Foreign Collusion, Naked Shorting (Counterfeiting) & Money Laundering — All Illicit Wealth
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”
German regulator files complaint on alleged Wirecard manipulation
BaFin targets two FT journalists and several short-sellers after reports hit payments group’s share price
Olaf Storbeck
Financial Times, 16 April 2019
The German financial watchdog has filed a criminal complaint against two Financial Times journalists and several short sellers, accusing them of potential market manipulation over reports about suspected accounting irregularities at payments processor Wirecard.
Continue reading “Article: German regulator files complaint on alleged Wirecard manipulation”
Goldman Sachs affiliate again faces fine for naked short selling
Bae Hyunjung
The Korea Herald, 9 April 2019
South Korea’s financial authority has fined a Goldman Sachs affiliate 72 million won ($63,000) for naked short selling, marking the third case of the US-based investment bank facing sanctions here.
Short-seller Andrew Left to appeal against Hong Kong market ban
Reuters, 26 February 2019
HONG KONG (Reuters) – U.S. short seller Andrew Left lost his legal bid on Tuesday to overturn a five-year ban from Hong Kong’s financial markets and a fine for market manipulation.
Left, founder of U.S.-based short-seller Citron Research, was banned in 2016 after he was found culpable of market misconduct in connection with the publication of a research report on Chinese property developer China Evergrande Group.
Finanzkrimi bei Wirecard Zahlungsverkehrt
Martin Hesse
SPIEGEL, 20 February 2019
Ugly English translation
Payment transactions
Continue reading “Article: Wirecard what is state prosecutor investigating: three possibilities”
Germany bans Wirecard ‘shorting’ as prosecutors probe FT journalist
Arno Schuetze
Reuters, 18 February 2019
FRANKFURT (Reuters) – Germany’s financial watchdog has banned “short” selling of Wirecard shares due to volatility in the payments firm’s stock following reports in the Financial Times which are now the subject of an investigation by German authorities.
Munich prosecutors said on Monday they were investigating a Financial Times journalist, confirming that they had widened a probe into a possible violation of securities trading rules.
Fraud allegations put Wirecard’s shy billionaire CEO Markus Braun in the spotlight
Straits Times (Singapore), 7 February 2019
The 49-year-old Austrian computer scientist has spent more than a decade fighting off critics whose whispering campaign burst into the headlines again last week. A Financial Times report of suspect transactions in Asia sent the company’s shares plummeting.
Comment: WireCard appears to be under attack by naked short sellers aided by corrupt journalists who, if properly iinvestigated, would in all likehood be found to have received substantial financial incentives for trashing the company. Dan McCrum at Financial Times is the “journalist” under investigation by German authorities. The bad guys most times have a [hired] whistleblower that alerts police and regulatory authorities. Once they have information sometimes legit, other times not or the naked short sellers then blow the investigation all out of proportion. They set outto destroy the stock price with their band of criminal syndicates which includes the banks. They are often joined by law firms that maliciously file shareholder class lawsuit announcements to inspire fear in the marketplace — this is outright tortious interference and market manipulation.
Source: Vorwürfe gegen Wirecard: Chronologie der Ereignisse, 30.1.19
Joshua Mitts writes and teaches on securities law and financial contracting. His recent projects study pseudonymous short attacks on public companies, informed trading on cybersecurity data breaches, information leakage and hedge-fund activism, insider trading on corporate disclosures, information transmission in financial markets, and whether consumers keep promises they make themselves.
For more information on Joshua Mitts’s research and teaching, please see his personal website.
ABSTRACT: Pseudonymous attacks on public companies are followed by stock price declines and sharp
reversals. These patterns are likely driven by manipulative stock options trading by
pseudonymous authors. Among 1,720 pseudonymous attacks on mid- and large-cap rms
from 2010-2017, I identify over $20.1 billion of mispricing. Reputation theory suggests these
reversals persist because pseudonymity allows manipulators to switch identities without ac-
countability. Stylometric analysis shows pseudonymous authors exploit the perception that
they are trustworthy, only to switch identities after losing credibility with the market.
PDF (81 Pages): Paper Mitts Short and Distort
Munich prosecutors seek fine against publisher of Zatarra report
Reuters, 10 December 2018
MUNICH, Dec 10 (Reuters) – Munich prosecutors have issued a penalty order seeking to fine British short seller Fraser Perring for suspected manipulation of German payment processor Wirecard AG’s share price, a spokeswoman for the prosecution said on Monday.
Comment: Fraser Perring operates Viceroy Research.
Soros family office fined for naked short selling
Bloomberg via India Times, 7 December 2018
Hong Kong: Soros Fund Management, the about $25 billion family office of billionaire George Soros, was fined by Hong Kong’s securities regulator for naked short selling. The company’s Hong Kong unit was reprimanded and fined HK$1.5 million ($192,000) for a 2015 trade involving a bonus share issue of Great Wall Motor, the city’s Securities and Futures Commission said in a statementon Thursday.
Bank of America Merrill Lynch cracks down on risky securities with ban on penny stocks
Hugh Son and Leslie Picker
CNBC, 28 September 2018
Penny stocks can easily be manipulated for fraudulent purposes, according to talking points distributed to Merrill Lynch brokers.
Comment: Another way to manipulate the marketplace.
THE DOLLAR HAS NO INTRINSIC VALUE : DO YOUR ASSETS?
