Ocean Resources Initiates Short Selling Audit
Monday March 22, 9:00 am ET

DALLAS--(BUSINESS WIRE)--March 22, 2004--Ocean Resources, Inc. (OTCBB:OCRI - News) announced today that it has engaged the services of Morrow & Co., Inc., 445 Park Avenue, 5th Floor, New York, NY with the mandate to conduct a forensic shareholder audit to determine the extent of naked short selling in the Company's stock.
CEO Dennis McLaughlin said, "we believe that there are and have been significant short positions in our stock due to 'naked short selling' in the OTC. In order to protect our Company and its shareholders, we have asked Morrow & Co., Inc. to provide us with ongoing stock surveillance to monitor short selling. We will take all remedial actions recommended to us to stop naked short selling."

The Company has initiated this audit in advance of the newly enacted short selling rule adopted by the NASD, which goes into effect April 1, 2004. Naked short selling occurs when short-sellers sell stock short without properly borrowing the stock first. The NASD rule has been seen by some as a measure to stop "naked short-selling" that has resulted in unwarranted selling pressure on many companies' stocks. The complete text of NASD Rule 3370 can be found at the following Internet link: www.nasdr.com/pdf-text/0028ntm.txt.

For more information on Morrow & Co., Inc. go to www.morrowco.com.

About Ocean Resources:

Ocean Resources, Inc. (www.oceanri.com) is engaged in the business of deep-water recovery operations of valuable shipwreck cargos throughout the world.

Notice to all Shareholders and Companies affected by Naked Short Selling.

Add your voice and be part of the solution. Please sign the on-line Petition at http://www.investigatethesec.com and help to institute an independent investigation into the misconduct of the Securities and Exchange Commission (SEC).

In signing this petition, you are requesting that there be an independent investigation by the United States Congress or Senate in to the conduct of the SEC regarding the manipulative, abusive and illegal trading practice known as "naked" short selling. This petition also requests that they also investigate why this illegal trading practice has been allowed to exist by the SEC for over a decade without any significant enforcement.

Since the mid 1990’s, the SEC has been aware of naked short selling and has failed to adequately respond to investor and Company complaints alike. In recent years the Federal Bureau of Investigation, the Royal Canadian Mounted Police and the SEC have conducted numerous investigations into naked short selling and have followed these illegal stock sales through to money laundering and other illegal schemes. As a result of the lack of diligent enforcement of their own trading rules by the SEC, every private investor has had their financial integrity jeopardized. Whether its private ownership of common shares, ownership of a mutual fund or participation in a company pension plan, every investor is having money stolen from their pocket by these criminal schemes.

By their lack of enforcement and passive neglect, the SEC is therefore guilty of aiding and abetting criminal activities.

Since the SEC has failed to take adequate counter measures to stop illegal short trading by members of the financial investment industry, we are demanding an independent accounting as to the reasons for their years of inaction.

Picture this scenario and see if you can imagine how this might play out. Imaginary Company A, lets make it a dating start up service and call it "Live-A-Kiss, Inc." has 12 million shares outstanding and is just a business plan for a business. This would be a company with no substantial assets and no revenues worth mentioning. And let's imagine this company only has say 500,000 freely tradable shares as a result of a reverse split prior to the merger with the prior shell corporation. For this example let's call this shell "Muck-A-Fee Ventures, Inc". So essentially, Muck-A-Fee Ventures executed a reverse split making sure through some creative structuring that the bulk of the 500,000 remaining free trading shares are in "friendly hands". Then Muck-A-Fee issues another 11.5 million shares to Live-A-Kiss, Inc to complete the acquisition.

Then they create a story around this dating service called Live-A-Kiss, Inc. and begin trading. They take the stock from $.10 to $5.00 and then to $10.00 with little or no resistance. They make it look like there is activity by "painting the tape" or trading stock back and forth to make it look like volume when there is none. Because there are no legitimate shareholders to sell, there is absolutely no resistance to this upward movement and the stock goes all the way to $25 and more giving anyone looking at the stock the impression that this was a stock on the move. Of course, even though every single short seller in the world is dying to sell this stock, they can't because they can't borrow any shares. The promoters at Live-A-Kiss own the market with no one and nothing in sight to stop them.

Once the stock reaches $25.00 a share, the insiders who control the 500,000 shares and hold them in offshore accounts, start selling them off to unsuspecting investors. Of course, since there are no short sellers, there is no one to alert the market or the SEC or even Our-Street.com to the fact this is going on. Once Live-A-Kiss insiders have sold as many of the 500,000 shares as they want, they quit the pump and there it sits... a basically valueless company and a market capitalization of $300,000,000 for a company worth about $100,000 on a good day and suckers simply waiting for something good to happen that never will. Of course, once people figure out that this is a nothing company and the first few begin to sell, the stock will collapse like a tent in a tornado back to pennies without an ounce of support. Once again, no shorts in the stock means no support on the way down.

This may sound like fiction but it is more real than you can imagine. This is a scene that will be repeated again and again with different names and different numbers but always the same basic structure if the SEC does not take additional action along with their "must borrow" rule and require minimum public floats.

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Originally posted by roger7485:
All mm short stocks. Many times its not purely profit driven. Someone put a post on here that explained it quite well. Sometimes a MM finds themselves on a best Ask, often in the midst of a big surprise run, and they are forced to sell shares that they dont have. And then they continues to sell shares they dont have during the run and average their short upwards. So sometimes shorting is just a result of not being able to pull your ask before the pps gets there. MM have alot of stocks to watch so sometimes they get caught with their pants down, especially with pennies.

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Originally posted by BlindMellonChitlin:
Market movement due to legitimate investor decisions is one thing, but deliberate manipulation is a reality as evidenced by many company news releases regarding naked short selling and a lawsuit involving the SEC.

[This message has been edited by BlindMellonChitlin (edited May 18, 2004).]

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And yes it's not a game....it's a crap shoot at best.
You do your DD and take your chances.

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Originally posted by BlindMellonChitlin:
I guess making noise about unfair shorting practices brings out the ones working for the MM's....like those last two above ^^^^^^^ IMO

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Originally posted by BlindMellonChitlin:
What's your problem? Did I hit a sore spot? ROTFLMAO

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