Welcome back to the channel everyone today, i want to talk about a fund that was just sued for naked shorting and actually they do have affiliation with amc. I also want to talk about some new amc shares that were just issued or were they bought so stay tuned and let's make some money, and now i want to dive straight in with the key information, so taraball, just tweeted saying a story in two parks on The left we have a fund, that's just downgraded its price target for amc and on the right. We have that same fund just being sued for naked short selling. If i open up the article on the left, it says wed bush downgrades, amc, entertainment to underperform and announces a 7.50 price target where bush analyst michael patcher downgrades amc, entertainment from neutral to underperform and announces a 7.50 price target now.

It also wouldn't surprise me if wed bush have just opened up a short position on amc as well and they plan to close their short position at 7.50. But i wonder how they're gon na push the stock price down so low? Well, maybe they're going to start or have already started a naked short selling scheme, just like they've been recently sued for wed bush securities, based in los angeles, california, were sued in california state court for a market manipulation scheme. The lawsuit alleges that wedbush improperly executed, naked short sales of life partners holding incorporated stock and engaged in a massive illegal stock market manipulation scheme that caused their stock price to drop and the wedbush and other unnamed defendants have been executing phantom securities transactions since october. The 1st 2009 in an effort to profit from additional fees, commissions and interest, basically wedbush securities, have been shorting this stock and illegally naked shorting.

This stock since october, the first 2009., where bush securities have been executing phantom securities transactions or creating synthetic shares all the way from 2009, when bush acts as a principal executing broker and clearing broker for clients, including hedge funds and money managers. In that role, redbush allegedly engaged in naked short selling, where a broker makes no attempt to borrow a stock or even make sure it exists before selling it. When there are no actual sufficient shares available for delivery, the broker has a failure to deliver. The sec has accused wedbush of having inadequate risk controls in place when letting customers access the markets through its systems.

According to the sec, redbush gave direct market access to overseas traders without pre-approving their accounts and making sure they complied with u.s laws where bush and the sec reportedly are close to settling the charges. So i've actually managed to obtain the court documents between the sec and wed bush securities, and it does mention in there a lot of naked shorting, but interestingly, the sec describes it slightly differently to the way we describe it. It says here these proceedings arise out of wed bush's improper practices with respect to securities lending transactions involving pre-released american depository receipts, typically, a depository issues, adrs to a market participant that has delivered the corresponding number of foreign securities to the depository's foreign custodian. However, in certain situations, deposit agreements may provide for pre-release transactions in which a market participant can obtain a newly issued adr from the depository before delivering ordinary shares to the custodian from at least november 2011 until approximately september 2013.

So the two years redbush was a pre-release broker that obtained pre-release adrs directly from four depositories pursuant to pre-release agreements. Contrary to those agreements, redbush obtained pre-release adrs from depositories and loaned them to counterparties without taking reasonable steps to determine whether the requisite number of ordinary shares was in fact owned and custody by wedbush or its counterparties. Basically, what all of that is saying is that when bush was lending out the securities or the adrs without first confirming that they actually had the required number of ordinary shares or aka naked shorting anime basically says that their policies weren't good enough to prevent naked shorting. Because they obviously didn't keep control on what shares they were lending out.

But unfortunately, the only downside to this is the fines and punishments that they received or kind of didn't really receive. They received a fine for disgorgement of 4.8 million dollars and a civil penalty of 2.4 million dollars. There were no other punishments, nobody was sent to jail, they didn't ban naked short selling and it obviously still goes on to this day now. Currently, most people don't have a lot of confidence in the stock market.

All of these institutions and market makers get all of these exemptions. There's a massive lack of reporting and it basically seems like all of the normal laws and regulations just don't apply to them. But when investing in cryptocurrency like bitcoin, ethereum, loot, print and shiburinu and many others, it's much more of an even playing field, and that's why i personally use blockfy to invest in cryptocurrency. Not only can you just buy some bitcoin, but you can also earn interest on your deposits up to 9.5 per year paid actually in bitcoin, so you can even earn more and more bitcoin when you sign up using my link in the description below and deposit, at Least 100: you can get a bonus.

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Seven hundred percent fails to deliver in shares of amc entertainment jumped over seven hundred percent in the latest data from the sec. Now, if we actually have a look at the data of the failure delivers from the sec, they aren't really too impressive and they're very, very low. But what i thought was more important was the actual wordings in this article after falling to a low level. At the end of september fails to deliver exploded in october.

Obviously, it wasn't really much of an explosion, because there aren't really too many failures. As of october 14th, the last day in the latest data set, they stood at nearly 80 000 ftds. This amount of fails to deliver is 789 times amazon's, 849 times microsoft's and significantly larger even than apples. Why would the largest stocks in the market have far fewer shares failing to deliver than amc with a market cap of just 20 billion dollars? First, let's recap: what a fail to deliver is a share in a company failed to deliver when a trade is made but never completed.

The shares are never actually delivered to the buyer. Same can happen on the shorting side. Shares can be shorted without a proper share. Being located and therefore the transaction technically fails, this can happen for benign reasons, but amc has persistent huge fails to deliver.

When that happens, it's often a sign of illegal naked short selling. This involves selling short shares that you never borrowed. The shares can't be delivered because they never existed in the first place. Meanwhile, the seller has a powerful tool to push the price down.

If you don't even have to bother borrowing shares, you can just keep selling forever. What you tend to see in amc stock is the market maker whittling down the fail to deliver for a little while only to see them quickly, pop back up to enormous levels following the stock for some time now, i've seen this pattern over and over we've noticed, But when will the sec and we've clearly just seen that with the wed bush securities example that naked short selling does happen and in vast vast quantities? I think it's honestly got to the point now where the sec just seemed to be on the side of these market makers and institutions pretty much letting them do whatever they want. Now. I also wanted to talk about adam aaron, exercising his right to 500 000.

Additional shares and i wanted to dispel a few myths around it now you can see here that adam aaron disposed of 500 000 performance stock unit derivatives and obviously acquired 500 000 shares of common stock. It says down here in the explanation section shares of issuers class: a common stock were issued upon the vesting of certain performance incentive plans or eips. So when shares are issued, it means issued out of amc's reserve of shares directly to adam aaron, as in its new shares that were created from the existing reserve and given to adam arun. It doesn't mean a broker, for example like robin hood, or a market maker, for example like citadel, had to buy the shares in the open market and give them to adam aaron for free amc, just effectively created 500 000 new shares and gave them to adam aaron.

Now is this a good thing, or is this a bad thing? Yes, i guess citadel didn't, have to go and buy 500 000 shares of amc and give them to adam aaron for free, thereby causing citadel to lose millions and millions of dollars. So i guess you could say it's a bad thing, but at the same time these shares weren't, created and then sold into the market to someone like citadel to buy and therefore the amc shareholdings isn't exactly diluted per se. Yes, you could argue that the apes shareholdings have been diluted by an additional 500 000 shares, but those shares have been given to adam aaron, who is also not selling the stock, because at the end of the day, adam aaron is the silverback ape of them all. So, really in a way, it's a good thing or it's definitely not a bad thing, because those shares were given to adam aaron and he's not selling those shares.

And now i also have an excellent announcement from jackson, hunter bloat, logger launch date november, 8th at 12am. Pst spread the word. The goal is to have as many amc and gamestop shareholders log their shares as possible. Please use hashtag log the flow with log, the float you don't need to log into a website or register any of your personal details.

You just enter the number of shares that you hold and provide a screenshot to show the proof log. The float does register your shares to your ip address and that's what stops you from providing the same screenshot over and over? I guess some people might not like having their ip address taken, but i guess it's better than logging in with your stock trading account information. Hopefully we can get as many apes as possible from all around the world. In the uk, the us europe, australia, canada and everywhere else to log all of their shares.

This way, we'll have a true idea of just how many apes out there are holding amc and gamestop and how many shares everyone is holding. And now i also wanted to talk about citadel securities, asking the florida judge to dismiss collusion charges, alleging that citadel demanded robin hood pco stocks and crater gamestop and amc. This time citadel are citing the newest sec report on gamestop and asking the florida judge to throw out the court case. I hope the florida judge knows what he's doing and is on the side of the amc, apes and doesn't throw out this court case against citadel and robin hood.

We know that citadel regularly lie and it's likely that citadel did pressure robin hood to pco those stocks and therefore i hope the investigation continues and the judge doesn't throw out this court case. I also wanted to give some credit to joseph curro or curiosity, who is the original poster of the amc predictions on a daily basis that go off the cycle. Theory over the last week or two. Every single day of predictions had been correct apart from today, because we did not see 50 or 51.

However, i don't think this invalidates the entire cycle theory because most of the action happens later in november on the 17th, 18th and 19th, where we see over a hundred dollars per share. I think, for the last week of october and the first two weeks of november, it's mostly just amc bouncing around before cycle. Three really gets going in the third week of november, guys be sure to. Let me know down in the comments below what you think about.

Wedbush securities being sued for naked short selling, also guys, if you haven't already be sure to sign up to blog, follow us on my link in the description down below to get up to 250 dollars of free bitcoin. When you sign up and deposit at least a hundred dollars, and as always guys if you enjoyed this video, be sure to check out some of my others, alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted. When i upload a new video cheers.