August 3, 2010
Illegal naked short selling(NSS) is a rampant epedemic in the penny stock world. It's been my observation that the SEC needs to focus as much attention as it does on the pump and dump schemes on the NSS issue, which is largely facilitated by the hedge fund industry by using 'short and distort' tactics. For example, in a stock called Spongetech Delivery Systems(SPNG) I counted over 16,000 consistently negative 'basher' posts on the popular message board iHub over the past few years. Interestingly enough, these 'bashers' had knowledge that management was allegedly involved in a 'pump and dump' scheme well before it happened(which is also illegal insider trading, if management is found guilty and the 'bashers' acted on such insider information). These individuals continue to 'bash' the stock 24/7 with the intent to drive SPNG out of business,literally stealing millions and possibly billions of dollars from shareholders(becasue they will never be forced to cover thier short positions). Along with the alleged actions of management of SPNG, the SEC should also be investigating the possibility of rampant NSS as well. By turning a blind eye to this issue, it is my opinion that the SEC is in collusion with the hedge fund industry in stealing billions of dollars from honest, hard working investors.