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Was RBC advising him? Or did they TRY to advise him and he ignored them? The situation, and even the specific language in his lawsuit, suggests the latter.
His suit claims "inadequate advice" by RBC. Not the wrong advice, as it is literally impossible to believe that RBC told him to concentrate his net worth in Tesla. He is clearly claiming they didn't tell him not to, but I will bet almost anything they did and he ignored it. And they certainly didn't tell him to pull $20 million out and day trade it to nothing, either.
I think it is very likely that RBC's real problem in this situation is that they didn't reject his account and tell him to take a hike when he continued to concentrate his portfolio in 1 stock, and then day traded a portion of it to nothing. That was their mistake, and they should have shown him the door as soon as he didn't do what they almost certainly advised him to do. But, I bet some executive said they couldn't let such a massive portfolio disappear and his advisors needed to keep trying to get him to listen, all the way to the point the account was gone through market losses.
Actually, it appears he did take a bunch of the money to "play with". $20 million, which he quickly lost. The Bloomberg article has some important details the Stockwatch article left out.
https://finance.yahoo.com/news/carpenter-claims-made-306-million-171427732.html
This clearly seems to be another case of someone who knows nothing (if not less than nothing, as many times what these amateurs think they know is completely wrong which is worse than knowing nothing) who got lucky on one stock. That seems to have made him think he was an investing genius, and could do no wrong. The market quickly proved him wrong in its own way.
However, I am not saying that RBC and Grant Thornton are entirely without blame, but I have a feeling this guy willfully ignored their advice and continued to roll with just risky bets on Tesla. After all, who was the investing genius here?
SEC Announces Departure of Enforcement Director Gurbir S. Grewal
https://www.sec.gov/newsroom/press-releases/2024-162
Sanjay Wadhwa, a 21-year agency vet, named Acting Director; Sam Waldon named Acting Deputy Director
For Immediate Release
2024-162
Washington D.C., Oct. 2, 2024 —
The Securities and Exchange Commission today announced that Gurbir S. Grewal, Director of the Division of Enforcement, will depart the agency, effective Oct. 11, 2024. Upon Mr. Grewal’s departure, Sanjay Wadhwa, the Division’s Deputy Director, will serve as Acting Director, and Sam Waldon, the Division’s Chief Counsel, will serve as Acting Deputy Director.
“We have been incredibly fortunate that such an accomplished public servant, Gurbir Grewal, came to the SEC to lead the Division of Enforcement for the last three years,” Chair Gary Gensler said. “Every day, he has thought about how to best protect investors and help ensure market participants comply with our time-tested securities laws. He has led a Division that has acted without fear or favor, following the facts and the law wherever they may lead. I greatly enjoyed working with him and wish him well.”
Chair Gensler added, “I’m pleased that Sanjay Wadhwa has said yes to taking on the Acting Director role. He has served as part of a remarkable leadership team, along with Gurbir, as Deputy Director and has been with the agency for more than two decades. He has shown strong leadership, is widely respected among his colleagues, and has provided invaluable counsel to the Commission. I’m pleased that Sanjay will be joined by Sam Waldon, currently Enforcement’s Chief Counsel, who is becoming Acting Deputy Director. Sam has provided sound advice to the Division and the Commission on critical legal issues.”
“While we have faced and overcome many challenges over the last three plus years, there has been one constant throughout: the public servants of the Enforcement Division stand ready to do everything they can to protect investors and market integrity. Their expertise, professionalism, and dedication are, indeed, unparalleled, and it has been the privilege of a lifetime to have been able to call them colleagues,” said Mr. Grewal. “From recalibrating penalties and remedies to confronting emerging risks to holding issuers, insiders, and gatekeepers accountable, I am incredibly proud of all that we’ve accomplished as a Division during my tenure. I am grateful to Chair Gensler not just for the opportunity to lead the Division, but also for his unwavering commitment to investor protection and support of a robust enforcement program.”
As Enforcement Director, Mr. Grewal prioritized restoring investor trust and confidence in the financial markets by emphasizing proactive enforcement initiatives and working to create a culture of compliance among market participants. To that end, the Division recalibrated remedies so they were viewed as more than simply the cost of doing business and provided meaningful specific and general deterrence to wrongdoers, and the Division moved with urgency to address emerging risk areas. Under Mr. Grewal’s leadership, the Division also prioritized holding insiders, industry professionals, and gatekeepers accountable for their securities law violations, rooting out fraudulent conduct, enforcing disclosure and recordkeeping requirements, and enforcing whistleblower protections. At the same time, Mr. Grewal redoubled efforts to promote self-policing, self-reporting, and remediation by market participants through, among other things, highlighting the benefits of cooperation in the Commission’s public orders and in his public statements.
During Mr. Grewal’s tenure, the Division of Enforcement recommended, and the Commission authorized, more than 2,400 enforcement matters resulting in orders for more than $20 billion in disgorgement, prejudgment interest, and civil penalties, more than 340 industry bars against individuals, more than $1 billion in awards to whistleblowers, and the return of billions of dollars to harmed investors.
For example, under Mr. Grewal’s leadership, the Division recommended and the Commission authorized more than 100 enforcement actions addressing widespread noncompliance in the quickly growing crypto space, including against the operators of the largest crypto asset trading platforms in the world and the operator of the largest crypto asset trading platform in the United States for depriving investors of crucial investor protections by not complying with the registration provisions of the federal securities laws.
Further, the Division brought a number of enforcement matters to protect investors in private funds from market manipulation and misleading or inadequate disclosures and controls regarding conflicts of interest and fees and valuation.
The Division also prioritized rooting out insider trading. The SEC brought enforcement actions in a wide range of situations where insiders abused access to material non-public information (MNPI), including so-called classic insider trading as well as the first trial finding a defendant liable for insider trading in the shares of a peer company. The SEC also brought actions addressing fraud in block trading and against firms for failing to maintain policies designed to prevent misuse of MNPI.
To address failures among gatekeepers, during Mr. Grewal’s tenure, the Commission brought enforcement actions for a range of violations, including a massive fraud by an audit firm affecting more than 1,500 SEC filings – one of the largest ever wholesale failures by a gatekeeper – and charging another firm with hundreds of auditor independence violations.
Additionally, at Mr. Grewal’s direction the Division launched a proactive initiative in December 2021 to ensure that regulated entities, including broker-dealers, investment advisers, and credit ratings agencies, complied with their recordkeeping requirements, which are foundational to investor protection and the SEC’s ability to investigate other forms of misconduct. To date, that initiative has resulted in charges against more than 100 firms and more than $2 billion in penalties for failures to maintain and preserve electronic communications. In each case, the firms admitted that their conduct violated federal securities laws and have begun implementing improvements to their compliance policies and procedures.
Immediately before joining the SEC, Mr. Grewal was the Attorney General for the State of New Jersey from Jan. 2018 through June 2021. Prior to that, he served as the Bergen County Prosecutor, the chief law enforcement officer for New Jersey’s most populous county. Earlier in his career, Mr. Grewal served as an Assistant United States Attorney for the District of New Jersey, where he was Chief of the Economic Crimes Unit, and an Assistant United States Attorney for the Eastern District of New York, where he was assigned to the Business and Securities Fraud Unit. He was also an attorney in private practice. Mr. Grewal holds a J.D. from the College of William & Mary, Marshall-Wythe School of Law, and a B.S. in Foreign Service from the Georgetown University School of Foreign Service.
Mr. Wadhwa has served as Deputy Director of the Enforcement Division since Aug. 2021. During his tenure as Deputy Director, Mr. Wadhwa has worked closely alongside Mr. Grewal to execute the SEC’s Enforcement agenda and to further the agency’s mission to protect investors. Before becoming Deputy Director, Mr. Wadhwa was the Senior Associate Director of the Division of Enforcement in the New York Regional Office (NYRO), Deputy Chief of the Market Abuse Unit, and Assistant Director in NYRO.
During his career, Mr. Wadhwa led several critical investigations in NYRO, including the office’s sustained and successful efforts to root out institutional insider trading, which resulted in successful enforcement actions against hedge fund advisers such as Galleon Management and S.A.C. Capital, among others, and prominent Wall Street figures such as Galleon founder Raj Rajaratnam, the former head of McKenzie Consulting, Goldman Sachs board member Rajat Gupta, and the founder of S.A.C. Capital, Steven A. Cohen. While in NYRO, Mr. Wadhwa also oversaw the agency’s industry-wide investigation from 2016 to 2020 into abusive American depositary receipts pre-release practices, which resulted in monetary penalties against banks and broker-dealers exceeding $430 million.
Prior to joining the SEC as a staff attorney in Enforcement in 2003, Mr. Wadhwa served as a tax associate at Cahill Gordon & Reindel LLP and Skadden, Arps, Slate, Meagher & Flom LLP. Mr. Wadhwa has a B.B.A. from Florida Atlantic University, a J.D. from South Texas College of Law Houston, and an LL.M. in taxation from New York University School of Law.
Sam Waldon has served as Chief Counsel for the Division of Enforcement since March 2022. He joined the SEC from the law firm Proskauer Rose LLP, where he was a partner. Mr. Waldon previously served as an Assistant Chief Counsel (2010-2018) and investigative attorney (1996-1998) for the Division of Enforcement.
SEC Charges Ten Defendants in Microcap Fraud Scheme
Securities and Exchange Commission v. Harry Zhabilov et al., Civ. Action No. 1:24-cv-07362 (S.D.N.Y. filed Sept. 30, 2024)
https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26144
https://www.sec.gov/files/litigation/complaints/2024/comp26144.pdf
The Securities and Exchange Commission today charged Harry Zhabilov, Billy Ray, Jr., Charles Dilluvio, Stephen Apolant, Dannie Zhabilov, Jonathan Farber, and four related entities with running a microcap fraud scheme targeting retail investors. The defendants were involved in different parts of the scheme involving a publicly traded company that generated approximately $92 million in illicit stock sale proceeds.
According to the SEC’s complaint, Enzolytics, Inc. was a Delaware-based company whose stock was publicly traded. Harry Zhabilov, Ray, Dilluvio, and Apolant (the “Control Group”), along with the entities Camelot Nevada Trust, Seacor Capital, Inc., and Sky-Direct LLC, allegedly took steps to accumulate Enzolytics stock while concealing their control of the company and the stock, then sold that stock in large quantities to retail investors. The complaint alleges that Harry Zhabilov’s daughter, Dannie, worked with the Control Group to transfer millions of Enzolytics shares to Farber. Farber then allegedly sold those and other Enzolytics shares on behalf of the Control Group using an entity he controlled, Wexford Industries Ltd. According to the complaint, the Control Group attempted to generate more investor interest in Enzolytics stock by funding a stock promotion campaign promoting Enzolytics stock while Farber was selling on behalf of the Control Group. The defendants allegedly made various misrepresentations that allowed them to circumvent certain stock sale limitations placed on company affiliates.
The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, alleges that Harry Zhabilov, Ray, Dilluvio, Apolant, Dannie Zhabilov, Farber, Camelot, Seacor, Sky-Direct, and Wexford violated Sections 5(a) and 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Farber and Wexford are also charged with violating Section 15(a)(1) of the Exchange Act. The SEC is seeking permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties as to all defendants. The relief sought by the SEC also includes penny stock bars against Harry Zhabilov, Apolant, Dannie Zhabilov, Farber, Camelot, Seacor, Sky-Direct, and Wexford; officer and director bars against Harry Zhabilov, Dilluvio, and Apolant; and an injunction against Dilluvio and Ray prohibiting them from participating in the offer and sale of securities, except from their personal accounts. The complaint also names as relief defendants NY Farms Group, Inc. and Equity Markets ADV LLC, alleging that they each received proceeds of the alleged scheme. The complaint seeks disgorgement and prejudgment interest from the relief defendants.
The SEC’s case is being handled by Nita Klunder, Marc Jones, Mark Albers, and Amy Gwiazda of the Boston Regional Office, with the assistance of Alex Lefferts and Howard Kaplan of the Enforcement Division’s Office of Investigative & Market Analytics. The SEC appreciates the assistance of the Financial Industry Regulatory Authority and the British Columbia Securities Commission.
It is what he does. His mistake was (allegedly) lying about his positions. His new voluminous disclaimers will probably help with that.
Absolutely. It follows with a well-known tweet from the author Joanna Maciejewska that went viral earlier this year. I think she nailed it.
"I want AI to do my laundry and dishes so that I can do art and writing, not for AI to do my art and writing so that I can do my laundry and dishes"
Humans want to do the interesting stuff, not the mundane everyday tasks. But unfortunately, AI so far isn't great at doing those mundane things that humans have to do. And when AI makes a mistake doing them, the costs in time and money to fix the AI's mistake is much greater than if the person had done them themselves.
It takes a lot of effort to get AI to do those mundane things both individually and correctly, but art and writing is so much easier to program - there are fewer specific goalposts than in booking vacations, for instance. I think that is why so many AI companies are focusing on the exciting, interesting things. There isn't so much of a market for that as much as there is VC's and investors willing to throw money at that. The dysfunction of the financial markets strikes again.
The war against the Lab Leak theory was so idiotic. Even if a person doesn't have science lab experience and knows how easy it would be to escape the lab, it was also Occam's Razor.
At this point, we will almost certainly never know. But the Lab Leak scenario needs to be considered as possible, if not the most likely.
If people intentionally try to obscure the truth, the conditions which caused the issue will never be corrected and it will happen again.
The same people who got the free Guinness Bar Towel....
If you know, you know.
In a nutshell, about 20 years ago Guinness had a promotion for a free bar towel if you gave them your contact info. Once word got out, they were flooded with requests. A small handful of people actually received one. A few more got a letter from Guinness blaming a malfunction but promising they would get them soon (I think they only got the card in the end). And the vast majority of people received nada. Not even an E-mailed apology. Just silence.
For many years afterwards, it was a popular phrase on the internet to say a broken promise or a free internet giveaway was just a "Guinness Bar Towel".
SEC Charges Canadian Company, Recidivist Paul Bilzerian, and Others with Scheme to Falsely Inflate Revenues
Is was never a question of if, but when. I can't imagine anyone is even remotely surprised by these allegations. Criminal charges have also been filed.
https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26138
On September 27, 2024, the Securities and Exchange Commission charged Canadian consumer goods company Ignite International Brands, Ltd., recidivist Paul Bilzerian, and six other defendants for improperly recognizing and reporting revenue in 2020.
The SEC's complaint alleges that from late 2020 to 2021, Ignite engaged in a scheme, orchestrated primarily by Bilzerian, who controls Ignite's finances and operations, to report approximately $5 million in non-existent sales of disposable vape pens as part of the company's fourth quarter 2020 results. According to the complaint, Ignite issued a series of false invoices to one of its customers for the vape pens in November and December 2020, despite the fact that the customer had never ordered the product. In fact, the SEC claims, the customer repeatedly disputed the invoices after receiving them, including voicing its objections directly to Bilzerian and to Ignite's then-President and COO, John Schaefer. Nevertheless, Ignite allegedly went on to tout its historic 2020 performance in a January 2021 press release, which noted that the company's fourth quarter revenue "exceeded revenue for the previous three quarters combined." The SEC further alleges that, once the customer refused to confirm the accuracy of the false invoices to Ignite's auditor, Ignite retroactively shifted supposed responsibility for the purchases to International Investments, Ltd., another entity also controlled by Bilzerian. The complaint further alleges that despite the purported sale to International Investments, Schaefer continued to track the inventory and issue invoices nominally on behalf of International Investments, as the product was subsequently sold to ultimate customers. The complaint claims that Ignite, Bilzerian, Ignite's then-CFO Paul Dowdall, and Bilzerian's deputy Scott Rohleder concocted and relayed a false story about International Investments' purchase of the vape pens to Ignite's auditor, Accell Audit & Compliance, PA, and its engagement partner, Christopher Hiestand. According to the complaint, in April 2021, Ignite publicly released its 2020 audited financial statements, including the false sales figures. The SEC further alleges that despite numerous red flags concerning the sale to International Investments, and despite knowing or being reckless in not knowing that International Investments had not agreed to the supposed purchase until 2021, Accell and Hiestand issued a report opining that the 2020 audited financial statements fairly presented Ignite's financial position as of year end.
The complaint, filed in the U.S. District Court for the Southern District of New York, charges Ignite, Bilzerian, Dowdall, Rohleder, Schaefer, International Investments, Accell, and Hiestand with violating the antifraud provisions of Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks permanent injunctive relief and civil penalties, as well as officer and director bars against Bilzerian, Dowdall, Rohleder, and Schafer.
In a parallel action, the Fraud Section of the Department of Justice and the U.S. Attorney's Office for the Central District of California today announced charges against Ignite, Bilzerian, and Rohleder.
The SEC's investigation was conducted by Patricia Pei and Deborah Russell, with assistance from Robert Nesbitt, and was supervised by Spencer E. Bendell and Rhoda Chang. The litigation will be led by Charles Canter and supervised by Douglas Miller.
Yes, for September. The US government's fiscal year ends on September 30, so the SEC crams as many enforcement actions as possible before the end of the year to pad their stats.
October is almost always very bare on the enforcement front.
From the text of his responses in the multiple 8-K's, you can see the SEC was in regular contact with him and clearly told him to stop. He pushed back, but to no avail.
The Company was not a registrant, but yet was filing a form restricted to registrants and, most importantly, claimed the company was a registrant. That is what was getting him in potential trouble. The company stopped filing fairly quickly.
He is now throwing up crap as a personal filer. The rules regarding insider filings are less cut and dried, so he is allowed to continue filing Form 4s.
Actually, he didn't.
He did file an SEC registration statement, but then withdrew it because it was bogus, so he did have the right to file at one time. But, he stopped filing in 2021. IIRC, the SEC threatened to charge him with fraud because he had not refiled a new registration statement, and therefore was not a registrant as his filings claimed. I think they may have even yanked his EDGAR codes. This was discussed in detail back then.
That is exactly what I mean by "eventually" and proves my point. Sjnce then, the SEC has taken a much tougher approach to EDGAR access, and has proposed even stricter restrictions on access to try to prevent this kind of fraudulent BS.
So what? Just because there is a link available on the SEC's website doesn't mean anyone can use it. It isn't legal unless they are registered. Companies just can't do whatever they want. There are laws.
And if they break them, there are consequences. Eventually, when it comes to the SEC.
Pink current has nothing to do with the SEC. OTCMarkets is not a regulator. They are a stock promotions company. Their alternative disclosure (which are NOT filings, BTW) mean nothing to the SEC.
If that company has never been registered with the SEC, then the S-1, or another registration statement, would certainly be required to complete the initial registration process with the SEC.
If the company was once an SEC registrant, then the S-1 could legitimately be used for a public offering and resumption of SEC reporting requirements.
What is the ticker?
If you don't know why the ticker is important, than you don't understand the applicable securities regulations and you PM is worthless.
GameStop CEO Ryan Cohen to Pay Nearly $1 Million Penalty to Settle Antitrust Law Violation
https://www.ftc.gov/news-events/news/press-releases/2024/09/gamestop-ceo-ryan-cohen-pay-nearly-1-million-penalty-settle-antitrust-law-violation
Today, the Federal Trade Commission announced that Ryan Cohen, managing partner of RC Ventures, LLC, and Chairman and CEO of GameStop Corp., will pay a $985,320 civil penalty to settle charges that his acquisition of Wells Fargo & Company (Wells Fargo) shares violated the Hart-Scott-Rodino (HSR) Act.
According to the complaint, Cohen, who is also the founder and former CEO of Chewy, Inc., acquired more than 562,000 Wells Fargo voting securities resulting in aggregated holdings of Wells Fargo securities that exceeded HSR filing thresholds. Cohen’s purchase triggered an obligation to file an HSR form with federal antitrust agencies and wait before completing the acquisition. Yet Cohen failed to do so, which violated the HSR Act, according to the complaint.
The HSR Act requires companies and individuals to report large transactions, including securities acquisitions, over a certain threshold to the FTC and DOJ so that the federal agencies can investigate the deals before they close. The agencies have 30 days after a transaction has been reported to conduct an initial investigation and file a “second request” demand for additional information. It is generally illegal to finalize an acquisition during this investigatory period. The maximum civil penalty for an HSR violation at the time Cohen made the corrective filing was currently $43,792 per day.
According to the complaint, Cohen’s acquisition of Wells Fargo voting securities was not exempt under the Investment-Only Exemption of the HSR Act, even though his holding represented less than 10 percent of the outstanding voting securities of Wells Fargo.
When acquiring the Wells Fargo shares Cohen intended to influence Wells Fargo’s business decisions as evidenced by Cohen’s emails when he advocated for a board seat. After acquiring the shares, Cohen proceeded to have periodic communications with Wells Fargo’s leadership regarding suggestions to improve Wells Fargo’s business and to advocate for a potential board seat, according to the complaint.
The Commission vote to accept the settlement and refer the matter to the Department of Justice for filing was 5-0. The Department of Justice filed the complaint and proposed stipulated order on the FTC’s behalf in the U.S. District Court for the District of Columbia.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Maribeth Petrizzi, Special Attorney, United States, c/o Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580 bccompliance@ftc.gov. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
The Federal Trade Commission works to promote competition, and protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. You can learn more about how competition benefits consumers or file an antitrust complaint. For the latest news and resources, follow the FTC on social media, subscribe to press releases and read our blog.
The final rule was approved this morning.
The new minimum tick size for Exchange traded stocks over $1 will be $0.005 for most stocks. Some will be $0.015.
This new rule will also apply to all OTC trading for the first time, so no more $0.0001 increments for listed stocks over $1.
The new rule will implement in November 2025.
In many cases, they don't come back by choice. Wherever they flee to doesn't want them and strongly "encourages" them to get on the airplane to return to the US where the Feds are always waiting at the gate as that country has let them know in advance.
Most of the time, the accused find a "voluntary" return preferable to getting arrested and spending time in a foreign prison awaiting extradition.
It is about time. But, from reading the other media reports, I think the SEC is in second (or even third) place here. I think the DOJ spearheaded their own investigation into his fraud and he was indicted by a Grand Jury yesterday. The SEC just followed on with civil charges, but the State of West Virginia hit him long before this. Miller fled the US 2 years ago, likely because he knew the Feds were going to charge him. He only returned in August and was immediately arrested by the FBI and jailed.
Even so, it would certainly be nice if the SEC and other regulators paid a lot more attention to the new popular social media outlets for pumping and fraud, including TikTok, Discord, etc.
Paid (and usually undisclosed) pumping is part of the current toxic convertible playbook.
I would bet most anything that all those pumpers are being paid under the table, either directly or indirectly, by one or more of the toxic convertible holders.
I didn't even have to look at the filing to know the dilution is the work of toxic convertibles.
To no one's surprise, ASII is a big issuer of the toxics. A lot of the most popular names there, including our new favorite, 1800 Diagonal Lending LLC. But I also notice Jefferson Street Capital on there. That is an interesting name in the lending business. Besides already being involved in some lawsuits from their penny stock clients, Jefferson Street is owned by Brian Goldberg, who not only is currently registered with FINRA as an investment banker, but is also an ex-Lucosky Brookman associate. No question where he learned the trade.
That unintelligible word salad is giving me indigestion.
Someone didn't get the SEC's "Plain English" memo.
I think Hindenburg gets most, if not nearly all of them, right. But, the market does not always consider Hindenburg's investigative results as important as they do. So, on some stocks, they may be completely right, but the market just doesn't find that information as material as they do (or should be), so the stock price doesn't react quite as they expect and they don't make the kind of profit (at least in the short-term) as they anticipated.
Freedom Holdings comes directly to mind. Although in that case, I think a nation/state and its related actors are artificially propping that stock price up to counter Hindenburg's investigation.
For Super Micro, rumors about their accounting regressing back to the pre-SEC charges stage have been flying around for awhile. Hindenburg's recent report was not that much of a surprise, as many others have made similar statements over the last year or more.
All of this is immaterial as far as the stock and stockholders are concerned, as their will be no funds for shareholders post-liquidation, and the stock will be cancelled.
The stock is worthless. That will not change. Anyone left holding shares will lose 100% of their investment.
The OTC short reports "service" is completely bogus, if not outright fraudulent.
They intentionally confuse short volume with short interest. Not the same thing, but they pretend it is.
Short interest is actually the shares borrowed and sold short (as well as FTD's, which in pink sheet stocks usually FAR outweighs the number of shares actually sold short for profit. And most of those FTD's are resolved within days as they are often a result of delays with the TA clearing specific kinds of shares). Short volume is nothing more than the shares the MM's transact during the day when they don't have the shares long in house. In 99% of the trades, the short position is covered immediately (as in seconds, if not a fraction of a second) after the original trade is made, but the short volume numbers are cumulative, not net. So at the end of the trading day, usually every single share recorded as short interest was already covered and the result is net zero.
The irony is that high short volume is actually the opposite what the pumpers claim it is. Shares being dumped into the market, particularly through convertibles, leads to very high short volume because the MM's don't have the stock in hand when they make the trades through the day. They cover it all at the end with the convertibles all at once. Again, that misrepresentation is often intentional, as they want to fool buyers into taking the stock they are dumping by claiming it is shorting that will eventually have to be covered, thus driving up the stock price.
Something else to enjoy from Brian McLain. Before he started shilling obvious penny stock scams and helping take people's money, he was a victim himself. No honor whatsoever.
https://www.sec.gov/comments/s7-08-09/s70809-1478.htm
I guess that is his way of "getting his money back".
And don't forget he stated as FACT that Mclain already sold all 100,000,000 of those shares at $0.001.
Which is clearly not the case.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174961944
No, you are wrong again.
Not every Form 144 is "created equal" due to the regulations which govern it, including Rule 144.
The specific circumstances of each company that is the subject of the filing actually matter.
Therefore, you blocking out the name of the company made accurate analysis of the form impossible.
There, is that answer good enough for you?
Yes, it sure is.
And I am also sure many insiders, not just the Form 144 filing individual in question, would LOVE to dump more shares in the market. But they need suckers (I mean "investors") to buy the shares they are dumping.
Doesn't look like it is happening, which explains why they gave 2 BILLION shares to Brian Mclain for pumping (I mean "awareness")..
Of course that is what he wants it to mean, and on KEGS he already stated it was FACT.
He is simply just ignoring us and the actual truth to fit his agenda.
Yes, I know, but since that mistake was never fixed in the Form 144/A, just like the mistake on the calculation of the Aggregate Market Value, it MUST be true!
Or are we expected to believe that the misspelling of his name was really a mistake, but the obvious miscalculation of the value was correct?
That poster can't have it both ways.
It wasn't hard to figure out what company the Form 144 referred to. In fact, the information you intentionally omitted was very important for context and why you were wrong. Nice try, though.
There are other mistakes in that Form 144/A that also haven't been fixed.
So his name is now Brin? It hasn't been changed, so it must be FACT!
I suggest you stop cherry picking bogus facts and stick to the truth.
You are both wrong.
And it isn't our job to "fix" anything over there on KEGS.
But what does it matter? The Aggregate Market Value has ZERO to do with what the stock may be sold for.
ZERO.
Those shares clearly did not sell. Look at the reported trading volume since the 144 was filed. On top of that, every trade was at $0.0001.
That broker is an idiot. He either has no clue what he is talking about, or you misinterpreted what he said. Is he the same broker than filed that 144 that is full of errors? If so, that would explain a lot.
My god, you are thick. Or just playing stupid. I can't tell which.
Even though I and others here proved you were wrong in your interpretation of Rule 144, you posted on KEGS those shares were sold for $0.001. They weren't. Check the volume and price.
There is no intentional misstatement of fact considering that Form 144 if full of errors, such as the guy's name for one. I believe they miscalculated the market value, which was really $10,000. But regardless, it doesn't matter. Those shares HAVE NOT BEEN SOLD. Some of them perhaps, but as I proved, the stock hasn't traded anywhere near 100,000,000 shares since the Form was filed. Even if every single share sold since then was Brian Mclain selling, he still would be holding around 50 million of the 100 million. And those all traded at $0.0001. The tape doesn't lie.
You really need to come clean on KEGS and admit your "facts" are wrong.
Your stock broker friend is an idiot. I suggest he go back and review Rule 144, or talk to his backoffice and get some continuing education about the rule.