Answering 2015 Question too:

Sounds like crooked Stock dealers working at Major brokerage Houses.

This Naked Shorting is flat out FRAUD at the White Collar level.

Perfectly Legal.

Until You get caught.

.....and the SEC encourages it by not monitoring Suspicious stock trading activity!!

You only get TWO[2] Years in Prison for this and You don't have to repay the Fraudulent gotten Money.