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To: N. Dixon who wrote (7782)	12/20/2013 1:36:31 PM
From: N. Dixon	Read Replies (1) \| Respond to of 50038

As sometimes has been the practice of short sellers, they attack companies they believe they can "take down" and hire Boiler Rooms to attack management, shareholders, etc. to further drive down prices and to keep new investors away. Hemispherix Biopharma was one of these companies, who I know for a fact was never a "fraud" or "pig" as it is called by these criminals. Here is the membership list for NJ Bio. Hemispherix Biopharma is a member as well as my cousin's [ lifesciencesfoundation.org ] company, Domain Associates. While their drugs may not have the markets of some others, their research contributes to the medical field as a whole and should not have been a victim of these unwarranted attacks by illegal short sellers. BioNJ Membership Directory

To: N. Dixon who wrote (7782)

12/20/2013 2:39:00 PM

From: StockDung

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Read Replies (1) | Respond to of 50038

Nancy, there is no naked short selling in Canada. At one time it was legal but that was years ago.

What you posted is old and outdated regarding naked short selling.

Hope this helps you with your research on naked short selling. Here is an old story on the subject.

'Naked' SHORT selling to be off limits in Canada

By PETER KENNEDY
Monday, February 16, 2004 - Page B7

VANCOUVER -- Canadian stockbrokers who engage in a controversial but lucrative practice known as "NAKED SHORT selling" are about to face new restrictions that appear to be aimed at closing a loophole in U.S. securities industry regulations.
When the restrictions take effect on Feb. 20, brokers in CANADA will be prevented from arranging to SHORT U.S. securities on behalf of clients or from inventory, unless they are able to make an affirmative determination that the stock can be borrowed and delivered to the customer on the settlement date.

It means Canadian brokers can still SHORT U.S. stocks, a practice that involves the sale of borrowed shares by people who plan to replace the stock by buying it back at a lower price, allowing them to pocket the difference.

The affirmative determination requirements for SHORT sale orders are part of amendments to the National Association of Securities Dealers (NASD) Rule 3370.

One Canadian brokerage official said he believes CANADA is merely an incidental target of rules, which he said are aimed primarily at U.S. market makers who trade on Nasdaq's lightly regulated Over the Counter Bulletin Board.

"I don't believe it is to plug a Canadian hole, solely," said Warren Funt, vice-president of member regulation at the Investment Dealers Association of CANADA. "But it will have that effect."

Until this week, Rule 3370 did not apply to brokers who are not members of the NASD. As a result, brokers at Canadian firms, such as Pacific International Securities Inc., Global Securities Inc., Union Securities Ltd. and Raymond James Ltd., were able to generate revenue by shorting U.S. securities on behalf of clients or from inventory, on a non-borrowed basis.

But starting Friday, traders in the United States will be required to ask Canadian dealers if they have borrowed the stock in instances where they are attempting to SHORT a U.S. stock on behalf of a client. "If the answer is no, the U.S. dealer will not accept the trade," said Doug Garrod, president of Global Securities.

Industry officials say the impact on revenue as a result of the affirmative determination rule will not be known until the IDA releases its trading review for the first quarter of 2004.

A compliance executive at one brokerage firm said NAKED SHORT selling has been a low-profile, high-money earner for brokers, particularly in Vancouver's Howe Street district, and some have already quit in advance of the rule taking effect. (The term "naked" shorting applies to an unlimited form of SHORT selling that can cause wild gyrations in the price of stocks that are usually traded over the counter in the United States.)

"It has been a huge revenue-making area for the brokers that are doing it because you can charge higher commissions when you are trading in the U.S.," the executive said. "The fact that U.S. regulators have taken this action shows that this is a huge problem," the executive added.

For instance, Global Securities and Union Securities are named in a lawsuit launched in British Columbia Supreme Court in 2002 by U.S. biotech firm GeneMax Corp., which became a magnet for SHORT sellers late that year.

In court documents, GeneMax accuses the brokerage firms of abetting an illegal manipulation scheme, which allegedly included NAKED SHORT selling.

The brokers have asserted in a statement of defence that any long and SHORT sales of GeneMax shares were conducted in accordance with applicable securities laws.

Two years ago, popular American SHORT seller Amr (Anthony) Elgindy was charged with insider trading and racketeering in what U.S. authorities alleged was a scam involving two FBI agents.