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This is from an article slightly more than a year old, perhaps posted elsewhere on-site. I dunno. But this one sentence--amidst several great paragraphs--REALLY got my attention:
"Meanwhile, CBS Marketwatch, a venture between Marketwatch (NASDAQ: MKTW) and Viacom's (NYSE: V) CBS unit, has suggested that victims of securities fraud may be able to file for theft claims on tax returns instead of capital losses."
This article lists a bunch of companies that--at the time--were taking various approaches to fighting NSS. Makes me wonder: could we assemble a list of companies who are agressively fighting NSS via lawsuits, etc, then pick a period, say 2 to 4 weeks during which online traders buy ONLY from those companies? I suppose someone might say that's manipulation, too, but there should be some way to fight back with our checkbooks...any thoughts?
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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SEC Action Against One Broker Naked Shorting One Company Hints At StockGate Magnitude / FinancialWire® February 22, 2005 (FinancialWire) The U.S. Securities and Exchange Commission has begun to crack down on some naked short sellers, in what some say is the “tip of the iceberg,” and each time it occurs with only one brokerage involved, it hints at potentially the sheer magnitude of the Stockgate scandal on a national scale.
February 22, 2005 (FinancialWire) The U.S. Securities and Exchange Commission has begun to crack down on some naked short sellers, in what some say is the “tip of the iceberg,” and each time it occurs with only one brokerage involved, it hints at potentially the sheer magnitude of the Stockgate scandal on a national scale. The latest SEC action relates to a scheme involving the shares of Expedia, Inc., now a subsidiary of IAC/InterActiveCorp (NASDAQ: IACI), that amounted to $18 million for one company by one broker. The SEC has filed a civil action in the United States District Court for the Eastern District of Pennsylvania against David S. Davidson, Lloyd S. Beirne and Brandon T. Bush, all of Boca Raton. Davidson is the former chairman and chief executive officer of D.L. Cromwell Investments, Inc., a defunct broker-dealer formerly located in Boca Raton, Beirne is Cromwell's former president, and Bush was a Cromwell trader. The Commission's complaint alleges a short selling scheme in which, from late October 2002 through March 2003, defendants fraudulently used non-existent trades to hide a burgeoning short position in the stock of Expedia, Inc. ("Expedia"), held in Cromwell's proprietary account at its clearing broker, which is located in Philadelphia, Pennsylvania. Davidson, Beirne, and Bush used the access that Cromwell, as an introducing broker, had to the clearing broker's system to falsely place Expedia buy orders, which they knew they would cancel the next day, claiming the orders were placed in error. The Complaint alleges that defendants entered and cancelled these fictitious buys almost daily for five months, concealing the size of the short position from the clearing broker, and avoiding serious financial consequences, including margin calls. The complaint further alleges that the scheme unraveled on March 19, 2003, when the announcement of a tender offer for Expedia by its majority shareholder lifted Expedia's price from $38 per share to more than $47. Shortly thereafter, the clearing broker discovered the fraud. Cromwell could not cover its short position in Expedia, which had grown to approximately 660,000 shares, and the clearing broker was forced to pay $18 million to cover the position. The complaint is located at http://www.sec.gov/litigation/complaints/comp19090.pdf
FinancialWire is an independent, proprietary news service of Investrend Information, a division of Investrend Communications, Inc. It is not a press release service and receives no compensation for its news or opinions.
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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