Thanks Rick. I note that every one of these complaints except for the last were related to violations of Reg Sho securities. The last time MDMN appeared on the Reg Sho threshold securities list was in 2005. Most also involved a linked Put/Call/short sale strategy which would be unavailable on MDMN since options are not sold on the security.
The last was a very interesting PIPE transaction
"Typically, after agreeing to invest in a PIPE transaction, Defendants sold short the issuer's stock, frequently through "naked" short sales in Canada. Later, once the Commission declared the resale registration statement effective, Defendants used the PIPE shares to cover the short positions - a practice prohibited by the registration provisions of the federal securities laws. To avoid detection and regulatory scrutiny, Defendants employed a variety of deceptive trading techniques, including wash sales, matched orders, and pre-arranged trades, to make it appear that they were covering their short sales with open market shares, when, in fact, Defendants were on both sides of the transactions and were covering with their PIPE shares". Of course it's impossible to know what terms are for any PIPE investment in MDMN, but if there are convertible PIPEs invested in MDMN, whether naked shorting or not, it would be bad for the stock.
Once again, I must point out, if indeed there is a large naked short position in MDMN it implies that counterfeiting shares in the company is quite easy. Since there are only a handful of cases in the last 5+ years, none of which involve simply purely naked shorting a stock, let alone a non-filing pinkie it suggests to me that a) either there is no naked short position in MDMN or b) that any naked short position is unlikely to be discovered and therefore will continue until MDMN is worthless.
I would imagine the SEC did not lightly craft their warning that "There also may be instances where a company insider or paid promoter provides false and misleading excuses for why a company's stock price has recently decreased. For instance, these individuals may claim that the price decrease is a temporary condition resulting from the activities of naked short sellers. The insiders or promoters may hope to use this misinformation to move the price back up so they can dump their own stock at higher prices. Often, the price decrease is a result of the company's poor financial situation rather than the reasons provided by the insiders or promoters.". Nor, IMHO, did they do it in response to a theoretical threat of its occurrence.
Best of luck though.
The only thing necessary for the triumph of evil is for good men to do nothing.
EDMUND BURKE (and others)
