The Truth About Naked Short Selling in Juniors
INTRODUCTION
by Jim Puplava
On March 31, 2007 I had the opportunity to interview Dr. Patrick M. Byrne, Chairman and CEO of Overstock.com on Financial Sense Newshour [FSN]. Dr. Byrne was interviewed by Bloomberg News' Michael Schneider on March 14, 2007, the transcript of this interview titled 'Phantom Shares,' Failed Trades and Naked Shorts (Transcript) is still available on Bloomberg.com. This interview, coupled with Dr. Byrne's explosive slide presentation of the not-so-hidden corruption in our financial markets called, The Dark Side of the Looking Glass: the Corruption of Our Financial Markets, motivated me to do my own investigation.
In my FSN Annual Year End Review for 2007, Part 1, I briefly touched the significance of my interview with Patrick Byrne. Since then and throughout 2008, I have personally witnessed this abhorrent and perverse action in junior mining shares. I am so appalled by this rampant abuse, that I began a series on Financial Sense Newshour's "The Big Picture" to expose this "Crime of the Century" [COTC] to our listeners.
The quote "The only thing necessary for the triumph of evil is for good men to do nothing" is often attributed to Edmund Burke. It is my fervent belief that Financial Sense visitors are identified as good men and women, who search for uncommon truth in their quest to become wise investors. In this regard, Financial Sense hopes to provide accurate information in this series so that we all can do something to stand against this evil practice of naked short selling.
| Financial Sense Newshour - Crime of the Century Broadcast series | |
| 06/21/2008 | Crime of the Century, Part 5: Summary and Conclusion with Eric King Real Player | WinAmp | Windows Media | Mp3 | Transcript |
| 06/14/2008 | Crime of the Century, Part 4: Fingerprints at the Crime Scene, Protecting Mining Companies & Internet Rats RealPlayer | WinAmp | Windows Media | Mp3| Transcript |
| 06/14/2008 | Crime of the Century: Other Voices - Darin Diehl, Publisher & Executive Editor Stockgroup Information Systems, Inc. (Stockhouse Message Boards) | Transcript |
| 06/07/2008 | Crime of the Century, Part 3: Stock Fraud with Wes Christian Real Player | WinAmp | Windows Media | Mp3 | Transcript |
| 05/31/2008 | Crime of the Century, Part 2: How They Scam Individual Investors Real Player | WinAmp | Windows Media | Mp3 | Transcript |
| 05/24/2008 | Crime of the Century, Part 1: The Agency Issue: Conflicts of Interest, Fraud, Corruption & Crimes Against Investors with Eric King Real Player | WinAmp | Windows Media | Mp3 | Transcript |
| 12/22/2007 | Crime of the Century, Annual Year End Review - Part 1 Real Player | WinAmp | Windows Media | Mp3 | Transcript |
| 03/31/2007 | FSN Ask the Expert Interview: Patrick M. Byrne "The Dark Side of the Looking Glass" Real Player | WinAmp | Windows Media | Mp3 | Transcript |
| Financial Sense Editorial Resources | |
| 12/21/2007 | Chairman Harvey Pitt Speech to Coalition Against Phantom Training November 16, 2007, Mayflower Hotel, Washington, D.C. PDF format, 15 pages |
| 12/21/2007 | Naked Short Selling: The Problem and the Solution PDF format, 4 pages with extensive references |
| Various | Financial Sense Search Engine on "Naked Short Selling" Various articles by contributors with reference to naked short selling |
Filing a Complaint
- Canadian Securities Administrators [CSA]
- Ontario Securities Commission [OSC]
- US Securities and Exchange Commission [SEC]
Definitions
- Wikipedia includes historical references
- Investopedia includes related terms and articles
Financial Regulator Fact Sheets
- The Depository Trust & Clearing Corporation [DTCC]
- US Securities and Exchange Commission [SEC]
- Key Points About Regulation SHO
- Regulation SHO - Amendments | Federal Register
- Short Sale Restrictions
- Short Sales
Internet Resources
- Who is Guarding Your Money by CBC News: Sunday, 11/23/08
- Junior Investor Takes Action - email and response from Ontario Securities Commission
- Got Gold Report Comments on Proposed SEC Short Sale Rule S7-08-08 - Resource Investor
- S.E.C. Ends Decades-Old Price Limits on Short Selling - NY Times, 06/14/08
- Deep Capture Blog - investigative reports
- Deep Capture the movie: How Wall Street criminals hijacked the institutions that are supposed to be protecting us from them." by Patrick M. Byrne
- The Dark Side of the Looking Glass by Patrick M. Byrne (businessjive.com)
- Chairman Harvey Pitt's "Top 10" Recommendations YouTube.com
- SEC Chairman Christopher Cox on Short Selling YouTube.com
- EMII: SEC Revs Up Short-Sale Crackdown YouTube.com
- Jim Cramer on Market Manipulation - Transcript on AntisocialMedia.net
- The Sanity Check blog hosted by Bob O'Brien
- The Dark Side of the Looking Glass: The Corruption of Our Financial Markets by Patrick M. Byrne
- InvestigatetheSEC.com blog hosted by Dave Patch
- Miscreants' Ball by Patrick Byrne, Overstock.com
- Testimony of Gary J. Aguirre, Esq Before the United States Senate Committee on the Judiciary
June 28, 2006 | December 5, 2006 Part 1 | December 5, 2006 Part 2 - Introduction to Level II Quotes by Justin Kuepper on Investopedia
Message Board Bashers
Be aware of stock manipulators (AKA Board Bashers) If you believe your stock message board has been corrupted by these individuals, please report them to your local message board. Each board has a link to report abuse. USE IT!
The FBI defines an Internet crime as follows:
Internet crime is defined as any illegal activity involving one or more components of the Internet, such as websites, chat rooms, and/or email. Internet crime involves the use of the Internet to communicate false or fraudulent representations to consumers. These crimes may include, but are not limited to, advance-fee schemes, non-delivery of goods or services, computer hacking, or employment/business opportunity schemes.
Review the FBI's FAQ on Internet crimes and submit a complaint at Internet Crime Complaint Center.