Just for you buddy.
How about the bogus "counterfeit share" scheme?
SEC Probes Research Tied To Naked Shorting: Report
Portfolio Media, New York (November 21, 2005)--The Securities and Exchange Commission is investigating a financial research firm over allegations it conspired with a hedge fund to drive down the share prices of online retailer Overstock.com, according to a published report. The Salt Lake Tribune said it had obtained documents showing inquiries have been under way since at least October 6, when three former employees of the financial research firm Gradient Analytics Inc. were questioned by San Francisco SEC officers. In letters dated October 11, Mark Fickes, an attorney with the SEC's Division of Enforcement, acknowledges the cooperation of ex- Gradient employees Daryl Smith, Demetrios Anifantis and Robert Ballash and provides a case number for the probe.
Included is a document advising them of their rights as witnesses in possible enforcement proceedings, the newspaper reported. The SEC’s investigation comes in the wake of a lawsuit brought by Overstock.com and one of its shareholders against Rocker Partners; its two top executives, David Rocker and Marc Cohodes; and Gradient Analytics, along with its two founders. In the lawsuit, Overstock alleges that the defendants “orchestrated a wide-scale predatory campaign of knowingly distributing false, and covertly biased, written reports about Overstock in order to disparage Overstock and enrich themselves.”
Overstock.com claims that beginning in June 2003, Gradient published nearly 60 negative reviews about the Utah company. Although claiming independence, Gradient's reports were made with Rocker officials' input, Overstock.com alleged. During the period of the negative reports, short selling of Overstock.com shares accelerated. Share prices slid from a high of $77.18 in January 2005 to the $40-$50 range in recent weeks.
Overstock CEO Patrick Byrne has launched a crusade against so-called “naked short selling”. In short selling, which is legal, traders sell stock they don't own but borrow.
They wait for the share price to go down, and then return the loan and pocket the difference. Illegal "naked shorting," on the other hand, involves selling stock traders haven’t actually borrowed in order to harm public companies. Both Gradient and Rocker have denied all allegations. On Tuesday, Gradient filed a motion seeking the dismissal of Overstock's suit on grounds that the Utah company was seeking to suppress its critical reviews. Gradient said its research reports criticizing Overstock.com were based on independent research that the firm believed to be accurate, Gradient said in a filing in state court in Marin County, Calif.
Gradient denied Overstock.com's claims that it worked with hedge fund Rocker Partners LLP on reports aimed at pushing down Overstock.com's shares and delayed publication so Rocker could adjust its positions in the stock. "Rocker never provided or offered inducements to Gradient to compromise Gradient's exercise of independent judgment," Gradient said in the filing. "No matter how objectionable or controversial, Gradient's opinions cannot be the basis of a libel claim." "Overstock's efforts here are part of a much broader war on Gradient, which is being waged in the press and in regulators' offices, as well as in this court," Gradient's countersuit stated. "Overstock seeks to deliver the clear message - to Gradient and all others - that criticism of Overstock will not go unpunished." Gradient, for its part, insists it has “no direct knowledge of any SEC inquiry that may be under way. . . . Should the SEC choose to contact the company, Gradient looks forward to . . . getting to the bottom of the false accusations that have been circulated by Overstock.com,” according to a recent statement.
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Keep soaking your head in your arrogance.
AI
