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Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Yo Bunny..you got a bad attitude dude...lol

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

BobO,

These are great ideas, I am sure a number of worried guys in and around Greenwich will appreciate it and take it to heart. But I have to say, with respect to the second paragraph of no. 5, "blame the victims": come on BobO, that is NOT original. The SEC and its Wall Street masters have been doing that for years now, and since the SEC has been demonstrated to be at best incompetent and more likely co-opted and corrupted, and their Wall Street masters have proven to be no more than counterfeiters and common thieves, it just is not going to play that well with the masses any longer.

Then again, it will be difficult for these criminals to disabuse themselves of the notion that 'we the people' are pretty stupid. Do you think they will have Ms. Nazareth be the lead on that theme, again?

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

BobO,

OK, good points. Forgive me for questioning our long-eared, egg hiding, chocolate loving leader.

Off topic, here is Cramer yesterday. I feel like a member of a church congregation watching a new believer talking about his faith:

http://www.cnbc.com/id/15840232?video=806417851&play=1

The bastard is making some great points, e.g., these hedge - whores (ok, my word) have to cheat to win, the SEC should just enforce the law, expand the 'emergency order' to the entire market, etc. It must be almost over, Cramer is on board!

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Don't expect justice. Mark Valentine naked shorted many OTC companies into oblivion, bringing down the brokerage he co-owned in Canada six years ago. The SEC was able to see how the scam worked back then, yet they did nothing to change the system.

He's the reason O'Quinn originally got involved in this.

The SEC even blocked rules like the new BBX exchange or the NASD rules that would have fixed the problem and were working.

http://www.cbc.ca/money/story/2002/08/16/valentine_020816.html

Mark got a few months of house arrest in his Florida mansion and got to keep the $750 million this 32 year old squirreled away in offshore accounts. He even got a $15 million tax refund from the government as he claimed losses on his domestic trading.

http://www.rgm.com/articles/theriseandfall.html

The big guys made it all go away as he knew too much about the ruling elite in this country and like a dandelion, you never know where the roots will go when you start pulling.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Mogumbo Guru

http://tinyurl.com/63m3l3

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Great article bobo. These crooks need all the "help" they can get. Let's hope they all turn against each other and hang together instead of separately.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Lil GW was a lapdog for Mark Valentine and Asensio's naked short death spiral network. It makes you wonder how Lil GW got access to post from within the inner santum of the DTC.

http://www.asensioexposed.com/lowryreport.pdf

In 1998, Lil GW wrote an article in BusinessWeek titled “Why Hemispherx Could Take Sick. A copy of the article can be found here:

http://www.businessweek.com/1998/39/b3597113.htm

According to an affidavit from a former SEC employee:

"It is my opinion that the demand for ACI shares was strong enough to sustain the
price of HBI shares despite the illegal "naked" short selling by ACI and others until ACI
made negative statements about HBI to the public in the form of a Business Week article
that was first disseminated on the evening of September 17, 1998. Once this article was
disseminated to public investors, the price of HBI shares dropped dramatically from
$9.625 on September 17 to $5.25 on September 22, 1998. It is my opinion that the
statements attributed to Asensio in the Business Week article would be subject to the
anti-fraud provisions discussed above. As a result of its activities, ACI was in a position
to benefit financially because it established a short trading position prior to releasing the
negative statements about HBI."

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

If they extended the protection to the rest of the market wouldn't a lot of hedge funds go broke as prices drifted upwards in severely undervalued stocks and of course some might appreciate to the point of being overvalued (heaven forbid) as markets supposedly tend to go to extremes. The funds could go broke covering their shorts rather rapidly and most would not even try...Wouldn't the banks that lent them money at 30 to 1 go under once again when the undocumented and undercollateralized hedge funds go into hiding in BVI and other such places. So what would be so bad about that? Could this be worse than the subprime fiasco? I'm sure they will claim it could be worse but it would punish those who deserve punishment and reward investors.
You know what's been going on is as close to white collar treason as anything you will ever see. I can't believe politicians go home to their districts and claim they are doing everything possible to create jobs, and the regulators have helped the brokers and hedgies destroy our companies by the thousands. You know even the administration has to be aware of what is going on and done nothing to stop it. These guys are guilty as hell ..I'm afraid that the system will stand against us because they know that their heads are now on the line...

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

The real problem is all of the Options the Hedge Funds have placed and the Options writers have written. The reason for the 1 year comment period is so they can reverse thoes positions.

Options are a major problem in reversing a trend that could Bankrupt way too many Hedge Funds and cause huge problems for the overall market. Many of these Options were written for 1 year out.

That is why the Hedge Funds have hired a Spokesperson to talk to the SEC.

I do not agree with Naked Shorting but I can see the dilema for the SEC.

Again, I see the biggest problem with the SEC is that they will not eliminate the Market Maker and Option Writer exemption from Naked Shorting. Really, what difference does it make if you and I cannot short a stock when the MM's and Option writers can Naked Short all they want.

In my opinion the only way to change the system is for there to be Legislation that my Broker has to inform me if the shares I bought were not delivered in 3 days. I then would have the option to break the trade and the Seller would immediatly have the value of that sale deducted from their account. That would fix things.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Now how's this for another entity with a change of heart???

Recs: 5 Illegal Short Sellers May Face RICO Indictments
Illegal Short Sellers May Face RICO Indictments
by: R.J. Chopin posted on: July 29, 2008

Racketeering Influenced Corruption Organizations Act, the law Rudy Guiliani used to bring down Michael Milken, and other Wall Street crooks, could be revisited in the SEC's struggle to clean up Wall Street's growing threat to the financial markets.

The SEC's crackdown against illegal naked short selling and rumor-mongering resulted in more than 50 hedge funds being slapped with subpoenas last week, according to the Wall Street Journal. Conspiracy theorist and CEO of Overstock.com (OSTK), Patrick Byrne, has embarked on a crusade to expose the nefarious hedge funds that practice illegal short selling. Byrne's web site, Deep Capture.com, has compiled a plethora of facts documenting, names, dates, times and videos of the players and their schemes.

Mark Mitchell, of DeepCapture.com, believes there exists a "hedge fund-orchestrated campaign to cover-up the crime of naked short selling." Depending on how deep the SEC probes, and what insidious facts they discover, we could see hedge fund managers, traders, and other employees facing scandalous, unprecedented charges under the infamous racketeering law, RICO. There is growing pressure for whistle-blowers to sound off or risk becoming the next scapegoat.

Clusterstock.com, reported, "the SEC is demanding both trading records and email correspondences" from subpoenaed firms. The inclusion of cell phone and text messaging records will undoubtedly be scrutinized. Concurrently, the NYSE Regulation Inc. is also investigating how some of its largest firms comply with false and misleading rumors that could undermine a stock's price. This is going to intensify.

Motley Fool, published an article on March 24, 2008, titled "The Naked Truth on Illegal Shorting," in which 100% of a company's shares were purchased by one individual, and were not available for shorting. Nevertheless, 60 million phantom shares were traded, according to owner. Subsequently, he filed a SEC 13-D compliant form.

Dick Fuld, CEO of Lehman Brothers (LEH), told market regulators that he has information that short-selling hedge funds colluded to bring down Bear Sterns (BSC). If Fulds's "information" is of evidentiary value, these hedge fund managers, and their cast of cohorts, could find themselves behind bars.

If the SEC diligently investigates the facts, we could see RICO indictments against illegal short sellers as early as Labor Day. Anyone charged under the RICO statue, even if they are found "not guilty," will become permanently damaged.

After observing the demise of Fannie Mae (FNM), and Freddie Mac (FRE) last week, it is expedient that the SEC move quickly to abolish the practice of naked short selling for all stocks. Short selling should only be allowed after the short seller has successfully borrowed the shares. The practice of selling shares that cannot be borrowed is a crime!

http://seekingalpha.com/article/87653-illegal-short-sellers-may-face-rico-indictments

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Last night my (OH) congressman had local office hours in my small town. I went. There were about 20 and we all got 1-1 time with him. He used to be on House Finl Svcs cmte and didn't even know what naked shorting was. Picked up on it immediately and I used the word counterfeiting--and he agreed. Especially when I said how the FTDs were passed around. Got a kick out of Cox making a rule for something against the law for the last 74 years. I had about 12-15 minutes, but got a lot out and he seemed interested and mentioned a few names he was going to talk to. I figured I better do my part while we have the media attention... Now is the time.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Has the SEC opened itself up to an action for injuctive relief for showing preferential treatment of specific issuers? Either all get this protection or none, I don't think a judge would look favorably on a federal agency choosing who it works for and who it leaves to the wolves. Maybe now it the time for a writ of mandamus?

And since when does the economic burden of complying with the law factor in to whether or not the regulator chooses to enforce that law (Atkins)?

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Same old song and dance. More study, more comments. Nothing to see here. The simple fact is-- they can`t let stocks trade legally according to supply/demand. This little experiment proved it.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

I guess it might be a good idea to talk to Nelson Mandela to find out how this apartheid thingy works...gee we don't even have to travel far to find out what South Africa did to the blacks for so many years...it's being perped on the American taxpayer every day by regulators who protect their own...

How sweet

I am so disgusted....

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Of course it's good that the naked short selling issue has hit mainstream media. But it won't be over quick. Even if the issue were resolved tomorrow with equity securities, the problem is far worse than even I thought as it extends to commodities and Bonds.

Wall Street firms are over reporting an estimated 1 years worth of Silver production to customer accounts. That's just the discrepancy from what they really hold to what they say they hold to customers.

Then there are bonds and treasuries. This is so insane, it never should have gotten anywhere near this point. But the money has been long sucked out of the system to pay for wages, bonuses and perks over the years. Treasuries and commodities won't go broke or be de-listed. Bonds perhaps, but that's a crap shoot. Who is going to make good and deliver on all the goods the brokers are representing to exist, but which they do not have?

I suggest an accounting investigation of the brokers to see if they are properly disclosing the risk to their own share holders and how those liabilities are accounted for as required by the FED and under 15c3-1 and 15c3-3. I think there is Enron like smoke and mirrors going on.

One big clue is the statement by Cox when he alluded that - referring to Bear's demise and the reason for the emergency rule - investment banks hold only fractional customer assets and losing customers can cause a "run on the bank" effect. Huh? That's not what they're supposed to be doing. Customer assets are supposed to be safe and always available - even if customer securities are margined and hypothecated.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

whats a shame is this is all tied into the housing rescue imo...anyone else think this or am i just paranoid?

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Good stuff as always bunny man. So - now that the SEC and Cox have agreed that NSS is and was illegal, do we get our money back that we lost investing in companies that got driven out of business via NSS ? Yeah, I know, dumb question.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Whoa Bobo, be careful here, you are turning anarchist or communist, or something ending in"ist".
What I see developing starts to scare the heck out of me. I believe that you where right a few month ago, the system start to crack everywhere. We are contemplating a depression a la 1929 now. Something has to give, the consequences won't be pretty.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Let’s suppose the SEC eliminates NSS. How do we deal with the millions (or billions) of phantom shares in the market? The money is long gone. Are they “Grandfathered”? I do not see how forced “buy-ins” will work. The crooks are not going to pony up a trillion dollars or so just because the SEC asked them to.

The same for commodities, bonds & derivatives that Tommy alluded to above. Those instruments have been sold multiple times over. The assets purportedly in customer accounts have no substance.

I see chaos…………please tell me I’m wrong.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Never drink a cup of coffee in the AM when reading your works of genius. I'm still wiping the stuff from my keboard and face. Absolutely hilarious and spot on. What now? Blow this country or take to the streets in an organized fashion. Let your voice be heard that you are leaving this hell hole because of a failed system. If enough people get the message there will be change. What other choices do you have. Costa Rica is far better off than this mirage of a democracy. If Obama wins you may not have enough left after taxes to leave here.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

bobo, wouldn't that snap of the fingers violate 5th Amendment property rights as an inverse taking? I am with you that if there is a way in the world to keep this off the backs of the taxpayers (and further damage the dollar/economy) that they will try to find it, but how? And who gets the proceeds of the market marked buy in?

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

I've been saying this for a while. Hundreds of years ago, the banks were supposed to hold 100% of depositor's gold in the warehouse and the banknotes they issued were supposed to be receipts for that gold. Over time, they institutionalized the idea that deposits were only fractionally backed.

Now they are trying the same thing with stocks. They only fractionally back your purchases with real shares. This has nothing to do with shorting or any other trading strategy. This has to do with custody and what it means to hold someone else's asset in trust.

They lie to their customers, even sending out confirmation receipts and statements that imply they hold the right number of real shares on behalf of their customers. The fraud goes so far, that they even solicit voting instructions on shares that don't exist, before throwing those instructions in the garbage.

What we have here is a criminal cartel that has become so powerful, that they control media, politicians and regulators, but they are still a cartel of arrestable human beings that have committed real crimes.

The population of Joe and Jane Sixpack have always been in charge and if they want to, they can arrest these scumbags.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Slightly off topic...but very relevant.

SEC Orders E*Trade Brokerage Firms to Comply With Anti-Money Laundering Rule
FOR IMMEDIATE RELEASE
2008-156
Washington, D.C., July 30, 2008 — The Securities and Exchange Commission today charged E*Trade Clearing LLC and E*Trade Securities LLC (collectively, E*Trade) for failing to comply with an anti-money laundering rule that requires broker-dealers to verify the identities of their customers and document their procedures for doing so.


--------------------------------------------------------------------------------

Additional Materials
Administrative Proceeding No. 34-58250

--------------------------------------------------------------------------------

The SEC's order finds that E*Trade failed to accurately document certain Customer Identification Program (CIP) practices and verify the identities of more than 65,000 of its customers as required by the USA PATRIOT Act and SEC rules. E*Trade agreed to settle the SEC's enforcement action without admitting or denying the allegations, and will pay $1 million in financial penalties.

"E*Trade is one of the largest online brokerage firms in the world, and a compliance lapse of this type has the potential to undermine the nation's anti-terrorism and anti-money laundering efforts," said Linda Chatman Thomsen, Director of the SEC's Division of Enforcement. "The penalty and undertakings imposed in today's enforcement action reflect the critical nature of anti-money laundering rules, and will provide greater assurance that future compliance will be seriously and continuously monitored."

Cheryl Scarboro, Associate Director in the SEC's Division of Enforcement, added, "On several occasions, E*Trade personnel discovered and rediscovered its CIP deficiency. However, E*Trade did not initiate any corrective action until the problem resurfaced almost two years after the compliance deadline. E*Trade's 20-month period of noncompliance clearly resulted from a disjunctive organizational structure and inadequate management of its CIP responsibilities."

The SEC's order finds that E*Trade established, documented and maintained a CIP that specified that it would verify all accountholders in a joint account. However, during a 20-month period, E*Trade failed to follow the verification procedures set forth in its CIP. The order finds that E*Trade did not verify the identities of secondary accountholders in newly opened joint accounts. Consequently, the order finds that E*Trade's documented procedures differed materially from its actual procedures.

The SEC's order specifically finds that, from October 2003 to June 2005, E*Trade did not verify the identities of 65,442 secondary accountholders in joint accounts as required by the CIP rule and its own procedures. The SEC's order further finds that E*Trade's compliance failure was systemic, resulting from lack of a cohesive organizational structure, lack of adequate management oversight, and miscommunications among personnel in several E*Trade business groups.

E*Trade consented to the issuance of an order instituting administrative and cease and desist proceedings for violations of Section 17(a) of the Securities Exchange Act of 1934 and Rule 17a-8 thereunder. In addition to the financial penalties, E*Trade agreed to a censure and to retain a qualified independent compliance consultant to verify the adequacy of its CIP rule compliance program.

In advance of settling this matter, E*Trade stated that it submitted the secondary accountholder information on joint accounts originally missed to its third-party vendor for verification. According to E*Trade, the verification process did not identify any joint accounts that should not have been opened.

# # #

For more information, contact:

Cheryl J. Scarboro
Associate Director, SEC's Division of Enforcement
(202) 551-4403

John Reed Stark
Chief, SEC's Office of Internet Enforcement
(202) 551-4892



http://www.sec.gov/news/press/2008/2008-156.htm

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

http://www.faulkingtruth.com/Articles/BlogFest/1097.html

In yet another bizarre development in the saga of CMKX, one of the largest financial frauds in history, Andrew McCain, the son of presumptive Republican presidential candidate John McCain, resigned from the Board of Directors of Henderson, Nevada based Silver State Bank, the bank where hundreds of millions of dollars was deposited as it was stolen from CMKX shareholders.

Almost immediately, the internet began buzzing with rumors and stories, mostly either questioning Silver State's financial condition or drawing the inevitable comparison to his father's involvement twenty years ago in the infamous "Keating 5" savings and loan scandal, where federal regulators seized Lincoln Savings and Loan Association of Irvine, California. The senior McCain was rebuked by the Senate Ethics Commission, who concluded that he had and four other senators had tried to hold off a government investigation into the savings and loan's risky real estate deals. Lincoln's chairman at the time was Charles Keating, who was not only one of McCain's top donors, but was a business partner with Cindy McCain.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

if buying in the fails transfers wealth from criminal hedge fund managers and financial terrorist into the hands of Joe Sixpack who will run down to Best Buy and get a new flat screen, save for retirement, bring it on

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

An interesting excerpt on short/naked short selling, Wall Street, and the SEC from Bob Chapman's International Forecaster:

http://news.goldseek.com/InternationalForecaster/1217435828.php

Wednesday, 30 July 2008

"The ability of a borrower or lessor of property to sell that property for full value as if the sale were free and clear of all other interests has absolutely no basis in United States jurisprudence, or in any other manner of jurisprudence for that matter. A full and complete title to any asset, under all systems of jurisprudence, can only be conveyed with the consent of the title owner, usually by the title owner's signature on the documents evidencing the conveyance. The names and identities of title owners of substantial assets such as real estate and cars can usually be identified through public records which are generally kept for the express purpose of protecting the true owners from having their property sold out from under them. Any conveyance of property by a title owner is made subject to any rights which the title owner has previously conveyed to anyone else in the subject property, such as a leasehold interest given to a lessee or a mortgage or UCC lien given to a bank. In order to convey a full and valid title to any purchaser, the title owner must not only convey such title owner's interest in the property, but must also extinguish, or arrange for the conveyance of, all prior interests granted by such title owner to others, unless the new owner is protected against such prior interests by a recording statute or other notice requirement. In most cases, the new owner is protected by recording and notice requirements only if the new owner has no actual notice of the prior interests. Take for instance a house or a car. If you have leased a house or car, can you then convey title to that house or car for its full, appraised value without the consent of the title owner? Of course not, you can only convey your leased interest, and then only if your lease allows you to do that. You cannot, by yourself, convey a full, legal, perfected title. And your leased interest would be worth far less than the full, appraised value of the property that would be paid for a perfected title to that property free and clear of all prior interests. The title owner would have to join in the sale with you to give the new owner a full title free of all prior interests. Only then would the new owner agree to pay the full value of the property. This is how assets have been handled, from a legal point of view, since the beginning of time.

Until, of course, the criminals who run our country came up with the legal fiction of allowing the short sale of leased or borrowed property for full value.

Short-selling of stocks, which is currently legal, or worse, naked short-selling of stocks, which is currently illegal, are fictions created by elitist criminal minds that have been foisted on the markets so the elitists can make profits at will by killing any stock, at any time, for any reason (usually for profit, but sometimes for simple revenge). The reason given for the short-selling of stocks is to provide a means whereby overpriced stocks can be ratted out and fairer stock valuations for the benefit of the investing public can be produced. But this is just a ruse. It is a scam to justify rampant and otherwise illegal manipulations of stock prices for the personal gain of the scamsters. By allowing stock to be borrowed, and then sold for full market value by someone other than the title owner, you are allowing the creation of stock out of thin air, which can then be used to run down the price of the stock ad infinitum. Normally, you can only sell as much stock as you own. After that, you would have to buy more stock, thus driving the price back up, before you could start selling again. Thus, short-selling, and especially naked short-selling, are both morally wrong and legally unfounded. These short-sale scams are made possible by the anonymous ownership of stock, and often this anonymity allows the perpetration of many illegal manipulations, such as where the same stock is borrowed from the same person over and over again by different borrowers in a manner that is difficult to trace. The anonymous ownership of stock in publicly traded companies is another Illuminist scam which allows them to manipulate stock transactions while making it difficult, if not impossible, to pin the blame for any illegal manipulation on a specific trader. Stock ownership in publicly traded companies should be made public like real estate and cars, and only shareholders of record should be able to sell their shares. This is the only way stock markets can be made fair. Otherwise, to allow the sale of an infinite number of shares in any company paves the way for insider trading, for the floating of vicious and patently false rumors and for all kinds of other malicious mischief, including the corrupt elimination of competition by enabling scamsters to ambush companies that compete with their own.

Adding to the criminality of short-selling is the SEC. For some time now they have not investigated or taken action against naked short-sellers, even though naked short-selling is blatantly illegal. With naked short-selling, stock is created out of thin air without even the fiction of being borrowed from a true owner before being sold, as in regular short-selling. As an aside, even regular short-selling should be illegal. This is because regular short-selling, even where the same stock is not borrowed from the same person multiple times by different borrowers, allows the literal doubling of outstanding, authorized shares in public companies without SEC approval. Normally, you would go to jail for selling unauthorized, unapproved stock in a public company. But not short-sellers, who get to stand in the shoes of both regulators and investment banks simultaneously. Regular short-selling should be illegal because as we said, selling borrowed property for full value has no basis in law. Getting back to the SEC and naked short-selling, they keep a list of stocks where naked short-selling is suspected just to tick off the shareholders of these companies who are being ripped off. This is like saying, ha-ha, we know you're being ripped off, but we're not going to do anything about it, so go scratch. We work for the Illuminati, who can do as they please. As if this was not enough moral hazard, the SEC is now selectively enforcing laws against naked-shorting of shares in Fannie, Freddie and 17 other commercial and investment banks, all of them Illuminist to the core. This temporary ban against what is already illegal has just been extended to mid-August so that earnings season can pass without too much damage being done to the fraudsters. Remember, these are the same scum-bag Illuminist institutions that got us into the current mess we are in and are the same bankster fraudsters who are all presenting fraudulent financial statements to temporarily save the stock market from destruction for the benefit of the incumbent traitors in Congress. As always, there are two sets of rules, one set for the would-be lords of the universe, and the other set for the serfs and peons (i.e. the rest of us). ..."

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

The american manufacturing system that turned from churning out cars and washing machines to turning out planes and guns has been disassembled and sold to third world coui\ntrys because the 'labor is cheaper there'.
The wealth of the average american that was available to be sunk into war bonds and helped turn those assembly lines into war machine producers is gone and even our houses arent worth what we owe on them.
Any new company that could have been the next big thing as far as wealth production or jobs for the masses has been killed before it can become profitable by shorting/naked shorting of the fledgling companys stock.
We as americans have had every resource that helped us win two world wars stripped from us.
Could this be a part of a plan to make sure next time we lose?
There is more going on here than bleeding us dry of money through naked shorting , it is only part of a bigger picture.
Treason is not a strong enough word.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

part-time integrity=counterfeiters and common thieves

20 hours a week i lie cheat and steal, the rest of the week i am honest.


government officials by setting a terrible example
and making people doubt their integrity.



http://news.yahoo.com/s/ap/20080731/ap_on_re_us/corrections_sentence


CHICAGO - Fighting back tears and apologizing to his teenage daughters, the former head of the Illinois prison system was sentenced to two years in federal prison for taking payoffs from lobbyists.

http://www.foxnews.com/story/0,2933,395245,00.html

Alaska Sen. Stevens Faces Arraignment in Corruption Case


http://glickreport.blogs.foxbusiness.com/2008/07/23/the-sec-battle-round-2/

Stuart Z. Goldstein
Managing Director
Corporate Communications
Depository Trust & Clearing Corporation

Mr "people doubt their integrity" Stu,

Tell the American people who makes the nickels
ownership and control of the DTCC? You have nothing
to hide right Stu?

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Ask Stu Goldstein who owns Cede & Co. All shares in your brokerage are registered to Cede & Co., making this private partnership the ACTUAL SOLE OWNER of your shares. You have a trust relationship where you have a claim against those shares, but that's only contract law. If they breach the trust, all you can do is sue.

They gloss over the ownership, saying Cede & Co. is a nominee or alter ego of the DTC. (The DTC would be governed by banking rules if they owned the shares directly). It's clearly not an alter ego as the shares are not referenced in their annual report.

Nominee is the company that was nominated to own the shares. There is an undisclosed relationship between this nominee and the DTC.

- what is the agreement between the DTC and this company? Can I see a copy?
- what is the jurisdiction of this company?
- who are the partners that own Cede & Co.?
- are those shares pledged in any way or are their liens or other charges against them?

Cede & Co. dates back to at least 1971, predating the DTCC by almost thirty years.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers

Now everyone is sounding off. Why did'nt he do anything about this when he was an SEC Commisioner. I see he also landed a big time job in a hurry!

http://www.forbes.com/opinions/2008/07/31/naked-short-selling-oped-cx_rc_0731regulation.html

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers - UPDATED 7/31

Bobo, if the DTC or DTCC "owned" Cede & Co., it would have to be disclosed in their financial statements. If the DTC owned it, it would be subject to reserve rules, segregation rules, etc. under the banking act. They specifically say it is a nominee, which means it is a different corporate entity and likely domociled outside NY.

My belief is that the cartel behind the NYSE which set up the Stock Clearing Corporation, which predated the DTC and DTCC set it up and own it. It is clearly something they don't want to talk about as the DTCC media people won't answer very basic questions about its structure or what the trust relationship is.

There's likely a reason they want to keep it secret. It's the same reason they won't tell you who owns the US Federal Reserve.

Where it is extremely important is there is no law that says Cede has to vote it's shares the way the proxies direct them to vote and their vote is the controlling vote in most corporations, including most media outlets. Cede & Co. literally decides who runs most major media outlets.

The congressional record specifically shows Senator concern about Cede & Co.'s growing monopoly ownership of the mainstream media. I think the good senator is wrong and it isn't an alter ego of the stock clearing corporation either. I think it is its own entity. I find numerous references to it being a private partnership (not incorporated and not a charitable trust or anything like that) .

The DTC was set up in 1973 and the DTCC in 1999.

On October 12, 1971, Senator Metcalf was trying to figure out who owned Time Magazine and as part of that, he wanted to find out who Cede & Co. was. He couldn't get an answer. The best he could get was:

"Another of TIME's stockholders is reported as Cede & Company,
box 20, Bowling Green Station, N.Y. Persons who follow regulatory
matters will recall that Cede & Company shows up repeatedly on
ownership reports of power companies, airlines, and railroads,
and that not long ago the Interstate Commerce Commission expressed
mild interest in finding out who controlled all those Cede & Company
shares ..... "

"...The nominee list shows that Cede & Company is the
Stock Clearing Corporation, at 44 Broad Street. I would add that
the Stock Clearing Corporation is a wholly owned subsidiary of
the New York Stock Exchange. ..... I leave it to the would-be
Lieblings to ferret out press ownership and its implications."

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers - UPDATED 7/31

http://news.goldseek.com/GoldSeek/1217570700.php

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers - UPDATED 7/31

Even after all thiese shenanigans, they protect these criminal entities.. Read on, this is just shamefull.

Auction-rate probes point to a collective loss of memoryFont size: A | A | A12:45 PM ET 8/1/08 | Marketwatch
RELATED QUOTES


2:02 PM ET 8/1/08
Symbol Last % Chg
C 18.44 -1.34%
MER 26.01 -2.40%
UBS 19.14 -0.88%
CS 49.62 -0.52%
WB 18.55 7.40%
LEH 17.50 0.92%
Quotes delayed at least 15 minutes

NEW YORK (MarketWatch) -- Each day this week was Groundhog Day on Wall Street. Each morning the market awoke to new revelations about wrongdoing in the auction-rate securities market.

Citigroup Inc. (C), which disclosed subpoenas Friday, is the latest target of a market where investors were sold securities that were marketed as being as good as cash but turned out to be nearly impossible to sell. Until recently, this $330 billion market was among the least sexy in the world of securities, but it was also a market that touched every firm on Wall Street.

The suspicion about Citigroup mirrors that at other financial institutions. Investigators want to know if the trading desk pressured analysts to give buy recommendations even though there was ample evidence that the securities had become unsafe. See related story.

The auction-rate bug is also ailing Merrill Lynch (MER), UBS (UBS), Credit Suisse (CS), Wachovia (WB) and Lehman Brothers (LEH) -- but a few of the firms targeted either by state investigations or investor lawsuits.

The fallout is reminiscent of the tainted-research investigations by then-New York Attorney General Eliot Spitzer in 2002. In that case, research analysts were pressured by investment bankers to dole out positive ratings in order to win business from potential clients.

The latest scandal is similar in that the activity allegedly became more pronounced before the collapse.

But it shouldn't come as any surprise. Trading is a young person's game on Wall Street. We are six years removed from the last scandal era, but it might as well be an eternity. Many of the participants have moved on or up in financial world.

Just as the next generation of traders will think of today's auction-rate cases as ancient history.

-- David Weidner

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers - UPDATED 7/31

Just when you think you've see it all.. BAMMM These guys(DTC) have to go to Jail. PERIOD


Coil Tubing Technology, Inc. Files Suit Against Grifco, Grifco's former President and DTC

SPRING, Texas, Aug 01, 2008 (BUSINESS WIRE) -- Coil Tubing Technology, Inc. ("CTBG") (OTC:CTBG), its majority owned subsidiary, Coil Tubing Technology Holdings, Inc. ("CTTH") and its President & Chief Executive Officer, Jerry Swinford, have filed suit against Grifco International, Inc. (GFCI.PK) ("Grifco"), Depository Trust & Clearing Corporation ("DTC") and the former president of Grifco, James Dial (the "Defendants").
As previously disclosed in CTBG press releases, DTC contacted CTBG in late April 2008 regarding issues associated with Grifco's distribution of its 75,000,000 shares of CTBG in August 2007. The distribution was effected through a stock dividend of CTBG shares to Grifco shareholders as of the record date of May 1, 2006. Grifco announced that each of its shareholders would receive 1.89 shares of CTBG stock for each share of Grifco stock held as of the record date. Thus, the stock dividend was premised on Grifco having approximately 40 million shares outstanding on the record date. However, according to the DTC's records there were approximately 68 million Grifco shares outstanding and held in book entry form on the record date. Additionally, there were a yet undisclosed number of shares outstanding held in certificate form, which are not included in the 68 million share total, and which may have not been included in the distribution by Grifco. Mr. Swinford was one such record shareholder of Grifco, who did not receive shares in Grifco's distribution.

CTBG believes that all three Defendants were aware of the shortfall in shares in August 2007, but allowed the stock dividend to go forward.

When CTBG was contacted by the DTC regarding the shortfall in shares in April 2008, it immediately took steps to have Grifco contact shareholders who did not receive shares in the distribution and obtain signed waivers of their right to receive shares in the stock dividend. To date, a limited number of such waivers have been obtained; however, because of Grifco's failure to obtain waivers from a sufficient number of shareholders, DTC demanded that CTBG acquire additional free trading shares in the market or issue additional free trading shares to satisfy the shortfall. Acquiring additional shares in the market is both financially and logistically impossible and, because CTBG does not have a registration statement on file allowing it to issue additional free trading shares, filing such registration statement would be expensive, time consuming, and subject to SEC approval. Additionally, issuing additional shares of CTBG would substantially dilute the interests of CTBG's existing shareholders.

On July 10, 2008, DTC issued a Stock Dividend E-Mail Alert that stated it had not received sufficient shares from Grifco in order to affect the stock dividend at the rate Grifco announced. DTC further stated that unless it received the necessary shares by July 31, 2008, it would unilaterally adjust the ratio of shares received in the stock dividend from the rate originally declared, 1.89 shares of CTBG common stock for each share of Grifco common stock which shareholders of Grifco held, to a reduced rate of approximately 1.293870 shares.

By demanding that CTBG provide sufficient shares to satisfy the shortfall or unilaterally adjusting the ratio of shares issued, DTC was attempting to force CTBG to suffer the consequences created by itself, Grifco and others. Grifco and DTC were in possession of the relevant information when the stock dividend was issued.

Because the adjustment threatened by the DTC would irreparably harm CTBG and its shareholders, on July 30, 2008, CTBG filed suit against Grifco, DTC, and Dial. Additionally, CTBG sought and obtained a temporary restraining order to restrain the DTC from adjusting shareholder accounts.

Following the hearing, counsel for CTBG, Jess W. Mason, stated, "Judge Stovall's Order today maintains the status quo and prevents DTC from adjusting any accounts until a further Order of the Court. A temporary injunction hearing will be held before the Court on August 22, 2008."

About Coil Tubing Technology, Inc. (CTBG)

CTBG is the result of a reverse merger with IPMC Holdings Corp. which occurred in November 2005. After the reverse merger and until about a year ago, CTBG owned all of the outstanding shares of CTTH and currently owns 95.2% of CTTH's outstanding shares of common stock. CTBG has historically conducted essentially all of its operations through CTTH and its subsidiaries.

About Coil Tubing Technology Holdings, Inc. (CTTH)

CTTH was formed as a holding company of several operating companies in 1999 and continues to have two wholly owned subsidiaries. Through its primary subsidiary, CTTH specializes in the design of proprietary tools for the coil tubing industry, concentrating on four categories of coil tubing application: thru tubing fishing, thru tubing work over, pipeline clean out, and coil tubing drilling. CTTH and its subsidiaries were founded by Jerry Swinford, an oilfield tool designer with more than 25 years experience in the creation of oilfield tools. Mr. Swinford continues to serve as CTBG and CTTH's director, CEO and president.

Forward-Looking Statements

Certain statements in this release, and other written or oral statements made by CTBG and CTTH, including the use of the words "expect," "anticipate," "estimate," "project," "forecast," "outlook," "target," "objective," "plan," "goal," "pursue," "on track," and similar expressions, are "forward-looking statements" and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements of the company to be different from those expressed or implied. CTBG and CTTH assumes no obligation and does not intend to update these forward-looking statements and takes no obligation to update or correct information prepared by third parties that is not paid for by CTBG or CTTH, respectively.

SOURCE: Coil Tubing Technology, Inc.



CONTACT: Coil Tubing Technology, Inc.
Attorney-CPA (Corporate Counsel)
John Akard Jr., 832-237-8600
or
Mason, Coplen & Banks, P.C. (Litigation Counsel)
Jess W. Mason, 713-785-5595
or
Bruce A. Coplen, 713-785-5595

Copyright Business Wire 2008
-0-

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers - UPDATED 7/31

Bob,

I don't know if this is real or not...but IMO, it certainly appears that this is exactly what the doctor...errr, Easter Bunny,...ordered.

Pete
-----------

flytiger


Registered: May 2005
Posts: 3518


08-01-08 05:48 PM

I have no idea if this is real. I DO know negotiations are going on now to solve this mess, and who ever posted this is on the money. And this isn't going to be easy. Anyway, this is getting around, and it's very good. I thought it would make you thnk about what your business must become to survive, and would leave it open to discusson. Please, no 'go %J@$$ yourself ' stuff. Leave that for your poker games.


SEC Preliminary Guidelines of Naked Short and Fail-To-Deliver Reform(condensed highlights in rough draft form)

DTCC & NSCC Federal order to open their books via DOJ, ICC, and SEC

To protect the privacy and practices of current trading strategies, a new regulation (Regulation FTD) will be mandated to provide a daily list indicating all open fails on every security where one exists in the marketplace. The total of fails shall be updated daily on each security. No equity or derivative shall allow any borrow from any entity until all current and past fails are eradicated.

Immediate buy in on all current and existing fails out side of 13 days. Current fails have up to the mandated 13 days per Regulation SHO to "buy-in" and be covered.

Going back to introduction of SHO, any fails never bought in and covered will be "busted" and accounts disgorged with fines. Current fails listed on the Regulation SHO list outside of 13 days will be bought back in at market effective immediately.

All fails since the introduction of Regulation SHO will be reposited to every broker-dealer, market maker, hedge fund, and individual account as a short sale by cusip replication on a journal basis for the extent of time they were in fail status. No actual trade will occur. The fail will remain in the account affected for the entire time the position was in fail status. The position must be covered in such time or shall be "bought in" by the SEC and DOJ. Example: If the fail occurred exactly 3 years ago, it will remain in the client account for three years.

No additional short position shall be allowed on any particular security or derivative in which a journal entry exists or a current fail is open until that position is either bought in by the party involved or by the deadline of the fail period noted.

Any party affected with a particular fail can and may buy in to cover the open ledger entry fail at any time before the end of the period of original fail.

When fails are recovered on the open market, subsequent journal entries will be made affecting every equity or derivative to retire those securities from circulation and return those companies affected back to their exact oustanding and authorized shares.

By way of example, if the market maker SBSH or NITE or UBSS has net fails of 1.2 trillion shares over the past 3 years since the introduction of SHO, then those parties that traded those shares in net fail status shall have 1.2 trillion shares placed back in their account net short. They may not execute a short on that particular security at any time until the exisiting fail is covered by an order to buy on the open market. Each market maker will take the proper measures necessary to clear the fails recorded and report the transactions accordingly to their corresponding broker dealers. In finality, each broker dealer has 24 hours to accurately report the journal entries and "buy to covers" to their associated client accounts. No individual client may affect the buy-in on their own. The transaction must come at the broker-dealer level as prescribed by the commission. Any customers who end up with a deficit balance in their account as a result of these transactions will have their accounts closed and appropriate action will be taken to recover those losses beyond the capital in their account.

Should a company no longer be in existence then those fails will result in a special task force designed to reverse all transactions involving a fail that occurred from the introduction of SHO until the company's exit from the market. All monies involved in the failed transaction will be pooled and disgorged from the parties account that initiated the fail. A list of all shareholders that held that particular equity from the introduction of SHO until its exit from the market will be compiled. All monies will then be divided among the shareholders of record and returned to them by equity.

A separate task force will be implemented to calculate all fails "ex-clearing" of the DTCC. An intercontinental coalition will be formed to force the buy in under the same regulations for all foreign entities. They will then be extradited to the United States for prosecution.

To protect the privacy and practices of current trading strategies, a new regulation (Regulation FTD) will be mandated to provide a daily list indicating all open fails on every security where one exists in the marketplace. The total of fails shall be updated daily on each security. No equity or derivative shall allow any borrow from any entity until all current and past fails are eradicated.

It is expected the SEC, ICC, and DOJ will employ 5200 employees for a period of 48 months to complete the process with the option to extend for up to 12 months. The cost of such a program is expected to be $1.5 billion and shall be born by the entire program on a "per fail" charge basis to the offenders involved. At the conclusion of this program, the DTCC and NSCC will become a branch of the government and fall under the auspices of the DOJ.

Th Securities Act of 2008 will be set into effect and will include but not limited to:

No further naked shorting of any kind will be considered legal or acceptable by any measure or entity. Details of the only acceptable measure to initiate an open short position will be released at a later time.

Regulation FTD to list all past net fails and current fails on a share basis.

Full hedge fund disclosure of all positions held and timely reports filed with the SEC.

The immediate initiation of full electronic trading across all exchanges and trading vehicles. No algorithmic programs will be accepted or allowed.

Regulation NMS will be rescinded indefinitely immediately preceding this order.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers - UPDATED 7/31

A series of paradies on the mainstream media. This one is about where money comes from.

http://www.youtube.com/watch?v=TbH__ItaTbs
http://www.youtube.com/watch?v=MdT2FryNzbk

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers - UPDATED 7/31

Per your quote with the snap of a finger they would freeze value and let them cover. Isn't that what happens when a Company goes out of Business?
No cover needed but some investors are holding IOU's for stocks instead of actual stocks.

I would love to start a Law Suit where if a Company went BK that you could sue the Broker or Brokers that were holding your stock or in some cases your IOU and get discovery on how may "ACTUAL" shares that Broker had and how may shares were IOU's. If the shares in your account were IOU's you could recover your purchase price. This in turn would cancle out the profit for whoever sold you a stock they did not own or borrow.

If you own a stock like NEW or NFI it would be easy to see if you owned an IOU because you would have gotten a Payment in leu of Dividend. I owned NFI and got a Payment in leu of Dividend.

As I previously said I think the Broker should have to notify you if the shares you bought are not delivered in 3 days and then allow you to cancle the trade.

More emphisis needs to be put on the Brokers to notify and inform the Buyers if they are holding Positions generated by Naked Short selling. Plus, put the Brokers in a position that if a Company goes into Bankruptcy and you are holding an IOU that you should be notified and be allowed to cancle that trade.

If more Money Makers thought that all the money it took to push down the stock and cause a Bankruptcy thru IOU's would be reversed against them, they would have no reason to push a Company into insolvency.

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers - UPDATED 7/31

Divieden: I'm with you. These are the scariest times I've ever lived through, because now the writing's on the wall. Dorothy's before the Wizard, and the SEC (through its Gang of 19 special treatment) can no longer say "Pay No Attention To That Man Behind The Curtain!"

You are absolutely right: the crooks are not going to pony up a trillion dollars or so. We taxpayers are. Either that, or the whole Ponzi scheme will take down all the brokers' insurers combined (and still not provide full compensation). Sooner or later, we're going to have to tell investors "Sorry, thanks for playing. You've been playing with loaded dice for years. Your money's gone, and you're out of luck."

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers - UPDATED 7/31

Check out this video ... Liz Claman discusses a manuscript obtained by Fox Business of BEAR TRAP, a tell-all on the collapse of Bear Stearns by an anonymous insider ... book is going public Sept 22

http://www.foxbusiness.com/video/index.html?playerId=videolandingpage&streamingFormat=FLASH&referralObject=2815451&referralPlaylistId=1292d14d0e3afdcf0b31500afefb92724c08f046

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers - UPDATED 7/31

Bob...this is indeed a great site to get quickly apprised of the latest and best in the space of naked shorting and its daily impacts to our economy, our nation, and most importantly the survival of our children's future economic prospects under the weight of regulated and Government sponsored wall street fraud and daylight robbery. However, forgive me for pointing out, but Richard Altomare of Universal Express was jailed in a maximum security prison in NY for over 75 days for "non-payment" of a monetary fine imposed by Judge Lynch of the NY Northern Dist. Court, a fine whose very basis is being appealed in the 2nd circuit court, and the Judge finally released Richard after extensive records produced (while Richard sat in jail) showed the Judge that he was indeed unable to pay any more than he did and had no proven liquidable assets, and yet there is no one out there except the shareholders of USXP that have expressed any concern with this (except the thugs from NYC). A man was wrongly put in a maximum security jail for non-payment of a contested fine, a man who has been shouting "I have been trobbed (naked shorted)" from the roof tops for years, longer than most here had ever heard about this issue" and there is not a whisper of support for such a man's plight from the supposed torch bearers of naked shorting !!! Once again, forgive me for saying so but you all are making the same mistake you accused others of making, namely walking into a hospital ward and saying "Oh, that guy is half dead, so there is no problem if he gets shot and disposed". If several of you feel that Altomare has/had a few chinks in his armor, such as perhaps unwisely use company funds for personal matters, that let me remind you is not the point. Read the following that comprises a small section of the evidence of the Denver SEC chief's perjurious letter written to Senator Nelson (Fl) in response to my alerting the good senator about USXP's travails and decide whether your continued avoidance of this burning, current matter behooves your otherwise gallant attention to this whole matter...Reproduced below are just 2 of the 13 page letter summary statement provided to the OIG's office to explain the Denver SEC Chief's perjurious letter response to the IG, a topic under current investigation by the OIG...

Universal Express, Inc., of which Mr. Gunderson had been General Counsel since February 5, 1994, had developed, grown and been successful and recognized despite the unrelenting attack for over ten years by naked shorters, Wall Street financial interests, who sold into the market in the name of the Company billions of unregistered, phantom and counterfeit shares, collapsing the Company’s stock price from $2 to 2 cents per share and, thereafter, keeping the Company’s stock price for years well below fractions of a cent a share.

Universal Express, Inc., its President and its General Counsel, proved that naked short selling existed upon the attack by the naked shorter sellers on the Company’s shares. The General Counsel showed by statistics that the volume of the Company’s shares traded was 11 times the Company’s then outstanding shares and more than 68 times its average daily volume. State court juries in Florida in 2001 and 2003 awarded the Company verdicts exceeding a total of $700,000,000 against naked shorters. In a press release issued in September, 2003, the Company stated that if ordinary people (jurors) understand that “you can’t sell what you don’t own and never deliver,” which is naked shorting and counterfeiting of shares, “why can’t the SEC understand” this national problem.

Within a month after the Company’s second jury verdict against the naked shorters and the very wide publicity attending the Company’s verdicts, an embarrassed SEC through its Denver office commenced a program of harassment against the Company, with more than 13 subpoenas for documents. The Company initially volunteered to provide information on contracts for proposed acquisitions and funding sources for those acquisitions. Before these documents were even received by the attorneys at the Denver office of the SEC, they were calling those acquisition candidates’ and funders’ senior officers, threatening them with reprisals so that they would move away from the Company. This pattern of intimidation on the Company was in full swing and successful since several large proposed acquisitions were terminated. The harassment of the Company as a whistleblower on naked shorting, and the harassment of its business partners and potential business partners and funders, continued unabated thereafter.

The Company, its President and General Counsel were determined not to be bullied by a conflicted regulatory agency which has failed the investing public on this national naked shorting scandal in favor of Wall Street interest, in a clear violation of its Charter to protect investors.

The Company, its President and General Counsel did not violate the Federal Securities Acts by causing the Company to issue shares of stock which had not been registered with the SEC. To the contrary, those shares had been issued pursuant to a Chapter 11, Bankruptcy Code, Plan of Reorganization, which Plan had been confirmed by the Bankruptcy Court and the shares were exempt from the registration requirements of the Federal Securities Acts.

The SEC’s essential misstatement in the civil action against the Company and its officers is its description of Universal’s common stock issuance to certain persons as “illegal, unregistered... shares”. In support of its complaint the SEC represented that a search of its databases disclosed no registrations for the shares in question. What the SEC did not inform the lower court is that the subject Universal shares were duly and legally issued and sufficiently registered pursuant to law. The law involved was not and is not the normal domain of the SEC, the Securities Act of 1933 and Securities Exchange Act of 1934, but the United States Bankruptcy Code, 11 U.S.C. 101 et seq., particularly §§ 1123, 1125 and 1145.

The daily recapitalization of the Company caused by the naked shorting of the Company’s shares gave the Company the clear right under the Reorganization Plan , the Bankruptcy Court’s Orders and the Bankruptcy Code to cover those counterfeit and unregistered naked shorted shares with of the Company properly issued under its Reorganization Plan and the provisions of the Bankruptcy Code.

The Company’s Reorganization Plan, including the operable provisions covering the issuance of shares were filed with the SEC a number of times during the Reorganization of the Company.

The General Counsel provided another copy to the SEC Denver attorneys in response to their subpoena of August, 2003 requesting documents on the issuance of shares by the Company.

The Reorganization Agreement and the specific operable provisions covering the issuance of shares are specifically referenced as exhibits to the annual reports 10-KSB’s of the Company.

Also, on April 21, 2006, Mr. Gunderson testified extensively at his deposition held by attorneys from the SEC’s Denver Office concerning the operable provisions covering the issuance of shares of the Company’s Reorganization Plan and other documents that are an integral part of the Reorganization Plan. To stunned silence and no cross examination, the General Counsel described those documents, placed in evidence the Reorganization Plan and the other documents that are an integral part of the Plan, placed into evidence copies of the immunity from suit provisions of the Bankruptcy Code and the daily recapitalization of the Company caused by the naked shorting of the Company’s shares and the clear right of the Company to cover those counterfeit and unregistered shares by shares of the Company properly issued under its Reorganization Plan and the provisions of the Bankruptcy Code.

Universal Express was almost completely destroyed by Wall Street financial interests naked short-selling its shares in the name of the Company. The Company has been under unrelenting attack for over ten years by naked shorters, who sold into the market in the name of the Company billions of unregistered and counterfeit shares, collapsing the Company’s stock price from $2 per share to 2 cents per share and, thereafter, keeping the Company’s stock price for years well below fractions of a cent a share. This national scandal of naked short selling has sucked the market capitalization from smaller public companies, putting thousands of such companies out of business and destroying the investments and jobs of hundreds of thousands of Americans. This national scandal is evidenced by the collection of published articles appearing in the attached Exhibit A and the Company’s public announcements complaining against naked shorting appear in Exhibit B.

It should be noted that Chairman Cox has recently, though quite belatedly, made a number of public statements to the effect that “naked short selling” and “fails to deliver” is a national problem of abuse and fraud in the trading markets and has adversely affected the capital formation process, particularly for small public companies. The Commission has announced that it is drafting ant-fraud rules with respect to naked shorting.

The Commission’s Chairman also publicly recognized in questioning before the Senate Banking Committee hearing this month on April 4, 2008 on the bail-out of Bear Stearns that “illegal naked short-selling” is being investigated in the collapse of Bear Stearns.

In this connection, reference is made to the memorandum of C. Austin Burrell on Counterfeit Shares dated February 28, 2008. Mr. Burrell is the Country’s leading authority on naked shorting (please see attached).

Additionally, reference is made to the significant article by Mark Mitchell published on May 5, 2008 on naked shorting and related matters. This article may be found at
http://www.deepcapture.com/ .

By way of further background, the following more expanded exposition is provided.

.....if there is interest, I could provide the rest here also...

Re: A Survival Guide For Persecuted (or Prosecuted) Hedge Fund Managers - UPDATED 7/31

Bobo...your well thought out response on the subject of whether a single company and/or its CEO (such as Altomare) merits detail mention or discussion on this site is truly appreciated. I will have no more to say on this unless the courts prove once and for all that Altomare is indeed a saint and not a common criminal. Once again, on behalf of all USXP shareholders please accept my heartfelt gratitude for all of your efforts to shine a bright and persistent light in this dark space for the good of the masses. You, Byrne, Burrell, Falk and a few others have shown truly exemplary courage in this long struggle on behalf of justice and fairness to the common investor.