Here's our SEC complaint:
To: The SEC Internet Enforcement Program
Fr: <your name>, Stockholder of Alcar Chemicals Group, Inc. (Symbol: ACMG)
Re: Naked Shorting
To whom it may concern:
I control over <your number of shares> shares of ACMG. I am in contact with several people who also hold a significant position in ACMG, some control more shares than I. Together we control more than 5% of ACMG’s float of 75 million shares.
Over the past 15 days, from February 20th to March 12th, approximately 80 million shares of ACMG have been transacted. Furthermore, and according to the revised list contained on this website: http://www.nasdaqtrader.com/aspx/regsho.aspx, ACMG’s stock has been listed as a “threshold security” as defined in Rule 203(c)(6) of Regulation SHO, dated July 7, 2006. Although this list is dated, given the fact that over 80 million shares have been traded over the last 15 days and the share price is going down, suggests that price manipulation through naked shorting is still prominent.
I have been in contact with one of ACMG’s principals and they have informed me that they too have reported these incidences of suspected securities-fraud, but have yet received any favorable response from the SEC.
I request that the SEC investigate this matter and uphold the integrity by which it was empowered.
Thank you for your time and consideration,
<your name>
Details of the NASD complaint:
Type of Complaint: Manipulation of security price or volume
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Account Information:
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Brokerage Firm Name: EMPIRE FINANCIAL GROUP, INC. (CRD#: 28759)
Salesperson Not Involved: Yes
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Customer Information:
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Your Name:
Mailing Address:
Work Phone: Not Provided
Home Phone: xxxxxxxxxx
Fax: Not Provided
E-Mail Address: jenthico@yahoo.com
Served in Military: No
Age Range: 40-59
Interested in Investor News: No
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Complaint Details:
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Security Type: Stock
Security Symbol: ACMG
Security Name: Alcar Chemicals Group
Dates of Transaction or Activity: From: 2/20/2007 To: 3/12/2007
Problem(s) Reported: Primary: Sale of unregistered securities
Secondary: Other
Amount in Dispute: Not Provided
Complaint Summary: 80 million shares have traded within the date range provided. I am in contact with several persons who together control almost 5% of the float. I have been in contact with one of the company's principals and they have filed several complaints regarding the practice of naked shorting. Furthermore, ACMG has been listed as a “threshold security” as defined in Rule 203(c)(6) of Regulation SHO. It is the company's and my contention that this practice is still being executed.
Documentation Available: Other: historical volume
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Actions You Have Taken:
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Firm Contact:
Have you complained to the Firm? Yes
Details of complaint to the Firm: I have not complained to Empire as I cannot be sure that they are the culprit. Steven Sung at Alcar gave me the name Empire, but did not go into details. However, the primary underwriter and market makers in this stock should be investigated.
Other Regulatory Contact:
Have you contacted other regulators? Yes
If yes, who? Securities and Exchange Commission (SEC)
Arbitration:
Have you filed an arbitration claim? No
Would you like information on arbitration and mediation? No
Legal Action Taken:
Have you taken legal action? No