Global Tech Industries Group, Inc. (OTCMKTS:GTII) is taking legal action against naked shorts.
The Nevada corporation announced on Monday that its board of directors has authorized management to move forward with appropriate legal action in connection with what it believes to be illegal trading activity in the Company’s shares.
As the Company previously disclosed, it has retained the legal teams of Christian Levine Law Group, LLC, (“Levine”) and Warshaw Burstein, LLP, (“Warshaw”), both of whom have specific expertise in stock fraud litigation, to handle the legal actions for the Company.
The legal actions may be directed at broker-dealers, market makers and other relevant parties the Company believes have been engaged in illegal trading activities that have resulted in a significant number of unsettled trades involving the Company’s shares.
In particular, it appears that certain market makers have failed to post regular or continuous proprietary quotations that are at or near the market on both sides and that are communicated and represented such that they are widely accessible to investors and other broker-dealers.
When market makers fail to meet this requirement, as well as other applicable requirements, it can bring into question whether they are engaging in “bona fide market making” and can avail themselves to any “locate” exemptions afforded to bona fide market makers when executing short sales, per Global Newswire.
GTII Naked Short Selling: What’s Happening?
Global Tech’s press release published the following statement:
“It appears that certain market makers have failed to post regular or continuous proprietary quotations that are at or near the market on both sides and that are communicated and represented such that they are widely accessible to investors and other broker-dealers.
When market makers fail to meet this requirement, as well as other applicable requirements, it can bring into question whether they are engaging in “bona fide market making” and can avail themselves to any “locate” exemptions afforded to bona fide market makers when executing short sales.
Further, in a recent administrative proceeding between Alpine Securities Corporation (“Alpine”) and the National Securities Clearing Corporation (“NSCC”) before the U.S. Securities and Exchange Commission, it was disclosed that the NSCC imposed a “Backtesting Charge” against Alpine (which action was contested by Alpine) due to deficiencies in Alpine’s “Required Fund Deposit” with NSCC “. . . that were attributed to net short portfolios in several stocks, with the ‘top driver being a concentrated short position in GTII’”, which is, obviously, a cause of concern for the Company..”
Roger Hamilton (GNS CEO) on Naked Shorting
The legal action comes after Genius Group CEO Roger Hamilton urged CEOs to fight against naked shorts, the illegal practice of shorting stock without owning or having to return the shares back to a lender.
“They’re predators. They’re doing something illegal, and we want it to stop”, says GNS CEO Roger Hamilton.
The Board of Directors (the “Board”) of Genius Group Limited (NYSE American: GNS), a leading entrepreneur edtech and education group, approved at a meeting of the Board held on Wednesday 18th January 2023, an action plan to address illegal short selling of its stock.
This action plan includes creating a Board-led ‘Illegal Trading Task Force’ to actively pursue all possible actions together with the regulators in their discovery and prosecution of persons engaging in market manipulation involving the ordinary shares of Genius Group.
This Task Force will be led by Timothy Murphy, a Genius Group Director and former Deputy Director of the F.B.I., Richard Berman, also a Genius Group Director and chair of the Company’s Audit Committee, and Roger Hamilton, the CEO of Genius Group.
AMC, GME, Spark Major Interest in Market Manipulation
The AMC and GME communities initiated the controversial topic of naked short selling in the market during the events of the ‘meme stock’ frenzy.
Years of activism have triggered the momentum we’re seeing today in the retail community.
However, AMC and GME CEOs have stayed out of the fight against naked shorts.
AMC CEO Adam Aron has said in the past that they have not seen any ‘evidence’ of so-called synthetic shares.
Millions of retail investors holding the movie theatre stock have first-hand experienced the market manipulation, so this came off as rather appalling to most.
With GTII taking action against naked shorts, it makes you wonder; how many more companies will step up?
I’d love to hear your thoughts on this.
Leave a comment down below.
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