Why does the SEC allow the printing of counterfeit shares?
By: Kevin M. West
SEC STATEMENT ON THEIR WEBSITE! Naked short selling (Counterfeit Stock Selling) is not necessarily a violation of the federal securities laws or the Commission's rules. Indeed, in certain circumstances, naked short selling contributes to market liquidity. (1)
Would you have the support and protection of any government agency if you were a little short on cash (liquidity problem) and decided to do a little counterfeiting of currency? Certainly not! Why? Because counterfeiting ANYTHING that has monetary value is a CRIME and is punishable to the full extent of the law!
So, counterfeiting is not only condoned but needed in the stock market? What does this stock counterfeiting do for market “liquidity” as the SEC states? Well, for one it dilutes the number of shares in the market and makes the price of ANY stock you own, that has been victimized by counterfeit stock selling, fall in price. It’s like paying full price for an expensive steak at Morton’s and having the chef replace half of your steak with a photograph.
Not only does it dilute the stock, but it can take away buying pressure and force sells from investors worried about the price drop. When you take away buying pressure from a stock, then short sellers can make a fortune! Sounds like the counterfeit stock perpetuators may be aligned with some big time “legal” stock shorting organizations. (although the indicated collusion here is certainly not legal)
There is no way to guarantee the price to rise in a stock indefinitely, but you can sure guarantee it to drop if you can keep diluting it. No wonder why we still have a “Bear Market” the crooks are in control!
What is the SEC doing to fix this problem? It would seem that they are protecting the CRIMINALS by going after the companies that have the worst problems. Oh, and get this, the SEC is also GRANDFATHERING in all the felonious counterfeiting done in the last decade or so before the beginning of this year.
Let’s look at two examples:
#1 Global Links Corp. (GLKC)
On February 1st GLKC did a reverse split where its shares decreased by 1 for 350. On February 1st GLKC had 1,158,064 shares outstanding. Apparently since that time, they issued some additional shares because as of March 31, 2005, the outstanding shares of Global Links Corp. was 4,028,362 shares. They can’t release many more shares due to their authorized shares allowed to be issued at 5,428,571 shares.
So we know for a fact, between February 1st and March 31st there was an absolute number of shares available to trade. There were a maximum of 4,028,362 shares available to trade at any given time during this period.
The following is the daily volume for the first seven trading days after the reverse split:
For the entire month of March, 2005 a total of 242,055,502 shares traded total. The 4,028,362 shares outstanding somehow traded themselves over 60 times over a course of 49 trading days. That would not only be unheard of, it would be impossible without the number of counterfeit shares in this stock being incredibly large… several times the amount of shares issued.
#2 CMKM Diamonds (CMKX)
Last summer, U.S. Canadian Minerals (USCA) shares were given as a dividend to all CMKX shareholders of record as of 8-20-04 (2)
On 9-24-04, USCA announced that they agreed to issue additional shares for the round-up process (to account for fractional shares) for the dividend distribution. (3) The number of shares needed to be issued was 29,677 which meant there was a total of at least 29,677 known shareholders of CMKX.
We also know that there are a total of 407,321,106,308 CMKX shares held in street name (shareholders not personally holding certificates for their shares) as per the 8K filing last month. (4)
There is an active group of shareholders that have hired an attorney to represent them in the coming administrative hearing (where the SEC intends to revoke the company and strip away millions of dollars of investments from tens of thousands of investors). This group calls themselves the CMKX Owners Group. According to their online count of investors signing up, the total shares represented to be owned by this group is 78,069,722,395. This is the amount of shares owned by 1012 investors that have signed up as of yesterday. (5)
Let’s do some quick math here, shall we?
1012 Signed Agreements at the owners group. (5)
407,321,106,308 CMKX shares held in street name according to the CMKX 8-K (4)
78,069,722,395 street shares held by the CMKX Owners Group. (5)
78,069,722,395 is 19.16% of the 407,321,106,308 street shares stated in the 8K.
So, it appears that 1012 shareholders own 19.16% of the street shares.
Going back to the USCA dividend PR (2), USCA had to give out 29,677 rounding shares to take care of fractions meaning that there had to be a minimal 29,677 CMKX shareholders at that time.
1012 shareholders represented in the CMKX Owners Group is 3.4% of 29,677, or the total known number of shareholders as of the USCA dividend. (Presently believed to be around 72,000 shareholders)
So, are we telling you that 3.4% of the shareholders own 19.16% of the street shares?
If these averages from over 1,000 shareholders hold true for the entire shareholder base, then 29,677 shareholders would own 2,289,402,323,632 (Trillion) street shares while only 407,321,106,308 are even possibly available. Now factor in a possible 72,000+ shareholder base and the number of street shares in the market more than double! Also, keep in mind that CMKX has a possible tens of billions of dollars in valuation (6)
Some say, big deal, these are only Pink Sheet stocks! Yes, these two examples are Pink Sheets stocks….
But we can Guarantee you that every investor that stands to loose their entire investment because of Counterfeit Stock sales, is real. And so are their families, homes, autos and everything else that may be involved if the SEC strips all of these investors of their money by revoking the company in lieu of the Wall Street criminal’s freedom.
Counterfeit shares are not just limited to Pink Sheet stocks. Many medium to large companies on the NASDAQ, NYSE and AMEX are also having their share prices driven down due to Counterfeit Stock Selling, also referred to as Naked Short Selling.
America needs to know; When is the SEC going to start going after the criminals of this crime and stop sweeping it under the carpet and ruining the lives of investors and their families?
“Stand up America”, and TAKE YOUR COUNTRY BACK!
Kevin M. West
SEC.gov website Link
USCA dividend PR Link
USCA rounding PR Link
CMKX 8K Link
CMKX Owners Group Link
America Needs to Know #1 Link
** The views and opinions written in this article belong to the writer and are not sponsored or approved by anyone but the writer. This article is in no way affiliated with CMKX, the CMKX owner’s group or any other groups or organizations. The article is in no way intended to be used as investment advice. Some of the content above was donated by www.noboxtrading.com
Copyright "Foundation of the Heart", 2004.
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Last updated: 04/30/05.
In God We Trust
ps. Eliminate shorting, before it eliminates you.