Very very interesting, thanks for sharing that story about abusive naked short selling in the market place. The stock manipulation and naked short selling which the SEC has turned a blind eye to has become rampant in the stock market. The paid bashers and MM players and manipulators would have us believe that naked short selling is just a myth but it exists and it is actually quite extensively abused in the market on an every day basis.
On the two fateful days of trading before the global lock of SFIO, the stock was taken down from multiple pennies per share to low sub penny levels within the last 45 minutes of trading on a few tens of millions of shares (meanwhile the O/S at the time was nearly 600 million shares); seriously doubt I do that any decent number of SFIO shareholders were even at their computers to see the SEC litigation when it became public during that last hour of trading on June 30th 2011. The next day, Mr Roth put out a PR re-assuring investors that even though the company would need to withstand some "troubled waters", the business would continue and so investors clamored at the depressed stock price level and within the first hour of trade the stock shot up from sub penny to two cents per share on another few tens of millions of shares. For the rest of the trading session on July 1rst 2011, the price remained pegged (manipulated) at the $0.022 level while over half the float (~182M) shares were naked shorted into the market, providing buyers only with IOU counterfeit share entitlements for which they had zero intention of covering and settling those trades. Mysteriously, in after hours on that same day, the DTC announced that the stock was globally locked. The only excuse the brokerages and the DTC et al can provide is some notion of "unusual trading activity" and/or "unusual deposit activity" for which no one can verify, of course. Mysteriously the FINRA daily short report as well as the usual failure to deliver figures never showed up on the corresponding websites thereafter, as they should have been by law! To this day there are no figures for short sale and/or failure to deliver metrics for the settlement days for those two trading days. It appears that the DTC swooped in and protected their crony participants via placing SFIO under an illicit global lock with no reasoning or explanation to shareholders or the company.
Since the day of the lock, there have been less than 10% of the original float worth of shares "traded" as phony activity in the stock for which 99%+ retail shareholders and traders cannot buy or sell. Options Xpress is the only brokerage house rumored to be allowing their clients to purchase and sell "shares", however, I imagine we know all to well what is really going on in the back office at Options Xpress; judging by the past shenanigans with other companies and stocks which have been abused by illegal naked short selling.
The criminal abuse of naked short selling has become rampant and real retail investors are victimized every day by the crony illegal activities of the usual suspects in the marketplace, all while the SEC/FINRA and the DTC turn a blind eye, assist the cover up with their crony participant clients and point the finger at micro cap CEO's aggressively trying to capture investments into their start up companies. Eventually, the smell of the scum swamp will reach so far and become so widespread that global investors may simply just pull all of their money out of the swamp and just leave, never play again and possibly march with pitch forks and ropes on Wall St and the crony banks and brokerages who are actively seeking to rob them of their capital using illegal strategies like abusive naked short selling, kiting, cellar-boxing, resetting and buddy-buddy relationships with the questionable regulators who appear to be in their pockets.
Another interesting article about the same company is below, today they filed suit against Options Xpress! Good for them! Perhaps it is finally time to turn the tables on the fraudsters and cronies of whom rig the markets with illegal trading practices via attacking the American dream by way of naked short sales and flooding the DTC with counterfeit phantom shares.
http://ir.lphi.com/releasedetail.cfm?ReleaseID=840355
"Life Partners Sues Charles Schwab Subsidiary for Counterfeiting
WACO, Texas--(BUSINESS WIRE)-- Life Partners Holdings, Inc. (Nasdaq GS: LPHI) announced today that it has filed suit against optionsXpress, Inc., a subsidiary of The Charles Schwab Corporation (NYSE: SCHW), the company's Chief Financial Officer, and one of the company's largest customers for issuing and selling counterfeit shares of Life Partners Holdings stock.
The lawsuit, filed in Illinois by California attorney Gary Aguirre, whose practice focuses on market manipulation, asks the Court for an order preventing the Schwab subsidiary from creating and selling shares of Life Partners Holdings' stock which were not authorized by the company. The action also asks the Court for protection from securities fraud, deceptive business practices and civil conspiracy arising from the unlawful issuance of the counterfeit shares.
Under the law of Illinois, Texas, and every other state, a company has the exclusive right to issue and sell its own stock. The creation and sale of counterfeit or "phantom" stock by brokers and their customers violates these laws.
The lawsuit is based on findings in an administrative proceeding by the U.S. Securities and Exchange Commission against optionsXpress and the other defendants which concluded that optionsXpress, its chief financial officer, and one of its biggest customers committed securities fraud by engaging in the sales of hundreds of millions of dollars in counterfeit-phantom stock passed off as the genuine stock of 25 public companies, including almost $5.5 million of counterfeit-phantom stock of Life Partners Holdings, Inc.
Life Partners Holdings CEO Brian Pardo commented, "This case isn't about money. It's about confidence in the market. It's about making sure that, in the future, shareholders can be sure that they are purchasing legitimate, authorized stock. Individual investors need to know that the stock they are buying is real and not phantom stock cooked up by Wall Street insiders. Without a stock certificate, we've seen how easy it is for Wall Street to pass off counterfeit stock in your account as legitimate and we want to put a stop to it."
The company is continuing to investigate other persons and entities who may have engaged in counterfeiting shares of Life Partners Holdings, Inc.
The lawsuit is entitled Life Partners Holdings, Inc. et al. v. optionsXpress, Inc., Jonathan I. Feldman and Thomas E. Stern, Case No. 14CH6428, Circuit Court of Cook County, Illinois, County Department, Chancery Division. A complete copy of the complaint is available at: http://www.lphi.com/doc/Release_20140415.pdf
The SEC decision, In the Matter of optionsXpress, Inc., et al. is available on the SEC website at http://www.sec.gov/alj/aljdec/2013/id490bpm.pdf.
Life Partners is the world's oldest and one of the most active companies in the United States engaged in the secondary market for life insurance, commonly called "life settlements". Since its incorporation in 1991, Life Partners has completed over 156,000 transactions for its worldwide client base of over 30,000 high net worth individuals and institutions in connection with the purchase of over 6,500 policies totaling approximately $3.2 billion in face value. "
On the two fateful days of trading before the global lock of SFIO, the stock was taken down from multiple pennies per share to low sub penny levels within the last 45 minutes of trading on a few tens of millions of shares (meanwhile the O/S at the time was nearly 600 million shares); seriously doubt I do that any decent number of SFIO shareholders were even at their computers to see the SEC litigation when it became public during that last hour of trading on June 30th 2011. The next day, Mr Roth put out a PR re-assuring investors that even though the company would need to withstand some "troubled waters", the business would continue and so investors clamored at the depressed stock price level and within the first hour of trade the stock shot up from sub penny to two cents per share on another few tens of millions of shares. For the rest of the trading session on July 1rst 2011, the price remained pegged (manipulated) at the $0.022 level while over half the float (~182M) shares were naked shorted into the market, providing buyers only with IOU counterfeit share entitlements for which they had zero intention of covering and settling those trades. Mysteriously, in after hours on that same day, the DTC announced that the stock was globally locked. The only excuse the brokerages and the DTC et al can provide is some notion of "unusual trading activity" and/or "unusual deposit activity" for which no one can verify, of course. Mysteriously the FINRA daily short report as well as the usual failure to deliver figures never showed up on the corresponding websites thereafter, as they should have been by law! To this day there are no figures for short sale and/or failure to deliver metrics for the settlement days for those two trading days. It appears that the DTC swooped in and protected their crony participants via placing SFIO under an illicit global lock with no reasoning or explanation to shareholders or the company.
Since the day of the lock, there have been less than 10% of the original float worth of shares "traded" as phony activity in the stock for which 99%+ retail shareholders and traders cannot buy or sell. Options Xpress is the only brokerage house rumored to be allowing their clients to purchase and sell "shares", however, I imagine we know all to well what is really going on in the back office at Options Xpress; judging by the past shenanigans with other companies and stocks which have been abused by illegal naked short selling.
The criminal abuse of naked short selling has become rampant and real retail investors are victimized every day by the crony illegal activities of the usual suspects in the marketplace, all while the SEC/FINRA and the DTC turn a blind eye, assist the cover up with their crony participant clients and point the finger at micro cap CEO's aggressively trying to capture investments into their start up companies. Eventually, the smell of the scum swamp will reach so far and become so widespread that global investors may simply just pull all of their money out of the swamp and just leave, never play again and possibly march with pitch forks and ropes on Wall St and the crony banks and brokerages who are actively seeking to rob them of their capital using illegal strategies like abusive naked short selling, kiting, cellar-boxing, resetting and buddy-buddy relationships with the questionable regulators who appear to be in their pockets.
Another interesting article about the same company is below, today they filed suit against Options Xpress! Good for them! Perhaps it is finally time to turn the tables on the fraudsters and cronies of whom rig the markets with illegal trading practices via attacking the American dream by way of naked short sales and flooding the DTC with counterfeit phantom shares.
http://ir.lphi.com/releasedetail.cfm?ReleaseID=840355
"Life Partners Sues Charles Schwab Subsidiary for Counterfeiting
WACO, Texas--(BUSINESS WIRE)-- Life Partners Holdings, Inc. (Nasdaq GS: LPHI) announced today that it has filed suit against optionsXpress, Inc., a subsidiary of The Charles Schwab Corporation (NYSE: SCHW), the company's Chief Financial Officer, and one of the company's largest customers for issuing and selling counterfeit shares of Life Partners Holdings stock.
The lawsuit, filed in Illinois by California attorney Gary Aguirre, whose practice focuses on market manipulation, asks the Court for an order preventing the Schwab subsidiary from creating and selling shares of Life Partners Holdings' stock which were not authorized by the company. The action also asks the Court for protection from securities fraud, deceptive business practices and civil conspiracy arising from the unlawful issuance of the counterfeit shares.
Under the law of Illinois, Texas, and every other state, a company has the exclusive right to issue and sell its own stock. The creation and sale of counterfeit or "phantom" stock by brokers and their customers violates these laws.
The lawsuit is based on findings in an administrative proceeding by the U.S. Securities and Exchange Commission against optionsXpress and the other defendants which concluded that optionsXpress, its chief financial officer, and one of its biggest customers committed securities fraud by engaging in the sales of hundreds of millions of dollars in counterfeit-phantom stock passed off as the genuine stock of 25 public companies, including almost $5.5 million of counterfeit-phantom stock of Life Partners Holdings, Inc.
Life Partners Holdings CEO Brian Pardo commented, "This case isn't about money. It's about confidence in the market. It's about making sure that, in the future, shareholders can be sure that they are purchasing legitimate, authorized stock. Individual investors need to know that the stock they are buying is real and not phantom stock cooked up by Wall Street insiders. Without a stock certificate, we've seen how easy it is for Wall Street to pass off counterfeit stock in your account as legitimate and we want to put a stop to it."
The company is continuing to investigate other persons and entities who may have engaged in counterfeiting shares of Life Partners Holdings, Inc.
The lawsuit is entitled Life Partners Holdings, Inc. et al. v. optionsXpress, Inc., Jonathan I. Feldman and Thomas E. Stern, Case No. 14CH6428, Circuit Court of Cook County, Illinois, County Department, Chancery Division. A complete copy of the complaint is available at: http://www.lphi.com/doc/Release_20140415.pdf
The SEC decision, In the Matter of optionsXpress, Inc., et al. is available on the SEC website at http://www.sec.gov/alj/aljdec/2013/id490bpm.pdf.
Life Partners is the world's oldest and one of the most active companies in the United States engaged in the secondary market for life insurance, commonly called "life settlements". Since its incorporation in 1991, Life Partners has completed over 156,000 transactions for its worldwide client base of over 30,000 high net worth individuals and institutions in connection with the purchase of over 6,500 policies totaling approximately $3.2 billion in face value. "
