Yvonne Huber, Vice President, Market Regulation
This is a follow-up to the letter I sent to you, next day delivery, on November 1st2018. That letter stated there is a significant Securities Fraud
problem among Brokerage firms holding customer positions in the common stock of Weyland Tech (WEYL).
Over the last few days, it seems that the Brokerage firms have apparently decided that it would be in their best interests not to fully report all their customers'
positions to the Company by the November 2nd 2018 deadline. Instead they reported only those positions that did not involve shares that were not delivered. A logical assumption
for the reason(s) would be that the Brokerage firms did not want to expose their fail-to-deliver problem and try to handle the dividend problem internally. This is totally contrary
to the explicit instructions of the DTCC, FINRA and Weyland Tech. In addition it is further evidence of plausible Collusion among the Brokerage firms. Initial evidence of
Collusion was evident when no Brokerage firm utilized the buy-in process to solve their dividend problem prior to the October 12, 2018 record date.
These Brokerage firms continue to take short orders from market makers, VERT, NITE, CDEL, CSTI and VNDM, that they know will not be delivered. The Hedge Fund located in Singapore/China
now has a naked short position in excess of five million shares. During the two trading days following the first letter WEYL declined from 1.95 to 1.70 with naked short selling accounting
for approximately 50 percent on the total volume. WEYL shareholders are beginning to panic believing nothing will be done to protect their interests.
I hope FINRA will take immediate action to protect WEYL shareholders and halt any fraudulent activities. FINRA is aware that TD Ameritrade has over 20 percent of the shares
at the DTCC. In addition I have forwarded to you a memorandum from the Re-Org department of TD Ameritrade to a WEYL shareholder admitting that "All orders that didn't settle properly were not on the list"
sent to the Company. FINRA can confirm by calling the Compliance November 5, 2018
Department at TD Ameritade and determine the total number of shares of WEYL held in their customers' accounts. That number can be compared to the delivered shares at the DTCC and FINRA
will immediately realize the extent of the fails to deliver problem at that firm. If TD Ameritrade realizes that FINRA is aware of their delivery problem it is difficult to believe that they would not rectify it.
I continue to be available to answer any question you or your staff might have. Thank you in advance for your help in this critical matter.
Tony Forte:
