In February of 2005, author Frank J. Dobrucki’s company, Global Links Corp. (GLCO.PK), was hit extremely hard with Naked Short Selling, the illegal practice whereby brokers sell shares they do not have.
In a single month, more than 20,800% of the total issued and authorized shares in the company were sold on public markets. In many cases, shares totaling more than 100% of the entire company were sold in a single transaction.
While the government was clearly aware this had happened, no agency responded, no investigation was conducted, and the problem was buried. After all, acknowledging it was possible for this kind of out-of-control trading to occur would open the floodgates to prove this could be happening to dozens, or more, of other companies.
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