Tag: FINRA Fraud (Page 1 of 5)

Transcripts were released revealing a big MMTLP fraud investigation as well as other sensitive information.

Below will be a summary of the events that occurred with MMTLP to give new readers a better understanding of the situation and ongoing investigation at hand.

Investors who held shares of MMTLP stock on the record date of December 12 would receive a preferred dividend of Next Bridge Hydrocarbon on Wednesday, December the 14th.

Investors anticipated a long-awaited MMTLP short squeeze during the last few trading days prior to the spinoff — primarily due to big buying volume flooding the market to receive Next Bridge Hydrocarbon shares.

However, MMTLP stock stopped trading on Thursday, December 8 after FINRA delisted the security without notice or warning.

FINRA responded to investors affected by the aftermath in March, but the retail community has not seen any real justice from regulators.

Now transcripts have surfaced revealing conversations between FINRA and the SEC.

“Looks like this MMAT/MMTLP matter has now hit my Fraud team’s radar screen (and seemingly a lot of other radar screens as well). I know you have spoken to Patti Casimates and our General Council’s office — but was wondering if it made sense for my Fraud team to have a conversation directly with you and your folks working on the matter so we are not duplicating efforts.

We are looking at the two issuers from a fraud/manipulation angle and, in fact, bluesheeting both MMAT and MMTLP as we speak,” said Sam Draddy to the SEC on December 5th, 2022 — just days prior the U3 halt and delisting of MMTLP.

FINRA Knew of Manipulation Prior to Halts and Delisting

Sam Draddy is the Senior Vice President in FINRA’s National Cause and Financial Crimes Detection Programs, Market Investigations Team and head of FINRA’s Insider Trading, Market Fraud and Offering Investigations Units.

Transcripts insinuate that regulators knew manipulation was happening in MMTLP more than a year prior to the events that occurred in December of 2022.

“I believe it was Patti Casimates from our Market Ops group who reached out to (omitted). I have included her on the email so you can reach out to her directly,” said Sam Draddy to the SEC on November 29, 2021.

Patricia Casimates is the Vice President of Market Operations for FINRA Transparency Services. 

Her responsibilities include FINRA’s TRACE, Alternative Display Facility (ADF), and the OTC trade reporting facility. 

In addition, she also manages OTC corporate action and dividend announcements. 

Prior to Market Operations, Ms. Casimates was Deputy Director, in FINRA’s Market Regulation Department, overseeing surveillance for trade reporting, order handling, best execution, FIPS (Fixed Income Pricing System) as well as the real-time surveillance area, handling backing away complaints, and locked/crossed market issues. 

Transcripts show that on December 2nd FINRA’s Market Fraud Investigations team received several tips that were also sent out to the SEC.

Both the SEC and FINRA were aware of the manipulation of MMTLP prior to investors losing everything.

In other words, notices could have been sent out warning MMTLP investors of the events that would occur on December 8, when MMTLP was halted and later delisted, freezing investor’s money in the process.

FINRA Received Complaints and Threats

Transcripts have also been released confirming reports of large amounts of complaints related to the U3 halt.

“You may be already, but we have received a large number of complaints (on social media and directly to FINRA) related to a trade halt that we have issued on Friday.

Some of these communications have included threats related to FINRA in general, as well as to certain of our employees.

Out of an abundance of caution, we are asking our team to work from home tomorrow and the rest of the week, unless there is a particular business need to be in the office,” said FINRA CEO Robert Cook on December 11, 2022.

The fact is that the aftermath left many real people with nothing.

Investors had their retirement and savings funds in MMTLP, only to lose it all without warning from the regulatory bodies who knew this would happen to investors.

#FacesofMMTLP shows us who the investors affected are — everyone has a story.

How Will Regulators Proceed Moving Forward?

John Brda said this is not something regulators will be able to sweep under the carpet, the proof is all there.

The question now is how will regulators proceed moving forward?

Investors are disheartened to learn that regulators were aware of the manipulation of MMTLP for over a year and took no action to correct it.

Now investors are encouraging FINRA employees to blow the whistle and come forward.

“What’s interesting is that we’re going to find out one way or another, whether we have to do it through the court system or whether congress is going to effectuate change in a way that they can.

We’re going to find out, we’re not gonna stop in this effort so, we have what we believe are, if we end up filing suit in that manner, we have what we believe are basically bulletproof items that will survive motion to dismiss, and then the discovery process starts.

And then discovery is a wide-open door for us to understand actually who all the bad actors are, you know broker dealers involved, market makers, hedge funds, FINRA, DTCC, everybody; everybody’s gonna get subpoenaed for their information.

So, no I don’t believe it’s gonna go away and no I don’t believe it’s gonna be swept under the rug.

We’re hitting this from both angles, through congress and through the court system and we’re not going away — it’s just not gonna happen”, said John Brda.

MMTLP Activism Today

The MMTLP community has reached out to the Oversight Committee, sent out letters to congress, and have demanded FINRA to release the blue sheets and give investors their two trading days back.

The Oversight Committee made it known to investors that they were aware of the events that occurred with MMTLP.

These transcripts now reveal big MMTLP fraud investigations have been taking place.

It’s only a matter of time before investigations shed more light on the situation.

This is a developing story – be sure to join the newsletter below for more updates.

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