Market Manipulators

[lightbeam]

Here is strange filing I just found at HTDS pinksheets..
http://www.otcmarkets.com/pink/quote/quote.jsp?symbol=htds

Supplemental Information - HTDS Report on Short Selling May 18, 2010 May 19, 2010

Remember the book Den Of Thieves? WOW.
http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=32164

[lightbeam]

Say Bill did you see this. Wonder who else we know on that list.

Posted by: Autom8ion Date: Thursday, May 21, 2009 12:18:56 PM
In reply to: None Post # of 78746

OK, Which one is Crashman? http://sec.gov/news/press/2009/2009-117.htm

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=38021309



LOL

http://sec.gov/news/press/2009/2009-117.htm

[rjbluesky]

Hello Billion. That sounds like good news. I think the need for short selling has had its day. Hopefully a little while will translate into a long time. Was that article for "all" stocks traded in the U.S.?

[billiondollarman]

YES ITIS LIGHT

[lightbeam]

This is going to get real interesting now. IMO Thanks Alright!

[billiondollarman]

JUST IN GUYS.. WSJ: SEC INTENDS ON BANNING SHORT SELLING FOR A LITTLE WHILE.. HAHAHAHA THIS IS FUNNY.... They may follow THE UK LEAD of banning all SHORT SELLING FOR A WHILE... The UK is doing in it until JAN. I knew this was going to happen haha..

[lightbeam]

WOW! Now that would be a huge boost! Great find. Thnaks.

[billiondollarman]

IF YOU HAVE HEDGE FUNDS RUNN FOR THE HILLS HAHAH


http://www.cnbc.com/id/26763835/site/14081545/



“In order to ensure that hidden manipulation, illegal naked short selling, or illegitimate trading tactics do not drive market behavior and undermine confidence, the SEC today took several actions to address short selling abuses,” Chairman Cox continued. “In addition to these initiatives, which will take effect at 12:01 a.m. ET on Thursday, I am asking the Commission to consider on an emergency basis a new disclosure rule that will require hedge funds and other large investors to disclose their short positions. Prepared by the staffs of the Division of Investment Management and the Division of Corporation Finance, the new rule will be designed to ensure transparency in short selling. Managers with more than $100 million invested in securities would be required to promptly begin public reporting of their daily short positions. The managers currently report their long positions to the SEC.”


RELATED LINKS

Current DateTime: 02:57:54 17 Sep 2008
LinksList Documentid: 26756181
Cramer: Finally, the SEC Takes Action
Cramer: Blame the SEC?
Worst of Crisis Still Ahead: IMF

Chairman Cox continued, “Director Thomsen and the Division of Enforcement will also expand their ongoing investigations by undertaking a series of additional enforcement measures against market manipulation. The Enforcement Division will obtain disclosure from significant hedge funds and other institutional traders of their past trading positions in specific securities. Those institutions will also be required immediately to secure all of their communication records in anticipation of subpoenas for these records.”

SEC Director of Enforcement Linda Chatman Thomsen said, “The Enforcement Division has been investigating and will continue to investigate any suggestion of manipulative trading. We are committed to using every weapon in our arsenal to combat market manipulation that threatens investors and capital markets.”

The Commission is actively considering additional actions as appropriate

[billiondollarman]

Light that is what i am doing too... I hope they make the rule perm..

[lightbeam]

This should be real interesting in the next few weeks. I am watching quite a few that I think were being attacked.

[billiondollarman]

Well SWVC will be fine once they clear up a few issues.. With shorts not under any rules they were sitting ducks with all the debt they had.. imo

[lightbeam]

I agree with that 100%. Sure would help the investors and the companies that have been attacked by them. Good to see your post and I hope all is well. I am still playing out swvc till the end. What a crazy time that has been. Maybe this will help there also. I can dream. LOL

[billiondollarman]

Well Cramer on Mad Money Said it will help level the playing field for investors if the SEC continues to enforce it. Also only part left to do if the reinstate the uptick rule. Then that will completely make the playing field level.. It needs to be.. imo

[lightbeam]

Sure is good to see Billion. I hope it helps with the trading an investing in public stocks. We need this under control.

[billiondollarman]

NEW SHORT SELL RULE

SEC Issues New Rules to Protect Investors Against Naked Short Selling Abuses
FOR IMMEDIATE RELEASE
2008-204
Washington, D.C., Sept. 17, 2008 — The Securities and Exchange Commission today took several coordinated actions to strengthen investor protections against "naked" short selling. The Commission's actions will apply to the securities of all public companies, including all companies in the financial sector. The actions are effective at 12:01 a.m. ET on Thursday, Sept. 18, 2008.

"These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked short selling," said SEC Chairman Christopher Cox. "The Enforcement Division, the Office of Compliance Inspections and Examinations, and the Division of Trading and Markets will now have these weapons in their arsenal in their continuing battle to stop unlawful manipulation."

In an ordinary short sale, the short seller borrows a stock and sells it, with the understanding that the loan must be repaid by buying the stock in the market (hopefully at a lower price). But in an abusive naked short transaction, the seller doesn't actually borrow the stock, and fails to deliver it to the buyer. For this reason, naked shorting can allow manipulators to force prices down far lower than would be possible in legitimate short-selling conditions.

Today's Commission actions, which are the result of rulemaking under the Administrative Procedure Act, go beyond its previously issued emergency order, which was limited to the securities of financial firms with access to the Federal Reserve's Primary Dealer Credit Facility. Because the agency's exercise of its emergency authority is limited to 30 days, the previous order under Section 12(k)(2) of the Securities Exchange Act of 1934 expired on Aug. 12, 2008.

The Commission's actions were as follows:

Hard T+3 Close-Out Requirement; Penalties for Violation Include Prohibition of Further Short Sales, Mandatory Pre-Borrow
The Commission adopted, on an interim final basis, a new rule requiring that short sellers and their broker-dealers deliver securities by the close of business on the settlement date (three days after the sale transaction date, or T+3) and imposing penalties for failure to do so.

If a short sale violates this close-out requirement, then any broker-dealer acting on the short seller's behalf will be prohibited from further short sales in the same security unless the shares are not only located but also pre-borrowed. The prohibition on the broker-dealer's activity applies not only to short sales for the particular naked short seller, but to all short sales for any customer.

Although the rule will be effective immediately, the Commission is seeking comment during a period of 30 days on all aspects of the rule. The Commission expects to follow further rulemaking procedures at the expiration of the comment period.

Exception for Options Market Makers from Short Selling Close-Out Provisions in Reg SHO Repealed
The Commission approved a final rule to eliminate the options market maker exception from the close-out requirement of Rule 203(b)(3) in Regulation SHO. This rule change also becomes effective at 12:01 a.m. ET on Thursday, Sept. 18, 2008.

As a result, options market makers will be treated in the same way as all other market participants, and required to abide by the hard T+3 closeout requirements that effectively ban naked short selling.

Rule 10b-21 Short Selling Anti-Fraud Rule
The Commission adopted Rule 10b-21, which expressly targets fraudulent short selling transactions. The new rule covers short sellers who deceive broker-dealers or any other market participants. Specifically, the new rule makes clear that those who lie about their intention or ability to deliver securities in time for settlement are violating the law when they fail to deliver. This rule also becomes effective at 12:01 a.m. ET on Thursday.

# # #


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Additional Materials
Emergency Order Pursuant to Section 12(K)(2) of the Securities Exchange Act of 1934 Taking Temporary Action to Respond to Market Developments

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http://www.sec.gov/news/press/2008/2008-204.htm



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Home | Previous Page Modified: 09/17/2008

[billiondollarman]

GUYS WE ARE WINNING THE SHORT BATTLE LOOKS LIKE

SEC Issues New Rules to Protect Investors Against Naked Short Selling Abuses
FOR IMMEDIATE RELEASE
2008-204
Washington, D.C., Sept. 17, 2008 — The Securities and Exchange Commission today took several coordinated actions to strengthen investor protections against "naked" short selling. The Commission's actions will apply to the securities of all public companies, including all companies in the financial sector. The actions are effective at 12:01 a.m. ET on Thursday, Sept. 18, 2008.

"These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked short selling," said SEC Chairman Christopher Cox. "The Enforcement Division, the Office of Compliance Inspections and Examinations, and the Division of Trading and Markets will now have these weapons in their arsenal in their continuing battle to stop unlawful manipulation."

In an ordinary short sale, the short seller borrows a stock and sells it, with the understanding that the loan must be repaid by buying the stock in the market (hopefully at a lower price). But in an abusive naked short transaction, the seller doesn't actually borrow the stock, and fails to deliver it to the buyer. For this reason, naked shorting can allow manipulators to force prices down far lower than would be possible in legitimate short-selling conditions.

Today's Commission actions, which are the result of rulemaking under the Administrative Procedure Act, go beyond its previously issued emergency order, which was limited to the securities of financial firms with access to the Federal Reserve's Primary Dealer Credit Facility. Because the agency's exercise of its emergency authority is limited to 30 days, the previous order under Section 12(k)(2) of the Securities Exchange Act of 1934 expired on Aug. 12, 2008.

The Commission's actions were as follows:

Hard T+3 Close-Out Requirement; Penalties for Violation Include Prohibition of Further Short Sales, Mandatory Pre-Borrow
The Commission adopted, on an interim final basis, a new rule requiring that short sellers and their broker-dealers deliver securities by the close of business on the settlement date (three days after the sale transaction date, or T+3) and imposing penalties for failure to do so.

If a short sale violates this close-out requirement, then any broker-dealer acting on the short seller's behalf will be prohibited from further short sales in the same security unless the shares are not only located but also pre-borrowed. The prohibition on the broker-dealer's activity applies not only to short sales for the particular naked short seller, but to all short sales for any customer.

Although the rule will be effective immediately, the Commission is seeking comment during a period of 30 days on all aspects of the rule. The Commission expects to follow further rulemaking procedures at the expiration of the comment period.

Exception for Options Market Makers from Short Selling Close-Out Provisions in Reg SHO Repealed
The Commission approved a final rule to eliminate the options market maker exception from the close-out requirement of Rule 203(b)(3) in Regulation SHO. This rule change also becomes effective at 12:01 a.m. ET on Thursday, Sept. 18, 2008.

As a result, options market makers will be treated in the same way as all other market participants, and required to abide by the hard T+3 closeout requirements that effectively ban naked short selling.

Rule 10b-21 Short Selling Anti-Fraud Rule
The Commission adopted Rule 10b-21, which expressly targets fraudulent short selling transactions. The new rule covers short sellers who deceive broker-dealers or any other market participants. Specifically, the new rule makes clear that those who lie about their intention or ability to deliver securities in time for settlement are violating the law when they fail to deliver. This rule also becomes effective at 12:01 a.m. ET on Thursday.

# # #


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Additional Materials
Emergency Order Pursuant to Section 12(K)(2) of the Securities Exchange Act of 1934 Taking Temporary Action to Respond to Market Developments

--------------------------------------------------------------------------------



http://www.sec.gov/news/press/2008/2008-204.htm



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Home | Previous Page Modified: 09/17/2008

[billiondollarman]

Some of Cox's Preliminary Plans Are Out 1-Aug-08 06:33 am SEC Preliminary Guidelines of Naked Short and Fail-To-Deliver Reform(condensed highlights in rough draft form)

DTCC & NSCC Federal order to open their books via DOJ, ICC, and SEC

To protect the privacy and practices of current trading strategies, a new regulation (Regulation FTD) will be mandated to provide a daily list indicating all open fails on every security where one exists in the marketplace. The total of fails shall be updated daily on each security. No equity or derivative shall allow any borrow from any entity until all current and past fails are eradicated.

Immediate buy in on all current and existing fails out side of 13 days. Current fails have up to the mandated 13 days per Regulation SHO to "buy-in" and be covered.

Going back to introduction of SHO, any fails never bought in and covered will be "busted" and accounts disgorged with fines. Current fails listed on the Regulation SHO list outside of 13 days will be bought back in at market effective immediately.

All fails since the introduction of Regulation SHO will be reposited to every broker-dealer, market maker, hedge fund, and individual account as a short sale by cusip replication on a journal basis for the extent of time they were in fail status. No actual trade will occur. The fail will remain in the account affected for the entire time the position was in fail status. The position must be covered in such time or shall be "bought in" by the SEC and DOJ. Example: If the fail occurred exactly 3 years ago, it will remain in the client account for three years.

No additional short position shall be allowed on any particular security or derivative in which a journal entry exists or a current fail is open until that position is either bought in by the party involved or by the deadline of the fail period noted.

Any party affected with a particular fail can and may buy in to cover the open ledger entry fail at any time before the end of the period of original fail.

When fails are recovered on the open market, subsequent journal entries will be made affecting every equity or derivative to retire those securities from circulation and return those companies affected back to their exact oustanding and authorized shares.

By way of example, if the market maker SBSH or NITE or UBSS has net fails of 1.2 trillion shares over the past 3 years since the introduction of SHO, then those parties that traded those shares in net fail status shall have 1.2 trillion shares placed back in their account net short. They may not execute a short on that particular security at any time until the exisiting fail is covered by an order to buy on the open market. Each market maker will take the proper measures necessary to clear the fails recorded and report the transactions accordingly to their corresponding broker dealers. In finality, each broker dealer has 24 hours to accurately report the journal entries and "buy to covers" to their associated client accounts. No individual client may affect the buy-in on their own. The transaction must come at the broker-dealer level as prescribed by the commission.

[billiondollarman]

Light that is going to be the best news all year once we start seeing getting locked up.

[lightbeam]

That was a great interview and a good sign for investors like us that put money in companies we know can have a chance of making it. I never liked the idea of manipulation and have always hoped our justice system would start to kick in. I have that interview bookmarked for reference. With some of these people going to jail maybe we will start to see more fair trading going on. The whole thing always reminded me of check kiting. Crooks belong in jail. Paid bashers also. Would love to see some of the shorts start to sweat. LOL

[billiondollarman]

Great to see you are still around too Light. Well like the guy said on the interview alot of people are GOING TO JAIL on this in the future. It is good that they are telling people to contact the FBI and complain. He is right some FBI person is going to want to make a name for himself and take this case on. start locking up alot of people.. imo

[lightbeam]

Thanks Bill great to hear from you and I just shake my head at how this is still a major problem. Sad really.

[billiondollarman]

LISTEN TO THIS NSS Explain
listen to this:
http://www.netcastdaily.com/broadcast/fsn2008-0621-3b.mp3

[lightbeam]

I do not know if you have this. Good stuff.
http://www.deepcapturethemovie.com/
http://www.deepcapture.com/category/3-regulatory-capture-the-sec/

[investor911]

http://investorprotectioncoalition.org/files/NIPC_10b-12_comment_letter.pdf

[jealouZ]

Hey billion. What was the name of that book that you told me about way back in the SWVC days? It was about MM manipulation. TIA

[fourkids_9pets]

excellent read on market makers' method
of stock manipulation ..

---
http://www.imanet.org/pdf/1832.pdf

---
4kids
all jmo

[billiondollarman]

Naked Short Selling letters to the SEC

http://www.sec.gov/comments/s7-08-08/s70808.shtml

[billiondollarman]

THanks investor 911

[investor911]

WATCH LIST.The 26 companies whose trading was suspended today are:

Andros Isle Development Corp. (AVPJ); Asante Networks, Inc. (ASTN); Beluga Composites Corporation (BGCC); Cobra Energy Inc. (CBNG); Complete Care Medical, Inc. (CCMI); Disability Access Corporation (DBYC); El Alacran Gold Mine Corp. (EAGM); Extreme Fitness Inc. (EXTF); Gaming Transactions Inc. (GGTS); Global Equity Fund, Inc. (GEQF); HealthSonix Inc. (HSXI); IQ Webquest, Inc. (IQWB); JSX Energy Inc. (JSXG); Kensington Industries, Inc. (KSGT); Kingslake Energy Inc. (KGLJ); L International Computers Inc. (LITL); Let's Talk Recovery Inc. (LKRV); Mobilestream, Inc. (MSRM); Mvive, Inc. (MVIV); Native American Energy Group Inc. (NVMG); Paramount Gold and Silver Corp. (PZG); Regal Technologies Inc. (RGTN); Remington Ventures, Inc. (REMV); Straight Up Brands, Inc. (STRU); Transglobal Oil Corp. (TRGO); and Turquoise Development Company (TQDC).

[billiondollarman]

Post from another board on Market Makers
Market Maker Speaks Out: Ways of a Market Maker

I was an OTC MM for about 10 years ending in the late 80's. Since then I have been strictly an investor. Since I have not been that up to date in MM rules I will only make statements that I feel fairly confident are still accurate regarding these activities. By and large most MM don't have a clue nor do they care to learn, about the fundamentals of the stocks they trade.

They just try to make orderly markets. When dealing with BB stocks it is very easy for a MM to get trapped into being short in dealing in a fast moving market. Reason being; most of the MM's in this stock are what are called "wholesalers" this means they don't have retail brokers "working" the stocks.

So they have to rely on what's known as the "call" from larger retail houses. If a "Big" retail firm like an E-trade calls up a market maker to purchase say 5,000 shares of a stock, they expect to get an "execution" from that market maker. If he turns them down, or only gives a partial then the "Big" firm will go to another MM.

If this second MM "fills the order" then that "Big" firm has a moral obligation to continue to give future "business" in that stock to that MM who performed (his life blood). This will go on until he "fails" to perform and so on.

Contrary to popular opinion the "Big" firms Do NOT neccessarily go to the "Low Offer" to fill a buy order (Or high bid for a sell). They "Go" to who they think will perform to fill the order and expect that MM to "match" the "low offer" in the case of a buy (bid in the case of a sell). Even though this MM might in fact be the "high bid" and not really want to sell any more.

As a wholesaler he must perform or he will get a reputation as a "non-performer" with the "Big" houses and will cease getting "calls" which means he will soon go out of business. I mentioned above that this activity is very significant to BB stocks. I say this because most of the trades in these BB stocks are "unsolicited" and are done through discount houses.

With the above groundwork laid, let me try to explain how market makers get short even if they like the Company; Lets say that a stock (shell) has been lying quietly at $.25 bid $.50 offered. A limit order comes into one of the MM's to Buy at $.50 for a thousand shares. Prior to this trade that MM may be "flat" (neither long or short any shares). He fills the order and is now short 1,000 shares. He may raise his bid hoping to find a seller to "flatten" out his position. But before he realizes it a wave of buyers have come in and cleared out all the $.50 offers. Now the stock is $.50 bid .75 offered. Here comes that "Big" firm he just sold the 1,000 shares to at .50 with another bid for 1000 at .75. He makes this print. Now he is short 2,000 at an average of .625. The market keeps moving and now its .75 bid 1.00 offered. Now he has to make a decision.

Just like investors, MM Hate to take a loss. So 9 times out of 10 he will now sell 2000 at 1.00 making him short 4000 but with an average .81. At this time he would love to see a seller at .75 so he can cover his short and make a few bucks.

But instead the market keeps moving up. Now it is 1.00 to 1.25 and here comes the buyer again at 1.25. He doesn't want to lose the call so now he needs to sell 4,000 at 1.25 to keep his break even point above the bid. Now he is short 8,000. Market moves up to 1.25 bid 1.50 offer here comes the buyer now he feels he must sell 8000 here because "stocks don't go up forever".

Now he is short 16,000. And so on and so on. If the stock keeps moving up, before he realizes it he could be short 50k or 100k shares (depending how big his bank is). _________________________

Finally the market closes for the day and on paper he may look all right in that his "break even" price may be around the closing price. But now he has to figure out how to entice sellers so he can cover this short. It is important to note that if this happened to one MM it has probably happened to most all of them.

Some ways MM's entice sellers; Run the stock up with a "tight spread" in a fast market, then "open" up the spread to slow down the buying interest. After it has "cooled off" for a little while lower the offer below the last trade right after a small piece trades on the offer then tighten the spread so that the sellers feel they can take a "quick profit" by "hitting the bid" on the tight spread.

Once the selling starts the MM's will walk it down quickly by only making small prints on the way down with the tight spread. Another way is by running the stock up in the morning, averaging up their short then use the above technique to walk it down in the afternoon.

Hopefully after doing this for several days, it will demoralize the buyers. The volume will dry up and the sellers will materialize thinking that the game is over.

Contrary to popular opinion, MM usually Do Not Cover in Fast moving markets either Up or Down if they are short. They Short More. They usually try to cover after the frenzy is out of the market. There are many other techniques they use but the above are the most popular.

This technique works about 9 times out of 10 particularly in a BB market. However that is because 9 out of 10 BB stocks are BS. Remember what I said above. Most MM's don't have a clue as to the value of a Company until they get trapped. If the Company has solid fundementals and a bright future. Then the stock will do very well. And the activity that caused the situation will prove to even help the future stock activity because it created an audience."

[billiondollarman]

Thanks investor911

[investor911]

http://www.imanet.org/pdf/1832.pdf

[lightbeam]

http://www.cnbc.com/id/15840232?video=652216599

[billiondollarman]

Thanks Lightbeam. I know I stopped pointing out everything...

[lightbeam]

I do not know if you watched the blood bath today at gllk which is now glcp. I was watching it and it was ugly. Here is a post of why I never bought into that hype. Crazy!


Posted by: bud750
In reply to: mizzou7 who wrote msg# 4461 Date:1/7/2008 8:09:54 PM
Post #of 4482

Lets see you call southwest title ask for Dale Puhl, very nice guy ask him about the huge merger and the r/s he answers back and he says what are you talking about son, i would never have a partnership with Frank and those clowns.

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.

AND THE STORY GOES ON AND ON

[lightbeam]

That we can do . This problem needs to be addressed. I think there are lots of examples that can be found here. Do not point them out at the person doing it or you will end up banned like me. LOL Always good to see your posts.

[billiondollarman]

You are welcome lightbeam maybe this could be spread through ihub..

[lightbeam]

Nice find Billion I will be looking at there imfo, thanks LB

[billiondollarman]

VERRRRRY IMPORTANT IF YOU DO NOT LOOK AT ANY OTHER LINK PLEASE READ THIS ONE.
http://www.basherbusters.com/

[lightbeam]

I know what you mean. I heard some broker was allowing shorting of swvc. I can not confirm. Sure is confusing.

[billiondollarman]

Lightbeam That has me confuse maybe it is just up to the broker to make that rule.

[fourkids_9pets]

not sure if this has made your board
before or not ..

posted by trampwireman

and

thought it was worth a post

it explains so much ...

http://www.deepcapturethemovie.com/


---
4kids
all jmo

[lightbeam]

I have Scottrade non margin and was told my shares could not be loaned. Only margin accounts could be loaned. Some one else said on margin account you can request to not let your shares be loaned. I did not check on that.

[billiondollarman]

Thanks Wolfie

[Wolfie123]

When I check will let you know. Thanks EOM

[billiondollarman]

Well I have not check with my broker but that would be nice to hear from the broker...

[Wolfie123]

The reason I have it in at all times I have missed some spikes when not being in front of computers. I have heard that it locks them up. Will call TDA when I have time. You can believe them. Yea!

[billiondollarman]

Wolfie123 I have heard that many times. I have heard some say unless you have a margin account it will not work. I do not know how that works...

[Wolfie123]

Question. If one has a sell order on all stocks owned, doesn't that prevent the MM"S from loaning any of those stocks? If you don't, they can loam them at will.

I always have a sell order an all my stocks.

[lightbeam]

I hope you are right. Should be interesting how this all gets fixed.