CMKM Diamonds Inc. (fka CMKX)

[Iggy_Bot]

Like i say everyone BUT UC seems to be getting busted !

Stock Patrol Suspected as a Front in a Short-selling Scam
There is a company out there called StockPatrol.com which publishes a
website that many investors rely on. StockPatrol acts as watchdog warning
investors of allegedly bad publicly traded companies. But things may not be
what they seem.




(I-Newswire) - There is a company out there called StockPatrol.com which
publishes a website that many investors rely on. StockPatrol acts as
watchdog warning investors of allegedly bad publicly traded companies. But
things may not be what they seem.

Analysts are looking at a correlation between StockPatrol’s negative
reporting and waves of short-selling. What they find interesting is that
there seems to be a certain pattern.

This is how the short-selling scam is suspected to work.

Selling often starts shortly before StockPatrol puts out its negative
report – while a company’s stock price is still high. This brings an amount
of money into the sellers’ accounts.

When StockPatrol releases its negative report, it initiates a downward
momentum. The short-sellers continue to sell, reinforcing the downward trend
and in the process bring in additional money.

As the panicked shareholders of the affected company try to get out of the
declining stock, the stock tumbles, at which point the short-sellers quietly
start buying the necessary amount of stock back to cover their short
positions at a fraction of their original price.

The difference they keep as their profit. Obviously, the affected company,
its management and shareholders don’t benefit from this. They are the
losers.

The money the short-sellers can make on the backs of small company investors
must be significant, considering that StockPatrol deals in low priced stocks
where even small changes in price represent a large percentage change.
Further, StockPatrol has to be aware that through its negative reporting it
is actually sabotaging small company prospects, thus removing risk from
shorting those companies.

An ingenious modus operandi – assured money making mechanism that is
virtually risk-less.

Operating out of his multi-million dollar five bedroom apartment in midtown
Manhattan with one bedroom dedicated to the StockPatrol, its sole operator,
Mr. Hartley Bernstein receives no compensation for his work and dedicates
his time and own money purely for the social cause of being a self-appointed
watchdog of the securities markets.

StockPatrol states that its mission is to inquire, investigate, research and
report on interesting, odd and unusual developments in the securities
markets.

Upon closer look however, StockPatrol’s reports amount to clever derogatory
innuendoes by Mr. Bernstein. He gives them a particular kind of spin. But
these aren’t simply inconsequential private opinions. Mr. Bernstein has
built a following and, when he makes an innuendo to bash a company, he knows
it is bound to produce a negative market response.
StockPatrol does a lot of reporting. But it appears that Mr. Bernstein has
never bothered to substantiate his innuendoes and has never contacted the
firms he attacks. In fact, when one brave company challenged him for a
public debate he simply disappeared.

Obviously, Mr. Bernstein wouldn’t be shorting himself. Shorting would have
to be done through untraceable off-shore accounts and by remote parties
without a direct connection to him.

But there must be one connection. Short-sellers somehow happen to know ahead
of time on which companies StockPatrol is going to issue its reports. Is it
a mere coincidence, or is there a friendly leak at StockPatrol?

Ingenious as it may be, shorting small cap stocks is not only wrong it is
actually illegal, especially on a downward trend!

As it turns out, Mr. Bernstein actually has a background in securities
scheming, deceit and lying – even perjuring himself in Court. He is no
stranger to law breaking.

Mr. Hartley Bernstein is a disbarred New York attorney. He is also a
convicted felon. Mr. Bernstein was found guilty of stock fraud and perjury
at the U.S. District Court in New York. If you want to spend $25 you can
download the indictment and conviction details.

As in organized crime cases, in this case the government used Mr. Bernstein
as one of the key figures to convict the others. In exchange for his
testimony against his buddies in crime, Mr. Bernstein bargained for himself
a lighter sentence.

Mr. Bernstein apparently claims that he is reformed now. Notwithstanding,
his background must be considered. According to a New York Times article a
few years ago on Mr. Bernstein’s past, some regulators are skeptical and
believe that recidivism with this type of crime is standard.

It does look odd that Mr. Bernstein is running StockPatrol – it’s like
having a convicted bank robber manage a bank or having and ex child molester
work in an elementary school.

Mr. Bernstein has the audacity to make up unsubstantiated innuendoes giving
them his typical spin that portrays business people building companies as
being somehow crooked. In reality, the crooks by enlarge come from the
securities industry victimizing companies for their ends.

At a minimum, Mr. Bernstein, as well as the regulators who permit him to go
on, must realize that they are responsible for effectively depressing the
stock of the small companies that Mr. Bernstein denigrates through his
innuendo reporting.

Don’t these small firms deserve government protection against such attacks
by a convicted felon?

While there inevitably must be bad apples among small cap companies, as
there are among large companies, it does not appear that the majority of the
firms that Mr. Bernstein attacks have done anything wrong.

If there is any wrongdoing by the companies that Mr. Bernstein has been
allowed to slander, then regulators should charge those companies. But that
is not the case.

A question has to be asked, are regulators looking the other way when it
comes to wrongdoing by Mr. Bernstein? If so, what is the rationale? The word
on the Street is that certain regulators value Mr. Bernstein and have
allowed him to carry on with his innuendo reporting “for prophylactic
reasons” to keep small companies in check, so to speak.

If there is truth to this, this would bring into question the regulators’
ethics and wisdom.

What is happening is that Mr. Bernstein, acting as a quasi-governmental
representative, is harming legitimate small business, undermining capital
formation at the grassroots level and affecting the integrity of the small
cap market. He should be investigated.

Understandably, for the regulators securing actionable evidence against
someone skillful like Mr. Bernstein may not be so easy the second time
around and he may represent an embarrassment. There may be however grounds
for civil action by the affected companies.

Investors and executives of affected companies have been wondering for some
time now whether Mr. Bernstein is just an overzealous man who acts for no
other reason but to selflessly protect the investing public’s interests, or
if there is a more practical side to this – Whether there is basis to
suspicions that StockPatrol and its related outlets ( Stock Watchdog, Radar’
s Doghouse, Stock or Schlock, The Radar Screen, Buyer Be Weary, Know Your
Broker, Regulations on Patrol ) are a front for one of the biggest
short-selling scams in the small cap market.

What is even more disconcerting is that everybody is afraid to talk about
Mr. Bernstein out of fear of retaliation. Even news reporters are shy to
explore legitimate concerns regarding Mr. Bernstein.


http://www.i-newswire.com/pr87603.html