SEC,Charles Schwab Used 'Naked Shorting' Lie To Decive Defrauded Investors - Cover Up For Elite Money Launderers,CIA,Israelis
In 2002 when the founder of the CIA and Rothschild connected Agora Inc of Baltimore and the world wide internet ,James Dale Davidson,began to spread the rumor- lie that various worthless penny stocks particularly te 'biotechs' Genemax and Endovasc were being 'naked shorted' by Charles Schwab,I contacted them,by 'brokers' in SF to ask if this was so and whether they as the major 'market maker' to Endovasc were in truth really 'naked shorting' the very stocks they were providing a market for to 'naked short' them -a tem I had never heard of until National Taxpayers Union and Agora Inc.founder James Dale Dalvidson began to spread the rumor and at first to blame Charles Schwab and and the corrupt Refco of dong to the shares of Endovasc and Genemax.........
to be contiued
http://online.wsj.com/news/articles/SB10001424127887324904004578537692730996164.
SEC Nets Win in 'Naked Short' Case
June 10, 2013 7:32 p.m. ET
WASHINGTON—A Securities and Exchange
Commission judge ruled that a former Maryland banker perpetrated a
short-selling fraud aided by one of the biggest stock-options brokers in
the U.S.
Jonathan Feldman,
who was accused by the SEC of trading billions of dollars of
stock and options in ways that misled other investors, was found by the
judge to have engaged in a practice regulators say has grown more
prevalent in recent years: "naked short selling."
The
decision makes it more likely the SEC will proceed with other
enforcement cases involving similar activity, say people familiar with
the SEC's thinking.
An SEC
administrative law judge—an independent judicial officer who rules on
SEC allegations of securities-law violations—late Friday ordered Mr.
Feldman to disgorge $2.7 million in profits from his alleged trading
scheme and to pay a $2 million civil fine.
The SEC is probing abusive trades.
Bloomberg News
The judge also ordered optionsXpress Inc., a brokerage firm owned by
Charles Schwab Corp.
SCHW +0.31%
, to disgorge $1.6 million and to pay a $2 million civil fine for
allegedly violating laws prohibiting naked short selling.
Thomas Stern,
optionsXpress's former chief financial officer and primary
regulatory liaison, was fined $75,000 and barred from participation in
the securities industry.
Mr. Feldman's
lawyer didn't respond to requests for comment. The decision said Mr.
Feldman was 56 years old and was employed as a senior vice president at a
Maryland savings bank from 1993 until April 2012. It said he was now
self-employed.
A lawyer for optionsXpress disputed the decision. "There was no naked short selling in this case,"
Stephen Senderowitz,
a lawyer at Winston & Strawn LLP, said in a statement.
"We
think [the judge] got it wrong with respect to Mr. Stern," said Vincent
Schmeltz, Mr. Stern's lawyer, who said he plans to appeal the decision.
Messrs.
Feldman and Stern and optionsXpress have 21 days to request a review of
the decision from the full commission. Mr. Senderowitz said the company
is "reviewing the decision and deciding whether to appeal."
If the request is denied, defendants could appeal to the U.S. District Court for the District of Columbia.
The
SEC accused Mr. Feldman of using optionsXpress from late 2008 until
early 2010 to profit by trading billions of dollars of stock and options
without following through in his obligation to borrow and deliver
shares on stock he sold short. The SEC said Mr. Feldman engaged in
so-called naked short selling of stocks such as
American International Group Inc.,
AIG +0.41%
Citigroup Inc.
C +0.38%
and
Sears Holding Corp.
SHLD -0.65%
The SEC also alleged that optionsXpress facilitated the trades
and that it broke rules designed to curb naked short sales.
In
a short sale, a trader borrows stock from a third party and sells it in
the hope of buying it back later for a lower price. Traders are
typically allowed to sell the stock before they borrow it, as long as
they do so within several days after the sale. In naked short selling, a
trader never follows through on the promise to borrow. Regulators say
the practice distorts markets and can harm investors.
Brenda Murray,
chief administrative law judge for the SEC, found Mr. Feldman
"executed a trading strategy that he knew, or was reckless in not
knowing, perpetrated a fraud on the participants in the securities
markets," and that optionsXpress officials aided the scheme, according
to the decision.
The optionsXpress case
is seen within the SEC as a potential landmark for its market-abuse
unit, since it involves trading strategies that in the past evaded the
agency's radar, say people familiar with the matter. The unit is one of
five specialized groups within the SEC's enforcement division created in
2009 to let its agents focus on specific areas of the market.
"This is the kind of case the market-abuse unit was set up to do," said Daniel Hawke, head of the unit.
The case is one of several continuing SEC probes that involve complex trades and ties between traders, brokers and exchanges.
SEC investigators have been looking into whether
CBOE Holdings Inc.,
CBOE +1.39%
which operates an options exchange, properly policed
optionsXpress's trading, say people familiar with probe. CBOE said in an
SEC filing that it expects to be fined as much as $10 million to
resolve the issue. A CBOE spokeswoman declined to comment.
Write to Scott Patterson at scott.patterson@wsj.com
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