Today I Want to explain what happened to the SEC Once Upon A Time The SEC would actually investigate and charge these firms for illegal abuse of shorting, making them repay every single penny of profit. But now the SEC actively helps These funds commit these crimes. so stay tuned. Then let's make some money and now I'll drive straight in with the accumulation.

So today I Want to talk about this enforcement action from the SEC. It says the SEC charges options Express and five individuals involved in an Abusive Naked Short Selling scheme. Now, this enforcement action is from 2012 so some time ago. but it proves that at least once upon a time the SEC did actually care about abusive shorting.

They didn't actively help these funds commit illegal shorting. They actually punished and penalized them properly. So it says the SEC today charged an online brokerage and clearing agency specializing in options and Future features as well as four officials at the firm and even a customer involved in an Abusive Naked Short Selling scheme. The SEC alleges that Chicago-based Options Express failed to satisfy us close out obligations under regulation Sho by repeatedly engaging in a series of sham reset transactions designed to give the illusion a firm had purchased Securities of like kind and quantity.

The firm and the customer engaged in the Sham reset transactions in a number of Securities resulting in continuous fails to deliver just like we have with AMC For example, from January 10 2010 to January 31st 2010, options Express customers including Feldman accounted for an average of 47.9 of the daily trading volume in one of those securities. AK They were just trading shares between each other all day long, accounting for pretty much the majority of the day's volume. Again, the exact same thing that happens to AMC Well. You know pretty much all AMC Shares are held by retail investors, and we know that retail investors aren't selling as confirmed in AMC's 10K filing.

But yeah, AMC still sees Millions if not tens, if not hundreds of millions in volume every single day in 2009 alone. The options: Express Customer accounts engaging in this illegal activity purchased approximately 5.7 billion dollars worth of Securities and sold short approximately four billion dollars worth of options. Now what? I Find the most interesting in this is the SEC actually trailed and traced and cumulatively totaled every single illegal transaction. How would they know this specific customer account engaging in illegal activity purchased illegally 5.7 billion dollars worth of Securities and shorted four billion dollars worth of options.

Those are very specific numbers and to arrive at those numbers, the SEC must have tracked, traced, and totaled every single illegal transaction. saying in 2009, Feldman himself purchased at least 2.9 billion dollars of Securities and shorted at least 1.7 billion dollars of options. So again, it's not the SEC don't know this illegal shorting. It's happening.

It's not. They don't have the resources to track, trace, and total them. They're fully aware that it happens, and they fully have the ability to locate, track, trace, and total every single illegal transaction. But now in 2023, and before 2022, 2021, and maybe before that, the SEC just simply this time around ignores abusive naked shorting.

They know it happens, They have the ability to go after it. They have the ability to figure out every single transaction that is illegal, but they just simply don't do it. Instead, they call it an administrative error and hand out a small seven million dollar fine. Many of you are aware the market is teetering on the edge of an all-out collapse.

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Tmng is also regulated by the Vqf in Switzerland and the contract has also been audited by Cert, so be sure to head over to Tmn-global.com Check them out, buy some Tmng tokens, and join the technology metal. Revolution today. Now, what's interesting is that Dave Lauer actually went one further because Options Express isn't some random company nobody's ever heard of. it's actually a subsidiary of Charles Schwab So this was a large company or at least a large subsidiary of Charles Schwab that was caught and charged with a legal shorting and using Sham Reset transactions.

which again, as Dave points out, is just more proof that a legal shorting absolutely happens every single day in the markets. Dave Lauer Screenshots fully explain exactly what sham reset transactions actually are now. I've explained sham resets on the channel before, so I won't do it again. but I'll leave the link to Dave's tweet in the description below.

So if you want to read up on Sham Resets, exactly what they are and exactly how they happen. This tweet or this extract from the lawsuit explains oh, it explains how Options Express a wholly owned subsidiary of the Charles Schwab Corporation engaged in the Sham recess and exactly how they profited from them. Now you may also ask and say Tom I Know this was a long time ago, but which kind of companies did Options Express Synthetically sure. Is it any kind of company that we might know? For example, is it some company weirdly in the NASDAQ or the OTC markets or was it actually a popular company? Well, again, Dave Lauer's screenshot answers that because it says the customers who engaged in the above described activity including Feldman accounted for on average 47.9 percent of the daily traded volume in Sears So Not Only was this company abusively synthetically shorting Securities it was doing so in the company or one of the companies we all know and potentially love.

So as I said Once Upon a Time the SEC actually did something about synthetic shorting. But weirdly enough, also, once upon a time, so did Gary Gensler So what happened David Murphy tweeted saying remember when Obama quietly fired former Chairman of the Cfdc Gary Gensler for pressuring banks on swaps. It says in 2013, Genzel had become perhaps Wall Street's leading foe, as he had sought to curb risk and expand transparency and competition in the previously opaque market for a type of derivatives known as swaps. Again, we also know swaps are used for those Total return swaps which were used to short GameStop and AMC especially back in 2021, especially with Arcados Capital Management Gensler had mentioned that Aig's swap division was run out of London and that long-term Capital Management a leading hedge fund that was rescued in the late 1990s thanks to the efforts of the U.S government booked its disastrous swaps in a Cayman Islands affiliate.

There wasn't much more than a PO Box. So again, Not only was Gary Gensler trying to pressure banks on swaps but also improve the reporting of overseas entities specifically in the Cayman Islands But again, this is a long time ago. back in 2013 when the SEC and when Gary Gensler actually were against synthetic Short Selling but now 10 years into the future, it seems that's all changed because the SEC do nothing against Naked Shorting. Neither does Gary Gensla and if anything, they actively help these funds commit these crimes.

I Guess really, it's hard to say exactly what happened because we'll all just be speculating, but it seems somewhere down the line join either the SEC had their funding cart, but also the SEC was likely paid off by these hedge funds. Obviously, the SEC receives tons of its funding from donations directly from Wall Street and therefore I guess somewhere along the line, they stopped investigating Naked Shorting, especially in the large entities and instead decided to go after regular everyday investors like small streamers, small podcast hosts and Twitter users. Dave For whatever reason, choose to ignore the big guys where the big crimes are going on and instead pursue the regular everyday. American Joe Don't get me wrong, I Guess any crime is crime and any kind of crime should be stopped.

but surely they should be more focused on stopping the larger crimes that impact the most people and still the majority of money out of the economy. Interestingly, it seems Congress actually seemed to agree Bitcoin Magazine Twitter saying U.S congressman tells SEC chair and Gary Gensler his bill would fire Gary and restructure the SEC he said I wish the Biden Administration would say You're Fired Congress hopefully will and another Congressman says Gary Gensler is refusing to turn over documents requested by Congress seven months ago and it's even warned of subpoenaing Gary Gensler and the SEC. It seems at this point, the SEC and Gary Gensler are literally refusing to comply with Congressman requirements and Congressman requests. It's been over seven months now and they're thinking of subpoena and Gary Gensler effectively demanding those documents likely documents around Mmtlp again.

I'm not sure if it's Mtlp or specifically Bitcoin ETF related, but we do know Congress have also demanded documents relating to Mmtlp as well specifically that blue sheet data which again, the SEC refuses to hand over I Think Ultimately, either Gary Gensler needs to be replaced or the SEC needs to be restructured or additional funding needs to be introduced so they're not relying on hedge fund donations Again, a removing hedge fund donations altogether would probably be a good idea. and hopefully that way when the SEC is restructured no more Gary Gensler no more Hester Pierce and no more donations, the SEC would actually do its job. But guys, be sure to let me know what you think down in the comments below. And as always, guys, be sure to ding that notification Bell because that way you'll be alerted when I put a new video Cheers!.