stolwyk
23-06-2004, 09:26 PM
The Depository Trust Company (DTC), the principal stock transfer agent, and part of the Federal Reserve System, has allegedly allowed naked shorting (counterfeiting) of the shares in its custody many times over to the extent that the degree of naked shorts in some company shares exceeds the entire float of that company's stock.
Furthermore, the DTC has reportedly paid the SEC in excess of one billion dollars in transaction fees on these counterfeit shares. The extent of the alleged abuse is so massive that many shareholders now own the same specific shares.
As many as 7,000 small businesses have been driven out of business by these same naked shorts sold short by many of the big-name brokerage firms in the U.S. Yet the SEC continues to drag its feet on Regulation SHO which would eliminate many of these abuses.
To further add to the injury, a senior staff member of the SEC has proposed to "outlaw" the ownership of paper shares so that shareholders will have no defense against the counterfeiting of their own shares in any way. See the
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--- and this is from "Breaking News" at Investors.com --
StockGate: London Companies on Berlin Exchange Ask for Investigation, Reg SHO Hearing Reset
Jun 16, 2004 (financialwire.net via COMTEX) -- (FinancialWire) It's not just U.S. companies such as Whistler Investments (WHIS), Sonoran Energy (SNRN), Celsion Corporation (CLN), and eLinear Inc. (ELU) or Israeli companies that have had serious concerns about their unannounced and unathrorized listings on the Berlin-Bremen Stock Exchange.
Apparently, some 150 British companies are protesting the same fate.
A number of UK-listed companies have demanded a London Stock Exchange investigation after they found that their shares are being traded.
Meanwhile, Whistler, Sonoran and eLinear have announced they have successfully secured their delistings, and the U.S. Securities and Exchange Commission has rescheduled its open hearing to consider the adoption of amendments to Regulation Sho to June 23 at 9:30 a.m. The announcement is at http://www.sec.gov/news/digest/dig061504.txt .
According to the London Money Telegraph, "several companies believe the market for their shares has been distorted and that they have fallen in value after trading started on the Berlin-Bremen exchange.
"Some smaller companies, whose shares are lightly traded in London, fear the Berlin market has been used by speculators to short-sell their shares."
The Telegraph said the number of companies are thought to be as high as 150, including even "larger companies" such as Matalan (OTC: MATNF) and Halfords.
Mladen Ninkov, the chairman of Aim-listed Griffin Mining (OTC: GFNMF), was quoted as saying: "We were put on the Berlin market without our knowledge by a German broker and now we've got about 8m shares out in a short sale. It is horrifying - that is about 4 per cent of the company and it is forcing the price down."
A spokesman for the London Stock Exchange said: "If there is evidence of market abuse we would refer that on to the appropriate authorities."
Whistler said that according to its transfer agent records, "we have 5,504,680 shares held by DTC, but the ADP broker search indicates of 6,217,458 shares being reported by broker/dealers as being held on behalf of their customers, indicating a short position of more than 700,000 shares. A summary report can be viewed at http://www.whistlerinvestments.com/shorts.html .
"We have therefore commenced work with DTC for a formal review of the reported excessive broker/dealer holdings of our stock so that we can conduct our corporate affairs properly in view of our planned stockholders meeting and other upcoming corporate matters. We again advise our stockholders make sure that they receive delivery of any shares that they purchase, and also that their stock is not being borrowed without authorization.
Holly Roseberry, President of Whistler Investments, states "We intend to get to the bottom of the excessive short
Furthermore, the DTC has reportedly paid the SEC in excess of one billion dollars in transaction fees on these counterfeit shares. The extent of the alleged abuse is so massive that many shareholders now own the same specific shares.
As many as 7,000 small businesses have been driven out of business by these same naked shorts sold short by many of the big-name brokerage firms in the U.S. Yet the SEC continues to drag its feet on Regulation SHO which would eliminate many of these abuses.
To further add to the injury, a senior staff member of the SEC has proposed to "outlaw" the ownership of paper shares so that shareholders will have no defense against the counterfeiting of their own shares in any way. See the
.................................................. ........
--- and this is from "Breaking News" at Investors.com --
StockGate: London Companies on Berlin Exchange Ask for Investigation, Reg SHO Hearing Reset
Jun 16, 2004 (financialwire.net via COMTEX) -- (FinancialWire) It's not just U.S. companies such as Whistler Investments (WHIS), Sonoran Energy (SNRN), Celsion Corporation (CLN), and eLinear Inc. (ELU) or Israeli companies that have had serious concerns about their unannounced and unathrorized listings on the Berlin-Bremen Stock Exchange.
Apparently, some 150 British companies are protesting the same fate.
A number of UK-listed companies have demanded a London Stock Exchange investigation after they found that their shares are being traded.
Meanwhile, Whistler, Sonoran and eLinear have announced they have successfully secured their delistings, and the U.S. Securities and Exchange Commission has rescheduled its open hearing to consider the adoption of amendments to Regulation Sho to June 23 at 9:30 a.m. The announcement is at http://www.sec.gov/news/digest/dig061504.txt .
According to the London Money Telegraph, "several companies believe the market for their shares has been distorted and that they have fallen in value after trading started on the Berlin-Bremen exchange.
"Some smaller companies, whose shares are lightly traded in London, fear the Berlin market has been used by speculators to short-sell their shares."
The Telegraph said the number of companies are thought to be as high as 150, including even "larger companies" such as Matalan (OTC: MATNF) and Halfords.
Mladen Ninkov, the chairman of Aim-listed Griffin Mining (OTC: GFNMF), was quoted as saying: "We were put on the Berlin market without our knowledge by a German broker and now we've got about 8m shares out in a short sale. It is horrifying - that is about 4 per cent of the company and it is forcing the price down."
A spokesman for the London Stock Exchange said: "If there is evidence of market abuse we would refer that on to the appropriate authorities."
Whistler said that according to its transfer agent records, "we have 5,504,680 shares held by DTC, but the ADP broker search indicates of 6,217,458 shares being reported by broker/dealers as being held on behalf of their customers, indicating a short position of more than 700,000 shares. A summary report can be viewed at http://www.whistlerinvestments.com/shorts.html .
"We have therefore commenced work with DTC for a formal review of the reported excessive broker/dealer holdings of our stock so that we can conduct our corporate affairs properly in view of our planned stockholders meeting and other upcoming corporate matters. We again advise our stockholders make sure that they receive delivery of any shares that they purchase, and also that their stock is not being borrowed without authorization.
Holly Roseberry, President of Whistler Investments, states "We intend to get to the bottom of the excessive short