Today I Want to talk about how we the retail investors were right all along about both Citadel and AMC over the weekend said that I was charged with committing illegal crimes I Want to explain what crimes they were actually charged with and what punishments they received, but also explain why in this instance, the punishment doesn't really match the crime. So stay tuned and let's make some money. And now I want to drive straight in with the information. So 741 trade tweeted saying that it's that word again referencing this article titled SEC Charges Citadel Securities of violating order marking requirements of short sale regulations.

Now it says the SEC today announced already settled charges against broker DLS Ctrl Securities for violating a provision of Regulation Sho It says regulation Sho in part requires broker dealers to Mark sale orders as long, short or short exempt and these records are routinely used by Regulators in policing prohibited short sale activity To settle the Sec's charges, Citadel Securities agreed to pay a 7 million dollar penalty. So let's start by talking about things we can ascertain from that first paragraph. Number one is that Citadel Securities admitted to violating these regulations by paying those charges. They agreed, they admitted and they paid.

Secondly, we know a citadel Miss marked those orders. They effectively escaped surveillance of the SEC. We know the SEC uses these orders to figure out prohibited Short Selling activity and therefore I Citadel Miss Mark those trades. they effectively escaped the the Sec's I.

Either that or the SEC looked the other way. And thirdly, we noticed that our Securities paid just a 7 million dollar fine I Want to explain it in a little while why it's just seven million dollars? but while the penalty doesn't match that crime, It Also says according to the Sec's order for a five-year period, it's estimated that Citadel Securities incorrectly marked millions of orders inaccurately. This didn't just happen once or twice. It didn't just happen to millions of shares.

It happened to millions of orders and it happened over a five-year period. It also says the Sec's order finds that the inaccurate marks resulted from a coding error in Citadel Securities Automated Trading System now that I find hard to believe, which again, I'll explain later and it says compliance with the order marking requirements of Regulation Sho is a key component of regulatory efforts to curtail abusive Market practices including naked Short Selling And importantly, it says this action against Citadel Securities demonstrates that a broker dealer's failure to comply with the requirements of Regulation Sho can have a negative Downstream consequence. So first, let's explain why Citadel only received a 7 million dollar fine and I think it's really due to where the SEC is placing this crime. The SEC isn't placing this crime as fraud.

They're simply placing this crime as an administrative error. The SEC and Citadel are both saying this was a mistake. It happened accidentally and it was simply an administrative error. It was a coding error nobody picked up and that's what we should be fined for.

Whereas I would personally argue this is way more on the fraud side of things, Let's say for example that I worked at: JP Morgan Chase there was a big business sending a massive incoming wire payment and if I change the back details on that wire payment to my own bank details and magically receive 50 or 100 million dollars, that wouldn't go down as an administrative error. Where I get to keep all of the money that go down as fraud I'd likely be charged by the SEC or by the local police force or even by the FBI and ordered to repay and discourage all ill-gotten games. They wouldn't simply mark it as an automated administrative error where some details got mixed up and it was only a simple mistake. It's only a small fine to pay.

It would obviously go down as an illegal fraudulent crime, but I Citadel Mismarking these short sales as long buy orders. It's obviously helped to push the price down in whatever stocks they were illegally shorting, illegally pushing the price down by just mismarking their orders I think should really cost its fraud because on the other end of those trades, somebody is obviously losing out. Whether it's hedge funds, retail investors, it doesn't really matter who's losing, but somebody on the other end of the trade is losing tons of money. that money is effectively being stolen and Citadel really should be ordered to this.

Gorge All it all gotten gains as a result of these millions of Trades incorrectly marked. You can currently get a guaranteed free share of Tesla or of Google and up to 15 free shares on top of that worth up to two thousand dollars each, which you could always use to buy more shares of AMC Game Stop or of any other stock. All you have to do is Summit to MooMoo using the link in the description below and make a qualifying temporary required deposit. Signing up to memory is free and it's easy.

It just requires that temporary deposit, but it's a really great way to help support the channel. On top of that movement is very easy to use. They've got tons of technical indicators and advanced charting tools and their own options. Trading platform for Citadel is saying the only reason these trades were incorrectly marked was a result of an automated coding error.

Now again, this is something I find really hard to believe. Citadel is a billion dollar business that only employs the brightest of the bright students or the brightest of the bright. Talent How did they manage to make a coding error that went undetected for five years? Surely these Engineers have managers and Senior managers and supervisors that review all of the surely these algorithms and these systems are tested and back tested and tested again. How can a simple error that mismark short orders and long orders go undetected for years? And how can that same error happen at Citadel multiple times? And how can it happen at multiple different hedge funds and Banks over and over and over again? To me, it seems these coding errors were made on Purpose By Design so Citadel could miss Mark short orders as long buys and that really is why I Think it falls outside of the catchment of a simple administrative mistake and more into the basket of purposeful fraud.

especially as Dave Lowe I Told you to say, most folks I know in the industry dismiss these kinds of enforcement actions as nothing more than a books and Records issue. but he says books and Records violations are everywhere in the industry and that does not mean it's okay he said, especially when it comes to order Miss marking which can lead to Downstream issues preventing Regulators from proper early surveilling trading activity, resulting in Ftds and other problems. As I said, these orders being mismarked resulted in tons and tons of short sales going through that should not have gone through Citadel obviously couldn't locate shares, so instead they decided to miss Mark short sales as long buys that resulted in Ftds, it resulted in synthetic shares and it resulted in these stocks being artificially suppressed. And not only that, but it resulted in other hedge funds, other institutions, and Retail investors losing money unfairly.

and he also added something I really agree with. He said maybe if a firm struggles to mark their orders properly, then maybe they should no longer qualify for the market maker exemption of Regulation So if they can't be trusted to mark their orders accurately, if they can't be trusted to create synthetic shares in the name of liquidity, they should be disqualified from that market maker exemption. That Interestingly, Bigam's also added saying remember when they steal billions and get fined millions, they also can't even afford to pay those fines. They need to get an 81 waiver of that fine Right off the bat.

Let's remember back to 2021 where a bunch of broker dealers like Robin Hood and Apex clearing received massive ECP waivers massive waivers of those excess Capital premium charges or margin calls. It seems not only with these market makers and broker dealers not survived without committing crimes, they also wouldn't survive without having those fines waived or more specifically, having those margin calls waived as well. I Personally think for me, this is the end of my tether or the end of my trust or belief in the SEC Up until now I did have a slight glimmer of hope the SEC would do the right thing. I had a glimmer of hope their Short Selling investigation would produce something fruitful.

I had a glimmer of hope the SEC would appropriately Sue Citadel in the open court for their wrongdoing and order them to this towards all ill-gotten gains. But it seems after today the SEC did actually catch Citadel doing something illegal. They caught the Miss marking shorts as Longs and caught them creating synthetic shares. but they failed to ensure they discouraged all ill-gotten gains and simply made them pay a small tiny seven million dollar fine.

I Personally think after today the SEC has failed us as I say prior to today I did have a slight glamor of Hope the SEC would actually do the right thing, but now that hope is gone. But I think for AMC now the short squeeze or for AMC to experience the mother of all short squeezes. It needs to be done without help from the SEC because it seems the SEC will actually catch these firms for committing illegal activities but fob off those illegal activities as accidental administrative errors and give them tiny speed bump fines which are reduced massively and allow them not even to pay or to meet margin requirements. Not only do they give them teeny tiny fines, they also waive their margin requirements and excess Capital premium charges.

If only the SEC and Dtcc didn't waive those Capital premium charges, we would have won long ago. But even without the SEC and the Dtcc, it seems Citadel is still losing billions of dollars. Cyber hedge tweeted saying this: Citadel Multi-strategy fund had an indirect investment in ever Grande or ever Grant via a company called Ffie. Faraday Future Intelligent Electric Incorporation cited out: indirectly owned 2.6 million shares at an initial valuation of roughly 1 500 per share.

It's almost four billion dollars invested into Evergrant today. Those Shares are worth roughly four dollars each, so that represents a 99.7 loss, leaving them with a mere 10 million dollars. So that's additional unrealized losses for Citadel of four billion dollars, again, impacting their margin requirements. He said.

It's interesting to know that this company ipo'd in January 2021 and reached its peak on January 29th 2021. So it seems even with the SEC in the Dtcc granting margin waivers, Citadel is still losing billions. And finally, as a result, it seems the mainstream media and those hedge funds and market makers are still desperate for you to sell your AMC. There's a new article titled here's why you should give up on AMC stock as soon as possible.

Clearly, they're still desperate and begging you to sell your shares so that Citadel can close out of this synthetic share liability, But obviously, if you hadn't already guessed, it seems investors are not selling and Citadel will still have this liability. 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 upload a new video. Cheers.