STOCK MANIPULATION FROM ILLEGAL NAKED SHORT SELLING
Earlier this summer Max Sound Corp. engaged a leading provider of Regulation SHO compliance monitoring, short sale trading statistics and market integrity surveillance to examine substantial short selling of its stock. The results were shocking and disturbing: “Max Sound Corporation (MAXD) has and is being victimized by Manipulative Trading Practices and Abusive Naked Short Selling for the past three years with the culprit’s objective to lower the price and harm the Company,” said John Blaisure – CEO, Max Sound Corp.
“We asked the SEC and FINRA to act on MAXD’s complaints and accelerate their investigations on the five major Market Makers, which are performing these illegal naked short selling activities, share counterfeiting and failing to deliver shares,” added Mr. Blaisure. “For anyone who doubts the reality of Naked Short Selling as a way that these market makers steal around 70 billion dollars a year of real equity from American middle class and blue collar investors who believe in the Small American Business Microcaps they are the primary investors of, here is a letter the Company received on July 23, 2018 along with a 198 page published report from the first court recognized expert on the subject of Naked Short Selling – Attorney Wes Christian of Christian Smith and Jewel.”
“Several months ago I was hired as a “Naked Short Selling Expert” for a particular case in Federal Court of the Southern District of Florida (the “Case”). In the Case, which was tried before the court last week, I opined that: a) 40 to 70 percent of the daily trading volume (from Sept 2007 to Sept 2008) were counterfeit shares in the form of fails to deliver; and b) there were another 45 million shares in “hidden fails”, which were revealed by virtue of a new Cusip number assigned to the “replacement shares” issued after a 4500 to 1 reverse split. This reverse split required to redeem your physical share(s) with the old Cusip number for a new share(s) with a different Cusip number. The final conclusion I reached was that there were 100 million counterfeit shares sold when the total shares issued by the company were only 65 million. The SEC and the DOJ filed NO REBUTTAL TO MY REPORT. In fact, they accepted my report into evidence and told another lawyer from Kravath (after both sides rested) that they did not rebutt anything because they were TERRIFIED OF ME AND MY FINDINGS. This is, to my knowledge, the first time: 1) a court has accepted anyone as a naked short selling expert; and 2) allowed such report (and my rebuttal report) to be put into evidence. This is important to all of us litigating in this space, as we now have a precedent for this. In addition, the revelation of the level of counterfeit shares was compelling. I have enclosed my report and all exhibits for your review. Please note the number of sanctions and fines against wall street which single spaced is 25 pages, the vast majority of which is for mis-marking tickets long when they are short, not borrowing shares, and failing to deliver etc.
patience is the key to the locked door to prosperity
