The judge has no way to proceed with this motion. At best the judge can dictate to the trustee that he must review the current share structure of the company. That has already been defined by the TA so it would be interesting as to where else he would look.
The Court could suggest the Trustee look into the fails to deliver but…oops…those are published by the SEC twice a month.
Beyond that the courts have no jurisdictions. This judge can not issue a subpoena forcing the SEC to investigate settlement failures because:
1. the judge has no authority over the SEC’s investigative decisions and work assignments
2. the courts have no proof that there are claims beyond that of a conspiracy group.
The Judge can not issue a subpoena against the broker-dealers or DTCC because the brokers and DTCC are not a direct party in this bankruptcy and the data they possess is proprietary. In all the lawsuits filed by the lawyers fighting NSS abuses, it was impossible to get a judge to issue these subpoena’s when the DTCC and BD’s were defendants. Does a bankruptcy judge think they have more authority over these private businesses when these businesses are not even a party to the issue?
To get a court to move you need to have a reason. Some level of proof that the courts should impose a subpoena on another. So far the SEC has made no claim of fraud by NSS, the FTD data does not support the allegation, the actions taken against the officers support the selling coming from insiders, so what compelling data would push a judge to act?
For those that believe, feel free to explain in detail exactly how you think this investigation works and by whom.
