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OOOPS
Sorry wrong board.
Betababe
This should put to doubt that ITKG is a real company. Here is a satellite photo of the corporate offices. Real Uptown!!
http://maps.google.com/maps?oi=map&q=139+Haversham+Dr,+Houston,+TX+77024
Are you sure you know what board you are posting on?
Your last two posts don't appear to be related to NPCT.
Phil
Betababe
You and NatureBoyRic aka Josh Cohen are just jealous. Bill Robinson deserves even more compensation this year!! Go Bill (`$600,000), Gooooo!!!! Go ITKG, Gooooooo!!!!!
http://swz.salary.com/execcomp/layouthtmls/excl_companyreport_C1001862_summary.html
Betababe
To answer your questions:
Are you an ITKG insider?-- Yes, I am a consultant.
Are you holding restricted shares in ITKG? Not anymore.
Are you a convicted criminal?Yes, I lost my Series 7 license.
Have you sold shares of ITKG into the pumps?Yes, we all have.
As documentation that I am Richie (Sptnws) here is another e-mail from our private group.
To: sptnws@lycos.com
From: "PK" <profitking@soon.com> Add to Address Book
Date: Mon, 02 Feb 2004 13:19:03 -0000
Subject: [ITKG] What Now???
Yet another good question to ask...
Well, the "mystery-date" has been identified as Wellington
Management
(http://www.wellington.com), one of America's oldest investment
management firms. The recent S-8 filed detailed many things related
to the almost 6 million dollar investment, and most importantly,
identified with confidence and longevity, their prospects of their
investment in Integral Technologies. As posted by some on the Raging
Bull, you will find that the shares garnered were directed toward
various pension funds, and other viable long-term interest producing
issues.
What does that offer to those now invested in Integral, well, there
is the sense of security thing. Wellington is not a day trader, and
the funds in which they have placed their holdings speak loudly of
longevity. Might I add, Wellington is an investment management
firm. Theirs is to have money make money. They would not be
invested in Integral unless they knew something that you and I only
suspect at this time. On top of that, when I say that theirs is to
have money make money, I am not talking a quick turn over of 30, 50
or 100%. With almost 6 million shares in hand, yes, it would be tidy
to make 100%, but I sense that they—standing on the shoulders of
giants—see more than that on the horizon, much more...
All right, we have security thing kicking here, is there more???
Yes, definitely!!
In my last missive where I detailed what I believe is the history of
the behind the scenes, you will note that I mentioned also that both
Wells Fargo and "Wellington Management" would probably work
hard
toward getting word of the ELECTRIPLAST, and the surrounding
capabilities on to their clients for prospective talks and possible
negotiations. This is what you would call a fast track
situation—-
where you have one entity convinced of the products worth buying in,
and working to not only make you aware, but ensuring that you have
the appropriate information regarding company and product
capabilities, and most importantly the security behind doing
business. That both Wells and Wellington have opened their client
list, and most importantly their access to the prime players on that
client list, well suffice it to say that a whole new door has opened
for Integral. If what I believe is true, Integral's management
has
been working for the past year and a half (maybe more) with a number
of players (part of the NDA 40 mentioned an a far-away press
release). Without the recommendation of a financial institution, and
most importantly, without the security that Integral would be here
tomorrow, the day after, the next year, and the year after, these
companies risked much to do business with Integral. In a dog-eat-dog
world, trust is not something that is offered freely. There are also
circumstances unforeseen and beyond control to factor into the
equation.
That does not pardon them from the tactics which I believe occurred
behind the scenes, but it does offer an honorable excuse on the why
behind Integral's lack of success in bagging a high profile deal
to
date.
Ok, in my last missive I posed the question, 'what's next?'
Well,
how the hell should I know? All I can do is speculate like the rest
of you. What I can offer is a logical path for assumption—pretty
much it is the same path that Integral has always strived for.
· First—based on lessons learned, protect its Intellectual
Property with appropriate patent issues and legal counseling
· Second, to align its product with a major player
· Third, to let the unique nature, the price and the quality of
their products and their capabilities resell themselves to a niche
marketplace
· Fourth, to perpetuate that initiative with additional
marketing, and to enhance and defend their position over the
Intellectual Property with further patents—as additional niche
markets, and capabilities make themselves apparent
So what is really next? For the same reasons that I stipulated in my
last missive, I would speculate that Integral—or whatever company
they are in business with--will come out with a dam-breaking
announcement, highlighting their involvement with one-another, and
the reasons surrounding that initiative… The centerpiece of this
announcement will introduce one component of the Electriplast family,
but in doing so, will validate the workability of the whole—and
at
the same time, will act as a clarion call to the marketplace
heralding an introduction of Electriplast and the portent of its
impact.
Better than butter. This validation announcement will turn the page
on many levels. Once out of the gate, the extreme secrecy undertaken
during this phase will pass, as the myriad of the 31 applications
patented thus far become better known.
Speculative assumptions? YES. Truth is, we have caught the eye of a
multi-billion dollar investment firm—passing that kind of
scrutiny
should tell even the most questioning among you that there is a
tangible something here. What we are now waiting on is that bit of
solid something worth grabbing and sinking our teeth into. Whatever
is offered next will be the tip of an iceberg giving notice to all--
watching, interested, and speculatively looking—on just how big
this
could grow to become...
Cheers all—the beginning is near... For those desiring more
insight,
I would recommend you look toward the client/contact/investment
relationship lists of both Wellington and Wells Fargo. This is where
Integral's bed now lies. Those 40 odd NDA entities—those who
have
strung negations with Integral along all of these long months, they
may or may not be in the loop any longer. If they still in the loop,
then the last three press releases have clearly described
Integral's
position ((at least as clearly as I have stated in this and my last
missive)). They are already aware and if they choose to continue to
play games, well, that will be their choice... My thoughts are that
once word spreads the option of getting in at the ground floor will
fade rapidly. That is really what this is all about
anyway—getting
in on the ground floor, discount entry fee, added bonuses and perks
included. Once the ball starts rolling--once the true prospects
surrounding the ELECTRIPLAST family become realized, well, that will
bethat and the good deal boat would have by then set sail...
PK "think SUCCESS in big terms" sends...
rubberworm, dad, where you been? mom misses you, so many squirmy mouths to feed, come home soon. nanopierce will hit soon, or is the word ''close'', whatever, we miss you dad.
vc
Just because the Avery patent mentions Nanopierce it does not mean they will use any of the Nanopierce patents but it does leave room for hope I guess. I'm ignorant also btw. Ruellit could give a better opinion IMO.
RW~
Off patent...
[0085] In an exemplary process, the conductive bumps 124 may be formed by depositing the hard particles onto surfaces of the interposer leads 116. For example, a nickel electroplating process may be used to deposit the hard particles. In the electroplating process the hard particles and the contact surface are encapsulated in the nickel. If necessary, a photoresist may be used as a mask, using standard lithographic means, for masking portions of the interposer 112 during the electroplating to form the conductive bumps 124. The nickel may then be overplated with another material, such as gold, for example, to provide a corrosion-resistant surface. The presence of the hard particles makes for conductive bumps 124 that have a large number of sharp points 130 extending out of the surface of the conductive bumps 124. When brought into contact with the antenna 106 the sharp points penetrate into the material of the antenna, and/or penetrate an oxide film, such as an aluminum or copper oxide film, coating the surface of the antenna 106. Thus an electrical connection between the interposer leads 116 and the antenna 106 is accomplished.
[0086] The sharp points 130 may even be capable of extending through a bump-antenna adhesive 134 between the conductive bumps 124 and then antenna 106. The bump-antenna adhesive 134 may be a non-conductive adhesive, an isotropic electrically-conductive adhesive or an anisotropic electrically-conductive adhesive. The bump-antenna adhesive 134 may be a UV-cured adhesive or a heat-curable adhesive. The conductive bumps 124 may each have a height from about 5 to 25 microns (about 0.0002 to 0.001 inches). The interposer substrate 118 may have a thickness of from about 0.0005 inches to about 0.007 inches.
[0087] Formation of conductive bumps 124 such as those described above may be accomplished, for example, by use of WAFERPIERCE technology marketed by NanoPierce Technologies, Inc., of Denver, Colo. Such technology is described in greater detail in PCT Publication WO 02/25825, which is incorporated herein by reference in its entirety.
I read as much of the patent report as I could. I didn't get a whole lot out of it. I'm not an idiot by any stretch of the imagination - just ignorant. What does it all mean and how does it apply to Nanopeirce Technologies?
Max
What apples? What impact? Does anybody really know what time it is?
RW~
interesting spike in volume about a week ago, looks like it might be coming up from the bottom
looks like its just you and me shaking the apples from this tree eh rubberworm? NANOPIERCE is really making an impact wouldn't you agree?
Who is NT? A guy or a girl?
thank you Rubberworm, helping shake this board up. NT is looking pretty good eh?
this board is dead. Please someone come post!!!!!
If this is a stock worth buying someone please let me know.
okay okay... I'm away for the weekend and you all get out of control. Several posts would have been removed if the 48 hours had not expired.
Please keep on topic and avoid harrassing other posters.
TOS'd for violating the User Ageement re use of "you're".
Surely you jest about board e-mails -- they may only be sent by the Moderator or Assistants.
looks like youre focused too much on what others NEED to do.
Whats the matter did the company tell you to mind your own buisness. Well ditto to that!
TOS this one =============>..
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. Phil.......the moron.... D head...
And?
Have fun,
Phil
I must have missed something.
What did your last two posts have to do with NPCT?
Just wondering.
Have fun,
Phil
GMZP recently incorporated its wholly-owned
subsidiary, International Nanotechnology Corp.
The Company has as its goal to Develop patented,
commercial products using Nanotechnology to
harness renewable energy
• Commercialize portable PhotoVoltaic
micropower sources for portable electronic
products (cell phones, palms, PC's, ebooks etc.)
• Apply carbon nano-tubes to Ni-CN batteries for
storage of hydrogen
Recently, the company has achieved a number of
major milestones:
• Signed a letter of intent for its wholly-owned
subsidiary, International Nanotechnology Corp.
(INC) to acquire the assets of Terra Solar
Development Corp., a privately-held company for
preferred stock, none of which can be sold for one
year.
• Reduced shares outstanding to 10 million
shares and float to less than 5 million shares.
GEMZ Corp. Reports MIT's Technology Review Focuses on Solar-Powered Nanotechnology Batteries Similar to What It's Developing; Appoints President and Chief Technology Officer
NEW YORK--(BUSINESS WIRE)--Aug. 6, 2004--GEMZ Corp., (OTC: GMZP - News) announced today that Technology Review, MIT's Magazine of Innovative Technology devoted the cover story of its latest issue (Vol. 107 / No. 6) (http://www.technologyreview.com/articles/04/07/fairley0704.asp) to a discussion of the potential of solar power to keep cell phones and laptops recharged. This is the initial focus of International Nanotechnology Corporation (INC), the wholly-owned subsidiary of GEMZ Corp. INC has made forward progress towards develop a solar-powered solution for powering cellphones and laptop computers. INC previously announced that it had signed a letter of intent with Terra Solar Development Corp.(TSDC), a leading developer of photovoltaic and nanocell technology to acquire substantially all of its nanotechnology assets from a subsidiary of TSDC and to license certain photovoltaic assets as well. The solar-powered laptop and cellphone chargers will be the first products resulting from the planned combination.
Laptop and cellphone users everywhere need a cost-effective way to continually power or recharge their units without plugging them in. Previous products on the market use crystalline or polycrystalline silicon photovoltaic cells that just don't do the job, as they work only when they are recharged in direct sunlight. The INC products are believed to be the first to use PV Nanofilms, which combine thin photovoltaic films and nanotechnology so they can also work indoors in most lighting situations. Nanofilms have elements below 1000 and even below 100 nanometers. The National Science Foundation (NSF) defines nanotechnology as consisting of components and elements 1000 nanometers and under. (1 nanometer is one billions of a meter or 10 Angstroms).
Moshe Gluzman, an experienced Photovoltaic Engineer and entrepreneur was named President of INC. He was. formerly employed in a number of senior positions, including posts at National Patent Development Corp. and Israeli Aircraft Industries. Dr. Zoltan Kiss, upon completion of the acquisition of the assets of Terra Solar Development Corp.will become Chief Technical Advisor of INC. Dr. Kiss is a noted inventor, with over thirty patents to his credit.
Mr. Gluzman said, "These two planned new products are the first of what we expect will be a family of consumer products that utilize nanotechnology to provide cost-effective solutions to problems not previously solved with conventional technology and which have wide consumer application." I am delighted to be able to contribute my experience to this very exciting company."
The product is expected to be available for sampling in the fourth quarter of 2004. Pricing has not been announced but is expected to be very competitive with older, more limited solutions.
About GEMZ Corp.
GEMZ Corp. is a publicly traded company located in New York City. Its new corporate website is www.gemzcorp.net.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties. This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," "promise," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Other risks are reflected in GEMZ Corp.'s filings with the Securities and Exchange Commission.
Thanks again rubberworm. I will look into it. I am a machinist. I have worked in electronics in the past and have some background in business.
http://www.smta.org/news/smta_calendar/calendar.cfm?YEAR=2004&MONTH=10&CALENDAR_ID=314
"Ken Gilleo of ET Trends LLC and Joe Fjelstad of Silicon Pipeline are the conference chairs, and the technical program will be comprised of both paper sessions and workshops. It will cover leading edge wafer level packaging on an international scale and delve into the latest applications and breakthrough technologies."
http://www.sipipe.com/main.php?ID=18&Ref=11
"Para Segaram - Founder, Chairman and CTO"
"Joseph Fjelstad - Founder"
http://appft1.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FP...
"Inventors: Fjelstad, Joseph C.; (Maple Valley, WA) ; Segaram, Para K.; (Campbell, CA) ; Haba, Belgacem; (Cupertino, CA)"
"[0065] The structures used to establish electrical contact between the direct-connect cable conductors and the traces 792 on the interconnect component 761 may include, but are not limited to, gold dots, nanopierce contacts, pogo-pins, elastomeric pads, micro-springs, plated bumps, particle interconnects, anisotropic conductive films, etc. Coplanarity of the height between different bump contacts, especially for high pin counts, may be achieved using any number of techniques including, without limitation, sandwiching an elastomer between the direct-connect cable and the top lip of the connector, and/or spring loaded contacts 795 behind any bump contact 794 on the direct-connect cable conductors as show in FIG. 18D."
RW~
diverdon56,
NPCT gave up 50% itself to Scimaxx as I see it. And they gave 51% of Exypnotech to Tagstar. There are no paychecks going out to those groups. They must fund themseleves. Not sure what you mean by "current downturn". Are you talking of the share price or the electronic market in general?
http://www.scimaxx.com/contact.htm Not a bad place for some general DD. Ask for Herb.
Btw if I may ask, what field do you work in?
Hello rubberworm,
Thank you, for your quick reply. I guess that in the Drexlarian sense of molecular manufacturing that Nanopierce technologies would not apply. I have noticed that in today’s world the concept (and the name) nano tech have been preempted by a Varity of companies business and products that have little relationship to Eric Drexlar’s vision of Nanotech/Molecular Manufacturing. As a matter of fact the US government nano tech program dose not fund any molecular manufacturing but only materials technology.
I could not find the exact link but here is one that hints at it. It is called Will Eric Drexler Save the West from Nano Annihilation http://www.newsmax.com/archives/articles/2003/12/19/014100.shtml
I guess that technically speaking Nanopierce technologies is a microelectronics company. However if the info on there website http://www.nanopierce.com is true and they have the ability to make the smallest/cheapest/best silicon connections then I think that they are sitting on a technology that will have many more uses in the near future. It certainly has me excited to be able to buy into this company at these levels. But I still have some concerns.
I have not learned anything about the management team. I would like to know about there business development skills, their character, there vision for the company. Are they just there for a paycheck or are they really trying to build a company that can be part of changing the world, and are they good enough to do that. Before I get too carried away it would also be useful to know if they have the ability to survive the current downturn as a functional business. I read the 10Q but I am not sure what to make of it.
diverdon56,
I'm long myself and NPCT is not a nanotech btw.
RW~
I bought in this week for 100K at .19. My hope was that with the naked shorting and the nanotech angle that buying this company at these level's would be a good long term move. After reading the bashing on this board now I am wondering if the company is likley to be able to survive to profit from it's tech patents. Opinions everyone? Who is buying and who is selling and who is holding long term?
Thanks for all responces,
Don
I'm posting this in case anyone wants to confirm that there is actually litigation occurring between NPCT and the DTCC. Feel free to call and verify!
Michael J. Morrison, Esq. SBN 1665
1495 Ridgeview Drive, Suite 220
Reno, Nevada 89509
Tel: (775) 827-6300
Dan C. Bowen, Esq. SBN 1555
Lionel Sawyer & Collins
1100 Bank of America Plaza
50 W. Liberty Street
Reno, NV 89501
Tel: (775) 788-8666
Attorneys for Plaintiffs
SECOND JUDICIAL DISTRICT COURT
COUNTY OF WASHOE, STATE OF NEVADA
StockGate: DTCC Chief Spokesperson Denies Existence of Lawsuit
May 11, 2004 (financialwire.net via COMTEX) -- (FinancialWire) FinancialWire received a confidential email between a reporter and Stuart Z. Goldstein, Managing Director of Corporate Communications for the Depository Trust and Clearing Corp. in which Goldstein was represented as denying that a lawsuit filed by Nanopierce Technologies (OTCBB: NPCT) exists.
The chief spokesperson for the DTCC, whose board of directors represent a who's who of financial entities, including Lehman Brothers (NYSE: LEH), Citigroup / Solomon Smith Barney's Corporate Investment Bank (NYSE: C), and Morgan Stanley (NYSE: MWD), was quoted as stating that the "lawsuit" did not exist and was simply "charges being leveled by internet crackpots."
FinancialWire sent Goldstein a scanned copy of the actual court filing, which occurred April 29 at 12:15 p.m., and asked Goldstein if he or the DTCC still denied its existence or had any comments. No response was received.
A complete copy of the lawsuit has been posted at www.investrend.com/Admin/Topics/Articles/Resources/206_1084219273.doc . The full story is at www.investrendinformation.com
The lawsuit alleges that the Depository Trust and Clearing Corp. has a lot of reasons, almost one billion of them a year, to keep illegal naked short selling in operation. It was the proverbial shot across the bow by the legendary Houston law firms of Christian, Smith, Wukoson and Jewell, and O'Quinn, Laminack and Pirtle, whose notches already include environmental targets, the breast implant industry and the tobacco industry, all brought to their knees.
In comments to the U.S. Securities and Exchange Commission, C. Austin Burrell, who is providing litigation support and research for the law firms, said that StockGate is more massive than anyone may have imagined. "Illegal Naked Short Selling has stripped hundreds of billions, if not TRILLIONS, of dollars from American investors," and have resulted in over 7,000 public companies having been "shorted out of existence over the past six years." Burrell said some experts believe as much as $3.5 trillion to $4 trillion has been lost to this practice.
He stated that the restrictions on short selling were deliberately put into the Securities Acts of 1933 and 1934 because of the first-hand evidence then available that the "sheer scale of the crashes was a direct result of intentional manipulation of US markets through abusive short selling by a massive conspiracy."
Burrell noted that the 65-lawyer team presided over by lead lawyers Wes Christian and John O'Quinn has uncovered more than 1,200 hedge fund and offshore accounts working through more than 150 broker-dealers and market makers in a joint cooperative effort to strip small and medium size public companies of their value.
Recently the NASD and U.S. Securities and Exchange Commission approved an interim naked short-selling band-aid, requiring U.S. brokers to make an "affirmative determination" that short-sellers, even foreign short-sellers, mostly Canadian, can find certificates to cover before processing the order.
The SEC is considering even more stringent rules under proposed "Regulation SHO," but even before the ink has dried on these orders and proposals, some three dozen of the most "shorted" small public companies listed in the FinancialWire "StockGate 100" were listed on the "wild west" Berlin Stock Exchange, whose executives admitted in an exclusive FinancialWire interview was without their permission or authorization. This allows market manipulators the benefit of the "arbitrage" loophole that none of the present regulations or proposals aim to fill. Among the most recent demanding "delisting" from the Berlin exchange include BGR Corp. (OTCBB: BGRR), Advanced ID Corporation (OTCBB: AIDO), Goldspring Inc. (OTCBB: GSPG), Whistler Investment (OTCBB: WHIS), and Datascension, Inc. (OTCBB: DTSN). Berliner Freiverkehr (Aktien) AG has been singled out as the broker and market maker that has been "listing" the companies. It is suspected that one broker, RA Angsar Limprecht, is involved in all if not most of the listings.
The SEC band-aid hasn't been entirely effective, either. As late as Sunday, May 9, one of the most outspoken thorns in the side of the NASD and SEC over the naked short-selling scandals, small investor Dave Patch, was still demanding shares of Datascension a month after Al Laubenstein, Compliance Director for Computer Clearing Services had emailed him that it had "issued a buy-in notice." On April 21, Laubenstein wrote Patch that it's buy-in notice "was not accepted by the seller, as they reportedly have certificates in transfer. As you are no doubt aware, all of the issuers in question have unusual registration policies which impede the settlement process between firms. While we regret these delays, given the circumstances, they are not unexpected." Patch has complained to the SEC and NASD that he has lost 50% of his value while his shares are in limbo, although the money for the shares had been extracted from his account and are being used by the broker.
Last year, many besieged public companies sought refuge from the manipulation by seeking to exit the DTC, but on June 4, 2003, the SEC stated "the issues surrounding naked short selling are not germane to the manner in which DTC operates as a depository registered as a clearing agency. Decisions to engage in such transactions are made by parties other than DTC. DTC does not allow its participants to establish short positions resulting from their failure to deliver securities at settlement. While the Commission appreciates commenters' concerns about manipulative activity, those concerns must be addressed by other means."
The Nanopierce lawsuit, said to be the first of many out of the box, emphatically suggests otherwise. According to lawyer Christian, et.al., the DTC is at the very heart of the problem, and has almost a billion dollars a year at stake in keeping the problem.
The Depository Trust Company (DTC) is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency with the SEC. The depository supposedly brings efficiency to the securities industry by retaining custody of some 2 million securities issues, effectively "dematerializing" most of them so that they exist only as electronic files rather than as countless pieces of paper. The depository also provides the services necessary for the maintenance of the securities it has in "custody."
The largely unregulated DTC has become something of a defacto Czar presiding over the entire U.S. markets system, wielding more day-to-day influence and control than the SEC, the NASD and NASDAQ combined. And, as the SEC's June 4 ruling indicates, its monopoly over the electronic trading system appears even to be protected.
How entrenched is the Depository Trust and Clearing Corp.? It's two preferred shareholders are the New York Stock Exchange and the NASD, a regulatory agency that also owns the NASDAQ (OTCBB: NDAQ) and the embattled American Stock Exchange! Regulators, regulate thyself?
In an era when corporate governance is the primary interest for the SEC and state regulators, the DTCC is hardly a role model. Its 21 directors represent a virtual litany of conflict:
They include Bradley Abelow, Managing Director, Goldman Sachs (NYSE: GS); Jonathan E. Beyman, Chief Information Officer, Lehman Brothers (NYSE: LEH); Frank J. Bisignano, Chief Administrative Officer and Senior Executive Vice President, Citigroup / Solomon Smith Barney's Corporate Investment Bank (NYSE: C); Michael C. Bodson, Managing Director, Morgan Stanley (NYSE: MWD); Gary Bullock, Global Head of Logistics, Infrastructure, UBS Investment Bank (NYSE: UBS); Stephen P. Casper, Managing Director and Chief Operating Officer, Fischer Francis Trees & Watts, Inc.; Jill M. Considine,Chairman, President & Chief Executive Officer, The Depository Trust & Clearing Corporation (DTCC);
Also, Paul F. Costello, President, Business Services Group, Wachovia Securities (NYSE: WB); John W. Cummings, Senior Vice President & Head of Global Technology & Services, Merrill Lynch & Co. (NYSE: MER); Donald F. Donahue, Chief Operating Officer, The Depository Trust & Clearing Corporation (DTCC); Norman Eaker, General Partner, Edward Jones; George Hrabovsky, President, Alliance Global Investors Service; Catherine R. Kinney, President and Co-Chief Operating Officer, New York Stock Exchange; Thomas J. McCrossan, Executive Vice President, State Street Corporation (NYSE: STT); Eileen K. Murray, Managing Director, Credit Suisse First Boston (NYSE: CSR); James P. Palermo, Vice Chairman, Mellon Financial Corporation (NYSE: MEL); Thomas J. Perna, Senior Executive Vice President, Financial Companies Services Sector of The Bank of New York (NYSE: BNY); Ronald Purpora, Chief Executive Officer, Garban LLC; Douglas Shulman, President, Regulatory Services and Operations, NASD; and Thompson M. Swayne, Executive Vice President, JPMorgan Chase (NYSE: JPM).
In their comments to the SEC regarding Regulation SHO in January, the 50 state regulators, through their association, the North American Association of Securities Administrators (NASAA) issued what many consider to be a strong warning that if the DTC is not dealt with in the final regulations, state regulators such as New York State Attorney General Eliot Spitzer may step to the plate.
In what many considered to have been explosive comments, Ralph Lambiase, NASAA president and Director of the Connecticut Division of Securities, warned "NASAA urges the Commission to reconsider its stance regarding the role of the Depository Trust and Clearing Corporation (the DTC). As a threshold matter, NASAA believes that the Commission should explicitly prohibit the DTC from lending more shares of a security than it actually holds. The ability of the overall proposed rule would be severely impared unless the Commission undertakes to implement such a prohibition."
As the Nanopierce lawsuit reveals, those were indeed strong words, meddling as it did, in a substantial revenues base for the DTCC.
According to the suit, the DTCC has an enormous pecuniary and conflicted interest in the entire short selling scandal through the huge income stream they were realizing from it every day. They have made literally billions of dollars lending individual real shares, in most cases over and over, getting a fee each time they made a journal entry in the "Stock Borrow Program."
The Stock Borrow Program was purportedly set up to facilitate expedited clearance of stock trades. Somewhere along the line, the DTCC became aware that if it could lend a single share an unlimited number of times, it could collect a fee each time, according to Burrell. "There are numerous cases of a single share being lent ten or many more times," giving rise to the complaint that the DTCC has been electronically counterfeiting just as was done via printed certificates before the Crash.
"Such re-hypothecation has in effect made the potential 'float' in a single company's shares virtually unlimited and the term 'float' meaningless. Shares could be electronically created/counterfeited/kited without a registration statement being filed, and without the underlying company having any knowledge such shares are being sold or even in existence." Burrell said the Christian/O'Quinn lawsuits will seek to show that the "counterfeiting/creation of unregistered shares is a specific violation of the Securities Act of 1933, barring the 'Sale of Unregistered Securities'."
While the Nanopierce lawsuit has been filed at the state level, another companion lawsuit just heading to the courts on behalf of Exotics.com (OTC: EXII) will be argued at the Federal level.
Nanopierce's suit in the 2nd Judicial District Court in Nevada, is Case No. CV04-01079, alleges that the DTC's "stock borrow program" was "purportedly created to address SHORT TERM delivery failures," but that the "end result of the program has been to create tens of millions of unissued and unregistered shares to be traded in the public market," and in some instances resulting in "two or more shareholders who purchase shares in separate transactions to own the same shares."
The complaint alleges that the DTC has a colossal disincentive to stop the "stock borrow" program, booking revenues from services of $425,416,000 and similarly, the NSCC deriving revenues of $293,133,000.
Further, the suit alleges that "open positions" resulting from this activity at the close of business on December 31, 2003, "approximated $3,025,467,000" due to NSCC, and $2,303,717,000 due by NSCC, and unsettled positions of $721,750,000 for securities borrowed through the NSCC's "Stock Borrow Program."
Nanopierce claims that DTCC and NSCC have joined in a "scheme" to "manipulate downward the price of the affected securities, thereby reducing the market value of the open fail to deliver positions." The suit also claims that the defendants have permitted sellers to maintain open fail to deliver positions of tens of millions of shares for periods of a year and even longer.
It quotes the National Association of Security Dealers as admitting that "concerns have been raised by members, issuers, investors and other interested parties about potentially abusive short selling activities occurring in the marketplace. In particular, naked short selling, or selling short without borrowing securities to make delivery, can result in long term failures to deliver, including aggregate failures to deliver that exceed the total float of a security. NASD believes such extended failures to deliver can have a negative effect on the market. Among other things, by not having to deliver securities, naked short sellers can take on larger short positions than would otherwise be permissible, which can facilitate manipulative activity."
Nanopierce claims that it had "relied on material misrepresentations and omissions by DTC and NSCC in trading its shares in the stock market "without knowledge of Defendants' fraud-on-the market through statements they made about the clearing and settlement services they provided." Further, it claims that the Defendants acted with "scienter" since they had a major financial financial motivation to falsely represent their services, which Nanopierce claims are also anticompetitive.
Recently, renowned columnist, Jack Anderson, who writes the "Washington Merry-Go-Round," alleged that much of the naked short selling in small cap stocks drains small U.S. companies of their market caps and their small investors of their nest-eggs specifically to funnel money into terrorist hands, a sort of double-whammy against the American capitalist system.
"The USA Patriot Act, adopted in October 2001, expanded the scope of U.S. money-laundering rules in order to make it harder for terrorists to move money without attracting attention. It includes beefed-up know-your-customer requirements for some financial institutions, according to some legal experts" said the U.S. financial newspaper.
Recently, leading market makers and brokers named in various lawsuits and other actions, including FleetBoston (NYSE: FBF), Goldman, Sachs & Co. (NYSE: GS), H. Myerson & Co., Inc. (NASDAQ: MHMY), Olde / H&R Block (NYSE: HRB), Charles Schwab (NYSE: SCH), Toronto-Dominion's (NYSE: TD), TD Waterhouse Group and vFinance, Inc. (OTCBB: VFIN). A.G. Edwards, Inc. (NYSE: AGE), Ameritrade Holding Corp. (NASDAQ: AMTD), Deutsche Bank AG (NYSE: DB), and ETrade Group, Inc. (NYSE: ET), were given a "reprieve" were forced to comply with new short-selling market regulations imposed by the NASD after the SEC had "sat on" the NASD request to plug material loopholes for almost 2-1/2 years.
"The new rules expand the scope of the affirmative determination requirements to include orders received from broker/dealers that are not members of NASD ("non-member broker/dealers").
The new rule is on the web at www.nasdr.com/2610_2004.asp#04-03
The rule itself, while welcomed by small companies and their shareholders in the U.S., nevertheless raised an outcry because the NASD's request to put it into effect had set on a shelf at the SEC since 2001.
Recent wrist slaps have involved Falcon Research, Inc., fined $10,000, SG Cowen Securities Corporation, fined $230,000, and Sterne, Agee & Leach, Inc., fined $35,000.
Meanwhile, CBS Marketwatch, a venture between Marketwatch (NASDAQ: MKTW) and Viacom's (NYSE: V) CBS unit, has suggested that victims of securities fraud may be able to file for theft claims on tax returns instead of capital losses.
The scandal has embroiled hundreds of companies and dozens of brokers and marketmakers, in a web of internaitional intrigue, manipulative short-selling and cross-border accusations and denials.
Comments on Regulation SHO ended January 5, and may be viewed at www.sec.gov/rules/proposed/s72303.shtml .
Some 122 companies, including 13 brokers, such as FleetBoston (NYSE: FBF), Goldman, Sachs & Co. (NYSE: GS), H. Myerson & Co., Inc. (NASDAQ: MHMY), Olde / H&R Block (NYSE: HRB), Charles Schwab (NYSE: SCH), Toronto-Dominion's (NYSE: TD), TD Waterhouse Group and vFinance, Inc. (OTCBB: VFIN). A.G. Edwards, Inc. (NYSE: AGE), Ameritrade Holding Corp. (NASDAQ: AMTD), Deutsche Bank AG (NYSE: DB), and ETrade Group, Inc. (NYSE: ET), have been embroiled for over a year in a raging controversy
The remaining 109 companies among the 122 named to date have issued press releases or been named in the media as having been victimized, or as taking various actions, either alone or in concert with other companies, to oppose manipulative trading in the form of illegal naked short selling. The actions have ranged from lawsuits to withdrawals and threatened withdrawals from the electronic trading system managed by the Depository Trust & Clearing Corp., to withdrawals from toxic financings, to the issuance of dividends or name changes designed to squeeze manipulators, to joining associations or networks or to contacting regulatory authorities to provide documentation of abuses or otherwise complain.
The complete list of those 108 companies include Advanced Viral Research Corp. (OTCBB: ADVR), AdZone Research, Inc. (OTCBB: ADZR), Amazon Natural Treasures (OTC: ANTD), America's Senior Financial Services (OTCBB: AMSE), American Ammunition, Inc. (OTCBB: AAMI), AngelCiti Entertainment (OTCBB: AGLC), ATSI Communications, Inc. (OTC: ATSC), Federal Agricultural Mortgage / Farmer Mac (NYSE: AGM) Allied Capital (NYSE: ALD), American Motorcycle (OTC: AMCYV), American International Industries (OTCBB: AMIN), Ameri-Dream (OTC: AMDR), Adirondack Pure Springs Mt. Water Co. (OTCBB: APSW), ATSI Communications, Inc. (OTC: ATSC) Bluebook International (OTCBB: BBIC), Blue Industries (OTCBB: BLIIV), Bentley Communications (OTCBB: BTLY), BIFS Technologies Corporation (OTCBB: BIFT), Biocurex (OTCBB: BOCX). Broadleaf Capital Partners, Inc. (OTCBB: BDLF), Chattem, Inc. (NASDAQ: CHTT), Critical Home Care (OTCBB: CCLH), Composite Holdings (OTC: COHIA), CyberDigital, Inc. (OTCBB: CYBD). Diamond International Group (OTCBB: DMND), Dobson Communications Corp. (NASDAQ: DCEL), Eagle Tech Communications (OTC: EATC), Edgetech Services (OTCBB: EDGH);
Also, Endovasc Ltd. (OTCBB: EVSC), Enviro-Energy Corporation (OTCBB: ENGY), Environmental Products & Technologies (OTC: EPTC), Environmental Solutions Worldwide, Inc. (OTCBB: ESWW), EPIXTAR Corp. (OTCBB: EPXR), eResearchTechnologies, Inc. (NASDAQ: ERES), Flight Safety Technologies (OTCBB: FLST), Freddie Mac (NYSE: FRE), FreeStar Technologies (OTCBB: FSRCE), Front Porch Digital,
Inc. (OTCBB: FPDI), Geotec Thermal Generators, Inc. (OTCBB: GETC), Genesis Intermedia (OTC: GENI), GeneMax Corp. (OTCBB: GMXX), Global Explorations Inc (OTC: GXXL), Global Path (OTCBB: GBPI), GloTech Industries, Inc. (OTCBB: GTHI), Green Dolphin Systems (OTCBB: GLDS), Group Management (OTCBB: GPMT), Hop-On (OTC: HPON), H-Quotient, Inc., (OTCBB: HQNT), Hyperdynamics Corp. (OTCBB: HYPD), International Biochem (OTCBB: IBCL), Intergold Corp. (OTCBB: IGCO), International Broadcasting Corporation (OTCBB: IBCS), InternetStudios, Inc. (OTCBB: ISTO), ITIS Holdings (OTCBB: ITHH), Investco Corp. (OTCBB: IVCO), Lair Holdings (OTC: LAIR), Lifeline BioTechnologies Inc. (OTC: LBTT), Life Energy & Technology (OTCBB: LETH), MBIA (NYSE: MBI);
Also, MegaMania Interactive (OTC: MNIA), MetaSource Group, Inc. (OTCBB: MTSR), Midastrade.com (OTC: MIDS), Make Your Move (OTCBB: MKMV), Medinah Minerals (OTC: MDMN), MSM Jewelry Corp. (OTC: MSMC), Nanopierce Technologies, Inc. (OTCBB: NPCT), Nutra Pharmaceutical (OTCBB: NPHC), Nutek (OTCBB: NUTK), Navigator Ventures (OTC: NVGV), Orbit E-Commerce, Inc. (OTCBB: OECI), Pitts & Spitts (OTC: PSPP), Sales OnLine Direct (OTCBB: PAID), Pacel Corp. (OTCBB: PACC), PayStar Corporation (OTC: PYST), Petrogen Corp. (OTCBB: PTGC), Pinnacle Business Management (OTC: PCBM), Premier Development & Investment, Inc. (OTCBB: PDVN), PrimeHoldings.com, Inc. (OTC: PRIM), Phlo Corporation (OTCBB: PHLC), Resourcing Solutions (OTC: RESG), Reed Holdings (OTC: RDHC), Rocky Mountain Energy Corp. (OTCBB: RMECE), RTIN Holdings (OTCBB: RTNHE), Saflink Corp. (NASDAQ: SFLK), Safe Travel Care (OTCBB: SFTVV), Sedona Corp. (OTCBB: SDNA);
Also, Sionix Corp. (OTCBB: SINX), Sonoran Energy (OTCBB: SNRN), Starmax Technologies (OTC: SMXIF), Storage Suites America (OTC: SSUA), Suncomm Technologies (OTC: STEH), Sports Resorts International (NASDAQ: SPRI), Technology Logistics (OTC: TLOS), Swiss Medica, Inc. (OTCBB: SWME), Ten Stix, Inc. (OTCBB: TNTI), Tidelands Oil (OTCBB: TIDE), Titan Construction (OTC: TTCS), Trezac Corp. (OTCBB: TRZAV), Universal Express, Inc. (OTCBB: USXP), Valesc Holdings, Inc. (OTCBB: VLSHV), Vega Atlantic (OTCBB: VGAC), Viragen (AMEX: VRA), Viragen International (OTCBB: VGNI), Vista Continental Corporation, (OTCBB: VICC), Viva International (OTCBB: VIVI), Vtex Energy (OTCBB: VXENE) and Wizzard Software (OTCBB: WIZD), WorldTradeShow.com (OTC: WTSW) and Y3K Secure Enterprise Software, Inc. (OTCBB: YTHK).
Earlier in 2003, the SEC fined Rhino Advisors, Inc., $1 million for its representation of Amro International in the financing and manipulation of Sedona Corp. Amro, also known as AMRO, was registered in Panama, a secretive offshore haven, but was not named in the SEC settlement. Another 60 public companies may have been manipulated by the fined Rhino Advisors and its indicted principals, or its funding apparatus, Amro.
These include:
All American Food Group Inc (OTC: AAFGQ), Amanda Co Inc (OTC: AMNA), Antra Holdings (OTC: RECD), Aquis Communications Group Inc (OTCBB: AQUIS), Avanir Pharmaceuticals (AMEX: AVN), Bionutrics Inc (OTC: BNRX), Brilliant Digital Entertainment Inc (AMEX: BDE), Bravo! Foods International Corp. (OTCBB: BRVOE), Butler National Corp (NASDAQ: BUTL), Calypte Biomedical Corp (OTCBB: CYPT), Chemtrak Inc/DE (OTC: CMTR), Clicknsettle Com Inc (OTCBB: CLIK), Corporate Vision Inc (OTC: CVIA), Crown Laboratories Inc/DE (OTC: CLWB), Dental Medical Diagnostic Systems Inc (OTC: DMDS), Detour Media Group Inc (OTC: DTRM),
Also, Digital Privacy Inc/DE (OTC: DGPV), Senior Services Inc (OTC: DISS), International Inc (OTC: DYNX), Endovasc Ltd Inc (OTCBB: EVSC), Esynch Corp/CA (OTCBB: ESYN), Focus Enhancements Inc (NASDAQ: FSCE), Frederick Brewing Co (OTC: FRBW), Greystone Digital Technology Inc (OTC: GSTN), Havana Republic Inc/FL (OTCBB: HVNR), Henley Healthcare Inc (OTC: HENL), Hollywood Media Corp (NASDAQ: HOLL), Ibiz Technology Corp (OTCBB: IBZT), Diagnostic Systems Inc/FL (OTCBB: IMDS), Imaging Technologies (OTCBB: IMTO), Integrated Surgical Systems Inc (OTCBB: RDOC),
Also, Interferon Sciences Inc (OTC: IFSC), Interiors Inc (OTC: ITRNA), Laminaire Corp (OTC: THMZ), Medisys Technologies Inc (OTC: SCEP), Milestone Scientific Inc/NJ (AMEX: MS), Nevada Manhattan Group Inc (OTC: NVMH), Innovations Inc (OTCBB: NTGE), Systems Group (OTC: OSYM), Pacific Systems Control Technology Inc (OTCBB: PFSY), Professional Transportation Group Ltd Inc (OTC: TRUC), Rnethealth Inc (OTC: RNTT),
Also, Sand Technology Inc (NASDAQ: SNDT), Sedona Corp (OTCBB: SDNA), Silverado Foods Inc (OTC: SVFO), Stockgroup Information Systems (OTCBB: SWEB) Surgilight Inc (OTC: SRGL), Tasty Fries Inc (OTCBB: TFRY), Tech Laboratories Inc (OTCBB: TCHL), Teltran International Group Ltd (OTC: TLTG), Titan Motorcycle Co of America Inc (OTC: TMOTQ), Trans Energy Inc (OTCBB: TSRG), Motorcycle Co (OTC: UMCC), Universal Communication Systems Inc (OTCBB: UCSY), Medical Systems Inc (OTC: UMSI), Vianet Technologies Inc (OTC: VNTK),Viragen Inc (AMEX: VRA), Webcatalyst Inc (OTC: WBCL), Worldwide Wireless Networks Inc (OTCBB: WWWNQ), and ZAP (OTCBB: ZAPZ).
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