Suit Against Prime Brokers for Phony Stock Borrow Charges Filed
Bud Burrell, Chad Bray
Dow Jones Newswires cited by Sanity Check via Wayback, 12 April 2006
An antitrust lawsuit was filed Wednesday against the securities industry’s largest brokerage firms over fees charged as a result of “naked short selling.”
The lawsuit filed in federal court in Manhattan by Electronic Trading Group LLC alleges that the major broker-dealers charged unearned fees, commissions or interest on short sales where those broker-dealers failed to borrow or deliver the stock to back a short position.
