Verus International Inc (VRUS)

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Anyone in constant contact with IR. PLEASE send this to them. This will fix our shorting/odd trading pattern. One company did it! Verus can so the same.


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Explains Illegal Naked Shorting Being Perpetrated By Major Market Makers on MAXD Shares

8,117,878,650 shares shorted in the past year, which is more than 40% of MAXD’s total trading volume

  

June 14, 2018 08:49 ET | Source: Max Sound Corp.

SAN DIEGO, June 14, 2018 (GLOBE NEWSWIRE) -- via NetworkWire -- MAXD (OTC PK:MAXD) / Max Sound Corporation. Max Sound Corporation has engaged a leading provider of Regulation SHO compliance monitoring, short sale trading statistics and market integrity surveillance related to substantial short selling of its stock. Regulation SHO requires bona-fide market-making activities to include making purchases and sales in roughly comparable amounts. The Securities and Exchange Commission has stated that bona-fide market-making DOES NOT include activity that is related to speculative selling strategies for investment purposes of the broker-dealer and is disproportionate to the usual market making patterns or practices of the broker-dealer in that security. Likewise, where a market maker posts continually at or near the best offer, but does not also post at or near the best bid, the market maker's activities do not qualify as bona-fide market making. Moreover, a market maker that continually executes short sales away from its posted quotes is not considered to be engaged in bona-fide market making.

MAXD market makers have been monitored daily for compliance with Reg SHO and Fair Market-Making Requirements.  Here is a trading analysis of MAXD.  BuyVol = real buyers at offer.  SellVol = real sellers at bid. ShortVolume = short sale trade identifiers for both EXEMPT (market makers) and NON-EXEMPT (everyone else) shorts sales. The short selling as a percentage of daily trading volume in MAXD by your firm is abnormally high; the market-making math related thereto does not reconcile and is not at all compliant with Federal Securities Laws. 

As is common during these orchestrated short selling campaigns, bad actors with no real interest in MAXD’s success, or any small public company for that matter, has consistently engaged in false accusations and libel on the Company’s stock chat boards in attempts to scare and demoralize MAXD’s legitimate shareholders. It is noteworthy that as soon as Max Sound sent this report to the market makers perpetrating the naked short sales on the company, the bad actors disappeared at least for the time being.

Here is a primer on the subject at hand http://counterfeitingstock.com/CounterfeitingStock.html and here is a powerful article put into actual practice https://theintercept.com/series/penny-stock-chronicles/

ANALYSIS and ACTION

We have analyzed the last year of daily short volume data and correlated it to recent market making activity in MAXD.  In 27 of the past 31 trading days, 87% of the time, the combined selling and short selling in MAXD has far exceeded the amount of buying (See NetNet column below).  Market makers, by definition, are required to PROVIDE LIQUIDITY not extract or remove liquidity. The math provided below demonstrates that instead of matching orders, market makers, Knight/Virtu, Cantor Fitzgerald, Canaccord Genuity, Citadel, eTrade/G1 are heavily shorting MAXD stock BOTH on the offer and on the bid, which by definition means they have a “speculative short selling strategy” running on MAXD. They are carrying net short positions overnight and continuing to claim the market maker’s exemption, which is in VIOLATION of the Fair Market Making Requirements of Regulation SHO.  We are able to mathematically prove this because there is not enough BuyVol (buy volume) to match the amount of selling and short selling. The chart below identifies the top 5 market makers, in MAXD for May 2018 (highlighted below) accounting for 2,257,870,595 shares of trading, or 88.22% of total trading volume in May. 

Total Volume   Name  
(Last Month)

643,662,180    Knight/Virtu, 
154,447,100    Cantor Fitzgerald, 
203,762,081    Canaccord Genuity, 
769,731,954    Citadel, 
247,276,817    Trade/G1

Highlighting these Market Makers abusive activities in-concert with each other for just the one month of May, allows regulators, the SEC, FINRA, the U.S. Attorney as well as the media to easily identify the manipulative trading activity and counterfeiting of MAXD shares engaged in by their traders for the past year and well beyond. When overlaid for the entire year (back to June 1, 2017) the math is shocking. 8,117,878,650 total shares have been shorted representing in excess of 40% of MAXD’s total trading volume and it demonstrates that these market makers have knowingly participated in manipulative trading practices and counterfeiting of MAXD shares.

We provide the following data in this report:

DAILY TOTAL SHARES SHORTED (volume and price), which includes all shares shorted even by exempt institutions such as market makers.

FAILURES TO DELIVER (naked shorts).

MARKET MAKER SHARE VOLUME (exposing exactly how many shares are being traded and the name of the market making firm traded through).

MARKET MAKER DATA (showing whether or not a fair market is being made in each trading day).

CUMULATIVE TOTAL SHARES SHORTED data showing large short positions and the volume weighted average price that a short squeeze will start.

DateShortVolumeTotal VolumePercentSqueeze Trigger$Value6/8/201815,701,300107,574,93414.60%$0.0004$6,2816/7/201853,355,529165,271,18432.28%$0.0004$21,3426/6/2018648,355,6301,238,570,54452.35%$0.0005$324,1786/5/201865,351,87596,413,87567.78%$0.0004$26,1416/4/201846,779,267107,384,33343.56%$0.0004$18,7126/1/2018289,758,138362,031,35880.04%$0.0003$86,9275/31/20184,949,999112,476,9354.40%$0.0003$1,4855/30/2018116,156,059380,530,66030.52%$0.0003$34,8475/29/201819,961,30954,883,43836.37%$0.0002$3,9925/25/20181,514,24433,174,7774.56%$0.0003$4545/24/20188,870,00040,350,00021.98%$0.0003$2,6615/23/201864,000,850112,982,07356.65%$0.0003$19,2005/22/20184,093,3337,003,93158.44%$0.0003$1,2285/21/20183,230,90019,691,67816.41%$0.0003$9695/18/201883,819,569207,235,03040.45%$0.0003$25,1465/17/2018117,944,438261,529,49245.10%$0.0003$35,3835/16/201831,857,47782,434,22738.65%$0.0003$9,5575/15/201817,602,39840,532,80143.43%$0.0003$5,2815/14/201859,639,388160,659,43437.12%$0.0003$17,8925/11/20184,345,52545,242,3539.60%$0.0003$1,3045/10/20189,486,43912,293,63877.17%$0.0003$2,8465/9/201873,012,030209,322,90934.88%$0.0003$21,9045/8/2018117,699,386183,193,95964.25%$0.0003$35,3105/7/201813,376,50031,810,96042.05%$0.0003$4,0135/4/201823,450,72552,153,19444.97%$0.0003$7,0355/3/201817,529,26627,504,96463.73%$0.0003$5,2595/2/201818,156,57654,003,98733.62%$0.0003$5,4475/1/2018145,586,693428,196,15534.00%$0.0003$43,6764/30/201825,360,36774,589,31634.00%$0.0003$7,6084/27/201868,975,488202,869,08334.00%$0.0004$27,5904/26/201830,661,67690,181,40134.00%$0.0004$12,2654/25/201829,057,09285,462,03534.00%$0.0005$14,529Total8,117,878,65019,886,222,30440.82%$0.0008$6,178,916*Total includes data back to 6-1-17. Chart truncated for viewing. 

The below data is