posted
Stockgate Goes to Congress by Mark Faulk (3/10/05)
Congress finally took the first steps towards addressing the naked short selling issue known as "Stockgate" yesterday when, in a whirlwind week that began with a major court ruling in a lawsuit pertaining to naked short selling, gained momentum when a Michigan man provided Congress with a clear "smoking gun", and culminated with Senator Robert Bennett telling SEC Chairman William Donaldson in a Senate hearing that "Rule SHO is not working".
Letting the Courts Decide
In what attorney Wes Christian described as "a significant victory in our on going battle to bring restitution to our clients for the brazen manipulations that were perpetrated against them", a New York court last week ordered the Depository Trust and Clearing Corporation (DTCC) to produce trading records for shares of Eagletech Communications (OTCBB: EATC). Eagletech, who was represented in the motion by Christian Smith & Jewell of Houston, Texas and Koerner Silberberg & Weiner, LLP, of New York City, is a plaintiff in a stock manipulation action pending in the state of Florida. It commenced a special proceeding in the Supreme Court of the State of New York to obtain certain trading reports from the Depository Trust and Clearing Corporation.
It was the first major ruling against the DTCC in the naked short selling scandal, and could open the door for other similar rulings in the dozens of cases filed by Christian, famed attorney John O'Quinn (of the Houston law firm of O’Quinn, Laminack and Pirtle), and others on behalf of companies and investors who claim that they have been victimized by naked short selling. Christian and O'Quinn have also won favorable rulings on on behalf of Exotics (OTCBB: EXII).
The Smoking Gun
In what was the most significant development this week, a Michigan man, Robert C. Simpson, claimed to have acquired 100% of the shares of Global Links Corp (OTCBB: GLKCE), filed his purchase with the SEC, and , according to Financial Wire, had the certificates delivered to him, and then watched as over 50 million shares traded over the next two days. In fact, GLKCE traded another 447,000 shares just yesterday. How did major brokers buy and sell tens of millions of shares of stock in a company that had zero shares available? It's a question that the SEC, the DTCC, and the brokers themselves will have to answer in the coming weeks.
And, if that wasn't enough, another investor, Paul J. Floto of Dallas, Oregon, bought another 15% of Global Links' stock just his week, and filed his shares with the SEC as well, even though Simpson had filed his claim to 100% of the shares of the same company a month earlier. This is how Floto described his purchase in his SEC filing ( http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=3321340 ):
"On February 3, 2005 a single investor reportedly purchased all the common shares issued by the company, plus 145 additional unissued shares.
Subsequent to that date, over 95 million shares, or over 82 times the total shares issued, were reportedly traded, none of which were reportedly sold by the 100% owner of the common stock.
On March 4 and 7, I purchased a total of 180,000 shares, resulting in my obtaining 15.54% ownership of a stock reportedly already 100% owned by another investor. I assume that there may be additional investors who may also claim ownership of common shares of this company.
I have requested that certificates be issued to me representing my full 15.54% ownership interest, to protect my right to vote and enforce any other claims that may accrue to an actual documented owner.
I understand that Reg. SHO was supposed to detect and prevent the fabrication of millions of nonexistent shares. It would appear that my securities purchases prove that Reg. SHO has been systematically violated by market-making brokers and securities-clearing firms.
From time to time I may continue to purchase additional securities on the open market to increase my ownership interest to up to 100% of the company's common stock to give me an ownership interest equal to that of the current 100% owner."
Major Media Coverage
While this has been largely a grassroots effort in the past, with only a handful of publications covering the story, including www.faulkingtruth.com , www.financialwire.net , www.investigatethesec.com , and Judith Burns of Dow Jones, there has been an upsurge in media coverage lately, as the major media has finally begun to recognize the significance of the story. But while media outlets such as the San Antonio Express-News and WNBC in New York have done recent stories on Stockgate, NBC's Dateline continues to sit on a segment that has been in the works for well over a year. Their segment, which was originally scheduled to air in early 2004, has been postponed numerous times, and, according to our sources, is now scheduled to air "sometime before April 15th". I'll believe it when I see it. After the events of the past few weeks, the scandal might be well on its way to being resolved by the time Dateline finally gets their act together.
Congress To SEC: "Regulation SHO is Not Working"
While thousands of investors have joined advocates for stock market reform in speaking out publically, others have been quietly working behind the scenes to convince Congress to launch an investigation into the naked short selling scandal. We have been working with a number of people who have been busy lobbying members of Congress to take steps to end the rampant corruption that has plagued the market for years, and yesterday, those efforts finally began to pay off.
In a hearing in the US Senate Committee on Banking, Housing, and Urban Affairs, Senator Robert Bennett grilled SEC Chairman William Donaldson about the naked short selling scandal, citing the Global Links story and opening his statement by telling Donaldson "You put out a new rule in January to deal with naked short selling, and as nearly as I can tell from my constituents, who feel victimized by this - it's not working." He then went on to read from the Global Links article and said that "this article just last Friday in a national publication indicates that people are still selling short shares that they don't have and clearly are never gonna acquire."
When Donaldson tried to argue that "short selling is not illegal", Bennett interrupted him by saying "I approve of short selling, it's the naked short selling we're going after." Donaldson then tried to describe how the recently enacted Regulation SHO dealing with the naked short selling problem, and was again interrupted by Senator Bennett, whose final comment was "My main message here is that the evidence is Rule SHO is not working, so that's what we need to get into in detail." He concluded by directing Donaldson to present an "in depth briefing" to the committee.
What Now?
This is a major victory for those of us who have often felt as if we have been beating our heads against the wall in this crusade. Mark this day down on your calenders as the day that our voices were finally heard in the halls of Congress, but be aware that this is only the beginning, there is much work yet to be done. Now is the time to step up efforts to spread the word like never before, to contact Senator Bennett and all the members of the US Senate Committee on Banking, Housing, and Urban Affairs, the Senate Finance Committee, as well as your own Congressmen and Senators. Tell them that we demand justice. Remind them that President Bush wants to invest our Social Security money into a stock market where corruption is rampant. Tell them that a full Congressional investigation is the only solution to this national scandal, and continue to spread the word to the media and through the internet. Then, and only then, will our markets once again be safe for investors.
To listen to Senator Robert Bennett's testimony and SEC Chairman William Donaldson's response from the March 9th US Senate Committee on Banking, Housing, and Urban Affairs hearing, go here, click on "Video Archive" and fast forward to 1:19:30:
(Editor's note: Correction: Robert Simpson has NOT received his GLKCE stock certificates, as was originally reported by www.financialwire.net . Although he has requested them from his broker, they have yet to deliver them to his possession. We will keep you updated as new information becomes available.)
Add your name to our "Stockgate activist list" at info@faulkingtruth.com. We will email you only when we have new articles or information dealing with this issue. Please link the articles everywhere you can, post them on stock message boards, and send them to the appropriate public entities. To enact positive change requires positive action.
posted
Thought some of you (especially dwman and Dusty) might get a laugh out of the following my nephew sent me:
Believe it or not you can read this!
I cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdanieg. The phaonmneal pweor of the hmuan mnid. Aoccdrnig to rscheearch at Cmabrigde Uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoatnt tihng is taht the frist and lsat ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it wouthit a porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Amzanig huh? Yaeh, and I awlyas thought slpeling was ipmorantt.
LMAO!!!! Thought of a few of the posters here and elsewhere. I think my nephew was trying to tell me something. Guess I had better stop my attempts at enlightening him!! LOL
Posts: 3607 | From: NJ - Outside Phila. | Registered: Mar 2004
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posted
The speculation is that the switch was just the brokers clearing out buy/sell orders already made and that it would go back to symbol before it started trading again. Also some may get mad but after USCI halt alot of brokers would not allow buy orders on the stock anymore. That is a good possibility here.
quote:Originally posted by litesj: Why is it back to the symbok vs the number?
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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quote:Originally posted by glassman: that is stupid legal... GLOBAL LINKS?
GLKC - Global Links Reverse Split History
Symbol Split Ratio Date GOBC 1:350 R/S 02/01/2005 GBLL 1:350 R/S 10/08/2004 GLNK 1:40 R/S 04/16/2003 UTDT 1:8 R/S 12/21/2001
maybe the guy that THOUGHT he bought the company was drinking out of the same trashcan full of kool-aid that the cmk? guys were....
it was real popular in the haight-ashbury district back in the 60's
Glass, perhaps you should get this information to Sen. Bennett since he just broadcast the story nationwide in an interrogation of the SEC commissioner about NSS (that are also nonexistent LOL) . I am sure his Senate investigative staff have failed to investigate this matter as thoroughly as you. They have apparently been dipping in the Kool Aid as well.
LOL Eagle.... i can show you the PREFERED share conversion filing.... be careful with that ax,
------------ ----------
STOCKHOLDERS' EQUITY Common Stock Par value $0.001 (1,900,000,000 shares authorized, 287,787,799,and 37,972,799 issued and outstanding).(see note 4) . . . . . . . . . 287,788 37,973 Preferred Stock, Series B (15,000,000 shares Authorized, 15,000,000 and 3,335,000
those prefered shares? that's the purple koolaid...hope it tastes good....
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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posted
the preferred shares are exersizable at any time..it says so in another filing...
me and Address of Reporting Person *
DOBRUCKI FRANK J 2. Issuer Name and Ticker or Trading Symbol
GLOBAL LINKS CORP [ GBLL ] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable)
__ X __ Director __ X __ 10% Owner __ X __ Officer (give title below) _____ Other (specify below) President, CEO, CFO (Last) (First) (Middle)
4600 E. SUNSET RD., SUITE 320 3. Date of Earliest Transaction (MM/DD/YYYY)
8/31/2004 (Street)
LAS VEGAS, NV 89014 (City) (State) (Zip) 4. If Amendment, Date Original Filed (MM/DD/YYYY)
6. Individual or Joint/Group Filing (Check Applicable Line)
_ X _ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YYYY) 2A. Deemed Execution Date, if any (MM/DD/YYYY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 3910000 D
Table II - Derivative Securities Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivate Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YYYY) 3A. Deemed Execution Date, if any (MM/DD/YYYY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 6. Date Exercisable and Expiration Date 7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Series B Preferred Stock $0 (1) (2) (3) Common Stock 28000000 2800000 D
Series B Preferred Stock (1) 8/31/2004 P 10040000 (2) (3) Common Stock 100400000 (4) 12840000 D
Explanation of Responses: ( 1) 10 shares common for each 1 share of preferred ( 2) Anytime ( 3) None ( 4) N/A
Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other DOBRUCKI FRANK J 4600 E. SUNSET RD. SUITE 320 LAS VEGAS, NV 89014 X X President, CEO, CFO
Signatures Frank J. Dobrucki 9/22/2004 ** Signature of Reporting Person Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. * If the form is filed by more than one reporting person, see Instruction 4(b)(v). ** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure. Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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posted
Hmmmmmmm..Poi and coolaids beam me up Scotty I am getting hungry N O w a i t I am finnally goings toetille madd.
Posts: 10729 | From: oregon | Registered: Feb 2005
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quote:Originally posted by Dustoff101: Sometimes I feel like an ant under a cattle stampede around here. I am learning alot about stocks and the internal operations of a company,as well as greater insight into the goings on around Wall Street. [ goings on ] That should drive Dwman nuts.
Na...dusty, didn't drive me nuts. I was already that way. However, juspt put a hyphen betweein goings and on and you are ready to go...perfectly eenglich. goings-on
Posts: 1005 | From: Grapevine, TX 76051 | Registered: Aug 2004
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posted
LOL... who did that to my post? I dilibritly mispelled only one word.
Posts: 1005 | From: Grapevine, TX 76051 | Registered: Aug 2004
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quote:Originally posted by Wallace#1: Thought some of you (especially dwman and Dusty) might get a laugh out of the following my nephew sent me:
Believe it or not you can read this!
I cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdanieg. The phaonmneal pweor of the hmuan mnid. Aoccdrnig to rscheearch at Cmabrigde Uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoatnt tihng is taht the frist and lsat ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it wouthit a porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Amzanig huh? Yaeh, and I awlyas thought slpeling was ipmorantt.
LMAO!!!! Thought of a few of the posters here and elsewhere. I think my nephew was trying to tell me something. Guess I had better stop my attempts at enlightening him!! LOL
Wallace, waht's rong with that?
Posts: 1005 | From: Grapevine, TX 76051 | Registered: Aug 2004
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posted
Dwman......haz yews beanz a sippining thats thar coalaide aginn or is theec trealy a yews.
Posts: 10729 | From: oregon | Registered: Feb 2005
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posted
Wasn't me dwman, I'm star challenged myself. Still showing as 4 but my official rating is 3.96 and dropping. Might have to hit the campaign trail here.
Posts: 5729 | From: Wisconsin | Registered: Sep 2003
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posted
you know what burns me up? there is a naked short problem, and it isn't being fixed...the sad part is that the weirdo companies are gonna make it HARDER to fix....
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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posted
Glassman,what do you mean,how would you fix it?
I haven't ever seen anything like this o/s.Just wondering what could be done to work with it, besides an rs.If there was a massive buy back, and there was a low float and there was some good news for a change, that could raise the pps wouldn't it?I understand you will have alot of room for dilution, but those shares could be put back in the company to lower the o/s,or not?
Posts: 2634 | From: The highway | Registered: Feb 2004
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CMKX probably has no money. Would not surprise me if shs were sold to pay UC's salary and others' salaries + expenses. Then, whatever UC got went into race cars plus fun, fun, fun. No one that I know of has heard anything about UC's salary.
Posts: 3607 | From: NJ - Outside Phila. | Registered: Mar 2004
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posted
i agree glass, its companies like cmkx that dilute the ##@%&^* out of a stock that kill fixing the problem. i'm sure there are a few billion naked shares of cmkx maybe even 30 or 40 billion but who cares? if the company is going to dump 703 billion on top of that then the SEC can point to it & say "how can ya tell?" then to have a clown of a congressman open his mouth in a good effort but never check on the company he is using as an example is beyond me. the aid that handed him that need to be rode out of town on a rail. there are so many more real companies to choose from that are naked shorted. at least that lawyer group is getting things done for the companies they represent, unlike a certain lawyer thats had his butt & feet kissed around here. if nbc would broadcast that show it would get a lot bigger push going.
-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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posted
I agree with what you're saying bill but I don't see how a monsterous o/s makes it any more difficut to prove or disprove a naked short position, at least if the company in question is filing. I hope Glass comes in here and explains further what his thinking was but I think it might have something to do with companies that set up layers of preferred shares with differing conversion rates to common. That can make it almost impossible to truly gauge the actual o/s at any given point. It sure looks like you're right about the congressman that started screaming about the short position in Global Links though. That looks like a huge mistake where no research was done at all.
Posts: 5729 | From: Wisconsin | Registered: Sep 2003
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the "sad part" that i am talking about is that this was presented to the Senate as an exmple of NS'ing, and even if it was NSed? the MM's could get all they needed by asking for a conversion from the CEO.....EZ money.....
yes the shareholders are hurt, but it was likley to happen anyway given the past history
sad, because this one was presented INSTEAD of a company that is actually being hurt by NSing
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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posted
added this to glass's link but thought a few might enjoy this
the new cmkx tshirt...
GOT CMKX??
IF NOT
WE'RE PRINTIN' AS FAST AS WE CAN
-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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posted
Posted Mar 2, 2005, 12:30 PM ET by Dave Patch Wall Street self corrects? Look at this example:
Global Links went through a 1:350 Stock split on February 1, 2005. They reduced their entire O/S to 1,158,000 shares. Prior to the split they were trading at $.07/share. On February 3, 2005 a single investor purchased 1,158,000 shares of the security for slightly more than $5K. He filed with the SEC claiming 100% ownership of the O/S. Here is where it gets bizarre.
Global links has traded 100 Million shares since February 1, 2005. That is 100 Times the reported O/S as reported by the Company in an 8-k
2. Obviously Wall Street did not conduct theeverse split as required. Where is the oversight to this issue?
The reason this is allowed to happen is because the Regulators are fools and let Wall Sreet do whatever they want. Somebody screwed up but.. according to the filings, people are buying this stock based on a valuation with only 1.1 million shares in the O/S. How do you correct that fraud?
Posts: 2375 | Registered: Nov 2004
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CMKX and DeBeers Joint Venture Project? Schmedrick Dr. Of Diamonds
member is offline
Gender: Posts: 116 CMKX and DeBeers Joint Venture Project? « Thread started on: Today at 2:05pm »
-------------------------------------------------------------------------------- I found this CMKX claims map on the Phoenix races website. I enlarged the map to take a closer look at it and could not believe what I think I am seeing.
Take a look at the huge Kimberlite's in the middle of DeBeers property, what color are they?
Now take a look at the colored legend at the right side of the map and look at the red square, CMKM Project Surround.
Now go back to the DeBeers Kimberlite's again, what color are they?
You might be thinking that those Kimberlite's were just colored because they are Kimberlite's, well that's what I first thought too until I looked at the other Kimberlite's on DeBeers property, but they are colored Black. So adding color to the Kimberlite's just because they are Kimberlite's does not add up.
Am I imagining things here? If those colors on DeBeers huge Kimberlite's are a true representation of the colored legend on the right side of the map, then CMKX may have indeed hit the Mother Lode, and much larger than I could have ever imagined.
You may have also noticed that there is a very large Pink area of claims directly east of DeBeers property that according to the legend on the right side of the map is now owned by United Carina, one of our JV partners. I don't know about you but it sure looks to me like CMKX has locked up the entire Fort a la Corne claims area.
Here is the original map that I used to enlarge the one up above, if you look close you can see the colored Kimberlite's on DeBeers property.
posted
Advertising is done well in advance. That was there when CMKX was still selling there product (shares) cmkx. What else does "Got CMKX" stand for. There whole business has been selling stocks and why not. At a dilution of 630 billion shares thats makes them after payoffs around $350,000.00 a day. How can I get by with that. Man, no one can claim UC isn't smart but most cons are. Make sure and drink the koolaid flavored beer. This is Nascar remember.
Ric
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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posted
Actually, that should read CMKX GOTCHA !!!!
-------------------- If I give you bad information, please feel free to sue me. I have nothing left anyway. Ed Posts: 1772 | From: Oxford, PA, USA | Registered: Oct 2004
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