Article: Biolase CEO Takes Dead Aim At Naked Short Sellers – Main Street Cheers

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Biolase CEO Takes Dead Aim At Naked Short Sellers – Main Street Cheers

Seeking Alpha, 20 August 2013

Federico Pignatelli, Chairman and CEO of Biolase Inc. (NASDAQ:BIOL) called out naked short sellers and short-sellers attempting to manipulate shares of BIOL August 19th, in a candid press release. In short Mr. Pignatelli disclosed that Biolase will continue to issue stock dividends on a periodic basis to reward long-term shareholders and thwart the naked short selling of Biolase stock.

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Article: Stripped bare

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Stripped bare

Securities Lending Times, 20 August 2013

“Abusive”, “like a form of terrorism” and “funny paper”are three descriptions of naked short selling, given by the Securities and Exchange Committee, a life insurance company CEO, and broker-dealer Jeffrey Wolfson, respectively.

They do not do much to dispel the belief of naked shorting as a practice that is even worse than selling a borrowed security, only to buy it back at a lower price—what we know as covered short selling.

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Article: JPMorgan Agrees to $410 Million Fine for Electricity Market Manipulation

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JPMorgan Agrees to $410 Million Fine for Electricity Market Manipulation


JPMorgan Chase & Co. has accepted a $410 million penalty to settle accusations of electricity market manipulations in California and the Midwest.

On July 30, 2013, the Federal Energy Regulatory Commission (FERC) issued an order approving stipulation and consent agreement that requires JPMorgan Ventures Energy Corporation (JPMVEC) to settle allegations of electricity market manipulation in California and the Midwest between September 2010 and November 2012. The $410M fine includes $285M in civil penalty (to be paid to the U.S. Treasury) and $125M of disgorged profits ($124M to California ratepayers, and $1M to Midwest ratepayers). The agreement also requires JPMVEC to waive claims for additional payments from California Independent System Operator Corporation (CAISO) and adopt additional compliance measures. JPMVEC, a subsidiary of JPMorgan Chase & Co., accepted the settlement facts without admittance or denial of violations.

FERC initiated investigations in response to multiple referrals by CAISO and Midwest Independent Transmission System Operator, Inc. (MISO) market monitors of manipulative bidding practices during 2011 and 2012. It approved four emergency tariff filings from both independent system operators (ISOs) to make tariff changes effective from the filing date rather than the order date. In November 2012, FERC suspended JPMVEC’s electric market-based rate authority for six months with effect from April 1, 2013 for submitting false information.

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Article: The Other Side of Stevie Cohen’s Market Manipulation

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The Other Side of Stevie Cohen’s Market Manipulation

Smashmouth Investigative Journalism, 02 August 2013

The DOJ showed us they want to turn the world’s most famous hedge fund, SAC Capital, into the most notorious hedge fund when it filed criminal charges against the 1,000 person firm last week. SAC, which stands for Steven A. Cohen its founder, is accused of creating a culture where inside trading was encouraged for over a decade. This means traders who worked under Cohen got non-public material info about a public company and then went long or short the stock–while the rest of main street was clueless. The DOJ filed a long complaint detailing dates and time they think this happen at SAC but the Justice Department missed an element of seediness that happens within the outside hedge funds Stevie Cohen has invested his personal money in. Continue reading “Article: The Other Side of Stevie Cohen’s Market Manipulation”

Article: Steve Cohen: The Feds Get Tough, Sort Of

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Steve Cohen: The Feds Get Tough, Sort Of

MATT TAIBBI, 01 August 2013

He’s Wall Street’s ultimate comic-book villain – with his glowing bald head and marble eyes, he looks a little like Lex Luthor. But maybe the best comparison for famed hedge-fund shark and long-suspected insider-trading ringleader Steve Cohen is the Joker. Earlier this year, when the SEC extracted $616 million from Cohen’s fund in two regulatory settlements, he expressed his deep remorse by buying, within weeks, a $155 million Picasso and a $60 million beach house in the Hamptons, right down the road from his other Hamptons beach house, worth $18 million.

It was a big fat middle finger to the government, flipped by a man who clearly thought he was getting away with a slap on the wrist, the way every other brazen Wall Street crook in the past half-decade has done so far. Continue reading “Article: Steve Cohen: The Feds Get Tough, Sort Of”