Replies to post #17621 on NSS ~ Counterfeiting Stock ~ MM Games Played

[SevenTenEleven]

Still trying to figure out how an HTML could be altered?

It worked months ago.

Tic Toc

[fourkids_9pets]

resets r possible ..

and *resetting* the clock happens in some *targeted* OTC stox .. on a minute by minute basis
which is why it's key to note where exactly in the targeted stock .. the cycle of money actually is

as odd as this may seem .. i'll take the illiquid phase with no shares left to access .. this is where PTOI
currently stands .. now it's just a waiting game .. :)

CTIX is still very much in its *liquidity* phase .. the set up for the *orchestrated RUN* occurred EO last year
>> it took them 8 months to *work* the orchestrated take DOWN .. which is why my expectation is we'll
see *compressed* volume with consistently higher daily reg sho %s (meaning they will orchestrate another
cycle UP) ..

PTOI was last in it's liquidity phase in 2011 .. from 2012 it's been (with one exception .. Jan 2013) compressed
down via *abusive* shorting ..

MSRT .. being the new kid on the block with a very limited FLOAT and triggering threshold/reg sho for
23 CONsecutive days .. *shortly* after they came public .. is *fascinating* to watch *trade* .. gotta love
when a plan comes together .. *monetization* kicking in .. while the shits who abusively short are doing
the dance of the algos to avoid triggering reg sho/threshold for a 2nd time in 2015 .. ;)


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At any given point in time more than 100 emerging companies are under attack as described above. This is not to be confused with the day-to-day shorting that occurs in virtually every stock, which is purportedly about thirty percent of the daily volume.

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Stock sales are either a long sale or a short sale. When a stock is transacted the broker checks the appropriate box. By mismarking the trading ticket –checking the long box when it is actually a short sale the short never shows up, unless they get caught, which doesn’t happen often. The position usually gets reconciled when the short covers.

Settlement of stock transactions is supposed to occur within three days, at which time a naked short should become a fail–to–deliver, however the SEC routinely and automatically grants a number of extensions before the naked short gets reported as a fail–to–deliver. Most of the short hedge funds and broker dealers have multiple entities, many offshore, so they sell large naked short positions from entity to entity. Position rolls, as they are called, are frequently done broker to broker, or hedge fund to hedge fund, in block trades that never appear on an exchange. Each movement resets the time clock for the naked position becoming a fail–to–deliver and is a means of quickly getting a company off of the SHO threshold list.

The prime brokers may do a buy–in of a naked short position. If they tell the short hedge fund that we are going to buy–in at 3:59 EST on Friday, the hedge fund naked shorts into their own buy–in (or has a co–conspirator do it) and rolls their position, hence circumventing Reg SHO.

Most of the large broker dealers operate internationally, so when regulators come in (they almost always “call ahead”) or compliance people come in (ditto), large naked positions are moved out of the country and returned at a later date.

The stock lend is enormously profitable for the broker dealers who charge the short sellers large fees for the “borrowed” shares, whether they are real or counterfeit. When shares are loaned to a short, they are supposed to remain with the short until he covers his position by purchasing real shares. The broker dealers do one–day lends, which enables the short to identify to the SEC the account that shares were borrowed from. As soon as the report is sent in, the shares are returned to the broker dealer to be loaned to the next short. This allows eight to ten shorts to borrow the same shares, resetting the SHO–fail–to–deliver clock each time, which makes all of the counterfeit shares look like legitimate shares. The broker dealers charge each short for the stock lend.

Margin account buyers, because of loopholes in the rules, inadvertently aid the shorts. If short A sells a naked short he has three days to deliver a borrowed share. If the counterfeit share is purchased in a margin account, it is immediately put into the stock lend and, for a fee, is available as a borrowed share to the short who counterfeited it in the first place. This process is perpetually fluid with multiple parties, but it serves to create more counterfeit shares and is an example of how a counterfeit share gets “laundered” into a legitimate borrowed share.

Margin account agreements give the broker dealers the right to lend those shares without notifying the account owner. Shares held in cash accounts, IRA accounts and any restricted shares are not supposed to be loaned without express consent from the account owner. Broker dealers have been known to change cash accounts to margin accounts without telling the owner, take shares from IRA accounts, take shares from cash accounts and lend restricted shares. One of the prime brokers recently took a million shares from cash accounts of the company’s founding investors without telling the owners or the stockbroker who represented ownership. The shares were put into the stock lend, which got the company off the SHO threshold list, and opened the door for more manipulative shorting.

4kids
all jmo

[AlanC]

Shared with many including my US Senator.

[fourkids_9pets]

FINRA probes Merrill over anti-money laundering compliance -source
Reuters
16 hours ago


By Brett Wolf

WASHINGTON, Aug 19 (Reuters) - Wall Street's self-regulatory body has been probing Bank of America Merrill Lynch over its failure to detect the activities of a former financial adviser, who pleaded guilty to helping a client cover up an insider-trading scheme and launder the proceeds, said a source familiar with the matter.

The Financial Industry Regulatory Authority (FINRA), which has been in discussions with Merrill, may take enforcement action against the bank, most likely citing its alleged shortcomings in complying with anti-money laundering regulations, the source said.

The source asked not to be identified because the matter is not public. A spokeswoman for FINRA and a spokesman for Bank of America Merrill Lynch both declined comment.

Like other banking regulators and law enforcement agencies, FINRA has stepped up scrutiny of the securities industry over anti-money laundering compliance.

In February of last year, FINRA fined Brown Brothers Harriman $8 million for failures in detecting suspicious penny stock transactions. The regulator also suspended Brown Brothers' global anti-money laundering compliance officer for one month.


In December 2014, FINRA ordered two brokerage units of Wells Fargo & Co to pay a joint $1.5 million fine for failing to verify 220,000 new accounts during a nine-year period.

In the latest case, former Merrill financial adviser Gary Yin helped his client, Jing Wang, launder money earned through insider trading in 2012, according to the U.S. Department of Justice.

Wang, a former Qualcomm Inc president of global business operations, made hundreds of thousands of dollars in illicit profits by purchasing shares of Qualcomm and another company based on knowledge gained through his job, according to U.S. prosecutors.

Wang, of Del Mar, California, pleaded guilty last year to charges of insider trading, money laundering and obstruction of justice.

Yin, who managed over $200 million in assets at a Merrill office in San Diego, also pleaded guilty to conspiring to obstruct justice and launder money. He is scheduled to be sentenced on Friday in U.S. District Court in San Diego.

Among other things, Yin altered records in Merrill's computer system to distance Wang from the illicit trades, lied to Merrill compliance employees, and created British Virgin Islands shell companies "to conceal stock transactions from Merrill Lynch and others," his plea agreement stated.

(Editing by Soyoung Kim and Jeffrey Benkoe)


http://finance.yahoo.com/news/finra-probes-merrill-over-anti-185430158.html;_ylt=AwrC0CNzQdVV8x0ATrOTmYlQ;_ylu=X3oDMTByMDgyYjJiBGNvbG8DYmYxBHBvcwMyBHZ0aWQDBHNlYwNzYw--


link courtesy of a friend

4kids
all jmo

[fourkids_9pets]

How to Detect Naked Short Trades

There are many tell tale signs that a company is being naked short sold. Do you think your company or investment is under attack? Here is what you should keep your eye out on:

1. Has the stock been on a continual downtrend over the past several months with no material events or known reasons for why it has depreciated?

2. Does the stock see downwards pressure anytime the company outs out a press release?

3. Do you notice any unscrupulous posts or new handles popping in bashing the company, it’s story or management? It is common for short sellers – both regular and naked short sellers to hire bashers and deploy them on the stock message boards and social media.

4. Do you ever notice weird uneven trade lots? Example, someone traded 1,172 shares or an odd lot, but frequently? This is sometimes a way that market makers and short sellers communicate with each other in the marketplace without the evidence of a text message, email or recorded phone call.

5. Are you a company that has gotten phone calls from investors who all of a sudden seem curious in investing in your company? Be wary. We have seen this ploy come out of Germany many times in the past. Traders go short, knock the stock down in the process and come calling for a financing to cover their position. Another illegal tactic but it happens!

6. If you are a NASDAQ or NYSE company, rule of thumb is If you see more than 20% of your overall volume initiated short on a daily basis as reported by REGSHO and displayed on our website as per REGSHO guidelines and delivered by FINRA you may be under attack. If you are looking to track naked short selling on OTC companies please visit www.otcshortreport.com

Naked Short Selling and The Destruction it CostsDeath to the Company

Naked short selling kills the value of companies and peoples investments by artificially pushing a company’s stock price down. For smaller companies looking to raise working capital, this causes them to have to raise funds at much lower prices which substantially increases the outstanding share count. This is called dilution.


What is Naked Short Selling?

Before we get into Naked Short Selling let’s understand the basic premises around short selling.

Short selling is the sale of a security that is not owned by the seller.
The motivation for short selling is an investor's belief that a stock's price will decline, enabling the short seller to buy the stock back in the future at a lower price and make a profit.

Normally, when one short sells a stock, their broker will lend them the shares to sell. The loaned stock will come from the broker's own inventory, from another one of the firm's customers, or from another brokerage firm. The shares are sold and the proceeds are credited to the short seller's account.

As payment for borrowing the shares, the short seller is charged a fee, quoted as an annualized percentage of the value of the loaned securities - i.e. a borrower of a stock with a 5% stock borrow rate will be charged $5 per year for every $100 of stock borrowed. Stock borrow rates change daily based in large part on the supply and demand to borrow that particular stock.

If the number of shares available to borrow is in short supply and/or great demand (which is often the case in highly shorted stocks), finding shares to borrow can be difficult and expensive.
A frequently asked question and outlined in our FAQ’s but let’s look at naked short selling from various perspectives.

How does naked short selling effect the stock market?

When a seller "naked short sells a stock" they do not own the shares they are selling and therefore are selling artificial shares. This is like counterfeiting a stock. This process creates an obvious unfair advantage to the seller and an imbalance in the market as the sell side is now increased with more shares – many of which are counterfeit. There is a time limit on how long the seller can sell these shares and be naked on the trade and the time limit is 3 days. This is where the RegSho rules come in and the data we track. If the sellers broker-dealer has not located a borrow to cover this short trade within 3 days they will need to purchase back the shares they have sold on the open market. This process is referred to as a "Buy In".

"When it comes to illicit short selling, the shorts win over 90% of the time"Naked Short – A license to steal?

Naked short selling is yet another creation of the securities industry and is in essence nothing more than a license to create counterfeit shares. When you are inflating the amount of stock that is outstanding in a company, this is considered counterfeiting. The rules justify the practice by saying it helps create smooth, efficient and orderly markets. Same stuff we have heard countless times around high-frequency trading, but in reality we believe this practice leads to shady characters creating unlimited supplies of counterfeit stocks which in turn results in your investment continuing to decline and you wondering why?

I am sure you here because you are a shareholder in a company that just continues to go down, and you have no idea why. Nothing material has happened but the trading doesn’t make any sense. We hear it all the times. Most CEO’s don’t even understand, and are baffled. The worst part is, good luck getting anyone to listen! There is a major epidemic going on right now with naked short selling right now.
It's funny when we hear CEO's say , I will just buy all the shares up and own the whole O/S and they wont be able to short me anymore. Really?

Read about: Global Links Corporation and see what happened when Robert Simpson purchased 100% of Global Link’s 1,158,064 shares. Then you will truly understand how the system is rigged. Back to counterfeiting…


Frequently Asked Questions

What is Naked Short Selling?

In a "naked" short sale, the seller does not borrow or arrange to borrow the securities in time to make delivery to the buyer within the standard three-day settlement period. 3 As a result, the seller fails to deliver securities to the buyer when delivery is due (known as a "failure to deliver" or "fail"). www.sec.gov/spotlight/keyregshoissues.htm

What is a Threshold Security?

Threshold securities are equity securities that have an aggregate fail to deliver position for:
*five consecutive settlement days at a registered clearing agency (e.g., National Securities Clearing Corporation (NSCC))
*totaling 10,000 shares or more
*equal to at least 0.5% of the issuer's total shares outstanding

Threshold securities only include issuers registered or required to file reports with the Commission ("reporting companies"). Therefore, securities of issuers that are not registered or required to file reports with the Commission, which includes the majority of issuers on the Pink Sheets, cannot be threshold securities. This is because the SROs need to look to the total outstanding shares of the issuer in order to calculate whether or not the securities meet the definition of a "threshold security." For non-reporting companies, reliable information on total outstanding shares is difficult to determine.http://www.sec.gov/spotlight/keyregshoissues.htm

What is the purpose of NakedShortReport.com?

Our short reporting platform was developed to provide all available naked short selling data on NASDAQ and NYSE stocks.

What are NASDAQ & NYSE Stocks?

NASDAQ Stocks are companies that are listed on the NASDAQ Stock Exchange, like Facebook, Apple and Amazon. Visit: http://www.nasdaq.com NYSE Stocks are companies that are listed on the NYSE Stock Exchange, like Exxon Mobil, Pfizer and General Electric. Visit: http://www.nyse.com
What Markets Does NakedShortReport.com Provide Data for?

We track NASDAQ and NYSE on this website. Our sister platform tracks OTC stocks that have naked short positions. Visit http://www.otcshortreport.com for more information on OTC traded stocks.

Why is this service useful?

Understanding what percentage of any particular stocks daily volume that is naked short is extremely important in understanding the level of manipulation occurring on that particular security. Market Makers and big traders are shorting companies in increased frequency. Short Sellers do not care whether or not a business plan is feasible, but rather how much volume they can capitalize on, by shorting "selling shares" to new investors that may otherwise believe in the company or business plan. Understanding the amount of negative pressure on a stock can help gauge what the market sentiment of a particular stock is, and or what the big money is doing.

Who is this service designed for?

Our service is designed for anybody interested in understanding important elements about a company and its trading patterns. Many CEO's of public companies use our service to track whats happening with their stock on a daily basis. Furthermore, many investors, both retail and institutional investors use our service to track what is happening with their investments and as a due diligence tool any any potential investments.

How often is naked short data updated?

We update our daily short data everyday at 6pm Eastern Standard Time. In some very rare cases, short data is updated the next day.

How many companies do you track short data for?
We track over 5,900 companies trading on NASDAQ and NYSE stock exchanges.


http://nakedshortreport.com/what-is-naked-short-selling