- Folks, it couldn't get any weirder. I was talking with
our friend Dr. Byrne, and he told me a story that defies imagination. I
honestly thought he was pulling my leg - had one of those double take moments,
where you have to shake your head to confirm you're awake. Before I tell
you the gist of this, let me send out a little tidbit to any regulators
reading this - I urge you to contact Dr. Byrne for corroboration. I couldn't
make this up if I tried - nobody would believe it.
-
- First, there is the matter of Jack Byrne's 200K share
purchase of OSTK, which is now closing in on 90 days since the order was
executed. Jack got 130K "registered in his name" with his broker
(who knows what that means - I mean, who really knows what any of the arcane
terminology really signifies at day's end?) recently, but he hasn't received
the other 70K shares, and his broker is telling him they've been unsuccessful
in getting the shares from JP Morgan (the seller's broker - and arguably
the most venerated name on Wall Street), and that there is no ETA for their
delivery.
-
- That is seventy THOUSAND shares bought and paid for almost
a quarter year ago, undelivered. And Byrne's broker hasn't bought in the
offending seller. Just hasn't.
-
- Before we continue, stop and reflect upon this set of
circumstances - the Chairman of the Board of the company can't get $2.5
million worth of stock that he bought and paid for - and yet there is relentless
selling pressure day after day. For months the stock price has been pummeled,
and yet for months the buyer's broker can't get the product that was sold.
-
- To add insult to injury, apparently Dr. Byrne's brother
bought 50K shares almost a month ago, and he hasn't gotten his shares delivered
either. So it isn't just dad. The performance of the system has been tested
multiple times, and nobody can get any shares delivered to make good on
the buys - but that hasn't stopped the brokers from relentlessly continuing
to sell that which doesn't exist.
-
- Aren't there laws against that? 17A? SHO? 10(b)5 - participating
in a stock price manipulation scheme (by selling bogus shares to depress
the price)? [see more]
-
- http://www.faulkingtruth.com/Articles/Investing101/1042.html
-
-
- Comment
- M Levy
-
- Selling shares short is legal. Shares are allowed to
be borrowed in street name held by brokers whose clients own the shares.
And of course the short sellers who borrow the shares then sell them hoping
to buy them back at a lower price and pocket the difference.
-
- Naked short selling is illegal. Shares sold were never
borrowed; thus, they sold shares that essentially don't exist. The SEC
has been protective of people doing this, as big money is involved, both
for the phat kats doing it & the brokers assisting them who profit
by commissions. But it can be, and sometimes is, a company killer...and
cheats investors...
-
- From: "Bryan Zumwalt"
- Subject: Counterfeit America Newsletter 1/7/2005
-
- 1/7/2006
-
- I hope everyone is having an excellent weekend so far.
To avoid interrupting it, I will keep this newsletter short and sweet .
. .
-
- I would like to draw everyone's attention to Bob O'Brien's
new web site: www.thesanitycheck.com.
Bob's website contains blogs for some the original advocates for market
reform that have exposed naked short selling and continue to be active
towards this cause. I consider each of these people extremely knowledgeable
and important as they continue to pressure regulators, media and politicians
for change.
-
- Bob O'Brien from www.thesanitycheck.com,
Dave Patch from www.investigatethesec.com,
Mark Faulk from www.thefaulkingtruth.com
and Bud Burrell will be posting regularly on these blogs and I would
encourage you to visit them as a source of good information about naked
short selling as well as join the discussion on both the blogs and message
boards. These four people have done their due diligence over many years
and understand the naked shorting issue at every level.
-
- http://www.thesanitycheck.com/Blogs/tabid/57/Default.aspx
-
- These people cannot convince those in power to change
regulations on their own. They need YOU. Please continue to Write
Congress and let them know that our ranks continue to grow. Naked shorting,
like any other politically sensitive issue will not go away until America's
critical mass demands action. There are members of the Senate and House
that are well aware of the issue and continue to avoid action. Only together
can we convince them to demand accountability from the SEC and DTCC!
- Counterfeit America will continue to publish news on
a daily basis and I encourage you all to bookmark the site www.counterfeitamerica.com.
We have been up and running for three weeks now and have already received
almost 2000 hits and hundreds have signed up for the newsletter. We would
like to see this number grow exponentially as America continues to discover
this injustice.
-
- Have a great weekend everyone . . . more to come next
week.
-
- Bryan
-
-
-
- Comment
From "Ray"
- 1-9-5
Dear Bob O'Brien,
-
- You are indeed correct, there are specific laws against
participating in a stock price manipulation scheme. But it happens all
the time.
-
- Having watched the Stock Market quite closely now for
about seven years, I agree with M. Levy and Bryan Zumwalt. This not only
includes naked short selling, but continual manipulations of every kind.
There is rampant illegal activity every single day.
-
- To name a few types of manipulations, they include intricate
and well orgainzed boiler room Pump and Dump operations, using investor
message boards and newsletter hypes to influence a stock's price. Some
of the easiest to manipulate in this manner are foreign-based ADS stocks
(American Depository Receipt), but the stocks of many companies based in
America are also manipulated.
-
- There are also lots of operations going on daily for
the sole purpose of artificially inflating stock prices. The "Enron
scandal" was only one of many such operations, yet most never get
caught (either because the SEC doesn't have the manpower to investigate
them, or the SEC is in on it, or both). Then there are also well-connected
hedge fund operators who glom onto a stock and play it up and down for
penny profits that add up to hundreds of millions annually (Lucent Technologies
and Sun Microsystems are good examples of this type of "play",
but there are many more). There are also registered brokers and analysts
who have no reservations about laying their licenses and "reputation"
on the line by issuing "news" and "recommendations"
intended to serve only their hidden agendas and big buck clients. On a
lesser scale there are countless "daytraders" who also tend to
play a stock up and down looking only for gains and drops for pennies,
and who buy and sell stocks in companies without even knowing that that
company does, but who can practically paralyze a stock into a limited trading
price range for months and sometimes years.
-
- And, of course, even though there are specific laws against
it (as with everything mentioned above), there's a lot of trading on insider
knowledge. It happens every day. This includes not only those directly
involved with and employed by a company, but also friends, relatives, neighbors,
etc. For example, one can sometimes see a company's stock price and volume
suddenly jump up (or down) for no known reason, then a day or so later
big news is released to the public. It's a pretty safe bet that by the
time important news is released to the public about a company, then those
behind the scenes (brokers, insiders, analysts, institutional funds, etc.)
have already made moves based on that news. One of the more blatant scams
that insiders have gotten away with is to release "news" and
upbeat comments a few days prior to their mandatory quarterly report, then
on the day of the report the reality is that there is actually disappointing
"news" (such as missed profit estimates, lower net quarteryly/yearly
income, etc.) and the stock price tumbles. Of course, in the interim all
insiders and big buck buddies used the upbeat statements too dump off their
shares while the unsuspecting public gobbled them up.
-
- Over the past ten years or so, hundreds of billions in
wealth has been transferred from ordinary investors to these culprits who
figured out that they could get away with their fraudulent activities and
behavior.
-
- Complaining to the SEC is akin to whizzing in the wind
too. No matter what you say, or how often you say it, or how well you back
up your claims with data that practically screams "illegal activity",
complaining to the SEC will result only in receiving a nice form letter
from them. They'll "thank" you and then proceed to do jack about
it.
-
- -Ray
-
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