I'm afraid this stock could now become a NSS poster child.
This is one of very few securities the SEC ever prosecuted a Canadian naked short case -- and they were successful. #msg-28719698
And now, years later, the shares ARE actually cancelled. #msg-28801338
If I were a NSS conspiracy wacko, I would use the deletion of TRPH as an example of their UFO theory.
On the other hand, maybe one can imagine there was an offshore short somewhere. Should someone send an email to the SEC attorney that handled the case to make sure he knows the shares were ultimately cancelled?
The attorney might want to order some kind of data from the DTC or somewhere to see the final settlement of accounts on these cancelled securities.
Or, what? What would the money flow be? If someone out there had a reserve on their books of 2.50 a share for every share of TRPH they had short, that reserve would be released. Should they just check with NITE and see if they adjusted their reserves over the weekend for this stock? ;)
Trying to imagine where the money flows if in fact the NSS was real, offshore, and hidden. Not that it was, but just trying to imagine how the money flows in this scenario: #msg-28757551
>>In December 2006, the SEC sued Gryphon Partners, a hedge fund, for insider trading and naked short-selling involving PIPEs in the unregistered stock of 35 companies. PIPEs are "private investments in public equities," used by companies to raise cash. The naked shorting took place in Canada, where it was legal at the time. Gryphon denied the charges.
In March 2007, Goldman Sachs was fined $2 million by the SEC for allowing customers to illegally sell shares short prior to secondary public offerings. Naked short-selling was allegedly utilized by the Goldman clients. The SEC charged Goldman which not ensuring those clients had ownership of the shares. SEC Chairman Cox commented, "That is an important case and it reflects our interest in this area."
In June 2007, executives of Universal Express, which had claimed naked shorting of its stock, were sanctioned by a federal court judge as “repeated and remorseless violators” of the securities laws. The SEC asserted that the company “appears to exist primarily as a vehicle for fraud.” Referring to a court ruling barring CEO Richard Altomare from serving as an officer of a public company, New York Times columnist Floyd Norris said: "In Altomare's view, the issues that bothered the judge are irrelevant. 'Long and short of it,' he said in a statement, 'this is a naked short hallmark case in the making.' Or it is proof that it can take a long time for the SEC to stop a fraud." Universal Express has claimed that 6,000 small companies have been put out of business by naked shorting, which the company says "the SEC has ignored and condoned."
In July 2007, Piper Jaffray Cos. was fined $150,000 by the New York Stock Exchange (NYSE). Piper violated securities trading rules from January through May of 2005, selling shares without borrowing them, and also failing to "cover short sales in a timely manner", according to the NYSE. At the time of this fine, the NYSE had levied over $1.9 million in fines for naked short sales over seven regulatory actions.
Also in July 2007, the American Stock Exchange fined two options market makers for violations of Regulation SHO. SBA Trading was sanctioned for $5 million, and ALA Trading was fined $3 million, which included disgorgement of profits. Both firms and their principals were suspended from association with the exchange for five years. The exchange said the firms used an exemption to Reg. SHO for options market makers to "impermissibly engage in naked short selling." >>>
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