If you don't think that doesnt go on, you are kidding yourself. OTC is what it is, criminals thrive here! Some get caught, MOST don't. Its worth the risk! And the ones that do, get a slap on the wrist and are right back to it a few years later!
That's funny, reg sho rules imply right to naked short. Hence the t1-t3 rule. I'm going to reach here and assume you're referring to counterfeit shares which is a complete other conversation. But if you'd like, I am more than willing to post a link so you can read the info yourself. I have already posted it last week and not hard. Let me know