Sulja Bros. Building Supplies, Ltd (SLJB)

[MarionPolk]

That might be one way of looking at it, but the claim was made that they actually issued the shares (without a registration statement).

A "naked short" is the sale of stock the seller doesn't own.

Any corporation potentially owns an infinite amount of stock, as it can change the "authorized shares" by a simple vote of the Board of Directors. To actually sell more shares, a corporation has to either file a registration statement, or a Reg.D exemption. Since Sulja did neither of these, Sulja illegally sold shares if the "float" is now actually more than 500 million shares, as reported by those on the conference call.