" The Big Picture," My theory..FWIW !IMO!

[riverboat]

Hello All !..This is my theory of everything that has transpired to this date...please bare with me..and don't get angy at me...as some of the numbers that i give might not be completley accurate ok? thanks....

I have owned CMKX since June4th , 2004...so i have been here for all of it...
We used to get many pr's at that time...and we were drilling the Carolyn Pipe....here is what i think happened..( the big picture) lol.... keep in mind as we go along here ( Andy's statement the other day...we will be surprised at who is dancing on the dance floor..when all is said and done)...also i think i know why Urban took the 5th at the hearing...( which is totally scripted, the hearing ok? ) I will explain ..as I go along....the company stated we found some diamonds...in the Carolyn Pipe...2 micro-diamonds...and some from another hole that are to be kept under lock and key...now...Roger Glenn is not with us yet....but soon to be...Now... Mr. Casavant also gave many shares to his family members as a gift...we will say X amount of shares...these shares are also in cert form...therefore their names are on them when they sell them...thus..Pedro's (FOIA) telling us about all the Casavant's dumping shares...and Urban dumping also...(hang on...don't get mad ok?)

Now here is how it all goes down ok? IMO...Mr Casavant want's the bad guys to see that He and his family are selling shares like crazy...in a { classic pump and dump) How do the MM's and Hege funds know this...We don't until PEDRO GETS THE INFORMATION FOR US...FROM...the ( foia)..Soooooowhen the crooked brokers and the crooked MM's and hege funds see that urban is dumping shares...they jump on the bandwagon....and naked short CMKX into oblivion...( Here is where it gets good ok? )..

Now Uncle urban gave X amount of shares to his family members OK? they were told to sell as the price per share moved up slowly to .0012...that is on the strenght of the 2 microdiamonds...so the family is making a lot of money as it goes up and they seel all of their shares because Unvle Urban told them to do it...You see they trust Uncle...Now here is what is happening at this time...Urban is promoting big time...billboards in Vegas...Billboard at the race track.." GOT CMKX, " Urban is meeting fellow shareholders at the race track..( winking and smileing at us) ...at this time he and his family is selling like crazy at various...0001 , .0002 , .0003. all the way up to .0012...but also the " bad guys are selling like mad too...( only naked shares ) this is what Urban wants...

Now he also give away ..what is it 40 billion or 75 billion shares to John Edwards..at Nevada minerals
in excahnge for a few million dollars or whatever...this is to show the MM's that Urban needs money...Now at the hearing John also made it look like he was mad at Urban...hold on a minute all..ok?...Urban has to sweat it out now...because he does not own 51% of the company anymore...ok? He must wait until the MM's get the price back down to .0001...finally they do...( thank God for Mr. Casavant) why do I say this...because Uncle Urban now calls his family and tells them to buy the same number of shares he gave to them..at .0001 which they do ..but they hold these shares is street name..not certs Ok? Now urban buys back 600 Billion shares at .0001...He sold 600 Billion on the way up to .0012...so 600 Billion at .0001 is $60 milion dollars..however let's say Mr Casavant made about $90 million to $100 million as he sold on the way up...now he buys back the 600 Billion at .0001..

.Soooooooo all of Urbans family now has free shares...and also cash in the bank...the diamonds kept under lock and key do not have to be divulged to us shreholders legally for 2 years...

Now as we go along from June ,2004 Roger Glenn comes into the picture...to help us with dividends this is to get the bad guys..the bad guys don't bite..they continue to naked short...so Mr. Casavant says no problems I may as well make a few buck myself...so he has about 30 to 35 million dollars profit on the selling and the buying back...also his family made a few buck to as they now again...have free shares..that they bought back....at the low price of .0001....

Now the NEVADA DEAL....John Edwards recently gave Urban the shares back..for a few buck ...right..also the (FOIA)..said Mr. Casavant only has 1 billion shares...( not true) as I think..Urban sold 2 certificates of 300 billion shares each to John Edwards..( who folks, is a billionaire ) for let's ay $ 1 dollar..Don't forget MR Edwards is a friend not an enemy..IMO...now recetly John sold these 600 billion shares back to Mr. Casavant for the same $ 1......Now at the hearing...IBM and Urban have a sit down with the judge and explain all that transpired...( Judge Brenda) ..I mean..she comes out and say's.." What's Naked Shorting, " ? as if she is a dummy or something...and IBM hurries up down the Aisle..to the front of the court room..and "Says, I'll make it," ( Funny) ...because of his age...big Private joke..folks among Urban..IBM...Roger
Glenn...

I am telling you they are all laughing like crazy...why because the naked short..is as DR D. just said the other day..2.2 TRILLION to 3.7 Trillion,,,Now Mr CAsavant also bought another 5 to 10 million dollars of the naked short along with the original 600 billion shares..that he supposedly dumped...now with the extra money from his own pocket mind you profit that he made..he is financing the drilling the car races...the billboards...etc...with money left over to spare.....

Mr. Casavant also has an ace up his sleeve..with the CIM...he squirreled away the claims all over the place..to protect them..he gave the 600 billion shares to John Edwards to hide ...unetil he could get them back to hold controling interest in CMKX...which he does now hold..I know I rambled a little -bit...Now this is just my take on it all...maybe I am nuts in the head...what do u all think? comments?...If al of this is all wet ..Mods please feel free to delete...thank you..this is IMO only...thanks

river~~~

Long & Strong~~~ ;D ;D ;D

[ocdmike]

YOU JUST BLOWED MY HEAD UP!INFORMATION OVERLOAD....STOCK PAY OF A LIFE TIME!

[spoal]

I like the scenario!

[roddybear]

spoal said:

I like the scenario!

big ditto

[mineralsrus]

riverboat said:

Hello All !..This is my theory of everything that has transpired to this date...please bare with me..and don't get angy at me...as some of the numbers that i give might not be completley accurate ok? thanks....

I have owned CMKX since June4th , 2004...so i have been here for all of it...
We used to get many pr's at that time...and we were drilling the Carolyn Pipe....here is what i think happened..( the big picture) lol.... keep in mind as we go along here ( Andy's statement the other day...we will be surprised at who is dancing on the dance floor..when all is said and done)...also i think i know why Urban took the 5th at the hearing...( which is totally scripted, the hearing ok? ) I will explain ..as I go along....the company stated we found some diamonds...in the Carolyn Pipe...2 micro-diamonds...and some from another hole that are to be kept under lock and key...now...Roger Glenn is not with us yet....but soon to be...Now... Mr. Casavant also gave many shares to his family members as a gift...we will say X amount of shares...these shares are also in cert form...therefore their names are on them when they sell them...thus..Pedro's (FOIA) telling us about all the Casavant's dumping shares...and Urban dumping also...(hang on...don't get mad ok?) Now here is how it all goes down ok? IMO...Mr Casavant want's the bad guys to see that He and his family are selling shares like crazy...in a { classic pump and dump) How do the MM's and Hege funds know this...We don't until PEDRO GETS THE INFORMATION FOR US...FROM...the ( foia)..Soooooowhen the crooked brokers and the crooked MM's and hege funds see that urban is dumping shares...they jump on the bandwagon....and naked short CMKX into oblivion...( Here is where it gets good ok? )..Now Uncle urban gave X amount of shares to his family members OK? they were told to sell as the price per share moved up slowly to .0012...that is on the strenght of the 2 microdiamonds...so the family is making a lot of money as it goes up and they seel all of their shares because Unvle Urban told them to do it...You see they trust Uncle...Now here is what is happening at this time...Urban is promoting big time...billboards in Vegas...Billboard at the race track.." GOT CMKX, " Urban is meeting fellow shareholders at the race track..( winking and smileing at us) ...at this time he and his family is selling like crazy at various...0001 , .0002 , .0003. all the way up to .0012...but also the " bad guys are selling like mad too...( only naked shares ) this is what Urban wants...Now he also give away ..what is it 40 billion or 75 billion shares to John Edwards..at Nevada minerals
in excahnge for a few million dollars or whatever...this is to show the MM's that Urban needs money...Now at the hearing John also made it look like he was mad at Urban...hold on a minute all..ok?...Urban has to sweat it out now...because he does not own 51% of the company anymore...ok? He must wait until the MM's get the price back down to .0001...finally the do...( thank God for Mr. Casavant) why do I say this...because Uncle Urban now calls his family and tells them to buy the same number of shares he gave to them..at .0001 which they do ..but they hold these shares is street name..not certs Ok? Now urban buys back 600 Billion shares at .0001...He sold 600 Billion on the way up to .0012...so 600 Billion at .0001 is $60 milion dollars..however let's say Mr Casavant made about $90 million to $100 million as he sold on the way up...now he buys back the 600 Billion at .0001...Soooooooo all of Urbans family now has free shares...and also cash in the back...the diamonds kept under lock and key do not have to be divulged to us shreholders legally for 2 years...now as we go along from June ,2004 Roger Glenn comes into the picture...to help us with dividends this is to get the bad guys..the bad guys don't bite..they continue to naked short...so Mr. Casavant says no problems I may as well make a few buck myself...so he has about 30 to 35 million dollars profit on the selling and the buying back...also his family made a few buck to as they now again...have free shares..that they bought back....at the low price of .0001....Now the NEVADA DEAL....John Edwards recently gave Urban the shares back..for a few buck ...right..also the (FOIA)..said Mr. Casavant only has 1 billion shares...( not true) as I think..Urban sold 2 certificates of 300 billion shares each to John Edwards..( who folks, is a billionaire ) for let's ay $ 1 dollar..Don't forget MR Edwards is a friend not an enemy..IMO...now recetly John sold these 600 billion shares back to Mr. Casavant for the same $ 1......Now at the hearing...IBM and Urban have a sit down with the judge and explain all that transpired...( Judge Brenda) ..I mean..she comes out and say's.." What's Naked Shorting, " ? as if she is a dummy or something...and IBM hurries up down the Aisle..to the front of the court room..and "Says, I'll make it," ( Funny) ...because of his age...big Private joke..folks among Urban..IBM...Roger
Glenn...I am telling you they are all laughing like crazy...why because the naked short..is as DR D. just said the other day..2.2 TRILLION to 3.7 Trillion,,,Now Mr CAsavant also bought another 5 to 10 million dollars of the naked short along with the original 600 billion shares..that he supposedly dumped...now with the extra money from his own pocket mind you profit that he made..he is financing the drilling the car races...the billboards...etc...with money left over to spare.....Mr. Casavant also has an ace up his sleeve..with the CIM...he squirreled away the claims all over the place..to protect them..he gave the 600 billion shares to John Edwards to hide ...unetil he could get them back to hold controling interest in CMKX...which he does now hold..I know I rambled a little -bit...Now this is just my take on it all...maybe I am nuts in the head...what do u all think? comments?...If al of this is all wet ..Mods please feel free to delete...thank you..this is IMO only...thanks

river~~~

Long & Strong~~~ ;D ;D ;D

if not 100% accurate it is very close !

The head fakes

The master plan! ;D

[joesixpack]

Just got off work and read this... good theory... I like it... only next time .. toss in a few paragraphs... owww.. my eyes...

[gosh]

well i stand by the statement
the mm are not short cmkx

the atty's that signed off on form 144 did so in error
they are in trouble....

so the bad guys edwards imo are in trouble
and have to buy those shares back

there are hedge funds short us
but not the mm

after that i vote for your scenario
why because they cannot afford it monetarily
an mm must put up $1 for each share
this is for insurance ....

they won't put up billions nor do they each have it


maybe it isn't edwards but there is a nasty involved...with the hedge funds also as two separate things

after that i agree with
great post
welcome aboard

[gosh]

joesix

i pm him how to fix for that
hang in a few and maybe he did it

[gosh]

question

can the judge be involved ??

we need JJ for this question i think...
but it was amazing that a judge did not know what a nss is

[golden1101]

Yes indeedy . . .

Great one riverboat . . . Your take seems very sane to me.
golden ;D

[riverboat]

thanks ...everybody for your input...I mean...look at it this way..Mr. Casavant had to get the bad guys to naked short..then company..so he could trap them...
Sooo yes it would take an elaborate plan to do it...something that they would not suspect....like a magiciain would do ..( in Las Vegas) I also think IBM had a big hand in all of it..and he has been with us ..long before he was PR'd to us...shareholders...He may have also been the one ..to set this all up from the beginning...IMO...We really don't know exactly how long IBM had really...been with us..except for the PR...


again thanks for the feedback

[hxpe]

"they were told to sell as the price per share moved up slowly to .0012...that is on the strenght of the 2 microdiamonds...so the family is making a lot of money as it goes up and they seel "

Sorry to nitpick but the pps fell when the microdiamond results were announced --- it was not accepted as good news. Also, remember that the results were announced almost as accident with no coordination between CMKX and the JVs. To this day I don't think the left hand knew what the right was doing.

Still, I hope your scenarios play out.

[riverboat]

hxpe said:

"they were told to sell as the price per share moved up slowly to .0012...that is on the strenght of the 2 microdiamonds...so the family is making a lot of money as it goes up and they seel "

Sorry to nitpick but the pps fell when the microdiamond results were announced --- it was not accepted as good news. Also, remember that the results were announced almost as accident with no coordination between CMKX and the JVs. To this day I don't think the left hand knew what the right was doing.

Still, I hope your scenarios play out.

YES...that is correct,,the price started to fall back down..Mr. Casavant and family were al-ready out...at that time...now the price comes down to .0001 because of the MM's and Hedge funds ( shorting) Now Mr Casavant and family buy back at the low price and get controling interest again..in CMKX...capice?...Then squirell away the shares...( 600B) to friend John Edwards..who hides them up in Canada..in one of his many business enterprices..( He owns CROWN) with is worth $2 billion...see the picture...then shares are returned to Urban at a later date...When it is safe to do so...the AS was raised from 200 to 500 to 800 billion shares to prevent a hostile take-over ..Like from Debeers..etc etc and other entities..who we may not know about....that is why Mr Casavant needed Roger Glenn and IBM to help him...( and of course...us).....(ha,ha) lol

[branfordjohn]

Guys & Girls: I like this also..it shows Urban one to two steps ahead of the MM (& their "friends) all the time....I just need help in closing the loop...
How does this come to some type of conclusion or fruition? Are the MM's now locked in some how and now want to settle? This would be a great scenario!!! But I could use some help understanding the conclusion...

Thnaks as always.

[tonytox]

Riverboat, good ideas. variants of that theory have been kicked around the boards for sometime, so your thinking is in line with that of many others. this theory helps to explain some of URBAN's behavior this past year. below is my personal write up done a few weeks back on RB.

By: TonyToX
24 Sep 2005, 12:08 PM EDT
Msg. 1128816 of 1141596
Jump to msg. #

one theory i like the best is that URBAN and GLENN went into the market before authorizing the final 300 billion shares and bought enough shares to insure that URBAN owned 800 billion shares. they bought these at .0001. it cost them $30m to buy 300b shares.

once URBAN controlled 800 billion shares he turned on the pump machines, kicked the "GOT CMKX" campaign into high gear while GLENN approved the sale of 300 billion new shares. these 300 billion shares were then sold at an average of .0004 (remember when the ask never moved off .0003?), netting URBAN and his family members $120m. a profit of $90m. nice.

urban then goes to the shorters, reveals to them they are trapped because he owns the entire o/s, except for shares held as certs, and the shorts better pay up.

one of the things i always found peculiar was that URBAN and ANDY never encouraged anyone to put their shares into certs. why would that be? well, because the more held as certs the fewer shares, in a sense, URBAN controlled. get it? if there were zero shares held in certs then urban would indeed own the entire 800 billion o/s. as it is, he owns the entire 800 billion o/s minus the shares held as certs. everything else is a naked shorted share.

now exactly what this means for gemm, cim or usca shares i don't know. or how it can be fixed is a mystery to me.

now, if the shorts were told they were caught why wouldn't they just go back into the market and try to cover as much as possible up to and including the price URBAN told them he wanted? if you were one of the naked shorters why not buy back and cover the 50 billion shares you shorted? why not pay .0005 per share rather than the .0011 or .0024 as is rumored? maybe it's becuase URBAN threatened them with the release of valuation numbers? maybe URBAN said, "if you try and buy your way out through the market i'm going to release good news and you will be buried." maybe. just a guess.

interesting and fun stuff to think about.

[branfordjohn]

tonytox said:

Riverboat, good ideas. variants of that theory have been kicked around the boards for sometime, so your thinking is in line with that of many others. this theory helps to explain some of URBAN's behavior this past year. below is my personal write up done a few weeks back on RB.

By: TonyToX
24 Sep 2005, 12:08 PM EDT
Msg. 1128816 of 1141596
Jump to msg. #

one theory i like the best is that URBAN and GLENN went into the market before authorizing the final 300 billion shares and bought enough shares to insure that URBAN owned 800 billion shares. they bought these at .0001. it cost them $30m to buy 300b shares.

once URBAN controlled 800 billion shares he turned on the pump machines, kicked the "GOT CMKX" campaign into high gear while GLENN approved the sale of 300 billion new shares. these 300 billion shares were then sold at an average of .0004 (remember when the ask never moved off .0003?), netting URBAN and his family members $120m. a profit of $90m. nice.

urban then goes to the shorters, reveals to them they are trapped because he owns the entire o/s, except for shares held as certs, and the shorts better pay up.

one of the things i always found peculiar was that URBAN and ANDY never encouraged anyone to put their shares into certs. why would that be? well, because the more held as certs the fewer shares, in a sense, URBAN controlled. get it? if there were zero shares held in certs then urban would indeed own the entire 800 billion o/s. as it is, he owns the entire 800 billion o/s minus the shares held as certs. everything else is a naked shorted share.

now exactly what this means for gemm, cim or usca shares i don't know. or how it can be fixed is a mystery to me.

now, if the shorts were told they were caught why wouldn't they just go back into the market and try to cover as much as possible up to and including the price URBAN told them he wanted? if you were one of the naked shorters why not buy back and cover the 50 billion shares you shorted? why not pay .0005 per share rather than the .0011 or .0024 as is rumored? maybe it's becuase URBAN threatened them with the release of valuation numbers? maybe URBAN said, "if you try and buy your way out through the market i'm going to release good news and you will be buried." maybe. just a guess.

interesting and fun stuff to think about.

Mr. Tony Tox:

I see a few people have been kicking this around....but may I ask the same question....How does this force some type of settlement or some type of conclusion for us?
Best regards.

[tonytox]

branfordjohn, the settlement idea is weak. i don't really think there will be a settlement. it's just too hard to put together. everyone talking about a settlement keeps thinking they are going to be given a huge amount of cash and also get to keep their shares. you can't have it both ways.

i suspect all cmkx is trying to do now is to FILE and then let the marketplace do what it does best, and that would be to allow the share rpice to rise and fall as shares were covered and taken out of circulation by those that shorted the stock.

but that is just a guess on my part simply because i can't REALLY see how some settlement would be worked out. but that is mostly a limitation in my ability to figure out these things. so, take it with a grain of salt.

[riverboat]

tonytox said:

Riverboat, good ideas. variants of that theory have been kicked around the boards for sometime, so your thinking is in line with that of many others. this theory helps to explain some of URBAN's behavior this past year. below is my personal write up done a few weeks back on RB.

By: TonyToX
24 Sep 2005, 12:08 PM EDT
Msg. 1128816 of 1141596
Jump to msg. #

one theory i like the best is that URBAN and GLENN went into the market before authorizing the final 300 billion shares and bought enough shares to insure that URBAN owned 800 billion shares. they bought these at .0001. it cost them $30m to buy 300b shares.

once URBAN controlled 800 billion shares he turned on the pump machines, kicked the "GOT CMKX" campaign into high gear while GLENN approved the sale of 300 billion new shares. these 300 billion shares were then sold at an average of .0004 (remember when the ask never moved off .0003?), netting URBAN and his family members $120m. a profit of $90m. nice.

urban then goes to the shorters, reveals to them they are trapped because he owns the entire o/s, except for shares held as certs, and the shorts better pay up.

one of the things i always found peculiar was that URBAN and ANDY never encouraged anyone to put their shares into certs. why would that be? well, because the more held as certs the fewer shares, in a sense, URBAN controlled. get it? if there were zero shares held in certs then urban would indeed own the entire 800 billion o/s. as it is, he owns the entire 800 billion o/s minus the shares held as certs. everything else is a naked shorted share.

now exactly what this means for gemm, cim or usca shares i don't know. or how it can be fixed is a mystery to me.

now, if the shorts were told they were caught why wouldn't they just go back into the market and try to cover as much as possible up to and including the price URBAN told them he wanted? if you were one of the naked shorters why not buy back and cover the 50 billion shares you shorted? why not pay .0005 per share rather than the .0011 or .0024 as is rumored? maybe it's becuase URBAN threatened them with the release of valuation numbers? maybe URBAN said, "if you try and buy your way out through the market i'm going to release good news and you will be buried." maybe. just a guess.

interesting and fun stuff to think about.

thanks Tonytox...I agree...i believe...that Mr Maheu and Mr. Casavant have everything under control...the only stumbling block is... the bad guys.....the short must be settled before we can go on to NORMAL trading...in my Humble Opinion...that is the only way

[golden1101]

tonytox said:

Riverboat, good ideas. variants of that theory have been kicked around the boards for sometime, so your thinking is in line with that of many others. this theory helps to explain some of URBAN's behavior this past year. below is my personal write up done a few weeks back on RB.

By: TonyToX
24 Sep 2005, 12:08 PM EDT
Msg. 1128816 of 1141596
Jump to msg. #

one theory i like the best is that URBAN and GLENN went into the market before authorizing the final 300 billion shares and bought enough shares to insure that URBAN owned 800 billion shares. they bought these at .0001. it cost them $30m to buy 300b shares.

once URBAN controlled 800 billion shares he turned on the pump machines, kicked the "GOT CMKX" campaign into high gear while GLENN approved the sale of 300 billion new shares. these 300 billion shares were then sold at an average of .0004 (remember when the ask never moved off .0003?), netting URBAN and his family members $120m. a profit of $90m. nice.

urban then goes to the shorters, reveals to them they are trapped because he owns the entire o/s, except for shares held as certs, and the shorts better pay up.

one of the things i always found peculiar was that URBAN and ANDY never encouraged anyone to put their shares into certs. why would that be? well, because the more held as certs the fewer shares, in a sense, URBAN controlled. get it? if there were zero shares held in certs then urban would indeed own the entire 800 billion o/s. as it is, he owns the entire 800 billion o/s minus the shares held as certs. everything else is a naked shorted share.

now exactly what this means for gemm, cim or usca shares i don't know. or how it can be fixed is a mystery to me.

now, if the shorts were told they were caught why wouldn't they just go back into the market and try to cover as much as possible up to and including the price URBAN told them he wanted? if you were one of the naked shorters why not buy back and cover the 50 billion shares you shorted? why not pay .0005 per share rather than the .0011 or .0024 as is rumored? maybe it's becuase URBAN threatened them with the release of valuation numbers? maybe URBAN said, "if you try and buy your way out through the market i'm going to release good news and you will be buried." maybe. just a guess.

interesting and fun stuff to think about.

Nice as well tony . . . I did end up getting certs, which in hind sight may have work kinda against the master plam . . . But at least if UC keeps CMKX around, Im holding those certs for the long haul.
golden ;D

[whetstone]

IMHO a settlement means that we get $$$ and keep the shares. You CAN have it both ways. The settlement is to make up for the low pps due to the massive diluting because of the NSS situation. It's like the "real" damages in a lawsuit.
That being said, I don't think there will be a settlement but I do think we will be trading freely and fairly in the near future after a squeeze. Any cash given to us needs to be in the form of a settlement or "Return on Investment" so as to avoid taxes for us. (At least us in the US) I'm not sure of the legal terminology that would allow that to happen but I'll bet Stoecklien does. I also think someone holds a huge percentage of the O/S and will retire it soon. I just don't know if I can believe that it's Edwards. He has a pretty dark past and his new wife is even worse.
I strongly agree with Tonytox that there are many many many shares held by insiders in street name. All of the proxies for those shares give UC full control of the company.
We'll all know very... uh... hmm... presently.

[srinze]

Your Theory sounds like a lot of insider trading and illegal activity. Not so sure they could get away with all this if this is how it went down.

We'll see.

[xxed]

River, I think you may be on to something!
Your post got me to thinking about the strange occurances of last year.

The Casavant Manuever.

Remember the market maker at the races last year?
Some were saying that he was a friend of CMKX/USCA.

Maybe he was.

[senna]

This is as close as I have read, been told and believe. The enemy will become the friend and the friend becomes the enemy. We are close...IMO

I also suggest that everyone read the below article and see just how serious the trouble is for the DTCC/SEC so much that had to let go of the OTC in less then 72 hours, it is now in the hands of the NASD. This article if you read is the first major crack in the wall of a conspiracy that has gone on for 10 years+.
senna

October 3, 2005 (FinancialWire) Today, the NASD takes control of the over-the-counter bulletin board from Nasdaq (NASDAQ: NDAQ), and Nasdaq’s SmallCap market has been renamed Nasdaq Capital Market, moving companies such as Beacon Power (NASDAQ: BCON) on the Regulation SHO threshold list to a new market, and such companies as First Montauk Financial (OTCBB: FMFK) directly under the purview of the NASD, which has recently launched a regulatory offensive against illegal and manipulative naked short selling.

At the same time, despite the efforts of data extractors such as Global Securities, a division of Thomson (NYSE: TOC), the U.S. Securities and Exchange Commission, which is the leading proponent of corporate transparency, has been identified at the same time as the leading opponent of government transparency.

The SEC has refused public information requests more often than almost every government agency and department, including the CIA and Pentagon, according to a survey.

Of 3,830 information petitions received from lawyers, investors and others under the Freedom of Information Act, the SEC has granted only 34%. The survey was conducted by the Coalition of Journalists for Open Government. The SEC’s year-end backlog of 8,635 requests was also larger than all except four agencies.

“The SEC has never applied the same standards to itself that it applies to the companies it regulates,” Edward Fleischman, a former SEC commissioner and now senior counsel at the Linklaters law firm, was quoted as saying.

“This is an agency that has never done very much disclosure about itself.'”

According to the survey, the CIA and the Department of Defense, by contract, fulfilled half of the information requests. The Pentagon had received 77,256 requests.

The SEC did not decide on 93% of over 9,000 requests received in its last fiscal year, and is totally jammed up now.

Global Securities Information said it had filed over 9,000 FOIAs and now has a backlog of over 6,000 pending.

SEC speakers have recently talked about corporate governance filtering throughout a public company according to the “tone at the top.” The secretive tone at the top appears to be filtering through two of its regulated SROs, NASD and the NYSE, to their co-owned Depository Trust & Clearing Corp.

The DTCC., reportedly itself under NASD scrutiny for its controversial stock lending program that some, including an 11 state state North American Securities Adminitrators Association task force headed by Connecticut’s chief securities officer, and former NASAA president, apparently believe facilitates the illegal naked shorting industry, has been very secretive about the status of shares for individual companies, stonewalling even companies’ efforts to determine their true ownerships and short positions.

Brokerage and clearing firms are apparently under intense NASD pressure to settle failed short trades in Regulation SHO threshold securities or have their clearance firms do it for them at possible substantive losses.

The NASD is in turn acting under political and regulatory pressure from the 11-state task force.

Lambiase had publicly asked the SEC to “fix” the DTCC “problem” as it was considering the adoption of Regulation SHO last year, but taking a page from numerous U.S. Senators, he and other state regulators have grown tired of waiting for Regulation SHO to do more than simply shine a magnification light on the massive fails-to-deliver problem.

DealFlow said NASD officials are concerned that stock loan programs are being used to settle failed short trades in Reg SHO threshold stocks, which must be closed out voluntarily or through forced buy-ins within 13 days. “The regulators are concerned that the stock loan are being used instead of market purchases to provide the shares needed for settlement, creating new transactions that will ultimately fail to settle as well.”

The state regulators, DealFlow said, have been “highly critical of the SEC's decision to ‘grandfather’ settlement failures resulting from naked short sales up to levels that trigger threshold status under Reg SHO.”

NAASA was particularly concerned about Regulation SHO, because it excluded the small cap market from any meaningful regulation. “NASAA said the proposal included replacing the so-called ‘tick test’ with a rule that would provide a uniform price test using the "consolidated best bid" as the reference point for permissible short sales. This, however, would not address problems relating to the naked short selling of smaller, less liquid securities, because , NASAA argued, the requirement of the consolidated best bids meant it could not be applied to securities that were not subject to real-time consolidated quotes. That included Nasdaq Small Cap, OTCBB, and Pink Sheet securities.

NASAA also questioned the wisdom of grandfathering settlement failures under the threshold level, asking why the SEC was willing to permit significant settlement failures at all.”

“While there are instances when settlement may be legitimately delayed, existing regulations provide for extensions for settlement. If the Commission continues to allow settlement failures, it may well facilitate the harm that the proposal is designed to remedy,” Lambiase warned the SEC.

According to DealFlow, Lambiase urged the SEC to reconsider its stance regarding the role of the stock borrow program operated by the Depository Trust Corp. (DTC). NASAA wrote that as a threshold matter, NASAA believes that the Commission should explicitly prohibit the DTC from lending more shares of a security than it actually holds. The utility of the overall proposed rule would be severely impaired unless the Commission undertakes to implement such a prohibition."

Brent Baker, an attorney with Woodbury Kesler in Salt Lake City and counsel to naked shorting target and eight-month old threshold list company Overstock.com, previously spent 14 years at the SEC, including time in the Division of Enforcement, was quoted as saying he believes that the SEC tried, with Regulation SHO, to put "their finger in the dike" but failed.

“Three or four years ago naked short selling was being perpetrated by promoters in the micro cap world," he says. "they would publish 'exposes' on the Internet... and they would bring pressure on these little companies."

“However, short selling has changed,” noted DealFlow. He believes the SEC does not realize that abusive short selling practices have been adopted by others and are now built into business models of large, mainstream hedge funds.

Meanwhile, the NY Post has reported that traders in Nasdaq stocks are racing to beat a rumored regulatory deadline to close out their positions — or take huge losses as clearing firms do it for them.

“Naked short sales are trades executed without borrowing stock beforehand. Naked short sellers can overwhelm an orderly trading market, since unlike traditional short sellers, there is technically no limit to how much stock can be sold short illegally, noted the Post.

The Post also reported recently that the NASD and numerous state securities regulators, led by Ralph Lambiase of Connecticut's Division of Securities and Business Investments, have vowed to increase scrutiny of naked short sales.

“A buy-in is the worst possible development for a short-seller, since he has to accept any price given,” it stated.

It seems that everytime the DTCC, which is also the target of numerous lawsuits brought by failed companies and a scorching expose in Investment Dealers Digest, gets under pressure, it begins striking out blindly in all directions. FinancialWire can often determine when the heat has been turned up because it is among the media, also thought to have included Dateline NBC, that begins to receive threats from the organization.

In February, the DTCC interfered with FinancialWire’s distribution to Investors Business Daily, and in the past week it sought once more to interfere with another distribution, saying that FinancialWire receives monies for its editorial coverage of the naked short selling issue.

Marshal Shichtman, Esq., attorney for FinancialWire, has been in touch with Proskauer Rose, the outside counsel for the DTCC, warning it of slander, tortuous interference with FinancialWire’s business and because the DTCC is owned by two SROs, the NASD and the NYSE, of First Amendment violations.

Shichtman will be similarly warning the SROs and the directors of the DTCC of what he terms their risks associated with the ruthless, reckless and irresponsible actions of their clearance entity.

In a letter to constituent investor advocate Dave Patch, whose persistence in criticizing Federal regulators over the past several years for shareholder losses at the hands of illegal manipulators was at times a lone quest, often covered only by FinancialWire, Connecticut Division of Securities Director Ralph A. Lambiase, the immediate past president of the North American Securities Administrators Association outlined for the first time the efforts a “working group” of state regulators have been undertaking to assail abusive market practices that Lambiase said has been directly responsible for “an unmistakable loss of investor confidence by the arguably millions of investors who have lost their monies.”

It was an unusual move by Lambiase to outline the states’ enforcement plans in a letter to Patch, who has been vilified and scorned by many top regulators and institutions for his efforts, which includes the maintenance of a website, www.investigatethesec.com .

Lambiase said that his efforts, and efforts of others, such as Tanya Solov, Director of the Illinois Securities Department, Tanya Durkee, Deputy Commissioner, Vermont Department of Securities, and Rex A. Staples, General Counsel for NASAA, was stimulated by Patch, and an ever-growing group of concerned citizens who have “continued to champion the issue of reform in the naked short selling area for so long,” and added that it has been those grassroots efforts that constitute the “primary reason we are beginning to see reform of any sort.” Lambiase was clear in stating that it is “your determination and persistence in seeing that this wrong is righted is in part responsible for my interest, as well as that of other state regulators.”

Lambiase, whose initial letter to the U.S. Securities and Exchange Commission stated that the SEC needs to look at the role of the Depository Trust and Clearing Corp. in allowing these abuse practices to continue, said that it seems “clear that had the SRO’s and the SEC exercised greater diligence in enforcing pre-existing rules, Reg SHO would likely have been unnecessary.”

He said his working group has begun meeting with SRO’s and issuers alike, and that it will “continue to exert substantial effort to remedy the remaining abusive practices in naked short selling until we are confident at the state level that the companines in our communities and citizens that invest in them will no longer be the possible targets of abusive naked short sellers.”

It had been previously rumored that the reason the NASD has been issuing subpoenas to a dozen or more brokerages over their “fails to deliver” and their failures to enforce buy-ins is due to those regulating at the Federal level not wanting to be trumped again by a state investigation such as occurred in several Spitzer reform efforts.

Lambiase so far appears to be taking the posture that the state group is ready to step in if the Federal regulators do not, thus “inspiring” the current efforts rumored to be occurring at the Federal level.

To make the point, he told Patch in the letter obtained by FinancialWire that “there remains a substantial distance between REG SHO and the ultimate goal of including substantive protections for small business issuers.”

It is these small businesses in our communities, Lambiase pointed out, “who take entrepreneurial risks to grow their companies through listings on the OTCBB and Pink Sheets. These small businesses not only provide employment for the residents of their communities, but also offer the general public the opportunity to invest in local businesses with promising products or services.

“While it may be true that a number of small companies lack the financial depth to succeed, they are nonetheless entitled to succeed or fail by their own honest business decisions and not as a result of the corrupt acts of abusive short sellers.

In what some believe is another swipe at the secretive DTCC, he said that “without transparency, we cannot, as yet, precisely identify each small business that failed as a direct result of abusinve naked short selling nor quantify the exact number of jobs lost to our local economies when these companies are forced to close their doors.”

In what is an unmistakable prod to the SEC, Lambiase said that institution is “moving slowly forward as Reg SHO in its current state is studied and debated seemingly ad infinitum. While slight modifications to the existing Rule may result from such an approach, a far more threatening pattern of abuse is certain to continue unless wholesale reforms are made to remedy the concerns of the small business community.”

He said that even Congress, whose members have also called the SEC on the carpet for the slow progress associated with Reg SHO may in fact be missing the point that “abusive short selling poses a direct threat to the economic well being of small business and the entire community.”

The 11-state task force reportedly was in serious strategy sessions a few weeks ago.

The New York Post quoted one regulator as saying there is “an epidemic” of naked shorting. Regulation SHO has made that evident for the world to see. Numerous U.S. Senators have called the Regulation fully ineffective, and have repeatedly called upon the SEC Commissioners to get the practice under control.

The Post said that an SEC official confirmed to it “that no complaints have been brought in the nine months since Regulation SHO went into effect.”

It quoted one state securities regulator, Bill Reilly of Florida, as saying he expects the increased effort will result in more voluntary compliance from dealers, as well as enforcement activity.

That may or may not resolve the DTCC “problem.” Recently a stock transfer agent, Transfer Online Inc., had asked then-SEC Chair William Donaldson to put a stop to the control the Depository Trust & Clearing Corp. and Automatic Data Processing (NYSE: ADP) are fast gaining over the transfer business, and to demand DTCC transparency.

Excerpts from the letter, posted at www.faulkingtruth.com/Articles/LettersToEditor/1012.html , states: “Over the years as the amount of shares held at DTC has increased it has become more and more difficult to determine who owns the shares, who is trading them and if the trading is proper. This trend, and the resulting problems I will detail below, continues to increase because a minority of the total number of shareholders are reflected on the books and records of the corporation, most activity takes place behind the wall of ownership that is designated as Cede & Co. and neither the company nor the transfer agent has any access to the underlying information.

“Furthermore, DTC recently managed to put through a rule change (Release No. 34-50758A; File No.S7-24-04) that prohibits a transfer agent from representing any company who seeks to withdraw from the DTC system. This change effectively leaves companies with no voice or choice in the management of their stock and their ability to have any transparency as to what is actually taking place in the market in regard to their stock.

“I receive calls from companies seeking information as they watch millions of shares trade in a single day, who watch their share price decrease in value and who have no access to information regarding who is behind the trading of these shares, or if in fact the trades are at all legitimate. As the system now operates, most companies have a large percentage of shares on their books registered to Cede & Co.

“Given the importance of shareholder voting and communication one would assume that the same requirements placed on transfer agents as to accuracy and reporting would be placed on ADP and Cede & Co. as they usually hold or service the majority of the shares owned in any given company.

“I have found; however, that when presented with the tabulation reports from ADP the share totals they report sometimes exceed the total number of shares outstanding for the company. Let me restate this because it is a very important part of my concern about a system that is more and more headed in the direction of increased control by DTC. The shares presented by ADP, that are the shares voted by the brokers on behalf of the shareholders for whom they hold accounts, EXCEED when added to the shareholders of record the total number of shares outstanding.

“Where are these extra shares coming from? Why are there no controls on the number of shares held in the nominee name Cede & Co. vs. the ownership on the books and records of the brokers and why is the company not privy to any information unless it pays whatever fees it is told it must pay by the organizations that control the data?

“In fact, as the system is evolving, DTC is de facto becoming the largest transfer agent in the industry even though it is an organization formed by and working for the interests of the brokerage community. If, ultimately, the S.E.C. is in place to protect investors then this issue can not be ignored because in the end when the market is completely under the control of the brokers and the organizations that represent them then the market can neither be transparent nor fair.”

The DTCC actions in the StockGate mire are the most serious, if not notorious since the agent of two SROs, the New York Stock Exchange and NASD is also peopled by some 21 directors whose companies, such as Merrill Lynch & Co. (NYSE: MER), State Street Corporation (NYSE: STT) and Goldman Sachs (NYSE: GS), are unlikely to support the DTCC in its media censorship.

DTCC board members include Michael C. Bodson, Managing Director, Morgan Stanley (NYSE: MWD); Gary Bullock, Global Head of Logistics, Infrastructure, UBS Investment Bank (NYSE: UBS); Stephen P. Casper, Managing Director and Chief Operating Officer, Fischer Francis Trees & Watts, Inc.; Jill M. Considine,Chairman, President & Chief Executive Officer, The Depository Trust & Clearing Corporation (DTCC);

Also, Paul F. Costello, President, Business Services Group, Wachovia Securities (NYSE: WB); John W. Cummings, Senior Vice President & Head of Global Technology & Services, Merrill Lynch & Co. (NYSE: MER); Donald F. Donahue, Chief Operating Officer, The Depository Trust & Clearing Corporation (DTCC); Norman Eaker, General Partner, Edward Jones; George Hrabovsky, President, Alliance Global Investors Service; Catherine R. Kinney, President and Co-Chief Operating Officer, New York Stock Exchange; Thomas J. McCrossan, Executive Vice President, State Street Corporation (NYSE: STT); Bradley Abelow, Managing Director, Goldman Sachs (NYSE: GS); Jonathan E. Beyman, Chief Information Officer, Lehman Brothers (NYSE: LEH); and Frank J. Bisignano, Chief Administrative Officer and Senior Executive Vice President, Citigroup / Solomon Smith Barney's Corporate Investment Bank (NYSE: C), Eileen K. Murray, Managing Director, Credit Suisse First Boston (NYSE: CSR); James P. Palermo, Vice Chairman, Mellon Financial Corporation (NYSE: MEL); Thomas J. Perna, Senior Executive Vice President, Financial Companies Services Sector of The Bank of New York (NYSE: BNY); Ronald Purpora, Chief Executive Officer, Garban LLC; Douglas Shulman, President, Regulatory Services and Operations, NASD; and Thompson M. Swayne, Executive Vice President, JPMorgan Chase (NYSE: JPM).

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[riverboat]

Thank you senna...for your input.....from the movie ..

" Is mississippi burning,"......FBI agent...says .about the bad buys......." the rattlesnakes are starting to commit suicide,"

river~~~