Dave Patch: Treas. Secretary Paulson: "Naked Short Selling is wrong anywhere"
investigatethesec.com
According to U.S. Treasury Secretary Hank Paulson, "In terms of naked shorts, my view on that is naked short selling in wrong anywhere. Any investor before they sell short should line up the stock and that goes without saying."
We can’t wait on Washington DC bureaucracies or New York Courts
YES on 9, The South Dakota Small Investors Protection Act is a consumer protection to ensure that when South Dakota small investors buy stock in publicly traded companies the stock will be delivered to their accounts in a commercially reasonable time period, presumed to be three days. The act will curb what’s called “failure-to-deliver” or FTD’s.
According to testimony before Congress, on any given trading day, $6 billion of stock fails to be delivered. The Security & Exchange Commission (SEC) lists some four-thousand companies whose stock has failed-to-deliver – including some well-known South Dakota companies -- with some stocks being failed-to-deliver for years.
FTD’s create phantom shares that circulate in the system as real shares. The effect is the same as counterfeiting currency – it dilutes and destroys stock value. It’s just like copying a $100 bill in the Xerox machine, or buying a car without the seller delivering the vehicle to you.
YES on 9 – The South Dakota Small Investor Protection Act is only 50 words long and allows the State of South Dakota to fine or prosecute a firm if it:
"Has engaged in a pattern of commercially unreasonable delay in the delivery of securities sold, or has sold securities that the person did not own or have a bona fide contract to purchase. For the purposes of this subdivision, commercially unreasonable is presumed to be more than three business days."
So, what exactly does YES on 9 mean?
When South Dakotans buy stock, they’re going to get the stock they bought. If they don’t, the perpetrators will be subject to South Dakota law. Currently, the only remedy for a defrauded South Dakotan would be through the Washington DC bureaucracy or the New York courts.
Voting YES on 9 codifies in South Dakota law the same prohibitions against failure-to-deliver that exists in Federal law, and mirrors civil fines and criminal penalties already in South Dakota statutes for other forms of similar fraud. So just like a bank robber is subject to South Dakota and Federal law, so too will be those who sell stock to South Dakotans and never deliver it.
Yes on 9 is chaired by former South Dakota Attorney General Mark Meierhenry who wrote the language for the South Dakota Small Investor Protection Act. It seeks support from all South Dakotans concerned about ensuring that South Dakotan’s are protected from fraud.
Vote “YES” on 9
“Let’s ensure South Dakotans get what they paid for!”
voteyes9.com
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