Replies to post #161506 on Plastic2Oil Inc (PTOI)

[Steady_T]

Johnik....

Interesting what the SEC has done or at least made the appearance of doing.

Note the section below.

But, before effecting a short sale, Rule 204T requires that the broker-dealer, as opposed to the seller, "locate" an entity that the broker reasonably believes can deliver the shares within three days after the trade — what's known as T+3. Also, if reasonable, a broker-dealer may rely on a short seller's assurance that the short seller has located his or her own lender that can deliver shares in time for settlement.

So there is only a requirement that you tell your broker that you have located shares. That hardly seems like much of a barrier to someone that is unscrupulous in the first place.

Given the number of brokers that have been charged by the SEC recently, it looks like finding one that would be willing to accept the sellers word without doing any checking wouldn't be that hard.

That provides a clear path to NSS.