COMPLAINT ABOUT MARKET MAKERS TO HEAD OF INTERNET SECURITY AT THE SEC
Subject: PROOF OF EXTREME MARKET MAKER MANIPULATION
Date: Sun, 02 Apr 2000 10:31:38 -0700
To: sec@enforcement.gov
Dear Mr. Stark or to whom it may concern,
The investors in the OTC/BB market are being treated unfairly, and have for some time, by the Market Makers involved in the trading of securities of OTC/BB stocks.
As head of the SEC's Internet Security division, I thought I should send
you this enclosed Word file. I believe it shows what many of us to
believe to be a conspiracy of sorts among Market Makers in the OTC/BB
during the just concluded month of March, 2000. The Market Makers were
trading stocks relatively "straight up" or a even a little on the
"friendly" side in the first two weeks of March, in stock after stock on
the OTC/BB. In the last two weeks, their actions are just the opposite,
often hammering down stock prices, and using all sorts of manipulation
or odd behavior. For those of us following on Level 2, there has been
strange trading action, delayed processing of limit buy orders (i.e.
stocks like SETO were obvious), increased instances of our brokerage
firms' inability to reach Market Makers to status orders that appear
delayed, etc.
The trading of the stock of J-Bird Records is an excellent example of
the above assertion. Please note that the data is taken straight from
the official OTCBB.com site, and their trading logs, and pasted into an
Excel spreadsheet.
PLEASE NOTICE: (taken from the enclosed report)
During the week of March 20-24, the BUY volume exceeded the SELL volume
by almost 700,000 shares, yet the stock price fell 24%!
S=Shares Bought by Investors* 2,404,126
B=Shares Sold by Investors* 1,717,562
Difference between shares bought and sold 686,564
# of Investors Selling Executions 571
# of Investors Buying Executions 1134
Average Order Buy Size 2,120
Average Order Sell Size 3,008
* Remember the OTC/BB report shows Buys (B) and Sells (S)
from the Market Makers perspective (i.e. a 1,000 share trade with a "S"
next to it is a Market Market sell, but an investor "Buy" and vice
versa. The report can be seen by going to
otcbb.com
Share price open on Mar 20 >>>> 1.09 <<<<
Share price close on Mar 24 >>>> 0.83 <<<<
Thank you for your consideration. I know you cannot comment on this
information, but know that you will look into it. I am also sending
this information to the NASD regulatory agency.
Because I am posting this report at Silicon Investor and RagingBull, I
wanted to provide this information to those reading this (hopefully it
is accurate):
SEC complaint link: sec.gov
SEC complaint form: sec.gov
Link to NASD website: nasd.com
Link to NASD complaint page (not working earlier today; hopefully soon):
nasdr.com
Excellent overview link for the OTC/BB investor at the otc/bb site:
otcbb.com
Get time and sell reports downloaded on your favorite stock:
otcbb.com
JBRD March time-sell report.doc
Name:
JBRD March time-sell report.doc
Type: Winword File (application/msword)
Encoding: base64 |
