38 BROKERS ARRESTEDPosted by Sinbob on ECU Forum
BROKERS IN THE US HAVE JUST BEEN ARRESTED FOR THEIR INVOLVEMENT IN NAKED SHORT SELLING
Go to David Morgan (at financialsense.com) who has just given a nice interview on the fraudulent, concerted shorting of resource stocks and how it is done…and how authorities in Canada and the US are finally cracking down with actual arrests. Investors have been complaining about this problem for years along with the management of several small pubcos. See the Bloomberg documentary on naked shorting. See YouTube – Naked Short Stock Sales- part 1, and there are many links.
THE SEC IS NOW CRACKING DOWN ON THIS ILLEGAL ACTIVITY AFTER YEARS OF COMPLAINTS. US INVESTORS CAN OFFICIALLY COMPLAIN AT:
www.SEC.GOV/complaint.shtml.
THEY ARE NOW COLLECTING INFORMATION ON THE CRIME OF THE DECADE AND IT IS A PRIORITY FOR THEM.
David Morgan explains the arrangement between brokerage and hedge funds and how they short the shares to their advantage and how they know ahead of time re the financing of junior gold stocks. One firm has already been fined in Canada but I suspect the Cdn. regulating authorities will have to take much stronger action as the heat and high visibility of this issue cause some real squirming. There will be questions asked as to why they overlooked t for so long.
One more notable point came out of the above interview that bears attention. Please refer to Stockhouse Canada , on a BB message site as per the following. Sound familiar?
1. Someone who hyper-posts on only one stock.
2. Someone who uses multiple identities.
3. Some who repeatedly attacks or belittles others on a stock's message boards.
4. Someone who emerges as the stock's moderator, or even the leader of the discussion group on that stock.
5. Someone, with a short history in their member profile, who suddenly shows up during a stock run-up, and appears to know "all about" the company.
6. Someone who is nearly always the first to respond to company developments.
7. Someone who continuously hints at upcoming news and unannounced contracts.
8. Someone who hypes the company during the run-up and then "changes" his/her mind and begins attacking the company, its insiders and the project.
9. Someone who goes out of their way to find bad news about the company and makes a "case" out of it.