant to prevent activities that may artificially depress market prices and reduce offering prices, but there have been numerous violations, Brigagliano said. "In recent years we have brought a number of actions" related to violations of the rule, he said.

The commission recommended in December that any short seller be banned from purchasing any security in the offering during the Rule 105 restriction period. The period to file comments on the proposed change ended in February, and the commission is now reviewing the 13 comments it received, Brigagliano said.

The commission also proposed an amendment in July that would eliminate one provision and limit another provision of a regulation known as Regulation SHO, which governs failure to deliver shares on time after stock transactions take place. The regulation, which went into effect in January 2005, imposes close-out requirements on broker-dealers for securities in which a substantial number of failures to deliver have occurred. The commission recommended eliminating a provision known as the "grandfather clause," which exempts some failure to deliver from the closeout requirement. It also proposed narrowing an exception for registered options market makers.

The commission will consider how any change in Reg SHO could affect prime brokerage arrangements, he said.

In addition, the commission has proposed the elimination of the short-sale price test, commonly know as the "tick test." The "tick test," meant to prevent downward manipulation of stock prices, allows short sales only at a price above the last sale price.

The rule has been in place since 1938 despite significant developments in the marketplace, Brigagliano said. Decimalization and changes in market strategies have undermined the effectiveness of the test, he said. "The current price test may not be a good fit for the modern markets," he said.

The commission started a pilot program in 2004 to test the short-sale price restriction by temporarily suspending the rule on about 1,000 securities, and concluded that those stocks weren't more susceptible to patterns associated with downward manipulation, Brigagliano said.

The comment period on the elimination of the "tick test" ended in February, and the commission is reviewing the 26 comments it received, he said.

As for the practice by large investors to sway corporate contests by voting shares that they don't actually own, Brigagliano said that the issue is important to SEC Chairman Christopher Cox. The commission is collecting information and "will discuss at some point in the future what, if any, change we would recommend to insure that votes are properly counted," he said.

-By Daisy Maxey, Dow Jones Newswires; 201 938 4048; [e-mail]


(END) Dow Jones Newswires
03-23-070951ET
Copyright (c) 2007 Dow Jones & Company, Inc

http://www.investorshub.com/boards/read_msg.asp?message_id=18339087

[NYBob]

DJ SEC Criticized For Delaying Short-Selling Changes
March 29, 2007 17:28 pm
WASHINGTON (Dow Jones)--The U.S. Securities and Exchange Commission is coming under criticism for delaying action on persistent problems involving short selling abuses, an area where SEC Chairman Christopher Cox has said existing rules have been inadequate.
The SEC announced this week that it is reopening the public comment period on changes it proposed last summer to tighten its 2004 rule, known as Regulation SHO. Although the comment period closed in mid-September, the SEC said a new, 30-day extension is warranted in light of the "continuing public interest" in the matter and concerns raised by a handful of groups and individuals who complained the agency had not issued data it referenced when proposing the changes.

"There's really no reason why they should delay," U.S. Chamber of Commerce chief operating officer David Chavern said in a telephone interview Thursday. "The things they're proposing make perfect sense." The proposed changes aimed to bolster the SEC's earlier efforts to combat "naked" short sales. Unlike short sellers who borrow shares in hopes of replacing them later and profiting from a price decline, naked short sellers don't borrow shares they sell short, a practice some compare to counterfeiting.

Although Regulation SHO imposed new restrictions and stock delivery requirements, it contained an exception for options market makers and excluded pre-existing failures to deliver stocks sold short. Cox told a House subcommittee Tuesday that the rule proved "inadequate" because of the so-called "grandfather" protections for prior delivery failures. Last July, faced with chronic failures to deliver certain stocks borrowed for short sales, the SEC proposed ending those protections.

Eliminating the "grandfather loophole" and market maker exception are "no-brainers," according to Chavern, who urged the SEC to "move ahead expeditiously with the reforms that they've proposed."

The SEC said it is reopening the proposal for comment after releasing data sought by the American Bar Association and others, including by CTC LLC, which specializes in options trading.

"We provided additional data because the commenters asked for it, and we look forward to considering their views," said SEC spokesman John Nester.

The SEC had previously referenced the data from the National Association of Securities Dealers, but didn't release it because it contained "confidential, company-specific" findings. An edited version of the NASD findings showed many of the stock-delivery failures over a 10-month period in 2005 had pre-existing delivery failures and may have been exempt under the "grandfather" treatment, while others appear to have been covered by the option market maker exemption.

-By Judith Burns


Write letters folks, time to hit the reporters publishing these stories as well!

http://www.investorshub.com/boards/read_msg.asp?message_id=18338960

[NYBob]

Phantom shares...Bloomberg - special report -
on nss naked short selling -

[piranhas2]

I just quoted that to Goldy yesterday...

C'mon boys... join us...

[piranhas2]

Best news yet...

http://investorscob.com/earsforum/index.php

[greggor62]

I too enjoy the bell. I stayed on it for a while waiting for AC/DC to satrt playing Hells Bells. And Gino Cappaletti to say;
"And The New England Patriots take the field" LOL

Great board. I am finally finding some sanity in IHUB.
Thank you, Peck

[Self Made]

Where did ya go bro!

[chunga1]

Markets prepare for Reg NMS amid heavy volume
New rules to take effect next week in wake of Tuesday's selloff
PrintE-mailDisable live quotesRSSDigg itDel.icio.usBy Steve Gelsi, MarketWatch
Last Update: 3:42 PM ET Mar 2, 2007


NEW YORK (MarketWatch) -- Financial markets are readying new trading systems as Regulation NMS officially begins phasing in on Monday, even as market makers grapple with the recent crushing volumes.
The National Markets System rules -- aimed at increasing the efficiency and transparency of financial markets -- have been hailed as one of the biggest reforms ever made to U.S. equity markets.
First introduced nearly two years ago, the rules have required a re-tooling of stock marketplaces with order and execution management system vendors working with various bourses and other players.
Despite recent turmoil in the markets this week with the Dow Jones Industrial Average
$DJ12,114.10, -120.24, -1.0%) and other indexes selling off sharply on Tuesday, the deadline stands, said John Nester, a spokesman for the Securities and Exchange Commission.
"Most market participants appear to be ready for it," said William Cline, CEO of Acai Solutions, and an expert on markets and exchanges. "The actual rules and networks to route trades from one market to another to comply with Reg NMS will likely still evolve and improve over time through actual usage."
Still, Reg NMS comes fresh after markets were taxed by high volume during Tuesday's big sell-off, and the new rules will likely create the need to handle even more traffic. See full story.
On Tuesday, volume on New York Stock Exchange was about 2.4 billion shares vs. the average of about 1.7 billion. Nasdaq volume was about 3.15 billion, compared to the average of about 2 billion, according to market data provided by Thomson Financial.
said in a filing with regulators late Thursday that it's seeking an extension to carry out aspects of Reg NMS.
While the NYSE and its Arca exchanges will be compliant with Reg NMS, the exchange is seeking time to help connect alternative display facilities, which specialize in after-hours trading, and the International Securities Exchange

4:02pm 03/02/2007


"Reg NMS presents the latest challenge in that more trades will be routed between market centers to comply with Reg NMS best execution rules and more market data will be disseminated and stored," Cline said. "Very high market volatility and data spikes could still strain capacity or slow down trading."
Privately-held firms such as Charles River Worldwide, LatentZero and Selero Inc. are among the dozen of players specializing in the technology to carry out Reg NMS.
Michael Henry, senior executive in Accenture's Capital Markets practice, said exchanges and other firms have spent millions on information technology and other capital improvement.
Once the kinks in the new system are worked out in the coming months, the post-NMS market may be better equipped to handle peak volume.
"Market participants will have the ability to choose where to route their orders based on best execution," he said. "During heavy volume periods...there'll be a flourishing of market vendors geared up to handle that kind of demand."
Sandler O'Neill analyst Richard Repetto said Reg NMS will affect all of the companies he covers, including the Nasdaq (NDAQ : ."If you're an electronic marketplace, you'll likely see higher volumes," he said. "The automated players with the most efficient markets will benefit."
Sandy Frucher, chairman of the Philadelphia Stock Exchange, said the regional exchange built its own technology to adhere to Reg NMS, but that there's no guarantee the new platform will bring in a larger influx of orders.
"It levels the playing field a bit," he said. "After the tech challenge comes the liquidity challenge."
Gary Katz, chief operating officer of the ISE, said the company's push into equities trading from options trading hinges on implementation of Reg NMS.
"We believe that it will have a positive impact for business," Katz said. "Reg NMS will make equities markets more efficient. We built an entire stock trading platform from scratch."
Still, some on Wall Street continue to ponder whether Reg NMS may change the playing field for the as it holds onto its floor trading system while playing up its presence in the electronic stock marketplace.
"The firm remains committed to maintaining the floor, sees value in the floor, and does not expect to close the floor in the foreseeable future," Prudential analyst Robert C. Rutschow said in a note to clients after holding a conference call with NYSE Group CEO John Thain on Thursday.
Under Reg NMS and amid a consolidation trend now underway, the exchange business will evolve into a handful of global, multi-product exchanges and numerous smaller local exchanges, with the NYSE in the lead to be a global player, Rutschow said.
"However, the exchange is not without challenges, particularly as we approach Reg NMS...and the potential for even higher quote traffic than has been seen recently," he said.
Reg NMS dates back to April, 2005 when the SEC adopted changes to modernize and strength the national market system for equity securities.
The rules set up new guidelines on order protection to prevent the execution of trades at prices lower than the protected quotations displayed by other markets. It also provides fair access to markets within the NMS system, establishes a limit on access fees and overhauls the system for allocating market data revenue to exchanges.
Last month, the Securities and Exchange Commission extended the trading phase date until Monday, from the earlier data of Feb. 5 as part of an effort to "give automated trading centers additional time to complete the rollout of their new or modified trading systems."
The pilots stocks phase data deadline was moved until July 9 from May 21. The Reg NMS pilot program is now required to apply to all stocks on Aug. 20 vs. the earlier deadline of July 9. The completion date of Oct. 8 remains unchanged.

http://www.marketwatch.com/news/story/markets-brace-reg-nms-wake/story.aspx?guid=%7B4180E178%2D326B%...

[chunga1]

from reading the release it would appear all nasd stocks bwtfdik

[tecch10000]

Great board!Great posts!Great info! Thanks! eom.

[lifegear]

does that apply to all markets/exchanges?

[chunga1]

seems that way, i'll believe it when i see it

[GOLDENBOLLOX]

Are we going to "straight through processing"?

[chunga1]

Posted by: Retflyr
In reply to: None Date:3/3/2007 6:46:36 AM
Post #of 215002

3-05-07 New trading regulations to start

http://www.sec.gov/news/press/2007/2007-29.htm

[rrufff]

Novel approach to litigation against manipulation by hedge funds that may include naked shorting.

Brower Piven Announces Class Action Lawsuit on Behalf of Sellers of Fairfax Financial Holdings Limited Against Various Hedge Funds -- FFH
Thursday March 1, 8:40 pm ET


BALTIMORE, MD--(MARKET WIRE)--Mar 1, 2007 -- The law firm of Brower Piven, A Professional Corporation, today announced that a securities class action was commenced on behalf of shareholders who sold the common stock of Fairfax Financial Holdings Limited (NYSE:FFH - News) between December 18, 2002 and July 25, 2006, inclusive (the "Class Period").

The case is pending in the United States District Court for the District of New Jersey. The complaint filed in this case alleges a massive, illegal stock market manipulation scheme that has targeted and severely harmed shareholders of Fairfax, and has resulted in immense ill-gotten profits for defendants S.A.C. Capital, Exis Capital, Third Point, Rocker Partners and other extremely powerful hedge funds. The complaint filed in the case further alleges that Defendants launched a manipulation scheme which was an abusive short selling strategy coupled with a public relations campaign full of false and misleading statements about Fairfax, its executives, its business, and its common stock price designed to drive down the price of Fairfax stock.

No class has yet been certified in the above action. If you are a member of the proposed class, you may retain counsel of your choice, and you may ask the court to be appointed as lead plaintiff in the case no later than April 9, 2007. In order to serve as a lead plaintiff, you must meet certain legal requirements. To be a member of the proposed class you need not take any action at this time.

If you sold shares of Fairfax Financial Holdings Limited during the Class Period indicated and want to discuss your legal rights, you may e-mail or call Brower Piven, who will, without obligation or cost to you, attempt to answer your questions. David Brower and Charles Piven have combined experience in securities and class action litigation of over 40 years. You may contact Brower Piven at The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202, by email at [e-mail] or by calling 410/332-0030.



Contact:
CONTACT:
Brower Piven, A Professional Corporation
Baltimore, Maryland
Charles J. Piven
410/332-0030
Email Contact

[lifegear]

nothing concrete so far

[GOLDENBOLLOX]

Interesting

http://www.webspawner.com/users/rockerscam/index.html

[GOLDENBOLLOX]

The date I saw posted was 60 days from Feb 5th.

Could have been a guess.

GB

[tecch10000]

Tragic,indeed,but..But Public Awareness is Rising!

It's one of those things that take time,and public perseverence.Talk about NSS often,imo.I'll be sending some more complaints to the SEC,when I tally UCOI monthly/daily volumes,for share volume abuse.
Cheers!

[chunga1]

any truth about March 5 being the initial day of NSS covering enforcement?

ever get an answer to this? tia

[lifegear]

any truth about March 5 being the initial day of NSS covering enforcement?

[Hopeful Diogenes]

I am not a constitutional lawyer, but in a federal state, powers are divided up between the central authority (FED) and States. The problems arise when powers overlap, or touch each other or even when new situations arise which were not forseen when the federation was set up. In the case of the central gov't often powers that are not specifically allotted to states go by default to the Fed. In this case the State Gov't of Utah was seeking to legislate the practice of Naked Short Selling as being illegal, particularly as applying to companies operating in Utah. The conflict arises as the shares are traded across state lines-NY- so this is interstate commerce which is a fed power. You would have to go back over all the discussions we have been having on this board and on the Unico board to get the gist of what all this is about. What the announcer said, or implied, this morning
was that Wall Street powers wanted Utah's law gone-and it's gone.
All I do know is that NSS has screwed a lot of small companies and small investors out of a good deal of money and that the gov't of Utah was on the right track. All this is IMHO HD

[lifegear]

does state law override federal ruling?

[Hopeful Diogenes]

Very Bad news. I could NOT believe my news at Bloomberg as I had my first coffee this morning at 6:00 AM EST. UTAH has dropped the ball and has repealed the law aimed at curtailing NSS. The tag end that the announcer put on the item; " this shows the power of Wall Street which is against States passing laws in Federal jurisdiction.", or words to that effect.
( As if the FED does anything!!!)

[tecch10000]

Nite,P@F,double bottom breakdown! KER FLUSHHHH
P@F price objective,9.00.My price objective,.0009.We can all dream........for justice.
http://stockcharts.com/charts/gallery.html?nite
Good nite,Goodbye,GOOD RIDDANCE!
Cheers!

[tecch10000]

Well.....ALMOST......speechless....except,tick tock.

This type of news needs to be FRONT PAGE.Is it?Hell no.Thats why it has to dug up.If the public at large,had these FACTS,in their face,this crap,would end quickly.But,thanks to the net,and persons like yourself,we CAN,spread the word! Nice find!
Cheers!

[GOLDENBOLLOX]

DONG DONG DONG

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20021 / February 28, 2007
SEC v. Louis W. Zehil, et al., Civil Action No. 07CV1439 (LAP) (S.D.N.Y.)
SEC Charges Corporate Attorney With Securities Fraud and Obtains Asset Freeze
The Securities and Exchange Commission announced today that it filed an injunctive action in United States District Court for the Southern District of New York alleging that from approximately January 2006 to February 2007, Louis W. Zehil ("Zehil"), a corporate attorney, and two entities he controlled, Strong Branch Ventures IV LP ("Strong") and Chestnut Capital Partners II, LLC ("Chestnut"), engaged in a fraudulent scheme to obtain and sell to the investing public millions of shares of securities in violation of the antifraud and registration provisions of the federal securities laws. With the consent of the parties, Judge Preska entered an order granting a preliminary injunction, an asset freeze, the appointment of a receiver and other relief.

Zehil, age 41, was until recently a partner with the law firm of McGuireWoods LLP. Zehil is a resident of Ponte Vedra Beach, Florida and worked at the firm's offices in New York, New York, and Jacksonville, Florida.

The Complaint alleges that between January 2006 and February 2007, Zehil represented seven public companies in issuing their stock in PIPE transactions (private investments in public equity). The seven public companies were Gran Tierra Energy, Inc., Foothills Resources, Inc., MMC Energy, Inc., Alternative Energy Sources, Inc., Ethanex Energy, Inc., GoFish Corp., and Kreido BioFuels, Inc. At all relevant times, their common stock was registered with the Commission and quoted on the OTC-BB. In these PIPE transactions (as in PIPEs generally), the investors purchased restricted stock at a discount to market price.

The Complaint also alleges that Zehil personally invested in the issuers' PIPE transactions through Strong and Chestnut. In the subscription agreements for each PIPE transaction, the Defendants agreed (as all the PIPE subscribers did) that the shares they received would be issued with restrictive legends until such time as the issuers filed registration statements with the Commission and the Commission declared them effective. As counsel for the issuers, Zehil then sent letters to the issuers' transfer agents directing the issuance of shares to the PIPE subscribers. Zehil's letters instructed that all the shares should bear restrictive legends except the shares issued to his entities, Strong and Chestnut. Zehil's letters stated, falsely, that the shares issued to Strong and Chestnut satisfied legal criteria to be issued without restrictive legend. As a result of their fraudulent conduct, the Defendants were able to receive shares without restrictive legends, which they quickly sold into the public market, and generated illicit profits of at least $17 million

The complaint charges Zehil, Strong and Chestnut with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

The Court granted, among other relief, a preliminary injunction order which included an asset freeze and the appointment of a receiver over Strong and Chestnut. In its enforcement action, the Commission is seeking additional relief, including orders permanently enjoining Zehil, Strong and Chestnut from committing future violations of the foregoing federal securities laws, and a final judgment ordering Zehil, Strong and Chestnut to disgorge ill-gotten gains, and assessing civil penalties.

[fish777]

Exactly Tecch...I knew what you meant by parole...I think the problem I had with posting was my error on login...a case of mistaken identity...I plead the fifth (stupidity)...Our Pal "Brass Ones" got me back on the straight and narrow with a link he posted on this board...Thanks Goldy!