Tag: FINRA (Page 1 of 7)

Official: NBH Is Now Actively Working To Meet With FINRA

Official: Next Bridge Hydrocarbons (NBH) is now actively working to meet with FINRA and the SEC to address investor concerns on MMTLP.

The oil and natural gas company said in a statement that it “hope[s] the meeting can largely be devoted to discussing forward-looking and productive options for jointly addressing ongoing investor concerns.”

The MMTLP scandal has been recognized as one of the biggest Wall Street frauds of the decade.

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.

However, MMTLP stopped trading on Thursday, December 8 after FINRA delisted the security without notice or warning, leaving investors without funds to pull out and in the dark.

NBH has released the following statement:

“Next Bridge firmly believes that we and our investors have a right to know, and Congress and the SEC have an interest and duty to understand, the total aggregate outstanding uncovered short positions held by foreign and domestic institutions that exceed the issued and outstanding shares of our company.

Unfortunately, this important figure remains unknown.

We call on FINRA and the SEC to take a more proactive ownership role in completing the necessary accounting for several key reasons:

First, FINRA and the SEC have access to resources, investigatory powers, and foreign information sharing tools, and we rely on them to serve as champions of the full and complete trading facts for the investing public and US companies whose securities are publicly traded under their oversight.

Second, we believe this information is necessary to help clarify potentially misleading information that has been disseminated to investors and the public.

FINRA issued an “Investor Insights” FAQ on its website stating that “there was an aggregate short interest position in MMTLP in accounts held at broker-dealers as of December 12 of approximately 2.65 million shares out of 165.47 million total shares outstanding.”

FINRA went on to characterize this volume as “not significant.”

We infer no intent to mislead by FINRA, but we note that this statement was not qualified to make clear that the scope of the data available to FINRA under the investigatory powers it cited was limited, and thus it implied a categorical summation of the entire uncovered short interest position in Next Bridge.

If FINRA is unable to report on the entire universe of the outstanding uncovered short positions in Next Bridge, including short interest positions held via foreign brokers, we request that they maintain full transparency of this fact in communications with interested parties and refrain from descriptions of the short interest as inconsequential until this is borne out via a comprehensive investigation.

One of the biggest concerns is that uncovered short selling activity might have been carried out by entities that are also exempt from SEC registration or via transactions that are otherwise exempt from reporting.

This in it of itself is worthy of bringing to the table when involving regulatory structure and fair change for retail investors.

Share this article with the community to raise awareness.

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Also Read: 40,000 MMTLP Letters Have Now Been Sent to Congress

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Market News Today - Official: NBH Is Now Actively Working To Meet With FINRA.
Market News Today – Official: NBH Is Now Actively Working To Meet With FINRA.

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Why Did FINRA Halt the Trading of MMTLP?

Why Did FINRA halt trading of Meta Materials?
Market News: Why Did FINRA halt MMTLP?

FINRA halted $MMTLP in December without notice leaving investors confused and angry.

The regulator blatantly proved to be one of the biggest obstructions in the market when it also failed to deliver investors with Meta Materials’ planned distribution of its preferred stock.

Now shareholders are demanding FINRA release a statement regarding the events that occurred with MMTLP.

The last day to purchase shares (and be eligible for their dividend) was Dec. 8, 2022.

Meta Material’s final trading day was Dec. 12, 2022.

The distribution date of the private Next Bridge Hydrocarbon shares was Dec. 14, 2022.

Shareholders never received the proposed preferred shares.

So, why did FINRA halt the trading of Meta Materials / MMTLP and delist the security leaving several investors questioning the integrity of our regulators?

Here’s what the regulator said.

FINRA Comments on MMTLP Halts

Meta Materials
Why did FINRA halt Meta Materials?

“Effective Friday, December 09, 2022, the Financial Industry Regulatory Authority, Inc. (“FINRA”) halted trading and quoting in the Series A preferred shares of Meta Materials Inc. (OTC Symbol: MMTLP).

Pursuant to Rule 6440(a)(3), FINRA has determined that an extraordinary event has occurred or is ongoing that has caused or has the potential to cause significant uncertainty in the settlement and clearance process for shares in MMTLP and that, therefore, halting trading and quoting in MMTLP is necessary to protect investors and the public interest.

The trading and quoting halt will end concurrent with the deletion of the symbol effective Tuesday, December 13, 2022.”

“See also Form S1 Registration Statement for Next Bridge Hydrocarbons, Inc. stating that…immediately after the Spin-Off, all shares of Series A Non-Voting Preferred Stock of Meta shall be cancelled. Available here.”

In simple terms, FINRA’s only explanation was that the halt was due to ‘uncertainty’ in the settlement process which could harm investors and public interest.

And perhaps that’s true — though I don’t think they were referring to retail investors at all, but rather FINRA’s private investors and partners.

Tinfoil hat on, you tell me.

Related: The Retail Community Says FINRA is Corrupt

Who is FINRA?

Why did FINRA halt MMTLP? Why did FINRA halt Meta Materials?
Why did FINRA halt MMTLP? Why did FINRA halt Meta Materials?

FINRA stands for the Financial Industry Regulatory Authority and is a self-regulatory government organization that oversees U.S. broker-dealers.

The organization contains records of every trade made available intraday, including that of naked short sales.

FINRA requires firms to be able to meet their short sale requirements as well as have a process to close out fails to deliver within their required timeframes.

However, they’re the open window that allows these manipulative strategies to occur in the market.

FTDS (fails-to-deliver) are mounting up every month according to SEC data, and FINRA is unable to get firms to close out these obligations.

The retail community is calling it foul play, alleging the possibility of lobbying within the self-regulated organization.

FINRA’s mission statement:

At FINRA, our mission is clear—to protect investors and promote market integrity. At FINRA, our mission is clear—to protect investors and promote market integrity. Each year, we conduct thousands of investigations of potential violations of securities industry rules, regulations and U.S. securities laws.

So, who’s watching FINRA?

Justice for the MMTLP community must be served.

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Transcripts Now Reveal Big MMTLP Fraud Investigations

FINRA MMTLP Investigations
Market News Daily – Transcripts Now Reveal Big MMTLP Fraud Investigations.

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.

MMTLP Sam Draddy FINRA

FINRA Knew of Manipulation Prior to Halts and Delisting

Sam Draddy

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.

faces of mmtlp

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.

FINRA whistleblower

“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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Market News Today - Transcripts Now Reveal Big MMTLP Fraud Investigations.
Market News Today – Transcripts Now Reveal Big MMTLP Fraud Investigations.

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The SEC Has Approved FINRA’s New Expungement Proposal

Market News Daily - The SEC Has Approved FINRA's Expungement Proposal.
Market News Daily – The SEC Has Approved FINRA’s New Expungement Proposal.

The Securities and Exchange Commission (SEC) has approved FINRA’s expungement proposal.

FINRA filed the original version in September 2020 but withdrew the proposal in 2021 to make new modifications after investor attorneys and state securities regulators raised concerns that the reform would not sufficiently strengthen what they called a too-lenient expungement process.

So, what is expungement anyway?

Expungement is the process by which criminal record is destroyed or sealed from state or federal record.

An expungement order directs the court to treat the criminal conviction as if it had never occurred, essentially removing it from a defendant’s criminal record as well as, ideally, the public record.

The American Bar Association says, “It is important to clarify that expungement is not “forgiveness” for committing a crime—that is a legal pardon.

Likewise, pardons are not expungements and do not require removal of a conviction from a criminal record.

In the United States, pardons may be granted by public officials.”

Here’s what the new rule is intended to do.

What will FINRA’s Expungement Proposal Do?

FINRA Expungement

FINRA’s new expungement rule will require brokers to file a straight-in expungement request within two years of the closing of a customer arbitration or civil litigation.

If there is no arbitration or litigation, the time limit is three years from when a customer complaint is filed in the Central Registration Depository system, which populates the public BrokerCheck database.

The rule also requires earlier notification of customers and state regulators when brokers seek expungement and allows state regulators to participate in straight-in requests.

“We’re thrilled,” said Richard Lewins, president of the PIABA Foundation and a Dallas securities attorney.

“This is a long time coming. This is all under the rubric of investor protection.”

“It’s a positive move forward,” said Berkson, a principal at McCarthy Lebit Crystal & Liffman.

“For too long, expungement has seemingly been an automatic process. You ask for it. You get it. The hope is that with the changes, expungement will be treated as it was designed to be — an extraordinary remedy.”

FINRA’s new expungement rule is certainly a start to setting stricter reform on institutions, but the self-regulatory agency still has a lot of work ahead of them when it comes to investor protection.

Related: Investors Petition for the Resignation of FINRA CEO

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Market News Today - The SEC Has Approved FINRA's Expungement Proposal.
Market News Today – The SEC Has Approved FINRA’s New Expungement Proposal.

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