Famous lawyer known for fighting against market injustices Wes Chrisitan says ‘Naked Shorting’ is a big worldwide problem in his first-ever Twitter space call, hosted by JunkSavvy.
Wes Christian was mentioned by Forbes who painted the 40-year-experienced attorney as a conspiracy theorist threatening Wall Street.
“Naked short-selling is a thing. Actually, it really isn’t. But that hasn’t stopped a group of hucksters, led by a cynical lawyer, from conjuring an excuse for meme-stock collapses — and creating a community now talking up violence against anyone in their way,” said Forbes staff member Brandon Kochkodin.
“Regulators aren’t in tune as much as they should be,” said Wes Christian on Friday’s meeting.
Wes says mainstream media will continue to ridicule those standing against fraud in the market but that investors should continue to raise awareness.
The Securities and Exchange Commission (SEC) announced in mid June that it charged investment adviser Sabby Management LLC and its managing partner, Hal D. Mintz in the latest naked shorting scheme.
The partners generated more than $2 million in illegal profits from what the regulator claims were in connection with a long running scheme involving misrepresentations and violations of rules for short selling and order making, as well as other violative trading.
So why is the media so reluctant to speak out against this massive worldwide problem affecting the markets?
Wall Street owns the web of mainstream media outlets through News Corp, some of which include Wall Street Journal, New York Post, MarketWatch, Barron’s, and more, which is understandable why bigger media abstains from speaking about these occurrences; they’re complicit in some manner.
Goldman Sachs Marked Short Sales as ‘Long’ for Three Years
Goldman Sachs (NYSE:GS) was fined $3 million by FINRA in April for making short sales as ‘long’ sales for three years.
“It allowed the firm to short millions of shares while short sale circuit breakers were in effect, over a period of 3 years (3 whole years!!)”, says Genevieve Roch-Decter.
From October 2015 to April 2018, Goldman mismarked around 60 million short sale orders totaling more than 14 billion shares as “long” sales, with nearly eight million of those orders, totaling more than a billion shares, being executed, FINRA said.
“Goldman also failed to establish and maintain a supervisory system reasonably designed to achieve compliance with short sale regulations SHO and rules relating to accurate trade reporting,” the regulator said.
Orders marked as long when really short don’t show up on reported short interest or make you subject to reg sho, says Wes.
Big institutions have provided regulators with misinformation by disguising short sales as long sales which have manipulated the market for decades.
Still, retail investors continue to get portrayed as conspiracy theorists for very real issues affecting the pockets of investors as well as company innovation worldwide.
“This is threatening the entire system. They’re gambling with the world,” said Wes.
“The money they’re making from lending shares is staggering, they’re lending shares they don’t even have.”
Congress is Aware of the ‘Naked Shorting’ Problem
Despite Forbes and other mainstream media outlets claiming ‘naked shorting’ isn’t real, Congress is now very well aware of the problem.
The MMTLP community for months now has provided congress members with information in efforts to educate those in power of the fraud occurring in our markets.
And this problem is not just about MMTLP, naked shorting has affected retail favorites such as AMC Entertainment and GameStop, as well as many other tickers in the market.
The last 8-10 months have been the most impactful with Congress says Wes.
Congress is aware of the ‘naked shorting’ problem, but people need to keep putting pressure on the topic he advised.
“Get the FOIA request, reach out to your congressman, post. This is a call to duty, to double down what we’re doing.”
“The real change here has to come from Washington and not just from the State.”
Meta Materials announced on Tuesday that it has retained the law firm of Christian Smith & Jewell, LLP to help investigate allegations of naked short selling of Meta Materials’ stock, MMAT.
You can listen to the entire meeting with GNS CEO Roger Hamilton and Wes Christian below.
Related: GNS CEO Shares Petition to End Naked Shorting
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About The Author
As an AMC investor I’m demanding that Adam Aron take a much stronger stand with the SEC and FINRA. He had not protected his investors one bit which leads me to believe that he benefits somehow. Prove me wrong Mr. Aron.
It’s only a problem for the corrupt!
Naked short selling is no different than regular short selling except that they who commit the naked short selling are actually criminals trying to hide it. ALL short selling needs to be exposed and the IOUs of the naked shorts HAVE to be paid if their bet is losing. They cannot have unlimited liquidity. It is nothing less than Grand Theft and should be punished accordingly.
Leave your thoughts below.