Stk:...........I think you/all of us may haves some miss conceptions when Scott mentions fraudulent shares.I think the term is applied to the naked shorting issue,IMO.
I don't think some little guy in Calcutta was printing phony shares certificate or any one else was. I think "THEY" are caught with their pants down shorting millions of shares for a long time.
"THEY"normally keep going along with this practice until the company goes out of business. That is the goal and then, they do NOT have to produce or (cover) or return the shares they borrowed to sell short, because the company went broke.Its a perfect scam if you are big enough and smart enough and rotten enough.Its brilliant in its evil..........
You see,IMO again someone allowed this shorting to go on with ought proper adherence to the rules, for a cut/percentage caring charge. I would assume Secondly they knew or looked the other way when there where NO certificates to make these short trades legal.Third they shorted a penny stock,which is not allowed.
Now that a "miracle" has happen and a stock that was NOT expected to live, suddenly comes alive with possible money.OOPSS!.......To make it worse for whom ever went along, is that IPWG is going to get a newly issued cuspid number(counter chess move of the century)
This will require all the short trades to add up!.........but they can't add up because the short trades where not done properly, because THEY where the (fraudulent shares) or trades.They where the ones sold short with ought a matching counter shares to BALANCE that trade.Now..they are exposed and have to some how come up with some shares............from where?
They can only go to You, the ones who own the only real shares with certificates.Anything you bought from Scott they have to produce a certificate for you. They clear the trades in three days. Its their darn problem..........not ours.
So the powers that be, and the people shorting this now have to figure out how to balance it???.......No wonder they stopped clearing trades, its obvious.
The little secretaries at Scott or where ever don't now what is going on.......how would they? Its all illegal. They are underlings and just give you a can answer or their best guess...........they don't know is really going on.
IMO, this is part of large crooked game in the industry. Normally they succeed and the company goes out of business and the book keeping is swept under the rug, since there is no requirement to balance the trades of (fraudulent short sales)when the company dies.Why should there be? its dead.
Now, all of the sudden there is a need to balance.............but I think that this (crisis) is factored into the cost of doing business by the big boys.They will survive..........so should IPWG and may be even prosper if I am right.
I don't know the details of the rest of the future story, may be others know. It could be settled and negotiated in some way may be. I don't think the little plebeians (us) are at risk. Heck, we are on the outside looking in. Scottrade is responsible to clear the trades for you or their firms are. They are liable and at risk. Not the common share holder.
It is their business after all. We pay our fees they make a profit and take the risks.This should be an interesting story to watch unfold.We have to watch for now..................we are chilled out of the game for now and it is costing us money.........how does it feel?? IMO.
