Mullen Announces New Illegal Shorting Investigation
Mullen Automotive (NASDAQ:MULN) has announced a new illegal shorting investigation regarding the high rate of FTDs as reported to the Securities and Exchange Commission (SEC).
In March, the company saw as many as 55 million FTDs in one single day.
FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.
These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.
In the case of sellers, it means not having the goods to meet that transaction.
Failure-to-delivers can occur in options trading or when selling short naked, per Investopedia.
Mullen Automotive announced today that it is taking certain affirmative steps in light of the extraordinary trading volume and evidence of unusually high levels of failure to deliver on short sales as reported to the U.S. Securities and Exchange Commission.
These steps include retaining outside counsel, which is working with Shareholder Intelligence Services LLC (“ShareIntel”) to undertake a comprehensive analysis of data derived from broker-dealers, clearing firms and other sources to provide actionable intelligence on potential market manipulation and illegal short selling.
ShareIntel offers unique access and insight into shareholder position movements and the ability to proactively track equity flows and identify suspicious, aberrant and/or unusual trading activity.
As a fiduciary to its shareholders, the Company will do everything in its power to address any evidence of improper trading in Mullen securities.
Related: These 3 Signs Point Towards Naked Shorting in MULN
Illegal Shorting in MULN Stock
Like many stock tickers in the market, MULN stock has become a target for illegal shorting, or naked shorting.
Naked shorting is the illegal practice of short selling shares that have not been affirmatively determined to exist.
The predatorial practice allows short sellers to short a stock without there actually being any stock available to short.
The SEC approved the use of naked short selling on IPOs in 2015 although it was deemed an illegal practice in 2010.
We’re seeing this become regular practice in the market which has been known to destroy companies, innovation, and shareholder value.
GNS CEO Roger Hamilton has been a strong advocate for tackling the problem in litigation.
In February, Global Tech Industries (GTII) followed suit and announced its board had 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.
Roger Hamilton reached out to AMC CEO Adam Aron to join the fight against naked short selling, but the movie theatre CEO is more focused on company fundamentals than fighting Wall Street.
This Mullen naked shorting investigation may just be what the company needs to rid its stock suppression.
Related: Mullen Five is Now Available for Reservation
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Show Comments100% agree. The market is rampant with blatant stealing from retail investors and driving companies down illegally. In the end, good companies are getting forced below $1 dollar a shares and then delisted. SEC needs to do better to protect companies and retail investors.
MamaJ stopping in to say thank u for your continued efforts & hard work!!
How’s this market fair if they are allowed to ftd all the f in time they are not holding up their end of the transactions and blatantly stealing retailers money and driving companies down illegally
The sooner the better. Please do not let any of the crooks, slip thru.
WHAT IS. RYAN COHEN. ADAM ARON AND SUE GOVE. WAITING TO DO THE SAME !!!! BUNCH OF CROOKS !!!
I don’t understand why AA refuses to do so either & lives in denial but claims to stand w us, his sh! Smh
Good! Take them down MULN
Mr. Aron, are you paying attention? This is where you step down as CEO sir.
Exactly Howard , He doesn’t give a damn about share holders as long as we are stupid enough to keep buying his shares he criminal gets and dumps on us. We need to organize and refuse to buy any more shares . At this point buying in in the high forties. I will never see my invest break even. I wish evil on this man he has destroyed millions of good people, I never wish evil on someone. He has more money than he can spend and this is a game to him to see how smart he is, The money is how he keeps score. How can he sleep at night
These negative comments toward AA and AMC are obvious shills trying to stir up bad feelings toward the company. Ridiculous
lol you are the shill or completely uniformed . Do you think losing 90 % of your shares is good , Knowing damn well the stock will be shorted right back to where it is. Show me a revers split that worked out well for the shareholders . I am trying to be polite . Its hard with you
No we are sh for 3+ yrs now not happy with some of the choices HE made & look where it got us! Just cuz we aren’t AA a** kissers doesn’t mean we are shills! We choose to use our brain instead of following blindly! The fact not 1 director, actor, set, producers etc hasn’t said 1 word nor done a damn thing to defend what helps employ them nor investing to help save what employs..we are fighting harder for all the execs, above, etc. Than those who make millions…that alone should make u scratch your head & question why AA isn’t using or taking advantage of the opportunities he has that could help the sh pr & screw shorts! He isn’t doing that cuz he is on their side! Every decision made since we lost 100% control has caused the share pr to go down but yeah good job AA 🤦♀️🙄 We were at 25 pre APE. Now Beyer TWO tickers for ONE Co & we are at pandemic lows when everything was closed. Or the fact AA himself said ” I could of sold for 5 BILLION in 2021, be DEBT FREE, SH were FOR it, but I decided to wait.”-AA Why wouldn’t any CEO take an opportunity to make their Co debt free? Ask yourself that! Or “I have never even considered, thought about, nor is it an option, a split or a r/s.”-AA Yr later APE comes out. Less than a yr after that r/s vote, so all AA has done is he himself PROVED he IS a LIAR & who’s side he is really on! Open your eyes & quit following blindly. These are FACTS! 3.5 yrs I have been a sh, was a die hard for AA, but then I started thinking for myself & realized he is just as crooked as those who almost caused AMC to go into bankruptcy! We are NOT shills, we are HONEST!
Correct. Hes a crook
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