By equal protection, I mean the SEC should be going after the people who sold the unregistered shares, regardless of scienter. Just as they have previously gone after SpongeTech stock beneficiaries, in prior cases where those same beneficiaries sold unregistered shares in previous cases they were involved in.
The SEC should be doing the same thing here, just as they did in the previous cases involving these stock beneficiaries, and just as IIROC did in this case.
Then, there is the issue with our predominant clearing agent charged with naked shorting. There is the fact that shorts were continually executed, even when we were on the RegSHO Threshold Securities List. And, as I submitted to Judge Bernstein, we know which brokerage, and which Registered Reps, continually executed short transactions in violation of Rule 204, designed to prevent naked shorting.
$1.25 billion worth of stock, representing over 12 billion shares, sold in just an eight month period, at a time when the company only had 2 billion shares authorized.
The DOJ should not permit the SEC's application of discretionary authority, when that results in securities laws being disregarded in the process. And certainly, the DOJ also has an obligation to act in accordance with the law themselves.
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