Oct. 09, 2022
October 9, 2022
10/9/22
Dear SEC,
I am writing this comment asking for your help to finally fix the problems with Naked Short Selling which is killing USA entrepreneurs, job creation, newfound tax revenues, and innovation.
I have seen firsthand over the past 25 years just how damaging and unfair this corruption is. The Hedge Funds have figured out how to profit on negativity and drive stock valuations down or entirely bankrupt companies with unlimited share creation above the company's outstanding/floats which are basically counterifieted through Naked Shorting. This also manipulates the voting rights of the targeted companies.
The irony to this is that if you look at the track record of enforcement of the SEC they have gone after the little entrepreneurs who don't have the money to defend themselves and are the victims of these Hedge Funds' negative bashing in many cases and yet not one banker or negative basher has any enforcement actions making naked short selling a money tree with the worst case scenario for these funds to be a simple little fine which is pre-built into their budgets and is a tiny fraction of these ill-gotten proceeds they have made by destroying companies, innovation, tax revenues, lives, and the USA.
It's time the SEC finally works for job creation, and innovation, protecting USA companies/retail investors, and stops giving carte blanche loopholes for the banks like with the failed attempt with Reg-SHO to stop this. Look at the 440 China reverse mergers which were to unload companies China didn't want in the USA and hedge funds shorting them down taking the money with their China cohorts.
As attorney Wes Christian said who first proved this was happening:
The Depository Trust and Clearing Corp. has a lot of reasons, almost one billion of them a year, to keep illegal naked short selling in operation. It was the proverbial shot across the bow by the legendary Houston law firms of Christian, Smith, Wukoson and Jewell, and O'Quinn, Laminack and Pirtle, whose notches already include environmental targets, the breast implant industry and the tobacco industry, all brought to their knees.
In comments to the U.S. Securities and Exchange Commission, C. Austin Burrell, who is providing litigation support and research for the law firms, said that StockGate is more massive than anyone may have imagined. \"Illegal Naked Short Selling has stripped hundreds of billions, if not TRILLIONS, of dollars from American investors,\" and have resulted in over 7,000 public companies having been \"shorted out of existence over the past six years.\" Burrell said some experts believe as much as $3.5 trillion to $4 trillion has been lost to this practice.
He stated that the restrictions on short selling were deliberately put into the Securities Acts of 1933 and 1934 because of the first-hand evidence then available that the \"sheer scale of the crashes was a direct result of intentional manipulation of US markets through abusive short selling by a massive conspiracy.\"
Burrell noted that the 65-lawyer team presided over by lead lawyers Wes Christian and John O'Quinn has uncovered more than 1,200 hedge fund and offshore accounts working through more than 150 broker-dealers and market makers (insert paid consultants BCG) in a joint cooperative effort to strip small and medium size public companies of their value.
Recently the NASD and U.S. Securities and Exchange Commission approved an interim naked short-selling band-aid, requiring U.S. brokers to make an \"affirmative determination\" that short-sellers, even foreign short-sellers, mostly Canadian, can find certificates to cover before processing the order.
WE ARE CALLING ON CONGRESS TO ELIMINATE HEDGE FUND CORRUPTION WITH STOCK BORROW/MARGIN PROGRAMS AND FAIL TO DELIVER WHICH ENDS UP HYPOTHECATING SHARES THAT DON'T EXIST IN PUBLIC COMPANIES AND ARE USED FOR CORRUPT MEANS.