The methodology of the corrupt brokers is very similar to what I reported to SpongeTech's bankruptcy judge last December. "...(T)wo Registered Reps, working together in the same branch office of one brokerage, were responsible for a large percentage of the short sale transactions of the Debtor’s equity, and that these short sales were almost certainly mis-marked, and in violation of Regulation SHO. The same could be said for another brokerage, except that no Registered Rep was indicated, which could mean that these were proprietary transactions."
Yesterday's Litigation Release involved two brokers who facilitated the CodeSmart stock manipulation through their brokerage, while a third man profited illegally by selling unregistered shares.
FINRA and IIROC have filed charges in this regard. But, I still haven't seen SEC charges for this in the SpongeTech case.