Here's an old pugsrant™ from pugs to the SEC, I hope this tides you over till pugs has the nerve to show his face again. I'm wondering if one of the conditions of his settlement wasn't that he agree not to post on stock chat sites anymore.
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sec.gov
Subject: NAKED SHORTING
Author: <PugsTKO@aol.com> at Internet
Date: 12/04/1999 6:06 PM
Sirs,
I am an OTC BB investor who, for one, would love to see the abusive
practice of naked shorting abolished from the OTC market.
There are many examples one can cite, but I would like to use the example
of OTC:AZNT;
In the case of AZNT, which filed a complaint in federal court against
Joseph Andy Mann, JB Oxford, Canaacord, Whitecliff, Shoreline, The Canadian
Depository and the DTC, for stealing 4.48 million shares , shorting the stock
and then hypothecating it several times in an effort to cleanse it, the
abusive practice of naked shorting is being used to combat a company that has
had to go to court for the return of stock stolen from them .
The company was granted a restraining order for the return of the stock
to the court. Instead of sending the stolen stock to the court, as ordered,
JB Oxford sent the stock to DTC, where DTC imposed a freeze . The stock could
not be returned to the court.
AZNT then got an injunction and extended it to include DTC for the return
of the stolen stock. DTC would still not return the stock to the posession of
the court and, instead, became a defendant in the case as well.
Why would DTC choose to become a defendant rather than return the stolen
stock?
The DTC report states that the short position against the 4.48 million
shares is 1.3 million shares. This does not include the naked shorting coming
out of Canada, particularly through Pacific International.
The worst thing about the case of AZNT, is that it is not unique....from
this point, boiler rooms, aligned with AZNT shortsellers and rogue brokers,
continue to short the stock naked as the boiler room telemarketers solicit
long shareholders for their stock. The telemarketers use smear tactics and
work in concert with other boiler room associates who participate in a smear
campaign against the company, it's products, it's management and even it's
shareholders. Newspapers are contacted , companies the company does business
with are contacted and fed misinformation...all in concert with agressive
naked shorting.
Market Makers of AZNT, like NITE , have 2.2 million shares on their books
and were never on the bid , in a float of approx. 1.6 million shares. And
that's only one Market Maker!
AZNT is a fully reporting company, also compliant with NASD rule 6530,
yet, they were delisted . Why? The NASD has "troubles" with their financials,
even though the SEC does not. Are we to assume now that the NASD is now
liable when a stock falls because they allowed it to be listed after they
"approved" the company in question's financials? Why has the DTC prevented
AZNT shareholders from getting physical posession of their stock for 23
months with a self imposed freeze of the AZNT DTC account that they will not
lift even after the court ordered it ?
The NASD created a new rule AFTER THE FACT citing that ; if the NASD did
not approve of a companiy's financials, they would have 30 days to resolve
the matter, trading with an 'E' added to the ticker. AZNT never had that
option.
The abusive practice of naked shorting is used as a tool of professional
shortsellers, promoters & rogue brokers to crush the companies they target.
They agressively short naked in concert with smear campaigns and , in my
opinion, exploit the bureaucracy of the NASD, DTC & SEC. Who loses are OTC:BB
investors, to those who 'work' the system, made possible by the abusive
practice of naked shorting.
Gary Dobry
OTC:BB Investor |
