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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey S. Mitchell who wrote (95782)	10/5/2006 7:54:56 AM
From: Patchie	Read Replies (1) \| Respond to of 122087

Jeff, Regardless of whether a MM or a BD was involved in unloading shares, a toxic PIPE where shares are sold short before they exist is illegal. A MM is responsible for AD if there is no Broker but a MM can rely on a Brokers AD if there is that middleman. You appear to be confusing a VC with shares and a VC or PIPE Financier without shares. BIG difference just ask Shane, Mangan, HBK, Friedman, Pollet, etc...It is illegal under all circumstances to short a stock using the convert as the cover and any BD or MM that accepts such a trade is aiding and abetting fraud. MMs didn't have to worry because they knew the convertible preferred stock could be converted to common to cover their short. This comment would be disputed by every regulator and has been publicly. thestreet.com