Web: Suit Against Prime Brokers for Phony Stock Borrow Charges Filed

Web

Suit Against Prime Brokers for Phony Stock Borrow Charges Filed

Bud Burrell, Chad Bray

Dow Jones Newswires cited by Sanity Check via Wayback, 12 April 2006

An antitrust lawsuit was filed Wednesday against the securities industry’s largest brokerage firms over fees charged as a result of “naked short selling.”

The lawsuit filed in federal court in Manhattan by Electronic Trading Group LLC alleges that the major broker-dealers charged unearned fees, commissions or interest on short sales where those broker-dealers failed to borrow or deliver the stock to back a short position.

Access archived page.