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Next week, I'll surmise.
Now that Nasdaq's more or less washed its hands of it, I wonder when it'll resume trading.
Yet, one or two of them may be able to extract a lesson from all of it....
Yes, that'll hurt.
Chapter 7 no less. Pity for those longs still holding at the halt.
Code Rebel has declared bankruptcy:
http://www.sec.gov/Archives/edgar/data/1613011/000141588916005981/crdrc8k_may182016.htm
And it's also been delisted by the Nasdaq:
CDRB was set to resume trading tomorrow, as the SEC suspension expires at midnight tonight:
http://www.sec.gov/litigation/suspensions/2016/34-77774.pdf
But it seems the Nasdsaq has issued its own halt, and will keep it in place until the company supplies information requested by the exchange:
http://ih.advfn.com/p.php?pid=nmona&article=71532170&symbol=CDRB
Aegis Identity Software Announces Termination of Proposed Merger with Code Rebel Corporation
5:00 am ET May 18, 2016 (PR Newswire)
Aegis Identity Software, Inc., a leading education technology (Ed-Tech) provider of Identity and Access Management solutions for the education marketplace ("Aegis Identity"), announced today that it has terminated the definitive merger agreement that it had entered into with Code Rebel Corporation on March 11, 2016, and the merger contemplated thereby, effective immediately.
The decision to terminate the proposed merger was related to, among other things, the suspension of the trading of Code Rebel common stock following an Order issued by the U.S. Securities and Exchange Commission on May 6, 2016 questioning the accuracy of certain information that Code Rebel has filed with the Commission regarding its assets and financial condition.
"We are disappointed that we were not able to complete the proposed merger with Code Rebel," stated J. Ralph Armijo, Executive Chairman of Aegis Identity. "Nonetheless, we believe that the fundamentals of the business and technology of Aegis Identity remain strong, and we look forward to focusing our resources on the growth, success and financing of that business."
Yeah, yeah,.. I lost a few bucks on this one. Thanking God I liquidated my position for a loss the day before the halt!
Why did they shut down Enron and Arthur Andersen with audited financials and fully filing?
Maybe read the order by the SEC.
At that time, there were problems with some exchange-listed issuers that stemmed from naked shorting. They were for the most part the result of the exploitation of a loophole involving options.
Reg SHO also stopped people who shorted naked simply for convenience. That was very common. They'd short naked, and find a borrow a few days later. No harm done, but it was sloppy.
Reg SHO has been quite successful in achieving its objectives.
And none of this has anything to do with CDRB and its questionable financials.
Fine. SO. If all this is conspiracy and crap, Tell me WHY the SEC passed Reg SHO in the First Place??????? What was that designed to END?....lmaooooooooooooooooo
z
The Global Links story is largely untrue. The company claimed at the time that its float was only 400K shares, but that wasn't actually the case.
Perhaps you didn't follow it when it actually happened. I did.
Simpson never controlled the float. AND he was associated with the company.
Oh. Conspiracy Stuff like THIS?:
In 1998, REFCO, a large short hedge fund, filed bankruptcy and was unable to meet margin calls on their naked short shares.
Or Overstock?
Or this:
Global Links Corporation is an example of how wholesale counterfeiting of shares will decimate a company's stock price. Global Links is a company that provides computer services to the real estate industry. By early 2005, their stock price had dropped to a fraction of a cent. At that point, an investor, Robert Simpson, purchased 100%+ of Global Links' 1,158,064 issued and outstanding shares. He immediately took delivery of his shares and filed the appropriate forms with the SEC, disclosing he owned all of the company's stock. His total investment was $5205. The share price was $.00434. The day after he acquired all of the company's shares, the volume on the over-the-counter market was 37 million shares. The following day saw 22 million shares change hands — all without Simpson trading a single share. It is possible that the SEC has been conducting a secret investigation, but that would be difficult without the company's involvement. It is more likely the SEC has not done anything about this fraud.
http://counterfeitingstock.com/CounterfeitingStock.html
z
Sorry, I don't do conspiracy stuff.
One reason they are piling it on really THICK on poor CDRB with all these ambulance chasing lawfirms is cause they WERE fully reporting/with audited financials.....and they need a LOT of ammo to make their criminal THEFT look justified.......poor baby......
z
Here's more ways to hide their nefarious tricks.
Only the DTC knows for certain how many short shares are perpetual fails–to–deliver, but it is most likely in the billions. In 1998, REFCO, a large short hedge fund, filed bankruptcy and was unable to meet margin calls on their naked short shares. Under this scenario, the broker dealers are the next line of financial responsibility. The number of shares that allegedly should have been bought in was 400,000,000, but that probably never happened. The DTC — owned by the broker dealers — just buried 400,000,000 counterfeit shares in their system, where they allegedly remain — grandfathered into “legitimacy” by the SEC. Because they are grandfathered into “legitimacy”, the SEC, DTC and prime brokers pretend they are no longer fails–to–deliver, even though the victim companies have permanently suffered a 400 million share dilution in their stock.
Three months prior to SHO, the aggregate fails–to–deliver on the NASDAQ and the NYSE averaged about 150 million shares a day. Three months after SHO it dropped by about 20 million, as counterfeit shares found new hiding places (see 2 and 3 below). It is noteworthy that aggregate fails–to–deliver are the only indices of counterfeit shares that the DTC and the prime brokers report to the SEC. The bulk of the counterfeiting remains undisclosed, so don't be deceived when the SEC and the industry minimize the fails–to–deliver information. It is akin to the lookout on the Titanic reporting an ice cube ahead.
Ex–clearing counterfeiting — The second tier of counterfeiting occurs at the broker dealer level. This is called ex–clearing. Multiple tricks are utilized for the purpose of disguising naked shorts that are fails–to–deliver as disclosed shorts, which means that a share has been borrowed. They also make naked shorts “invisible” to the system so they don't become fails–to–deliver, which is the only thing the SEC tracks.
Some of the tricks are as follows:
Stock sales are either a long sale or a short sale. When a stock is transacted the broker checks the appropriate box. By mismarking the trading ticket –checking the long box when it is actually a short sale the short never shows up, unless they get caught, which doesn't happen often. The position usually gets reconciled when the short covers.
Settlement of stock transactions is supposed to occur within three days, at which time a naked short should become a fail–to–deliver, however the SEC routinely and automatically grants a number of extensions before the naked short gets reported as a fail–to–deliver. Most of the short hedge funds and broker dealers have multiple entities, many offshore, so they sell large naked short positions from entity to entity. Position rolls, as they are called, are frequently done broker to broker, or hedge fund to hedge fund, in block trades that never appear on an exchange. Each movement resets the time clock for the naked position becoming a fail–to–deliver and is a means of quickly getting a company off of the SHO threshold list.
The prime brokers may do a buy–in of a naked short position. If they tell the short hedge fund that we are going to buy–in at 3:59 EST on Friday, the hedge fund naked shorts into their own buy–in (or has a co–conspirator do it) and rolls their position, hence circumventing Reg SHO.
Most of the large broker dealers operate internationally, so when regulators come in (they almost always “call ahead”) or compliance people come in (ditto), large naked positions are moved out of the country and returned at a later date.
The stock lend is enormously profitable for the broker dealers who charge the short sellers large fees for the “borrowed” shares, whether they are real or counterfeit. When shares are loaned to a short, they are supposed to remain with the short until he covers his position by purchasing real shares. The broker dealers do one–day lends, which enables the short to identify to the SEC the account that shares were borrowed from. As soon as the report is sent in, the shares are returned to the broker dealer to be loaned to the next short. This allows eight to ten shorts to borrow the same shares, resetting the SHO–fail–to–deliver clock each time, which makes all of the counterfeit shares look like legitimate shares. The broker dealers charge each short for the stock lend.
Margin account buyers, because of loopholes in the rules, inadvertently aid the shorts. If short A sells a naked short he has three days to deliver a borrowed share. If the counterfeit share is purchased in a margin account, it is immediately put into the stock lend and, for a fee, is available as a borrowed share to the short who counterfeited it in the first place. This process is perpetually fluid with multiple parties, but it serves to create more counterfeit shares and is an example of how a counterfeit share gets “laundered” into a legitimate borrowed share.
Margin account agreements give the broker dealers the right to lend those shares without notifying the account owner. Shares held in cash accounts, IRA accounts and any restricted shares are not supposed to be loaned without express consent from the account owner. Broker dealers have been known to change cash accounts to margin accounts without telling the owner, take shares from IRA accounts, take shares from cash accounts and lend restricted shares. One of the prime brokers recently took a million shares from cash accounts of the company's founding investors without telling the owners or the stockbroker who represented ownership. The shares were put into the stock lend, which got the company off the SHO threshold list, and opened the door for more manipulative shorting.
z
I just spit my screen.........lol.....ever hear of Continuous Net Settlement.....Just ONE of the many ways to hide shorting......Poor CRDB ..they really bent her over the table and had their way with that poor girl:
Here is the hocus pocus that creates millions of counterfeit shares.
When a broker dealer has a net surplus of shares of any given company in his account with the DTC, only the net amount is deducted from his surplus position and put in the stock borrow program. However the broker dealer does not take a like number of shares from his customer's individual accounts. The net surplus position is loaned to a second broker dealer to cover his net deficit position.
Let's say a customer at the second broker dealer purchased shares from a naked short seller — counterfeit shares. His broker dealer “delivers” those shares to his account from the shares borrowed from the DTC. The lending broker dealer did not take the shares from any specific customers' account, but the borrowing broker dealer put the borrowed shares in specific customer's accounts. Now the customer at the second prime broker has “real” shares in his account. The problem is it's the same “real” shares that are in the customer's account at the first prime broker.
The customer account at the second prime broker now has a “real” share, which the prime broker can lend to a short who makes a short sale and delivers that share to a third party. Now there are three investors with the same counterfeit shares in their accounts.
Because the DTC stock borrow program, and the debits and credits that go back and forth between the broker dealers, only deals with the net difference, it never gets reconciled to the actual number of shares issued by the company. As long as the broker dealers don't repay the total stock borrowed and only settle their net differences, they can “grow” a company's issued stock.
This process is called Continuous Net Settlement (CNS) and it hides billions of counterfeit shares that never make it to the Reg. SHO radar screen, as the shares “borrowed” from the DTC are treated as a legitimate borrowed shares.
For companies that are under attack, the counterfeit shares that are created by the CNS program are thought to be ten or twenty times the disclosed fails–to–deliver, and the true CNS totals are only obtained by successfully serving the DTC with a subpoena. The SEC doesn't even get this information. The actual process is more complex and arcane than this, but the end result is accurately depicted.
Ex–clearing and CNS counterfeiting are used to create an enormous reserve of counterfeit shares. The industry refers to these as “strategic fails–to–deliver.” Most people would refer to these as a stockpile of counterfeit shares that can be used for market manipulation. One emerging company for which we have been able to get or make reasonable estimates of the total short interest, the disclosed short interest, the available stock lend and the fails–to–deliver, has fifty “buried” counterfeit shares for every fail–to–deliver share, which is the only thing that the SEC tracks, consequently the SEC has not acted on shareholder complaints that the stock is being manipulated.
z
but isn't it STRANGE that the SEC in all their mightiness and cunning Glory........failed to mention Exactly what that is…
Not at all. The SEC is almost never specific in suspension notices. But I suggest you read integral's posts here if you want to know more.
BHAAAAA BHAAAAAAA........STOP...I'm dyin here from laughing....lololol......et z
Christ on a crutch. Short interest cannot be hidden.
Of COURSE there is.......'Something'......but isn't it STRANGE that the SEC in all their mightiness and cunning Glory........failed to mention Exactly what that is..........and I don't hear one from you either for that matter.....lol..........z
Did I say there would be 'reasonable explanations'.....or was I stuttering.....lololol..........z
Riiiiiiiiiiiiiiiiiiiight........Of COURSE it is.......OF COURSE the shorting rat packing bear raiding crews had NOTHING to do with it.......they are NOT HIDING THEIR SHORTS...........PAY NO ATTENTION TO THE CLOWN BEHIND the Curtain.......
BHAAAA BAHHHHHHAAAAAA
Too F....g funny.....
z
There's nothing misleading about it. It's how class actions work. A number of firms open investigations. Most will eventually file an action. In the end, the actions will be merged.
Pay CLOSE ATTENTION to the wording on all those 'law firms' press releases:
Here's what they do. First ONE firm files a suit.
Then a bunch of OTHERS SAY that there is a suit filed......BUT...NOTICE they do not say that THEY are filing one. They just rat pack on board with a misleading press release....that's ALL it is..lol
Read their PRs. Carefully. See how they say they're 'investigating'.. (code for sitting in their chairs with their feet up on the table filing their nails).
Others just reference the ORIGINAL suit.....lol
It's all very misleading and part of the plan to totally discredit and destroy a GOOD company.........
z
Probably not.......it's Grey now.....extremely rare that they come back from that.....it's possible though.....z
Oh for God's sake. Short interest is negligible:
http://ih.advfn.com/stock-market/NASDAQ/code-rebel-corp-CDRB/stock-price
Chalk another one up to the shorting bear raiding crews. They shorted the living shit out of CDRB......then called up their buddies at the SEC to shut it down.......now they never have to cover......lol....some truly F...d Up Sh.t
And this was a FULLY FILING Company with AUDITED Financials.....WOW.....
Can't wait to see how this is 'explained'.......stay tuned....it's coming...the 'reasonable reasons why'.......LMFAO
z
Pretty simple. There's obviously something badly wrong with those filings.
Well, now we know don't we.......lololol......z
How do they shut down a company with audited financials and fully filing with Edgar??????????........z
There will no doubt be a class action, but they don't usually benefit shareholders much.
I believe that one way or another, someone will be held responsible for what happened at CDRB.
If this stock crashes to 0 when it opens, will anyone be held accountable?
Yep, the broker dealer is going to be sued by the clients, and they will claim to be a victim too.
This is going to get fun. Mexican gold mine and missing Australian CEO kinda popcorn fun.
Then I suspect there'll be much more trouble ahead.
From what I posted, this was an enrichment scheme, egregious too.
They paid $9.2 million for a $53,000 asset.
Then add the G&A and Directors compensation, yah, they stole a lot of money.
It's an odd case. Renee reminded me that CDRB is the second exchange-listed stock the SEC has suspended in the past month or so. That was FNRG, and it was on the Nasdaq at the time of its suspension. It's since been delisted:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=122467758
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=122467954
So perhaps that's in CDRB's future.
My first quote was from the SEC Order. The rest were what I took out of the 10K to see what the SEC was looking at.
The suspension notice suggests there's a problem with the financial statements. Oddly, Nasdaq hasn't made any move to delist; I expected they would.
Beats me whether FINRA will take any action.
Ya think there will be a FINRA halt when the suspension expires. I am looking at the financial statements. The following jumps out:
The ambulance chasers(lawyers) now doing their class action thing...
Probably. It'll be interesting, because most people who invest in exchange listed stocks aren't familiar with how SEC suspensions work.
So would people start dumping this when it opens?
I've often wondered about that too. But i think it's more likely that the SEC has asked questions of th company that spooked them.
I think brokerages and MMs get word before everyone else about suspensions or Ive seen a day or so before. Ive seen a few times where the day before a suspension TDA or other brokers wouldnt allow buys on a stock.
Or a dump would happen on a stock that hardly ever traded and next day it was deleted. Could be coincidence on the dumps but the brokers getting word I think a little before others with suspensions.
its possible someone got word hours before or minutes somehow it trickles?
Weird spread just before the suspension, too...
Yeah I know what u mean usually the exchange does it. This is sort of weird. Will be interesting to see what happens in the next few weeks.
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