Welcome back to the channel everyone today, i want to determine whether the sec is covering up wall street's crimes and what we can do to fight it so stay tuned and let's make some money. I also want to quickly wish you a very happy martin luther king day and now, let's dive straight in with the key information. So is the sec covering up wall street crimes. A whistleblower says the agency has illegally destroyed thousands of documents, letting financial crooks off the hook for the past two decades.

According to a whistleblower at the sec who recently came forward to congress, the agency has been systematically destroying records of its preliminary investigations once they're closed by whitewashing the files of some of the nation's worst financial criminals. The sec has kept an entire generation of federal investigators. In the dark about past inquiries into insider trading, fraud and market manipulation against companies like goldman sachs, deutsche and aig with a few strokes of the keyboard. The evidence gathered during thousands of investigations, 18 000 pieces of information, including information on bernie madoff, has apparently disappeared forever into the wormhole of history.

Many of the destroyed files involved companies and individuals who would later play prominent roles in the economic meltdown of 2008, two muis involving con artist, bernie madoff banished so did a 2002 inquiry into financial fraud at lehman brothers, as well as a 2005 case of insider trading. At the same soon-to-be bankrupt bank, but we know that it's not just record deletion that plagues the sec, there's also naked shorting. The curious incident of the shares that didn't exist. Now you may have already heard the story of global leaks where a michigan-based entrepreneur purchased 1.285 million shares in global links.

Yet there was only around 1.158 million shares an issue, so he managed to buy an extra 100 000 shares that the company hadn't even issued, and on top of that, even after it purchased over 100 of the float the following day. Over 37 million shares of global links were traded and the day after an extra 22 million shares on top of that. So, even though this entrepreneur had purchased over 100 of the float and hadn't performed any trades in the days following there was still 20 to 30 times the float traded on a daily basis. You'd also know about wes christian, a partner at a law.

Firm. That's been the lead lawyer on several cases of synthetic shares and naked shorting. On top of that, you'll also know about patrick byron, the president of overstock. He recently gave an interview where he spoke about just how many synthetic shares of overstock had been issued, but it's not just these few companies that have problems with synthetic shares and naked shorting right now, there's 20 or so companies with pending lawsuits for the mass creation Of synthetic shares and that same naked shorting, an iot consultant that consults for companies typically listed on the otc exchange, estimates that over a thousand companies presently have shares in circulation in excess of their floats.

But as with the case of overstock, it's not just small over-the-counter companies that are affected. It's also companies that listed on the nasdaq and also new york stock exchange. So it's not just record deletion. That's the problem.

It's also the blatant oversight and blatant disregard for naked shorting. The sec knows that it's going on, but they just don't do anything about it. If synthetic shares and naked shorting was a problem, the sec wanted to do something about, it would only take one lawsuit for them to change their minds and change their roles if the sec actually wanted to do something. All they need to do is investigate one individual lawsuit prove that synthetic shares actually exist and then change those regulation sho rules.

But the fact of the matter is that right now, there's 20 or so companies with ongoing lawsuits into synthetic shares and naked shorting and potentially over a thousand companies that have more shares than the entire flow. So why is there this blatant disregard for synthetic shares and naked shorting? Well, the destruction of records by the sec, as outlined by flynn, is something far more than an administrative accident or a bureaucratic mess up if you're worried about holding your shares of amc infidelity. After all, the sketchy things that have recently been going on mumu are currently giving away one free share of amc. On top of their usual five free shares, valued up to three thousand five hundred dollars when you sign up to moomoo, using the link in the description below and make your first deposit when you sign up to moomoo and make your first deposit you'll, get two free Shares of amc valued up to three thousand five hundred dollars each.

If you can deposit a hundred dollars, you also get that free share of amc, and if you can deposit two thousand dollars, you also get those final. Three free shares giving you five free shares, valued up to three thousand five hundred dollars each and a free share of amc. Moomoo is also a brilliant commission free broker that doesn't make their money from payment for order flow. Mumu and futu make their money from margin interest and from payment fees.

That means that your trades won't go through sketchy, dark pools or being given to citadel and moomoo also has excellent technical indicators and advanced charting tools. They also publish daily short selling volume. On top of a number of other important pieces of data, so all you have to do to get these free shares is sign up to moomoo, using the link in the description down below and deposit at least a hundred dollars. He says it's a symptom of the agency's terminal brain damage somewhere along the line, those at the sec responsible for policing america's banks fell and hit their head on a big pile of wall street's money.

It seems these top federal regulators spend more time, lunching, schmoozing and job interviewing with rule street crooks than they do actually catching them in at least one case. According to flynn, investigators at the sec found their desire to bring a case against an influential bank thwarted by senior officials in the enforcement division. The enforcement division's director turned around and accepted a lucrative job from the very same bank that had been prevented from investigating. In another case, the sec actually outsourced its inquiry and investigation to a private law firm or a private law practitioner.

He was then hired by the company under investigation and, obviously, unsurprisingly, the outside private law, firm or private law practitioner concluded that no further investigation of its client was necessary and to complete the bureaucratic laundering process flynn says the sec dropped the case and destroyed the files Back in july of 2001, the sec director of enforcement, richard walker, was investigating deutsche bank, but two weeks later, the sec sent a letter to deutsche that read. An inquiry into the above caption mata has now been terminated. The sec dropped its fraud investigation into deutsche bank, but in october 1st of that year, so only four months later, richard walker, the sec director of enforcement, was named as general counsel of deutsche bank. So it seems whenever there's a large fraud or market manipulation.

Investigation ongoing the top person at the fcc dismisses the case, and then a few weeks later goes and joins that company being investigated, obviously for a massive massive pay rise. The reason why the sec covers up wall street's crimes is because, at the end of the day, they're, corrupt and they're, just looking for more money and the sec makes it even easier for themselves by destroying records and also creating rules that actually aid synthetic shares and Naked shorting, this behaviour of married puts flourished owing to the madoff exemption, a rule that the sec named after a prominent market maker, an investor named bernie madoff mr madoff had a considerable influence at the sec and helped the commission write the rule that carried his name. Obviously that was before mr madoff became famous for orchestrating a 50 billion dollar ponzi scheme, the madoff exemption permitted and still permits market makers to sell a stock. They did not possess so long as they were doing it temporarily to maintain liquidity abusing that exemption in order to facilitate naked short selling in cahoots with hedge funds.

Looking to drive down stock prices was blatantly illegal, but the sec looked the other way, even as those very same market makers failed to deliver the shares for weeks months and even years. At a time, if anyone raised the fuss, the hedge fund would say, the phantom shares didn't originate with them. The sec would also say that stock manipulation is hard to prove and the market makers would say that they weren't breaking any rules, because, after all, those market makers had what was called a madoff exemption now. I think that extracts really goes to show that the sec actually helps aids.

These synthetic shorts and naked shares the sec literally created a rule that makes it impossible to pin the blame on anyone. Market makers say they aren't breaking the rules and hedge funds say that they didn't create the naked shores and obviously the sec sits back and says: well guys, it's hard to prove market manipulation. It's hard to count the number of shares an issue. So we just don't think it exists and they look the other way.

I've got a feeling that if gary gensler was forced to look into citadel the market maker and their creation of synthetic shorts and amc and gamestop, i'm sure it'd only take a few days for him to accept a new job most likely at citadel. And what i also find crazy is that the rule that was created to give these market makers the exemption to create synthetic shares and naked shorts. While it's now designated as a certain rule under regulation, sho was originally called the madoff exemption. I'm sure the sec know exactly how corrupt this rule actually is.

After calling it the madoff exemption. But, as i said, they just look the other way and ignore naked shorting. One of the ways i think we can fight this is to continue to bring attention to things like insider trading and market manipulation that the sec blatantly ignores. More retail investors joined the market in 2020 and in 2021 than any other year on record, and the stock market is slowly becoming a place for retail investors and not just for hedge fund managers.

The more public attention we bring ultimately will mean more changes in the stock market and to insider trading. The more attention that we bring over time will lead to more changes in the stock market, because new politicians will want to make these changes in order to kind of boost their campaigns, but something else i found interesting that we could possibly do in the meantime. Is this post here on reddit? He says: if borrowing amc shares is so cheap. Can i borrow some, so they don't get sold to hedge funds and hedge funds can't borrow them to shore.

He says the cost. To borrow is very low. It doesn't cost that much to borrow an additional million shares for a day. Okay, so you do have to give the shares back someday.

But if you don't sell them, then you can always just return them. If you borrow amc shares, it doesn't mean that you have to short them and therefore help the hedges drop. The price of amc you can just borrow them and return them later, meaning the hedges can't borrow them from you. One million amc shares at 22 dollars.

A share multiplied by one percent interest per year is 220 000 per year or only 600 per day. To borrow a million shares of amc. That 600 would mean a million less shares for the hedges to actually shore. So, for 60 cents per day, you could actually borrow a thousand shares of amc which would stop the hedges being able to short them.

He asks where can. I borrow shares those shares that can't be used to short sale amc now. Obviously we as youtubers or i specifically can't coordinate something like that, because obviously it'd be market manipulation, but if some random people just happen to decide to do it independently without any coordination, then it is actually legal. I personally think this would be a brilliant way to beat the hedges at their own game by borrowing the shares so that they can't short them guys be sure to.

Let me know down in the comments below whether you think the sec is covering up wall street's crimes and what we can do about it and, as always guys, if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe the channel and ding that notification bell, because that way, you'll be alerted. When i upload a new video cheers.