MM Tactics

[first mike]

Documentary proof of trading irregularities.

0) 09:40:13 09/27/12
Level 2 showing asks:
NITE 0.0396 5000 (no depth)
ATDF 0.044 152000 (no depth)
LAFC 0.045 5000

1) test order
buy 12000@0.05
Order No. 9086030128 Kraig Biocraft Bid: 0.0393 Ask: 0.0396 Last: 0.0393
A) Entered:09:43:23 09/27/12
B) Part Filled Order No. 9086030128 Kraig Biocraft
Buy 5000 KBLB Type: Limit Price: 0.0396 Reported: 09:43:54 09/27/12

2) delayed execution of remainder of order
A) Remaining 7000 NOT FILLED from ATDF ask even though limit was @.05!
B) Two Minutes of silence (order is already in the system of OTC MMs)
C) 09:45:32 -NITE enters new ask 0.0396 20000 (+depth)
D) 09:45:42 Remainder (7000) filled from new NITE ask which did not exist at time of Buy order placement!!!
Filled Order No. 9086030128 Kraig Biocraft
Buy 7000 KBLB Type: Limit Price: 0.0396 Reported: 09:45:43 09/27/12 Entered:09:43:23 09/27/12

Once Again - Remainder (7000) was held and delayed for ~ 2 minutes while NITE placed a new larger ask at the low price, then filled from new NITE ask which did not exist at time of Buy order placement! even though an ask within the limit already existed at the time of buy order placement!!!!

Mike L.