Article: VirnetX Class Accuses Big Brokers of Naked Short Sales

Article - Media

VirnetX Class Accuses Big Brokers of Naked Short Sales

Chris Fry

Courthouse News Service, 19 December 2016

Investors claim in a federal class action that Goldman Sachs and other banking giants suppressed the share price of VirnetX, “a leader in mobile security technology.”

In addition to Goldman Sachs, the Dec. 14 complaint in Bergen County Superior Court takes aim at Merrill Lynch, Credit Suisse, TD Ameritrade, Charles Schwab and the Bank of New York Mellon. The case is the Top Download for Courthouse News on Monday.

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Filing: SEC v Schwab

Filing

SEC v Schwab

19 January 2016

A Charles Schwab Corp subsidiary and a former customer told the U.S. Securities and Exchange Commission Friday that an agency judge overreached when she found them liable for an alleged naked short-selling scheme and ordered them to pay $8.2 million in sanctions.

PDF (3 pages): SEC v Schwab

Web: SEC Charges optionsXpress and Five Individuals Involved in Abusive Naked Short Selling Scheme

Web

SEC Charges optionsXpress and Five Individuals
Involved in Abusive Naked Short Selling Scheme

SEC, 16 April 2012

The SEC’s Division of Enforcement alleges that Chicago-based optionsXpress failed to satisfy its close-out obligations under Regulation SHO by repeatedly engaging in a series of sham “reset” transactions designed to give the illusion that the firm had purchased securities of like kind and quantity. The firm and customer Jonathan I. Feldman engaged in these sham reset transactions in a number of securities, resulting in continuous failures to deliver. Regulation SHO requires the delivery of equity securities to a registered clearing agency when delivery is due, generally three days after the trade date (T+3). If no delivery is made by that time, the firm must purchase or borrow the securities to close out the failure-to-deliver position by no later than the beginning of regular trading hours on the next day (T+4).

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