Market Integrity - LMAO - Sure
They are the ones along with some market makers who shorted the stock who went to the NASD and begged them to solicit the SEC to have the Net Capital rule suspension as well as the suspension.
It was repulsive the BS from regulators. They even included a part where they said that the Net Capital rule suspension might be revisited in the future if needed to protect investors. Cover my ass in technicolor!
So lets see......
The CEO begs the regulators to suspend his stock
The CEO advises investors...
DO NOT TRADE THIS STOCK UNTIL FURTHER NOTICE (While I get with regulators and get the short position covered)
Brokers who have "insider friends" who are short such a percentage of the stock that it would bankrupt the broker once the "insider friend" goes bankrupt BEG the NASD to "help"
The CEO praises the SEC so much for helping that they ask him to update his PR and remove the part where he is bending over backwards thanking the SEC. Really- go check the PR history.
Market Makers with a huge short position also beg the NASD for help.
After the whole event is over the NASD actually requests additional powers due to a peculiar stock and a 3,000,000 to 1 FS that "had problems" - they could not even identify the symbol (they did not want to) but clearly it was GVRP.
The stock almost never traded again after the suspension due to manipulation - Oh we dont have a 211 or whatever...
The companies solution was highly illegal:
a) a post dated increase in the maximum authorized share structure. The state of Florida goes by the physical filing date not the date on the document LMAO
b) Conduct a special 3M to 1 FS - an extra one - just for the insiders who mistakenly sold their forward split shares early - this special FS never appeared on any legal website- NASD/OTCBB
c) Change the 10 shares that were restricted common shares into a new type of super common invincible stock oh and issue ourselves an extra 30M shares we never paid taxes on. These shares will be exempt for reverse splits - we voted - our 10 shares rule. A shareholder vote was taken - again - no info was ever sent out.
d) Conduct an unauthorized 3M to 1 RS which never appeared on any legal website- NASD/OTCBB
Basically the company did whatever they wanted whether legal or not and the regulators allowed them too. Given many brokers would have went bankrupt and some market makers as well if the rules were followed the need existed to revoke the rules. With the NET CAPITAL rule revoked brokers no longer had to keep short positions on their books. Those who were short had their short positions eliminated. With the illegal unauthorized RS the issue with the illegal issuance of shares above the maximum authorized was resolved.
Regulators did not care whether a FAIR JUST LEGAL outcome resulted.
The big boys were protected and the small investor blatantly cheated.
How would such behavior stand up to an FBI investigation?
In Japan when something similar to this occurred (but about 1/1000th the size of the problem) an American broker made like $32M and a Japan broker had to cancel their Christmas party to save money!
Japan's market has Market Integrity.
The USA market is highly corrupted.
Simply have to observe whether the rules were enforced when coming to that conclusion- was what resulted fair - yes or no?
In fact, in the Japan case they tried to kill the trade THREE times to no avail. The selling mistake was forced to continue. In the US the exact opposite occurred.
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