NAKED SHORTING...MUST READ!!

[XenaLives]

From elsewhere on the same site:

Further State Laws
All states should have a provision on their books like the one in California, that is taken almost verbatim from the text of federal
securities laws. This ensures that civil action can be taken in state courts by investors or by state regulators based on state laws:


Cal Corp Code § 25400 (2008):

Creating false or misleading statements or appearance of active trading to induce purchase or sale or to manipulate price


It is unlawful for any person, directly or indirectly, in this state:

(a) For the purpose of creating a false or misleading appearance of active trading in any security or a false or misleading
appearance with respect to the market for any security, (1) to effect any transaction in a security which involves no change in
the beneficial ownership thereof, or (2) to enter an order or orders for the purchase of any security with the knowledge that an
order or orders of substantially the same size, at substantially the same time and at substantially the same price, for the sale of
any such security, has been or will be entered by or for the same or different parties, or (3) to enter an order or orders for the
sale of any security with the knowledge that an order or orders of substantially the same size, at substantially the same time and
at substantially the same price, for the purchase of any such security, has been or will be entered by or for the same or different
parties.

(b) To effect, alone or with one or more other persons, a series of transactions in any security creating actual or apparent
active trading in such security or raising or depressing the price of such security, for the purpose of inducing the purchase or
sale of such security by others.

http://investorprotectioncoalition.org/Risk.html