The SEC’s complaint further alleges that Sabby and Mintz tried to conceal their fraudulent trading, including by using securities acquired after the trades to make it appear to brokers executing the trades that they had complied with the requirement to have borrowed or located the shares prior to their trades. As the complaint alleges, when questioned by at least one broker regarding their trading, Sabby and Mintz repeatedly lied about the trading.
So they sold shares short 1 minute turned around and bought shares then delivered those shares that they sold but were not located prior. Sounds like a trap could be set fairly easy. Hmm
X, Sounds like it is easier to document the movement of shares that I thought
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