Article: Part 7: Illegal Naked Shorting: DTCC Continuous Net Settlement and Stock Borrowing Programs Have Loopholes That Facilitate Illegal Naked Shorting

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Part 7: Illegal Naked Shorting: DTCC Continuous Net Settlement and Stock Borrowing Programs Have Loopholes That Facilitate Illegal Naked Shorting

Larry Smith

Smith On Stocks, 31 May 2019

There is an integral relationship between the DTCC and hedge funds. The DTCC is owned by Prime Brokers; these are Goldman Sachs, Morgan Stanley, Merrell Lynch and other household name investment banks. Prime Brokers provide basic services to hedge funds that allow them to trade with multiple brokerage houses while maintaining a centralized master account at their prime broker containing cash and securities. The prime broker offers stock loan services, portfolio reporting, consolidated cash management and other services. Hedge fund support is a very meaningful percentage of the net income of Prime Brokers.

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Article: THE FALLOUT FROM RUSSIAN MONEY LAUNDERING CONTINUES TO GROW FOR EUROPEAN BANKS

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THE FALLOUT FROM RUSSIAN MONEY LAUNDERING CONTINUES TO GROW FOR EUROPEAN BANKS

Nicholas Larsen, International Banker, 20 May 2019

On April 5, Lars Idermark resigned from his position as the chairman of Swedbank, headquartered in Sweden. Idermark stepped down from his position only a week after the chief executive officer, and previously the supervisor of Swedbank operations in the Baltic states, Birgitte Bonnesen, was fired. The moves come amid sweeping allegations that Sweden’s oldest bank was involved in laundering billions of dollars’ worth of Russian money. In particular, the lender’s Baltic units have been named as being complicit in handling illegal funds from Russia as well as other smaller former Soviet countries. Continue reading “Article: THE FALLOUT FROM RUSSIAN MONEY LAUNDERING CONTINUES TO GROW FOR EUROPEAN BANKS”

Article: ReWalk Robotics Completes One-for-Twenty-Five Reverse Share Split

Article - Media, Publications

ReWalk Robotics Completes One-for-Twenty-Five Reverse Share Split

GLOBE NEWSWIRE, 29 May 2019

YOKNEAM ILIT, Israel and MARLBOROUGH, Mass., March 29, 2019 (GLOBE NEWSWIRE) — ReWalk Robotics Ltd. (RWLK) (“ReWalk” or the “Company”) reported today that it has completed the reverse share split of ReWalk ordinary share at a ratio of one-for-twenty-five shares, which will take effect on April 1, 2019. The Company also increased its authorized and registered share capital and amended its Articles of Association to reflect the reverse share split and the increase in share capital. Following the reverse share split and increase in authorized share capital, the total number of ordinary shares that the Company is authorized to issue will be 60 million shares, the par value per share of the ordinary shares will be NIS 0.25 and the authorized share capital of the Company will be NIS 15 million.

Article: Citron’s Andrew Left slams Jumia as a ‘fraud,’ accuses company of ‘financial colonialism’ in latest video

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Citron’s Andrew Left slams Jumia as a ‘fraud,’ accuses company of ‘financial colonialism’ in latest video

Tonya Garcia

MarketWatch, 29 May 2019

Citron Research’s Andrew Left, a noted short seller, is once again slamming Jumia Technologies AG as a “fraud,” this time in a video that includes footage of what he says are former employees who accuse the company of placing fake orders.

Comment:  Down from $36 to $3 based on a naked short selling campaign apparently led by Andrew Left.

Article: The implementation of the UK Anti-Bribery Act (ABC)

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The implementation of the UK Anti-Bribery Act (ABC)

Compliance Alert, 29 May 2019

The implementation of the UK Anti-Bribery Act (ABC) 2010 on July 1, 2011 saw the long-awaited updating of the UK’s somewhat antiquated laws on bribery. For many years the UK’s anti-corruption common law and statutory offences were considered to be unsatisfactory and insufficiently robust. High-profile failures, such as the stalled investigation by the Serious Fraud Office (SFO) of allegations of corruption at BAE Systems, did little to improve the perception that UK anti-corruption laws were inadequate and lagged far behind the recommendations of the Organisation for Economic Co-operation and Development’s Anti-Bribery Convention. That convention was the first international agreement to outlaw foreign bribery and was ratified by the UK in 1998. Continue reading “Article: The implementation of the UK Anti-Bribery Act (ABC)”

Article: Citi, JPMorgan, UBS face forex class action over ‘Mafia’ chat rooms

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Citi, JPMorgan, UBS face forex class action over ‘Mafia’ chat rooms

Peter Vercoe, 28 May 2019

Citigroup, Royal Bank of Scotland Group and JPMorgan Chase are among five banks named in a class action lawsuit in Australia seeking damages for colluding on foreign-exchange trading strategies.

UBS Group and Barclays were also named in the suit lodged on Monday in the Federal Court by Maurice Blackburn Lawyers. The action says the banks colluded to rig foreign exchange rates, boosting profits at the expense of Australian businesses and investors, the law firm said in a statement. Continue reading “Article: Citi, JPMorgan, UBS face forex class action over ‘Mafia’ chat rooms”

Release: ARA MAY 28 DEADLINE Pawar Law Group Announces a Securities Class Action Lawsuit Against American Renal Associates Holdings, Inc. – ARA

Release

ARA MAY 28 DEADLINE: Pawar Law Group Announces a Securities Class Action Lawsuit Against American Renal Associates Holdings, Inc. – ARA

22 May 2019

Pawar Law Group announces that a class action lawsuit has been filed on behalf of shareholders who purchased shares of American Renal Associates Holdings, Inc. (NYSE:ARA) from August 10, 2016 through March 27, 2019, inclusive (the “Class Period”). The lawsuit seeks to recover damages for American Renal investors under the federal securities laws.

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Fined: Southeast Investments, N.C., Inc. Fined by FINRA

Fined

Southeast Investments, N.C., Inc. Fined by FINRA

28 May 2019

The firm and Black appealed a National Adjudicatory Council (NAC) decision to the Securities and Exchange Commission (SEC). The firm was fined a total of $146,500, of which $73,500 is joint and several with Black. Black was barred from association with any FINRA® member in any capacity. The NAC affirmed in part and reversed in part the findings and affirmed in part, vacated in part and modified in part the sanctions imposed by the Office of Hearing Officers (OHO).

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Article: Five Banks Face Lawsuit In Australia for FX Collusion

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Five Banks Face Lawsuit In Australia for FX Collusion

finews asia, 27 May 2019

UBS and Royal Bank of Scotland are among five banks named in a class action lawsuit in Australia relating to collusion on foreign-exchange strategies.

Australian law firm Maurice Blackburn on Monday filed a class-action lawsuit against the five international investment banks, accusing them of colluding to rig foreign exchange rates during 2008-2013 so they can profit. They are UBS, Barclays Bank, Citigroup, Royal Bank of Scotland (RBS) and J.P. Morgan. Continue reading “Article: Five Banks Face Lawsuit In Australia for FX Collusion”

Article: Citi, JPMorgan, UBS Face Forex Cartel Class Action in Australia

Article - Media, Publications

Citi, JPMorgan, UBS Face Forex Cartel Class Action in Australia

Peter Vercoe, 27 May 2019

Citigroup Inc., Royal Bank of Scotland Group Plc and JPMorgan Chase & Co. are among five banks named in a class action lawsuit in Australia seeking damages for colluding on foreign-exchange trading strategies. UBS Group AG and Barclays Plc were also named in the suit lodged Monday in the Federal Court by Maurice Blackburn Lawyers. The action claims the banks colluded to rig foreign exchange rates boosting profits at the expense of Australian businesses and investors, the law firm said in a statement. Continue reading “Article: Citi, JPMorgan, UBS Face Forex Cartel Class Action in Australia”

Article: A $2M Scam by a Former Vanguard Supervisor

Article - Media, Publications

A $2M Scam by a Former Vanguard Supervisor

tomd37, 25 May 2019

A very interesting article in the June/July Issue (page 28) of Money Magazine. In part it reads “In March, a former Vanguard supervisor pleaded guilty to stealing more than $2 million from the accounts of deceased customers or those with inactive accounts before getting found out, according to the Philadelphia Inquirer.” More details are in the article as well as ways to help protect yourself. Continue reading “Article: A $2M Scam by a Former Vanguard Supervisor”

Article: Part 6 Illegal Naked Shorting: The SEC’s Regulation SHO is Intended to Prevent Illegal Naked Shorting, But is Ineffective

Article - Media

Part 6 Illegal Naked Shorting: The SEC’s Regulation SHO is Intended to Prevent Illegal Naked Shorting, But is Ineffective

Larry Smith

Smith On Stock, 22 May 2019

In previous blogs I traced the history of stock trading from the 1960s when stock certificates and cash were physically exchanged to settle trades to the paper free, totally electronic system that exists today. Instead of owning stock certificates, we now own digital entries located somewhere in the vaults of the inscrutable Depository Trust and Clearing Corporation (DTCC). This electronic system is absolutely critical to the functioning of our capital markets and our strong economic system. However, the DTCC and the prime brokers who own it have made the clearing and settlement system virtually non-transparent. This enables the routine manipulation of primarily but not exclusively, small stocks through illegal naked shorting.

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Article: Information for Investors Who Lost Money in Village Farms International, Inc. (VFF)

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Information for Investors Who Lost Money in Village Farms International, Inc. (VFF)

Sonn Law Staff, 17 May 2019

Village Farms International, Inc. (VFF) is a Canadian-based greenhouse company.

Beyond growing common vegetables like tomatoes and peppers — a business that this company has been engaged in for many years — Village Farms International also recently become involved in the recreational marijuana industry. In recent years, the VFF stock price is up considerably — as investors consider the company’s potential to create significant revenue in a new business. However, serious questions have been raised about the company’s business model and its actual financial position. Indeed, in April of 2019, Citron Research released a report on Village Farms International arguing that federal regulators should investigate the firm for possible stock manipulation.
Continue reading “Article: Information for Investors Who Lost Money in Village Farms International, Inc. (VFF)”

Article: Naked Shorting In The Uber IPO: It Couldn’t Happen On A Blockchain

Article - Media

Naked Shorting In The Uber IPO: It Couldn’t Happen On A Blockchain

Caitlin Long

Forbes, 16 May 2019

The SEC explicitly gave banks a green-light to naked-short securities that are subject to underwriting commitments, such as IPOs. It revealed this in a Q&A about Regulation SHO (available here, Question 1.5).

Continue reading “Article: Naked Shorting In The Uber IPO: It Couldn’t Happen On A Blockchain”

THE DOLLAR HAS NO INTRINSIC VALUE : DO YOUR ASSETS?