Saturday, October 24, 2009

Group Sues SEC in Naked Short-Selling Battle

The CMKX Shareholders Coalition for Justice has announced the commencement of legal action against the Securities and Exchange Commission.

The suit is another in the ongoing battle over naked short selling.

According to CSCJ, the evidence submitted to the FBI and the Royal Canadian Mounted Police in the case of CMKM Diamonds indicates that the SEC colluded with insiders of CMKX to sell hundreds of billions (and possibly trillions) of counterfeit shares, and aided and abetted in the cover-up of brokerage firms who allegedly sold over three hundred billion counterfeit shares of CMKX. With the addition of RICO penalties to investor losses the Coalition is seeking restitution of seven hundred and fifty million dollars ($750,000,000) from the SEC and those they colluded with, along with a freeze on all CMKX assets including land rights past and present currently under regulatory control.

The complaint alleges that the SEC attempted to conceal the crime by creating an illegal regulation referred to as the “Grandfather Clause” allowing the perpetrators the right to not deliver these phantom shares as required under the Securities and Exchange Acts of 1933 and subsequent amendments. The complaint alleges that the Grandfather Clause was developed in concert with the perpetrators in a closed door meeting in June 2004, and is also in violation of the shareholders‟ 5th Amendment Constitutional property rights.

Although it is unclear as to the size of naked short selling which has occurred in the past, many who believe they have been damaged by NSS are very vocal.

Rod Young, CEO of EagleTech Communications has stated that "Every shareholder of any Company in America who purchased shares and cannot get them delivered has a cause of action against the SEC as an agency of the U.S. Federal Government for violation of their 5th Amendment Constitutional property rights."


  1. If you feel it's prudent to do so, can you share your thoughts on whether the SEC does stuff like this? E.g. narcotics officers routinely break the law and deal drugs. Is there something analogous that goes on with other regulatory bodies?

  2. Bob,

    I don't think it is as much they break the laws as they make rulings that benefit certain parties.

    The "grandfather clause" certainly helped naked shot sellers. I don't know the specifics of the CMKM Diamonds case, but obviously if billions of shares were sold naked (anf that's possible) and the sellers weren't forced to deliver certificates and the SEC "granfathered" this insanity, you have to wonder what is up.

    But they don't do illegal stuff, as much as create the regs in a way that benefit certain parties and not others.

    Like I rregularly say, the bad guys circle power so they can influence it.

    I have heard of Nasdaq officials and SEC officials, in the past, who attended parties of what I believed were Mafia related brokerage firms. I scratch my head a lot.

  3. This is long overdue. The SEC may be finally doing something proactive. Just read SEC requested a copy of STOCK SHOCK--new movie about naked short selling and market manipulation.

    Movie is called: Stock Shock-The Short Selling of the American Dream. Amazon has the DVD.