Tag: Citadel (Page 1 of 20)

BBIG Investors Now Take On Toxic Lenders in New Lawsuit

January 23, 2024 / Frank Nez

BBIG investors now take on toxic lenders in a new lawsuit which seeks rescissionary damages in excess of $250 million.

This action is led by Shadwrick Vick on behalf of VINCO shareholders.

The lawsuit alleges that Hudson Bay Master Fund Ltd., Sander R. Gerber, Yoav Roth, BHP Capital NY, Inc., and Bryan Pantofel, have engaged in “predatory lending practices in violation of federal securities law,” according to a new press release.

The lawsuit was filed in the United States District Court for the Southern District of New York and accuses the defendants of violating Section 15(a) of the Securities Exchange Act of 1934 by failing to register as “dealers,” despite engaging of the practice of buying and selling securities for their own benefit.

“Defendants practices are demonstrated by the fact that they have made similar unlawful, predatory loans to publicly traded companies, including VINCO, that caused the issuance of millions, if not billions, of newly-issued shares to the to the company and its shareholders,” the press release states.

Mark Basile’s The Basile Law Firm P.C. has helped lead several retail cases involving fraud, including that of Vinco Ventures.

“One problem with our markets are the unregistered broker-dealers issuing toxic funding to all to willing over-paid executives who forget their fiduciary duty to the company & stake holders,” says @MemeStockMillyz on X.

“BBIG shareholders are making headway in fighting for justice. I’ve personally been financially devastated by bad actors,” says another user.

This is a developing story — for more market news and updates like this, follow me on Twitter or join the popup newsletter.

Also Read: Missing MMTLP Certificates Now Back Up Possibility of Illegal Trading

Other Market News Today

South Korea now speaks on the impact of illegal short selling after the illicit practice accounted for 20% of daily transactions.

Financial watchdogs have vowed to continue rooting out the malpractice in the markets.

“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 late Tuesday.

“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.

Professional investors on the other hand are skeptical, seeing the move as being politically motivated ahead of the election.

Financial authorities have defended the decision, describing illegal trades such as naked short selling — an act of selling shares without borrowing them first — as “rampant” and hurting fairness in the market, reports Bloomberg.

Furthermore, Bloomberg reported on Monday that investigators have turned up just 110 billion won worth ($83 million) of alleged naked short selling by four global investment banks.

In the U.S., naked short selling continues to be a big problem.

Citadel Securities is currently under heavy scrutiny for marking short sales as long sales over a period of five years.

Investors in the AMC, MULN, GTII, FNGR, and MMTLP communities are just a few of many who have been raising awareness of the malpractice happening in the U.S stock market.

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

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Massive Banks Are Now Getting Fined For Illegal Short Selling

December 21, 2023 / Frank Nez

Two massive banks are now getting fined for illegal short selling (naked short selling), according to a new Bloomberg report.

South Korea regulators are seeking $7.67 million each from HSBC and BNP Bank for naked short selling, people familiar with the matter told media outlets.

The five-member commission led by Financial Services Commission (FSC) Vice Chairman Kim So-young discussed the fines during a meeting on Wednesday but could not reach a conclusion, the report said, adding that the final amount may change during discussions later.

Naked short-selling of stocks – in which an investor short sells shares without first borrowing them or determining they can be borrowed – unlike in the United States, is banned by the Capital Markets Act in South Korea.

“We are investigating financial companies involved in naked short-selling, but we cannot comment whether fines have been finalized,” an FSC official said.

Last month, South Korea reimposed a full ban on short-selling until the end of June 2024 to create a “level playing field” for retail and institutional investors.

In the United States, several petitions have been shared online in efforts to ban short selling as well.

Unfortunately, naked short selling in the U.S. continues to be a big problem.

In September, Citadel Securities was charged for illegal short selling violations by the SEC.

According to the SEC’s order, for a five-year period, it is estimated that Citadel Securities incorrectly marked millions of orders, inaccurately denoting that certain short sales were long sales and vice versa.

“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,” said Mark Cave, Associate Director of the SEC’s Division of Enforcement.

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MARKETS: Massive Banks Are Now Getting Fined For Illegal Short Sellinghttps://t.co/xhObSBPOzN #NakedShorts #MarketNews
— Frank Nez 🇺🇸 (@FNez_Blogger) December 21, 2023

Also Read: “The Game is Rigged”, Says Ex-Citadel Data Scientist

Other Market News Today

A new company now seems to be targeted by naked shorts, at least that’s what a CEO and former AMEX Vice President are alleging.

Collective Audience (CAUD) stock has had a rather steady share price since 2021.

Shares of the advertising company rose to more than $27 per share on Wednesday, October 25th before getting halted and crashing to its current $1.20 levels.

CEO Brent Suen has since purchased 190,000 shares of CAUD stock but claims there seems to be a high probability of fraud at play here.

“NASDAQ halted trading on October 25 due to a non-qualified float below 500,000 shares.

However, on Nov 3 and 6 the float was still 61,000 shares and the price had fallen from $27 to $5.31 down 80%.

NASDAQ did not halt the stock during that time,” Suen told Frank Nez.

Collective Audiences’ partners are now on the radar as suspects, though an official investigation has yet to be announced by the company.

One scenario states that CAUD’s partners may have sold company shares at the top and began shorting the company as prices began to plunge, causing further devaluation.

The second scenario sheds light on the possibility of naked short selling.

The CEO has a strong concern that hedge funds may have collectively shorted the company ‘naked’ after the surge on October 25th.

Tony Forte, former Vice President of the Trading Analysis Division at AMEX reached out to Frank Nez to confirm irregularities in the trading of Collective Audience stock.

“Over the last few years I have closely followed the trading activity in LGIQ, prior to and after the spinoff of DataLogiq into the Arbi SPAC.

I strongly believe at least two thirds of the floating supply is held by shareholders who have no intention of selling any of their shares until CAUD is trading at much higher prices. That conclusion would reduce the current floating supply to under 1.2 million shares.

The substantial and continuous selling in CAUD appears to be the result of computerized trading based on sell side algorithms accompanied by short selling, most likely naked, by marketmakers and large investors,” Forte shared with Frank Nez.

“The computerized trading was particularly evident on December 7th: At 10:10 am, the last sale in CAUD was 2.10.

From 10:10 through 10:15 the stock decline to 1.82, down 28 cents, on trading volume of 113,995 shares. During that five minute time span there were 576 trades.

Although the short activity, reported by FINRA, during the October 25 through December 11th period was only between 25-30% it would still indicate that 11-12 million shares were sold short.

In order for the algorithm computerized trading to show a profit in CAUD, which has a very small float, there would have to be at least 4-5 firms utilizing that strategy. That raises the question of “working in concert”.”

CAUD stock is currently down more than -88% this year-to-date.

This is a developing story — for more updates on CAUD and other stocks, follow me on X: https://twitter.com/FNez_Blogger.

Also Read: MULN Stock: 5 Billion Shares in Illegal Scheme Now Confirmed

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Ken Griffin Now Makes Surprising Claims Confirming Illegal Manipulation

December 15, 2023 / Frank Nez

Ken Griffin now makes surprising claims confirming the illegal manipulation that retail investors have been raising awareness about for years.

“Markets are efficient because of active managers setting the prices of securities,” says Citadel Securities’ Ken Griffin.

This prompts the big question, does supply and demand matter? And is it even real?

For years now, retail investors have alleged that market makers and hedge funds have the full control of where prices go.

Dark pools have allowed institutions to keep a big percentage of retail money from displaying in the lit market.

Naked shorts have allowed institutions to suppress the buying pressure of a stock, driving prices down.

And the media, unfortunately doesn’t report this.

“Firms like Citadel, firms like Fidelity, firms like Viking Global, Capital Research, we’re all running large teams of people that are engaged in fundamental research trying to drive the value of companies towards where we think they should be valued,” says Griffin.

If market makers and hedge funds have the ability to decide what the stock price of a company should be, then this annihilates the market’s integrity when hedge funds such as Citadel have a dark history of market manipulation.

In September, Citadel was charged for illegal short selling violations by the SEC after incorrectly marking short sales as long sales for the duration of 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,” said Mark Cave, Associate Director of the SEC’s Division of Enforcement.

“This action against Citadel Securities demonstrates that a broker-dealer’s failure to comply with the requirements of Reg SHO can have negative downstream consequences on the accuracy of the firm’s electronic records, including its electronic blue sheet reporting, depriving the Commission of important information about the markets it regulates.”

Should firms, such as Citadel, have total control of pricing the market?

Or is this is a direct violation of the laws of supply and demand?

MARKETS: Ken Griffin Now Makes Surprising Claims Confirming Illegal Manipulation https://t.co/w75MK85WDj #CitadelScandal
— Frank Nez 🇺🇸 (@FNez_Blogger) December 15, 2023

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Also Read: “The Game is Rigged”, Says Ex-Citadel Data Scientist

Other Market News Today

SEC Chair Gary Gensler now takes an unexpected stance against hedge funds in his latest interview with CNBC.

The Chairman, who’s been heavily criticized by retail investors for failing to create real change in the market, is making it clear on just how important short selling transparency truly is.

For years now, the hedge fund industry has been fighting against the SEC’s new rules which would require more disclosure of short sale transactions, Citadel Securities included.

The SEC approved new rules in October related to short selling.

The first rule required certain fund managers to report their short sales to the SEC within 14 days at the end of the month.

The second rule requires that financial companies that facilitate securities loans disclose information about those transactions to FINRA on a daily basis.

“Remember the events around GameStop nearly three years ago?” Gensler said.

“We have a lot of transparency in the long side, let’s add transparency to the short side that Congress mandated.”

SEC Commissioner Jaime Lizarraga stated in October that securities lending facilitates illegal trading.

“As with securities lending, short sales, provided they are conducted in compliance with applicable rules, can play a valuable price discovery role in our capital markets.

That said, they can sometimes contribute to, or even cause, precipitous price declines, facilitate market manipulation, and generate market uncertainty and volatility”, the Commissioner said.

Now Gary Gensler is pushing short sale transparency.

“Congress weighed in after the financial crisis and mandated that the SEC address and have rules for transparency around short selling for investment managers,” he said in an interview with CNBC on Thursday.

“I got to the agency nine years later and the agency had not done a congressional mandate. I’m very proud we took it up.”

This is a developing story.

Also Read: South Korea Regulators Now Probe Into Illegal Short Selling

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

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Hedge Funds Will Now Disclose Which Companies They Short

October 23, 2023 / Frank Nez

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.

Other SEC News Today

SEC Commissioner Jaime Lizarraga said on Friday that securities lending facilitates illegal trading.

The official SEC statement comes after regulators have been expected to adopt new market transparency rules that will shed light on short sellers and other market participants.

“As with securities lending, short sales, provided they are conducted in compliance with applicable rules, can play a valuable price discovery role in our capital markets.

That said, they can sometimes contribute to, or even cause, precipitous price declines, facilitate market manipulation, and generate market uncertainty and volatility”, said Commissioner Lizarraga.

“To minimize the gap between these benefits and downsides, the Commission’s action today strikes the appropriate balance between increased transparency for investors and regulators of short sale-related data, and concerns about real-time disclosure of trading strategies.

Currently, Regulation SHO is the primary rule governing short sales of equities.

Although this rule imposes some recordkeeping obligations on broker-dealers, it does not require market participants to track whether short-sellers cover their short sales or report bona fide market-making information on a regular basis.

Today’s rule will shine a light on short sale activity by institutional investment managers.

It fills gaps in the data these managers currently report about their monthly and daily short sale activities.

This data is essential for the Commission to assess and monitor risks related to large short positions, for reconstructing market events, and for deterring fraud, manipulation, and other potential market abuses.“

Today, investing communities have raised concerns of market manipulation in stocks such as AMC Entertainment, Meta Materials, FingerMotion, Global Tech Industries, Mullen Automotive, and many more.

Stock manipulation from short sellers, primarily hedge funds, is a topic that main street has been urging our regulators to tackle head on.

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

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Tag: Citadel (Page 1 of 20)

BBIG Investors Now Take On Toxic Lenders in New Lawsuit

Other Market News Today

Market News Published Daily 📰

Frank Nez’s Stock Portfolio

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Massive Banks Are Now Getting Fined For Illegal Short Selling

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Frank Nez’s Stock Portfolio

Recommended For You ✨

Ken Griffin Now Makes Surprising Claims Confirming Illegal Manipulation

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Frank Nez’s Stock Portfolio

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Hedge Funds Will Now Disclose Which Companies They Short

Other SEC News Today

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