BIG PLAYERS, LITTLE STOCKS, AND NAKED SHORTS
David Dayen, 23 September 2016
CHRIS DIIORIO HAD lost a million dollars when the penny stock he was betting on shed 98 percent of its value in a matter of weeks. But when he looked deeper, he found this wasn’t a typical penny stock pump-and-dump scheme. He was determined to get to the bottom of it.
For one thing, there were two huge companies involved. Continue reading “Article: BIG PLAYERS, LITTLE STOCKS, AND NAKED SHORTS”
Whisleblower Vindicated: Massive Trading Firm Knight Capital Charged With Abusing “Naked Shorts”
The Intercept, 15 December 2016
Back in September, I wrote a seven-part series at The Intercept chronicling how former Wall Street trader Chris DiIorio, determined to figure out how he lost a small fortune on a penny stock, came to the conclusion that gigantic market-making firm Knight Capital, now known as KCG, repeatedly violated federal regulations meant to prevent abuse in what are known as “naked short sales.”
Read full article.