Congressman Eli Crane, 2nd District of Arizona, is looking into the MMTLP fraud allegations according to a letter submitted to both SEC Chairman Gary Gensler and the House Financial Services Committee Chairman Patrick McHenry.
“I write regarding an issue brought to my attention by my constituents regarding a corporate action and trading halt in the Series A Preferred Shares of Meta Materials, Inc. (Meta Materials) that traded under the symbol MMTLP.
My constituents believe that shares were sold illegally, leading to losses in their retirement savings.
In response to these allegations, I am requesting from your offices a briefing regarding this matter, as well as what your offices are doing to prevent securities fraud at the U.S. Securities and Exchange Commission.
My constituents are deeply distressed about this matter and have suffered greatly as a result of this trading halt.
I implore your prompt response and look forward to working with you on this pressing issue,” the letter said.
“Members of the #MMTLP community, including a number of constituents in #AZ02, deserve answers, said Congressman Eli Crane on Twitter.
In June, the FINRA-MMTLP blue sheet motion was dismissed by a judge in the Supreme Court of New York City for the allegations deemed as “speculative and conclusory”.
The self-regulatory body claimed immunity and refused to provide retail investors with the blue sheets that shed light on the trading activity and fraud that occurred in ticker symbol MMTLP prior to the U3 halt and delisting.
However, investors have not wavered.
The latest MMTLP update is a positive step forward to finding a solution for MMTLP investors.
Why Didn’t FINRA Cooperate with MMTLP Investors?
FINRA states that the petitioner’s request is ‘overbroad and unduly burdensome’, being one of the few claims to deny MMTLP investors the blue sheets.
They also state that blue sheet data may reveal the confidential trading approach of firms and their customers, and includes personal, financial, and identifying information for individual and other investors.
“Because Blue Sheet Data contains highly confidential information, FINRA does not make Blue Sheet data publicly available.
FINRA also restricts access to Blue Sheet Data collected by examination and investigations team.”
This is a massive red flag that leads the average investor to believe the self-regulatory agency must be overseen and be limited some power.
Essentially what this means is the market can have a collusion of bad actors with a common goal and never have to take accountability should a party or investigations team request to view their trading activity via Blue Sheet Data.
SEC Chairman Gary Gensler often speaks about the remarkable importance of blowing the whistle in cases like this.
According to the latest MMTLP court case documents, FINRA is granted absolute immunity from suit and all burdens of litigation, including discovery, “for claims arising out of its regulatory activities.”
Prior to the halt, transcripts between the SEC and FINRA unveiled the ticker was being investigated for fraud.
This is how FINRA has ‘protected’ its investors, by allowing parties to commit fraud and hiding the trading activity from those affected.
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