Category: MULN Stock News (Page 1 of 2)

South Korea Now Finds Banks Pursued Illegal Shorting Scheme

South Korea now finds banks pursued an illegal shorting scheme, uncovering a whopping $211.2 billion won ($156m), in manipulative trades.

South Korea’s financial watchdog said it has so far uncovered 211.2 billion won ($156 million) worth of illegal short trades by nine global investment banks, providing its latest formal update on a probe that began late last year, per Bloomberg.

The nine banks, whose names weren’t disclosed, violated mostly procedural rules while collectively shorting 164 stocks, according to a briefing given by the Financial Supervisory Service.

It is continuing to probe five other banks in the matter.

Two of the nine banks are already facing penalties imposed by the financial authorities and have been referred to prosecutors for further investigation for allegedly violating the nation’s capital markets law, Hahm Yong-il, senior deputy governor at the FSS, told reporters Friday.

The watchdog plans to review penalties on the other seven banks.

Activities of global banks and hedge funds have come under increased scrutiny in recent months in South Korea, as authorities boost steps to weed out naked short selling — a practice of selling shares without even borrowing them first.

While short selling remains legal in many markets, it is a contentious political issue in the emerging Asian nation, with its powerful retail investors often blaming it for stock declines, reports Bloomberg.

“The FSS found that the violation rate exceeded 20% in some cases, which suggests that illegal transactions have a big impact on a certain stock,” the financial regulator said in a statement earlier this year.

“It’s necessary to consider the impact of illegal short sales on an individual stock as such trades hinder fair pricing and increase short-term volatility,” it said.

Bloomberg reports the South Korea’s financial watchdogs derived the 20% figure by dividing the amount of violated orders on a certain stock by its daily trading value.

The FSS did not identify the equities that saw illegal trades and declined to say how frequently the trades exceeded that ratio.

In November, South Korea imposed a ban on short selling through mid-2024, a decision that drew big celebration from retail investors in the country.

Investors in the AMCMULNGTIIFNGR, and MMTLP communities are just a few of many who have been raising awareness of the malpractice happening in the U.S stock market via X.

Market News Today – South Korea Now Finds Banks Pursued Illegal Shorting Scheme.

Also Read: SEC Commissioner Now Says Securities Lending Facilitates Illegal Trading

Market News Published Daily 📰

Market News Today - South Korea Now Finds Banks Pursued Illegal Shorting Scheme.
Market News Today – South Korea Now Finds Banks Pursued Illegal Shorting Scheme.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Scroll below to view my stock purchases this month!

You can also follow me on X (Twitter)InstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


Frank Nez’s Stock Portfolio

Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?

Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.

11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.



MULN Stock: 5 Billion Shares in Illegal Scheme Now Confirmed

Christian Attar Law Firm, who is investigating MULN stock, says approximately 5 billion shares in an illegal scheme has now been confirmed.

The firm in partnership with Warshaw Burstein, LLP, in association with forensic investigators, have concluded the magnitude of the spoofing is unprecedented, resulting in over 5 billion shares being issued at artificially deflated prices since Company’s Nasdaq debut in November 2021.

Mullen Automotive, a startup EV company, has been one of the few companies to raise awareness on the predatorial short selling practices seen in its stock.

MULN stock is currently down more than -99% this year-to-date.

On Wednesday, December 6, Mullen Automotive announced the Company has filed a complaint in the United States District Court for the Southern District of New York alleging that UBS Securities, LLC, IMC Financial Markets and Clear Street Markets, LLC (the “Defendants”) engaged in a market manipulation scheme that violated Section 10(b) and Rule 10b-5(a) and (c) and Section 9(a) of the Securities Exchange Act of 1934.

This lawsuit alleges that between Nov. 9, 2021, and Nov. 9, 2023, the Defendants and/or their customers used spoofing to manipulate the market price of Mullen shares.

“FINRA has characterized spoofing as an insidious form of market manipulation that undermines the transparency and integrity of the markets by distorting the true nature of supply and demand,” the company statement said.

“Spoofing involves the submission and cancellation of non-bona fide buy and sell orders that have no legitimate economic purpose and are not intended to be executed.

The actual purpose of these orders is to trick shareholders into placing their own orders at a time, price and quantity that they otherwise would not have.”

“In the 21 years our team has been prosecuting market manipulation cases against Wall Street, I believe this could be one of the largest and strongest spoofing and market manipulation cases we have handled,” said Wes Christian of Christian Attar Group.

“After working with our consulting and investigative experts, I believe the damage model could be in the billions of dollars.”

This is a developing story — share this article on X.

Also Read: Mullen Provides New Update on Vehicle Production and Deliveries

Market News Published Daily 📰

Market News Today - MULN Stock: 5 Billion Shares in Illegal Scheme Now Confirmed.
Market News Today – MULN Stock: 5 Billion Shares in Illegal Scheme Now Confirmed.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Scroll below to view my stock purchases this month!

You can also follow me on X (Twitter)InstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


Frank Nez’s Stock Portfolio

Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?

Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.

11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.



Mullen Now Gets Saved From Delisting by Nasdaq

Mullen Automotive (NASDAQ:MULN) has now been saved from delisting by Nasdaq according to the company’s latest announcement.

Nasdaq Hearings Panel has granted Mullen’s request to continue its listing on The Nasdaq Capital Market, subject to the following conditions:

  1. on or before Jan. 22, 2024, the Company must demonstrate compliance with Listing Rule 5550(a)(2), by maintaining a closing bid price of $1 per share for 20 consecutive trading sessions; and
  2. on or before March 8, 2024, the Company must demonstrate compliance with Listing Rule 5620(a) by holding an annual shareholder meeting.

“While the Company held an annual meeting on Aug. 3, 2023, and the proposals that were approved at such meeting including the election of directors are, and remain, valid, the Nasdaq Listing Qualifications Department determined that the meeting did not satisfy Listing Rule 5620(a) since the Company did not afford stockholders the opportunity to discuss Company affairs with management at the meeting.

In order to demonstrate compliance, the Company plans to hold a combined 2023 and 2024 annual meeting,” the press release stated.

“I am pleased Nasdaq gave the Company this opportunity to continue implementing its business plan.

We are diligently working to regain and maintain compliance with Nasdaq’s continued listing requirements,” said David Michery, CEO and chairman of Mullen Automotive.

Shares of the company rose more than +22% on Thursday to $0.32 following the announcement.

However, shares are down more than -38% in the past month, and more than -99% this year-to-date.

Mullen Automotive recently provided an update to shareholders on its latest short selling lawsuit against TD Ameritrade, Charles Schwab, and others.

The company alleges that these broker dealers engaged in a scheme to manipulate the share price of the Company’s securities and now seeks compensatory damages.

Other Market News Today

Market News Today - Mullen Now Gets Saved From Delisting by Nasdaq.
Market News Today – Mullen Now Gets Saved From Delisting by Nasdaq.

Hedge funds will now disclose which companies they sell short to the Securities and Exchange Commission (SEC), reports the WSJ.

“Traders will get a broader look at which public companies are being targeted by short sellers under rules the Securities and Exchange Commission adopted Friday as part of its response to the 2021 GameStop trading frenzy.

In a short sale, a trader bets against a stock by borrowing shares and then selling them in hopes the shares’ price will decline before the trader must return them to the lender.

In the case of GameStop, individual investors sought to create a “short squeeze” by forcing short sellers to buy stock to cover their positions, boosting share prices.”

SEC commissioners voted 3-2 on Friday to adopt two rules—one aimed at large short sellers, and the other at lenders of securities. 

“These are two opaque areas of the market, short selling and securities lending,” Gensler said.

The SEC Chair says that the changes should promote greater transparency and efficiency in the market.

Republican SEC Commissioner Mark Uyeda said the changes could discourage short selling and, therefore, curb the market’s ability to appropriately price assets.

“The final rule places burdensome and costly reporting requirements on investment managers instead of adjusting, consolidating, and leveraging data already collected,” said Bryan Corbett, president of the Managed Funds Association, a group of hedge funds.

Ken Griffin’s Citadel Securities is now suing the SEC over its new market transparency rules meant to keep institutions under tighter surveillance.

The hedge fund was recently fined $7 million for marking short sales as long for five years.

“Compliance with the order marking requirements of Reg SHO is a key component of regulatory efforts to curtail abusive market practices, including ‘naked’ short selling,” says Mark Cave, Associate Director of the SEC’s Division of Enforcement.

Also Read: SEC’s Director of Enforcement Now Under Investigation for Corruption

Market News Published Daily 📰

Market News Today - Mullen Now Gets Saved From Delisting by Nasdaq.
Market News Today – Mullen Now Gets Saved From Delisting by Nasdaq.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors. This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


Become a Sponsor for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
  • Become part of a private and safe Discord community, just for retail investors.
  • Get drawn at the end of the year for holiday giveaways.


Mullen Provides New Update on Illegal Short Selling Lawsuit

Mullen Automotive (NASDAQ:MULN) has provided shareholders with a new update on its illegal short selling lawsuit.

The lawsuit involves TD Ameritrade, Charles Schwab, National Finance Services, and others.

Mullen Automotive alleges that these broker dealers engaged in a scheme to manipulate the share price of the Company’s securities and now seeks compensatory damages.

On Oct. 19, 2023, Judge Analisa Torres issued an order that directed the parties as follows:

  1. Plaintiff shall file its amended complaint by Nov. 30, 2023;
  2. The parties shall jointly file their case management plan by Dec. 15, 2023;

“We are optimistic that we will expose the wrongful conduct of the Defendants and obtain an award holding them responsible for every dollar they have wrongfully extracted from Mullen and its shareholders either from Settlement or Judgment.

We intend to move this case forward as rapidly as possible,” said Wes Christian in a statement.

Alan M. Pollack, a partner in the firm of Warshaw Burstein, who also represents Mullen made the following statement regarding the lawsuit:

“This case raises certain unique legal issues concerning how broker-dealers manipulate the marketplace and how such manipulation impacts retail investors.

Counsel will diligently work to expose defendants’ wrongdoing in order to protect the rights of Mullen and its shareholders,” he continued.

MULN stock is currently down to $0.23 on Monday, more than a -58% drop this month.

Mullen Automotive stock is also currently down more than -99% this year-to-date with the company already looking at another reverse stock split this year.

However, shareholders will need to vote on the proposal at the upcoming shareholder meeting on December 15.

“We are aggressively pursuing all remedies available to us to protect the company and our shareholders,” said David Michery, CEO and chairman of Mullen Automotive.

Also Read: Citadel Is Now Suing The SEC Over New Transparency Rules

Other Mullen Automotive News Today

Market News Today - Mullen Provides New Update on Illegal Short Selling Lawsuit.
Market News Today – Mullen Provides New Update on Illegal Short Selling Lawsuit.

Mullen has appointed a new Chief Strategy Officer to strengthen the company.

The company announced on Monday that Marianne McInerney will focus on growth opportunities and drive strategic initiatives for Mullen’s commercial, consumer vehicles and governmental affairs.

“McInerney has been immersed in the automotive and transportation industry for almost two decades during which she has advised multiple OEMs, governmental entities and tier one suppliers.

Prior to Mullen, McInerney held key roles at next-generation vehicle OEMs, the U.S. Department of Transportation, and the American International Automobile Dealers Association.

McInerney served as Assistant Secretary and Director of Public Affairs for the U.S. Department of Transportation under Secretary Elaine L. Chao.

In her role with Mullen, Marianne will focus on sales, marketing and growth opportunities with Mullen’s commercial and passenger vehicle programs, and overall strategic business opportunities for the company.

She will also oversee all state and federal governmental affairs for the company,” the company stated.

“Mullen is a strategically driven organization and its product line of advanced EVs for both commercial and consumer audiences are unrivaled,” said McInerney, Chief Strategy Officer of Mullen Automotive.

“When I combine Mullen’s product innovation and strategy with their U.S. assembly and manufacturing facilities and well-curated team, Mullen has a competitive EV story and I am excited to put my experience and relationships with fleets and dealers to drive value across the organization.”

“Marianne is a key addition to our team and her leadership and experience will set a growth strategy to expand and drive strong top and bottom-line impacts for Mullen at the commercial, consumer and governmental levels.

She brings a vast level of domestic and international OEM experience and will deliver innovative strategies to strengthen our market share globally,” said David Michery, CEO and chairman of Mullen Automotive.

Also Read: SEC Commissioner Now Says Securities Lending Facilitates Illegal Trading

Market News Published Daily 📰

Market News Today - Mullen Provides New Update on Illegal Short Selling Lawsuit.
Market News Today – Mullen Provides New Update on Illegal Short Selling Lawsuit.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors. This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily news and updates on your favorite stories.


Become a Sponsor for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
  • Become part of a private and safe Discord community, just for retail investors.
  • Get drawn at the end of the year for holiday giveaways.


« Older posts

© 2024 Franknez.com

Theme by Anders NorenUp ↑