Letters To The SEC About Stock Market Manipulation

SOME OF REZA GANJAVI'S LETTERS TO THE SEC

REZA GANJAVI'S LETTERS TO THE UNITED STATES SECURITIES & EXCHANGE COMMISSION (SEC) about Wall Street Corruption / And related articles

By Reza Ganjavi 

SEC’s Roundtable on Regulating Short-Selling was a Replay of Waxman Hearings on Regulating Tobacco

DATE:            11 May 2009

TO:                 Honorable Madam Chairman Mary L. Schapiro

CC:                 SEC Commissioners, Selected Members of Congress

FROM:           Reza Ganjavi

SUBJECT:      Critique of SEC’s Roundtable on Short Selling Regulation

Dear Honorable Madam Chairman Mary L. Schapiro:

I am writing to humbly give you feedback on the 5 May 2009 “Roundtable to Examine Short Sale Price Test and Circuit Breaker Restrictions” which I watched with great interest.

First off, it was a pleasure to see both your interview with Bloomberg and you chairing the panel discussion on short selling on May 5. Your nomination has been one of President Obama's best moves so far. Congratulations to you and the country for having such a fine SEC Chairwoman. I hope your actions will speak louder than words and that my optimism is correct. So far, you seem to have shaken up the SEC in a good way.

I agree with those who believe the SEC has been asleep at the wheel or that it’s been a “joint venture between the Government and Wall Street.” Its awakening is long overdue. Good luck in your efforts in really protecting investors and not criminal manipulators which many hedge funds are, in one form or another, whether they’ve been convicted of it or not. I remind you that prior to your engagement, the SEC had not, and to my knowledge, and to date still has not, prosecuted a single case against illegal, criminal naked shorting. The SEC has a long long way to go to get out of its apparent siding with Wall Street and win the confidence of Main Street investors.

Here are some of my observations and opinions about the Roundtable:

In general I was surprised by the makeup of the first two panels which to a large majority represented the interest of Wall Street, not Main Street. Invesco and Fidelity, both as Wall Street as you can get, shamelessly said they are representing Main Street because of their individual investor accounts. Nobody asked them about how much fees they get from institutional investors and large hedge funds who spend billions of dollars in fees and have analysts, journalists, and brokers in their pockets. This is not a matter of fad, but a matter of fact.

The testimonies reminded me of the famous “Waxman Hearings” on the Regulation of Tobacco Products on April 14, 1994, by the House’s Subcommittee on Health and the Environment chaired by Representative Waxman in which the "7 Dwarves", the 7 CEOs of Big Tobacco shamelessly testified, under oath, that "nicotine is not addictive".

I could not believe that Fidelity, Invesco, Credit Suisse, Citadel, and other major Wall Street firms or those with an interest in protecting hedge funds testified that there is nothing wrong with the market, and denied manipulative practices that their clients are engaged in.

These large brokers and their large hedge fund customers that were represented on the panels, even by a couple of academics, such as Charles M. Jones of Columbia Business School, clearly do not wish for more regulation. They're used to going virtually unregulated for years during Bush Administration’s hands-off approach. More regulation will mean a cut in their profit, a cut in their taking away money which Main Street should have if it was not for manipulative practices which are done so politely that these folks are shamelessly denying it even happens.

Naked short selling happens every day.  Now the SEC, after ignoring the subject for a long time, finally said the 3-day hard-delivery rule should really be followed. However, is this rule enforced? Even if it is, it is an ineffective rule without a pre-borrow requirement since during those 3 days a hedge fund can naked short a stock, drag it down, paralyze it, and then buy at a lower level and the repeat it – without violating the hard-delivery rule. This happens every day to good hard working companies that are trying to make the world a better place. And these guys have the nerve to say there is nothing wrong.

Main Street is regularly abused and bullied by Wall Street and it all goes seemingly unnoticed while the SEC was asleep behind the wheel before your time. Will you have the courage to change that and stand up to the crooked elements who are not exceptions but run rampant up and down Wall Street? On that note, I have heard numerous times recently that the SEC's enforcement division problems are due to lack of enforcement resources. However, I watched an interview with Mr. Cox in which he said this was not the case – that there were enough resources. If he was right then the problem was something else. Today’s GAO’s report sheds new light on the workings of the SEC under Mr. Cox: “Cox’s SEC Hindered Probes, Slowed Cases, Shrank Fines, GAO Says”, reads one headline, and it point to Republican Commissioners as supporting less stringent enforcement.

Contrary to what some of the speakers at this roundtable stated, the concerns about short selling are not paranoia. My concerns are very real and legitimate. I have an MBA from a top-rated Business School and lots of professional experience in various fields such as management consulting, analysis, engineering, and managing large projects. I have had several Wall Street firms as clients and am as well educated an individual investor as most get, or at least not merely as naive as Republican Commissioners Troy A. Paredes and Kathleen L. Casey, and Fidelity and Invesco representatives like to believe – one who blindly believes shorts are to blame because s/he does not understand the subject, has paranoia, is following fashion, and needs to get educated.

The problems associated with short selling is NOT just a matter of perception as implied by these Republican Commissioners and stated by Wall Street representatives. Many individual investors are well educated. You have to be knowing you’re playing in a non-level playing field. It seems that the SEC is the one what needs better education. Listen to a self-admitted manipulator, Jim Cramer bragging about crooked techniques of hedge funds and how they get away with it because of SEC’s lack of competence:

"You can't foment [create the impression that a stock is down]. That's a violation... But you do it anyway because the SEC doesn't understand it…. What's important when you are in that hedge fund mode is to not be doing anything that is remotely truthful, because the truth is so against your view - it is important to create a new truth to develop a fiction".

I am very well educated on the subject and I am still very wary, very untrusting of the financial system and believe deep in my heart that it is crooked and criminal because criminal activity happens every day and it is not stopped, and not even investigated.  The very lack of SEC rules, such as NOT requiring pre-borrow for shorting, and NOT disclosing to the public who large naked short sellers are, help and protect Wall Street to the detriment of Main Street investors and companies.  Those few rules in palce are not enforced (as proof, please show us a single case of naked shorting that’s ever prosecuted in SEC’s entire history). I am therefore upset.  I like to invest the little money I have saved through hard work and painful investments, but it is not a level playing field. The hedge funds have the upper hand, and the cop, the SEC, seems to be on their side.

I could not believe that Charles M. Jones of Columbia Business School was trying to sell a false idea so cunningly. He said if shorting is stopped after circuit breakers goes off, it could hurt the stock more because it takes away the liquidity. How do you figure that? If shorting is not allowed any more it means no more shorting. Simple. Shorting makes the price drop. Naked shorting makes the price drop artificially.  How in the world would it help a stock not fall further if shorting is disallowed when shorting is an act which makes a stock drop (supply/demand). I don’t need to be a finance professor to see his logic is false and that his whole attitude is in bed with hedge funds.

It was refreshing to hear Dr. Robert Shapiro’s academic testimony supporting pre-borrow rules and other regulations to tie up hands of manipulative short sellers.

Testimony of Michael McAlevey of General Electric Corporation was sincere and honest and not rooted in some crooked inclination and affiliation unlike some of the other testimonies which were clearly aimed at protecting large hedge fund customers.

Brian Conroy of Fidelity stated there is no problem, that everything is just fine, no further regulation is necessary, and two times he shamelessly contended that the subject is one of fashion, a fad.

Larry Leibowitz, of The New York Stock Exchange clearly doesn’t like further regulation or tying hands of shorts. He likes his commissions and his hedge fund customers.

Dan Mathisson of Credit Suisse also dominated the presentation, again, to push his agenda of “let us go unpoliced.” I was shocked that right off the bat he threatened that a proposed change will take a year to implement. Please ask him to submit the details of how he derived this estimate. I have run a lot of software projects for over 20 years including ones for Wall Street firms. One year is a long time, and what you’re trying to do is not inherently complicated. He’s just trying to scare you.

Kevin Cronin of Invesco in his opening remarks emphasized a point which was not even part of the agenda: that SEC should not disclose short positions. I think the public has the right to know who large short sellers are, and without much of a delay – a delay long enough as dictated by technical reporting constraints and no longer.  But Mr. Cronin and others on Walls Street are nervous about this possibility because they will be very embarrassed for their clients to know how these good guys could be bad guys at the same time. Companies fall in the claws of vulture financiers every day because the large shorts and their affiliations are not known. Many Wall Street firms are nervous about this because it will trim their ability to manipulate. The “front running” concern is just an excuse. Why is not an issue for long positions. Why should short sales be treated differently?

Republican Commissioner Kathleen L. Casey dominated the questioning and I felt her questions were prompting answers which were pro-Wall Street. Democratic Commissioner Luis A. Aguilar’s silence was deafening.

Dendreon (DNDN) was mentioned a couple of times during the Roundtable. Dendreon’s problems with short sellers and naked shorts are not only from last month. They go way back and the SEC did nothing about manipulative hedge funds, analysts, and journalists who helped deny a life extending safe biologic from reaching dying patients. Such can be the consequence of the policeman being sleep at the wheel, and we tried to warn the SEC about this problem long ago.

The SEC needs to mandate that all publicly traded companies are subject to a pre-borrow requirement. This will fix a major corruption hole that's bogging the financial system. I am sure the "Seven Dwarves" will disagree and tell you that we have no problems with short selling. But we indeed do.

I am as Main Street as you can get, and I know lots of other small investors who are highly educated, and we all neither trust the financial system nor the SEC. When we hear SEC speak about protecting investors, it sounds like a joke, because as soon as a small investor buys a small company stock which has a large short interest, they're entering an unfair game against a criminal group who manipulate, lie, cheat, distort, abuse the system, sell what is not theirs, and sell what they have not even borrowed (that is a crime under every judicial system in the world but the SEC tolerates it as long as you sell what is not yours and what you have not even borrowed for three days and buy it back once you've pressured the price down).

Madame commissioner, please do not let us down. Please do not let these rituals and rhetoric slow you or distract you. Fidelity is wrong. There is very much a problem. There is chaos in confidence. Small investors do not trust Wall Street, and do not trust the SEC because Mr. Cox gave us nothing more than a lot of lip service. Please help restore our confidence by going head on against manipulative shorting practices which have only one solution and that is a pre-borrow rule.  And reveal to us who our companies’ large short sellers are. Short-and-distort is not a joke. It happens every day. We feel it with our sweat and blood. Investors need protection against these rampant predators. Please help us.

In summary, it is absolutely critical that:

a)    The SEC should impose a mandatory "pre-borrow" requirement for shorting all stocks.

b)    The SEC should reveals to public, without much delay, who large short sellers are, just like it reveals who large shareholders are. Every public company deserves to know who is betting in a big way against it so that it can prevent being a victim of toxic financing.

c)    The SEC should establish a circuit breaker rule, and an uptick rule.

Kind Regards

Reza Ganjavi

<personal details snipped for web posting>

Email To SEC On Abusive Short Selling

By Reza Ganjavi

18 Nov 2015

Dear Madam Chairman White:

It was a pleasure seeing you on CSPAN. Thanks for your good work and service to our country.

I still think you should make public identities of large short positions just as long positions are public. There is no excuse for not doing so including front-running that can also happen in the long position. Hedge fund lobby with help from Republican commissioners manipulated the SEC into keeping the screws loose on shorts. Please help us Main Street and companies to know who is betting against them. And they usually engage in short & distort and the most immoral behavior to rip Main Street off its hard earned money.

Thanks & Kind Regards

Reza Ganjavi

TWO EMAILS TO THE SEC

1)

http://www.sec.gov/comments/4-590/4590-82.htm

Subject: File No. 4-590

9 October 2009

Dear Madam Chairman Schapiro:

While I enormously admire your spirit of change, enjoy your remarks and speeches, and support your initiatives to rein in on the abusers of the financial systems, I am disappointed at the composition of the recent panel on short selling and pre-borrow. The panels that discussed these topics were comprised largely of supporters of short selling, short sellers themselves, and academics who are obviously using their lop-sided research which ignore the realities of short selling that Main Street faces every day (e.g. Short & Distort) in favor of large hedge funds who are ruining the economy, specially small innovative companies, and Main Street investors.

I found it insulting to the honor of the SEC for these guys to sit there and lecture the SEC about short selling being "a force of good" while completely ignoring the very practices that many short sellers are involved in which are highly immoral, unethical, disruptive to the economy, extremely harmful to small innovative companies that are the future of the world economy -- actions which are in my opinion and legal philosophy, criminal.

Nobody spoke about a well known and widely utilized practice of short-and-distort which small companies and Main Street investors have to face every single day. I will elaborate on this theme and give you more detailed feedback at a later date but since I feel this issue is urgent, I had to write to you before finding the time to review and research all the submitted material. As I said in previous letters, the house is on fire -- Main Street needs protection now. Many small innovative companies are abused by short sellers every day and we need your protection against these abuses.

The problem is not only with naked shorting. Reduction in number of fails-to-deliver does not mean the problem of abusive short selling is solved.

Secondly, I found the discussion on whether pre-borrow and hard-locate should be mandated or not a philosophically false question. According to every legal philosophy it is a crime to sell something that is not yours and you have not borrowed. Except of course in this case where we discuss at length whether people should be allowed to sell something that is not theirs and have not concretely borrowed. What an unintelligent and pitiful discussion. This is a core aspect of the corrupted financial markets which the SEC needs to take control of and resolve by mandating immediately -- not after years of discussion and getting lectures from the short sellers themselves how they should be left alone.

Thirdly, regarding disclosure, again, a facet of our corrupted financial system is that short sellers get preferential treatment -- the people who are inherently interested in destruction of hard-working innovative companies are getting preferential treatment to those who invest in those companies and help the economy by doing so.  Another very crooked feature of our markets that the small companies that have to rely on equity markets to raise needed capital have to live with every day is that the SEC is protecting the names of large short sellers who are mostly there, and many are lobbying every day, to have those companies destroyed. This is a fact Madam Chairman. The SEC should disclose large short sellers just as it does large shareholders without any more delay than required for long positions. The current protection is very much against the Main Street which you have said you like to protect. Let's see those words turn into action.

Fourthly, what happened to the uptick rule? Lots of talk but no action.

Lastly, exempting market makers from further regulation is a very bad idea because we have concrete proof that market makers are sometimes in bed with short sellers and large hedgefunds and themselves are engaged in "short and distort". Do not every think that market makers are good boys. There are many instances of their highly immoral and unethical and criminal behavior in the practice of short-and-distort. I can think of one instance of a market maker, whose analyst was publishing faulty research reports to support their large hedgefund short clients. The corruption runs deep. Allowing market makers off the hook will not help the cleanup which is urgently needed.

I will send in a more detailed feedback in writing or video at a later date.

Many thanks for your kind consideration. We need help Madam Chairman. Small companies need help. Small company investors need help against abusive short sellers -- not just naked short sellers but all short sellers. They can still play their supposed "force of good" in the market within much more stringent regulation and not just direction by the SEC. For too long they've gotten used to raping, raiding and abusing Main Street and now they're heavily opposed to any regulation. Using a lot of arguments and their academics, they're simply trying to distract the SEC from the job that you must do: to clean this mess up, now, and not later. We need urgent immediate action. Please help protect Main Street from short sellers -- not just naked short sellers.

Best Regards

Reza Ganjavi

<phone snipped for web posting>

2)

http://www.sec.gov/comments/s7-08-09/s70809-4590.htm

Your comments for file number S7-08-09 were received on September 13, 2009.

For God's sake SEC, it's time to do something now, after years of being a completely useless organization in not just not catching Madoff but many many criminals who naked short stocks, run great companies to the ground, sell what is not theirs, sell what they have not even borrowed, etc..

I reiterate my call that "the house is on fire" and instead of your bureaucracy and delay after delay, for God's sake SEC, do something for a change.

What is it going to take for you to enforce illegal naked shorting? You don't need to invent a rocket science to reinstate the uptick rule and you don't need the comments of the hedge fund industry and naked shorts to tell you what you shouldn't be doing. You need to instate and reinstate every tool, rule, and regulation that you can think of to tie up the hands of criminals who steal the money of honest hard working companies and investors by manipulative methods.

The SEC has protected Wall Street for way too long and it is now time to get off its seat and do something for Main Street. Hello, anybody listening or is the cop still asleep at the wheel like it has been for way too long.

Reference:

<>

Letter to Mr. Robert Khuzami, Director of Enforcement

10 June 2010

Dear SEC

As an individual investor I still feel very much out in the cold vs. the powers of Wall Street and the sympathy they have historically received from the SEC and specially the Republican commissioners. So the result of Main Street vs. Wall Street is clear: Main Street loses, not only because Wall Street has more resources but because the SEC seems to be on its side. When it comes to curbing manipulative practices SEC takes too long and at the end its action is marginal. For the longest time the cop was asleep at the wheel, now we see a few movements, far too little, but better than none.

And it is not just Main Street that loses, but small companies that are victims of toxic financiers, and there are concrete things SEC can do to make this better but SEC has repeatedly failed to do anything in this regard and instead gets caught in months and years of rhetoric and useless beating around the bush. Something as simple as mandating a large short seller's identity to be available to a company would help companies tremendously in knowing their friends and enemies and who they do business with and not, but SEC has denied this right to small companies and equally Main Street because of nonsense, utterly incoherent argument posed by the hedge fund industry and supported by Republican commissioners that somehow large short sellers' identity should be protected for competitive reasons while large shareholders' identities should not (please see my last emails on the subject archives of which are available on www.rezamusic.com) under the "Ethics & Financial Markets" section).

I like to bring your attention to trading in <>, one of these rape victims of Wall Street toxic financiers with zero protection by SEC....<>...

Further to that long introduction, please investigate the latest trading of <>. The company has issued a number of warrants outstanding and the stock might be manipulated to bring the price close to the exercise price of <>. And/or please investigate the great deal of "short & distort" that goes on with <>. You may start with the large short sellers -- you may know who they are but you are protecting their identity from us and from <> to protect the short sellers (thanks SEC, you're siding with Wall Street again).

It's nice to read Honorable Ms. Schapiro speak about building investor confidence, but I can assure you, the Main Streets many individual investors know have zero confidence in the SEC presently. I hope this will change. I think you've prosecuted one naked short case in your entire history? That's better than none!!

Why can companies not know the names and positions of large entities who are betting against them just as they can regarding entities who are investing in them? Why? The reasonings I've heard so far have been completely illogical and rhetorical and shout only one thing: Because SEC wants to protect Wall Street against Main Street. Sorry, but that seems to be the fact, in my opinion.

Thanks & Best Regards

Reza Ganjavi

<contact info>

PART II -- Letter to Mr. Robert Khuzami, Director of Enforcement

Dear Mr. Khuzami:

I hope you saw my letter of 10 June 2010 (reprinted below).

May I add a couple of notes:

1) I am not accusing the warrant holders of manipulating the stock but it appears to me that this might be the case. Neither I, nor the company itself has the means of investigating whether this is true or not, but SEC does. All I can say is that <> has been a victim of manipulative practices which were immoral and illegal, but under the current rules, the company receives no protection from the SEC, such as the mandate that people who sell its shares would have to borrow it first, or the identity of people who have bet heavily against the company by shorting over 4 Million shares are revealed to the company. But I do seriously suspect, that illegal manipulation of <>'s shares have occurred and I hope you will order your department to investigate this matter. Who has done it? I do not know. Could be a one or more of warrant holders, short sellers, or people who have other malicious intentions towards the company and its rule-changing technology.

2) I am not an enforcement professional, but from a layman's view, I would perhaps suggest the following:

a) Get a list of large short sellers (which SEC has but is keeping private to protect the shorts)

b) Get a list of the warrant holders from the last offering (December 9, 2009)

c) Demand list of all traders of the warrant holders and their affiliates.

d) Demand list of all traders of the large short sellers and their affiliates.

e) Investigate their other activities -- somebody must be behind this "short and distort" and all the false publicity and misrepresentation that is going on to help push <>'s shares down.

f) Do a detailed investigation of the short term recursive naked shorting of <>'s shares (sell without hard locating the shares, cover within 3 days at lower price, repeat -- which is a convenient way to naked short but as far as the SEC is concerned get away with murder. It's unbelievable that the SEC is not mandating a hard-locate rule. This is against every criminal justice system that I know of: it is a crime to sell what you do not have and not have borrowed, but for some reason, for the SEC, this is normal, because this is the way Wall Street wants it and this is the way they get it.

You might be surprised at what you find. Doing this kind of investigation for Main Street and standing up for Main Street will highly elevate SEC's credibility both with Main Street and the Congress.

Thanks & Best Regards

Reza Ganjavi

<contact info>

Letter to Mr. Robert Khuzami, Director of Enforcement

18 Aug 2010

Dear Mr. Khuzami and Madam Chairman Schapiro:

<...background...>

While the government is trying to support and foster <>, Wall Street is trying to kill them by shorting, naked-shorting, and manipulating its stock. Like many other small innovative companies, <> relies on capital markets for funding and has gone through several rounds of toxic financing already. The SEC has not been helpful a bit. You know who the large short sellers are but you are protecting their identities for reasons which only make sense to short sellers and their supporters (including your own Republican Commissioners).

There are warrants that are expiring at the end of this month and the stock seems manipulated in relation to these warrants.

I brought this to your attention in my letter of 10 June 2010. By the end of June a lot of warrants got exercised. The trading of the stock now is even more suspicious than in June. There seems to be a determined effort to keep the price capped. The least you could do is to investigate if the people who are shorting the stock are not violating any rules. You could request trade logs from the large short sellers of <> (you have their list, we don’t). You could also look at the trading of the warrant holders and their affiliated market makers.

According to one report, since last August, 94.56 million shares have been shorted. 26.02% of all daily volume is short selling.

Many thanks for your kind consideration

Best Regards

Reza Ganjavi

EXTRACT FROM LETTER TO SEC CHIEF ABOUT CLEANING UP WALL STREET

27 Oct 2013

To: Chairlady Mary Jo White, Securities and Exchange Commission, Washington, D.C., USA

Dear Madam: 

It was music to my ears to read the news: “U.S. SEC on the prowl for rule breakers big and small” http://www.reuters.com/article/2013/10/09/sec-white-brokenwindows-idUSL1N0HZ1JJ20131009

Masses of individual investors in US securities have lost faith in the market because of the rampant manipulation by the big and powerful banks, brokers, hedge funds, etc., a.k.a. the “big boys” on Wall Street. 

The SEC over the years has developed a reputation of having no teeth. Until Chairlady Shapiro’s time the SEC had never prosecuted an illegal naked shorting case. SEC’s announcements and warnings to the financial criminals always comes across as soft and tolerant. I admire you for the strong message in this news release and hope that you turn it into some real action to clean up this utter mess and bring back confidence to the markets and Main Street investors.

Wall Street has turned into a Casino more glamorous than all casinos combined in which the owners -- the winners -- are the big boys and the losers have consistently been Main Street who get the short end of the stick from all angles including corporations which tend to favor institutional investors to retails and at times divulge info to larger investors which smaller investors do not have access to. 

It was disheartening to see the Republican commissioners’ sympathy for short sellers at the last SEC short selling roundtable I saw. The SEC bought the frivolous arguments of the hedge fund industry, short sellers, and lobbyists of the big boys, that somehow hiding the identity of large short sellers in a company is necessary (while large shareholders’ identities are publicly available). This does not thing but to give the power of anonymity to enable further manipulation, which a Commissioner referred to as “short and distort”. We’ve seen plenty of examples of that and that is a major reason for lack of confidence in the markets by Main Street.

Martin Shkreli

One example of this short and distort scheme was when hedge fund manager Martin Shkreli shorted Avanir (AVNR), and in a Seeking Alpha article (http://seekingalpha.com/article/272463-avanir-pharmaceuticals-compelling-short-sale-opportunity) he posted frivolous arguments against Arena’s patents.

He later made a substantial profit in AVNR. In the article above written on May 31, 2011, he wrote: "I promise to donate 50% of my personal AVNR-related profits to charity. I agree to be held accountable to this.” 

On February 21, 2012 his assistant wrote to me that he has "committed to donating a large sum to an organization" and that he was planning a joint announcement in the near future. To date, a year and a half later, nothing has been announced that I know of.

The company he owned at the time (MSMB CAPITAL: msmbcapital.com) doesn’t seem to exist any more. His new company / address seems to be:

Martin Shkreli, Retrophin, Inc. 777 Third Avenue, 22nd Floor, New York, NY 10017, (646) 837-5863, info@retrophin.com, martin@retrophin.com, marc@retrophin.com, pschwartz@rxir.com

[2020 update: Martin Shkreli is currently in Federal prison! Yes!]

PS -- Seeking Alpha editor was "eating from Shkreli's ass" as they say in Persian or "kissing Shkreli's ass" at the time because Shkreli was the big bad boy with a lot of money, and SA was apparently publishing BS or not publishing facts that were contrary to Shkreli's position.

Credit Suisse

Lee Kalowski & Co. of Credit Suisse initiated their coverage on Arena with a report which was full of inaccuracies and shortcomings. Main Street rolled up its sleeve and published a correction:

http://home.datacomm.ch/rezamusic/FDA-Letters-2012.html#CS

But Main Street can’t possibly withstand a gorilla like Credit Suisse, and often small companies don’t have the vision, experience, determination, talent, courage, to counter the disparagement that is published against them.

Jim Cramer

Jim Cramer is on record for admitting to manipulation but he walked free without ever getting charged. See this video: http://www.youtube.com/watch?v=gMShFx5rThI

The arrogance of Jim Cramer goes as far as saying being in a hedge fund mode you don’t do anything remotely truthful – that truth is your enemy.

This has to be more of an issue than moral decadence.

Adam Feuerstein

Adam Feuerstein works for Jim Cramer’s company, TheStreet.com and is on record for numerous publication of distortions, misinformation, and outright lies. His communications and affiliations should be investigated.

SAC Capital

SAC seems to run a shop which thrives on insider information. I have reasons to believe SAC was short DNDN before the 2007 Advisory Committee meeting.

Dr. Howard Scher, Dr. Maha Hussain

Howard Scher and Maha Hussain were involved in the conspiracy to derail the approval of Dendreon’s drug in 2007. Thorough information is available on:

www.deepcapture.com%2Fwp-content%2Fuploads%2F2009%2F10%2Fstory-of-dendreon.pdf

UBS

UBS analyst Maged Shenouda published false information about Dendreon in his research report and repeated it even after he was told it is false (that’s a classic definition of lying). This was before the 2007 AdComm when DNDN had a huge short interest.

Jonathan Aschoff

Aschoff was fined by NASD for pretending to be a doctor. In 2007 he was disparaging DNDN when the short interest was very high. He admitted to me in a phone conversation of having clients who are short DNDN.

http://www.finra.org/web/groups/industry/@ip/@enf/@da/documents/disciplinaryactions/p007450.pdf 

http://aschoff.blogspot.ch/2007/04/jonathan-aschoff-from-brean-murray-hes.html

Please investigate the above entities.

Daniel Drew said: "Anybody who plays the stock market not as an insider is like a man buying cows in the moonlight.”. I am sure that’s not what the SEC wants.

I encourage you to invite members of Main Street to your next roundtables – and folks like Patrick Byrne and Jonathan Johnson who have dedicated lots of time and resources in fighting the crooks.

Very Best Wishes

Reza Ganjavi

Welcome Message to SEC Chair & Report of abusive naked shorting, reverse conversion, and a six point investigation suggestion.

11-Apr-2013

Welcome Message to the new SEC Chief

Dear Honorable Mary Jo White:

Congratulations on your confirmation as the new head of the SEC. I wish you luck and all the powers of goodness in your new position. You have a critical role as the key sheriff in a crime-ridden town. Morals have gone out the window as people worshiping dollars are willing to do anything to get it including stepping on the truth and breaking the law as long as they can get away with it.

My main requests to you as a Main Street investor are :

1)  To prosecute market makers for abusing their ability to naked short stocks. They can legally naked short stocks but they abuse this ability to help their large hedge fund clients through use of reverse conversions and other means.

2)  Abolish rules which allow large short sellers to remain anonymous. The SEC was persuaded by the hedge fund industry to hide their identity and position using the frivolous argument of avoiding "front running". Large shareholders in a company must make public filings. Large short sellers must also be mandated to do that otherwise the SEC is helping the short sellers get an upper hand.

3)  Keep in mind, as much as hedge fund industry wants to sugar coat it,  most short selling is combined with lies, deceit, "short and distort" and other immoral and illegal activities explained above. So the SEC should have the least level of sympathy.

4)  Being a prosecutor you fully understand that it is criminal to sell what you do not have before you even borrow it. Worse, is to sell something you neither have nor borrowed. But the current rules allow short sellers to sell phantom shares and completely get away with it. That's like selling a house that doesn't even exist !!  My father had a stellar career in law and I heard about such crimes since I was a child.  Now I'm witnessing it every day happening on Wall Street legally. So short selling without pre-borrow should be criminal. And naked shorting under any circumstances should be criminal. Market makers are abusing it all the time.

Once again, welcome to the SEC; you're greeted by a beaten up, tired, abused and weary Main Street with a warm embrace and much hope.

All good wishes

Reza Ganjavi

<>

Letter to the SEC about Reverse Conversions & Naked Shorting Abuses

[ALSO SEE MAJOR INVESTIGATIVE REPORET THAT HELPED FINRA: https://www.rezamusic.com/writings/law-ethics/reverse-conversions-scam ]

Dear Messrs. Calamari, Rawlings, Sanchez:

I have great faith in you since you've already prosecuted a reverse conversion case. Another large reverse conversion on ARNA was done today and there's sufficient grounds to allege abuse. Please see the list of recent reverse conversions below and also please see a six (6) point suggestion for an investigation.

Even if a legitimate market maker is involved in this it is being done for one reason alone, and that is to cap the stock by phantom shares which a hedge fund obtains from the market maker through a Reverse Conversion -- shares that the market maker doesn't have but has manufactured (phantom shares) through naked shorting. This is an abuse of law which is meant to give market maker the ability to naked short to facilitate its role in providing liquidity. Market makers were not given the power to naked short in order to help some hedge fund -- which is trying to avoid huge losses due to having made a bad bet -- to have access to non existent shares which it uses to manipulate the stock by capping it.

Main Street is getting cheated here. I know the lobbyists of short sellers and hedge funds have helped convince the SEC that the identity and position of large shorts should not become public (like long positions are) and that market makers should be able to naked short freely, but market makers abuse these rules -- they're making shares out of thin air every day. By doing so they're helping hedge funds destroy companies which are the engines behind the future of American economy. Here, you have a very concrete case to go for. It's easy:

1) Find out if a legitimate market maker was behind these reverse conversions. If not, bingo.

2) If yes, are they using their exemption to naked short for the reason it was intended?

3) Are the clients of the market makers executing the reverse conversions already among the 64,168,688 shorts reported by NASDAQ on 3/28/13 and how did they use the shares created by the reverse conversions? Did they sell those shares quickly into the market or use them for some other purpose?

4) Are those 64 Million shorted shares located? How many of them are circulating as phantom shares through one after another cycles to prevent them from going on RegSHO?

5) If the large shorts are performing these reverse conversions, is the market maker aware of it? My hunch is the market maker is playing right along knowing exactly how he's abusing his exemption to naked short.

6) Is the SEC actively monitoring the reverse conversion positions of the market makers for ARNA to see if they are exchanging/trading them between each other to circumvent the intent of the laws allowing their exemption from locate and borrow in the first place?

Recent reverse  conversions in ARNA:

3/20/13  400,000 shares at $7.90 vs 4000 April 13 puts and calls.

3/25/13 720,000 shares around $8.53 vs 7200 April 12 puts and calls.

3/27/13  700,000 shares around $8.30 vs 7000 April 11 puts and calls.

3/27/13     75,000 shares around $8.30 vs 750  May 11 puts and calls.

4/10/13   500,000 shares at $8.10 vs 5000 May 13 puts and calls.

4/11/13 929,000 shares at 8.245 vs 9,290 May 13 puts and calls.

Kind Regards

Reza Ganjavi

Retail investor

<>

(SINCE THE ABOVE I SENT NUMEROUS OTHER REPORTS OF REVERSE CONVERSIONS TO THE SEC -- and finally the big report got FINRA to act and stop the abuse! e.g., https://www.rezamusic.com/writings/law-ethics/reverse-conversions-scam)

ANOTHER LETTER TO THE SEC RAISING ALARM ON POTENTIAL CRIMINAL ACTIVITY

Dear SEC

I have sent several reports of reverse conversions using options of ARNA by hedge funds who are shorts and to delay their own death they are killing MAIN STREET. They're wounded dog who are not only involved in SHORT-AND-DISTORT through bankers, analysts, and journalists, they are ABUSING the market maker exemption to naked short. This is not some retail holder's delusion - it's a FACT.

By the way :

1. you can not rely on entities like Credit Suisse who run dark pools to police themselves.

2. did you ever investigate why Credit Suisse's equity research reports into Investment Banking? Or am I misunderstanding the Chinese Wall rule?

3. This might even be a hint: Credit Suisse has been involved in trashing ARNA -- their coverage started with ignoring key information which Main Street had to shout back and correct the misrepresentation:  http://home.datacomm.ch/rezamusic/FDA-Letters-2012.html#CS

4. But it's your job to look into the options trading and investigate it. The use of this exemption was not discussed in the short selling round table. Those innocent sounding hedge fund lobby guys and their Republican SEC sympathizers were talking about other excuses to justify short selling. None said market makers can bend the rules to give their large hedge fund clients (or themselves) access to PHANTOM SHARES which are in turn used to KILL good hardworking honest diligent companies and retail investors who don't have the same privilege and don't even know who is flooding their market with FAKE shares.

This should be CRIMINAL under any criminal justice system except by the SEC's' rule? You try to sell a car that is not yours and you go to jail. Today, they are trying to sell a car that doesn't even exist -- which is fabricated out of thin air using options which in turn forces naked shorting he stock WITHOUT IT EVER SHOWING UP ON REG-SHO. So the criminals are getting away with it and circumventing the rules intentionally ONLY BECAUSE THEY CAN NOT LOCATE ENOUGH SHARES TO LEGITIMATELY SHORT.

Perhaps in 50 years time people will look back just as we looked back at the Madoff case when it was too late.

Dear SEC, you need to give this matter priority and INVESTIGATE IT NOW -- not in 10 years when more and more companies and individuals are raided and raped by collusion of non-regulated dark pools, hedge funds, and market makers.  THE TIME TO ACT NOW. THIS IS EMERGENCY and you have a LIVE case RIGHT NOW. The CRIME IS IN PROGRESS. Please send a cop.

Are the criminal(s) too big to catch? Too connected? Too concealed? This is no small fish here -- 60 Million shares are shorted with a potential billion dollar loss so these wounded dogs (shorts) are violating rules to delay their loss and force retail to sell - trigger margin calls - erode confidence and psychology - technically break the company's equity - and prevent access to equitable levels of financing, coupled with their short-and-distort strategy.

This will be the bust of the decade. PLEASE INVESTIGATE it.

Thanks & Regard

R.Ganjavi

27 Jul 2013

Response to SEC Survey

Main Street needs SEC's help. SEC needs to stop being sympathetic with

a) market makers who abuse their naked shorting exemption in allowing hedge funds to get their hands on non existent shares without them ever showing up on RegSHO by doing reverse conversions. How many of the reverse conversions we've reported have been investigated? In how many did the market maker comply with rules and in how many as they often say, they whispered to each other, who cares about the SEC / the SEC has no teeth. As long as the crooks think SEC won't investigate them they'll continue raiding and raping hard working Americans off their hard earned money.

b) short sellers who cripple hard working public companies and their retail investors and do so while they remain anonymous. The SEC, especially the Republican commissioners who've exhibited peculiar sympathy with short sellers, needs to stop being swayed by the Hedge Fund lobby with their frivolous arguments that hiding large short sellers' identities prevents front running. Let the crooks run against each other, create a stampede, and destroy each other. If front running by large shareholders is not an issue why is it an issue with large short sellers? A very simple question the hedge fund lobby pretends is clear and should never be asked -- but you need to ask that question of yourselves and LET THE AMERICAN PUBLIC KNOW EACH QUARTER WHO THE LARGE SHORT SELLERS IN EACH PUBLIC COMPANY ARE. WE THE PEOPLE DESERVE TO KNOW.

LETTER TO SEC

10 Aug 2013

Dear SEC:

I was happy to read your:

"SEC Issues Risk Alert On Options Trading Used To Evade Short-Sale Requirements"

http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370539762224#.UgVULKyOJBC

While it's a tiny step in the right direction, as usual it is too soft, too polite, and won't do a thing to stop the abuses.

I have pointed out instances of potential abuse on numerous instances -- if your response to it is this memo, the abusers will laugh it off.

Your "Risk Alert" is basically telling thieves to be aware of thieves. It's just as ineffective as you telling dark pool operators like Credit Suisse that they should behave and police themselves.

It won't work.

There's plenty of evidence already in your hands that abuses include market makers and they laugh at SEC, Main Street, the country, the government, regulations, and everything that is good and right, as they break the rules.

I have given up all hope that this mess can be cleaned up. SEC simply has no teeth when it comes to taming the crooks and Main Street will continue to get raided and raped off its hard working money day in and out.

It's time to get serious and investigate the very people you expect to behave and be good boys. They laugh at these "Risk Alerts" and will continue their abuses until SEC puts some of them in prison.

Unfortunately watching a short-selling roundtable it seems the Republican Commissioners are sympathetic to short sellers and hedge fund lobby and as long as that's the case the SEC will remain a mediocre policeman which once in a while manages to put somebody in jail while most criminals get away with murder.

You can't expect the very market makers and brokers and dark pool operators who are involved in the abuses of their naked short selling exemption by their large hedge fund customers who pay them millions in commissions, to police those very customers and abuses. They ARE the abusers themselves. Why is this so hard to see. And if you see it, your memo should be a legal warning that we're going to knock your doors down when you least expect it and put you in prison if you engage in this practice - we're watching you closely.

Instead, what they got is effectively: "dear lovely abusers, we're going to turn a blind eye to the abuses and pretend you know nothing about your hedge fund clients abusing YOUR naked shorting exemption. They're the bad boys, you're good boys, you need to police them." It is far more likely the "good boys" in this scenario are in the same gang as the bad boys and are helping them. Don't you think if they weren't they would not have allowed it? They love the commissions fees bribes kickbacks insider information and everything else that goes on among the crooks.  So your telling them to stop it has no value at all except to say, oh SEC sees this thing is going on and it's not going to do anything to stop it.

All the above are in my humble opinion based on my non-professional observation.

Kind Regards

Reza Ganjavi

<>

7 Sep 2013

BANK OF AMERICA - REVERSE CONVERSIONS - MANNKIND

This was published by someone about MANNKIND: on a day when BOA downgraded MNKD from 8 to 5 and the stock tanked. It's about suspicious activity on the days leading to the downgrade. Very well worth investigating. I am reporting this to the SEC because I believe market makers abuse their naked short selling exemptions with regards to reverse conversions with for example MNKD and ARNA. Best SEC has done so far is to issue a polite letter which has no teeth -- it's not even a warning. Now SEC needs to take one of these many cases - dig into the options and stock action and reverse conversions, prosecute a crook -- that's the way you clean up this mess and not by sending polite teeth-less letters.

Here's a clue:

Bank of America

There is no one on this board who thinks BOA had anything to do with the 300,000 share RC earlier in the week is there? And certainly no on on this board thinks BOA might have timed the analyst report for a couple days after the RC? Well, at least no one thinks the 300,000 shares were sold into the market earlier today. Of course not. Who would even raise such questions.

Response to a hedge fund manager

By Reza Ganjavi

Posted on SEC's site: http://www.sec.gov/comments/s7-31-08/s73108.shtml

Why Hedge Fund Manager (TFS Capital), Larry S. Eiben's rationale does not hold water and why the SEC should allow investors to know the identity of large short sellers.

The hedge fund manager objects to the rule on two fronts but his reasoning is faulty at best. First, he thinks the rule is unlikely to be cost beneficial to investors. This depends on who he calls investors. I can assure you if investors know who the large short sellers are just like they know who the large longs are, they could make much better decision and save a lot of costs involved in investing in a manipulated, rigged market while the manipulators have the protection of SEC that their identity will not be revealed. Yes, I do call short sellers who gang up on a company, spread wrong rumors, commission faulty research reports, pay journalists and others to bash the company, manipulators.

Eiben's second objection which he calls philosophical is completely without merit. The double standard is the way it is now, where large longs are identified but large shorts are unidentified to the public. That is a double-standard that benefits the shorts hugely.

'In other words, this rule creates the impression that there are more bad apples in the short selling population than in general', the hedge fund manager writes.

That is simply a fact. It is a hard fact to face for the manipulators but it is so. How many long managers pay journalists and analysts and message board agents to spread false rumors about the company? Short sellers have been known to do this far more frequently. Yes, indeed, there are more bad apples in the short selling population than in general.

Do we need to remind this hedge fund manager who is trying to lobby the SEC to continue help keep large short sellers' identities quiet that it is shorts not longs who engage in naked short selling.

Is it not time for the SEC to stop protecting the identity of large short sellers and help investors know who are the entities who are ganging up on them? At the very least it helps the companies who are victims of such manipulative behaviors, to know who to go to for financing and be better protected against predatory practices of toxic pipes. That is the least the SEC could do.

Instead of acting though, the SEC is giving more and more time for large short sellers to remain hidden and continue to wreck havoc in the financial markets and ruin good companies, and thereby further ruin the economy. Wake up SEC. It is time to fight for Main Street not for Wall Street. Let us know who are the large short sellers.

Letter to SEC Chairman Cox, et al.

24 November 2008

Chairman Christopher Cox

Securities and Exchange Commission,

100 F St. NE, Washington, D.C. 20549-1090
 

Copy to: Distribution List (hereinbelow)

 
SEC’s Sympathy With Short Sellers Who Are Ruining Good Companies

Feedback on Interim Final Temporary Rule Number 34-58785 / S7-31-08

Dear Mr. Chairman Cox:

SUMMARY

SEC should:

Stop its sympathy for short selling hedge funds and modify rule number 34-58785 / S7-31-08 immediately to expose who large short sellers are. SEC’s argument for not having this transparency makes no sense (argument below).

Make short selling of ALL companies illegal for a period of one year,

Aggressively enforce your naked short selling rules,

Add a pre-borrow requirement,

Require the prompt disclosure of all failures-to-deliver, including those which occur outside of the DTCC’s continuous net settlement system.

Replace your head of Enforcements who has done too little to enforce naked shorting rules.

Reinstate the uptick rule immediately.

DISCUSSION

Your remarks below remind me of those of FDA Commissioner, Dr. von Eschenbach, when he pledged to protect cancer patients by helping to bring them new forms of treatment (e.g., immunotherapy) and said the FDA would “be a bridge to the future, not a barrier.” His remarks turned out to be only lip service, as just a short while later the FDA instead became a barrier by denying thousands of late stage cancer patients immediate access to the biologic agent the FDA’s own panel of experts had deemed effective and safe. This decision proved a boon to the chemotherapy industry, and hedge funds that had legally shorted and illegally naked shorted Dendreon Corporation.

On October 8, 2008 you stated: "Today, we are continuing to build on that essential premise: that investors have a right to know the truth — and the risks — about the securities that trade in our public markets. Never in this agency's history has this fundamental mission been more relevant, and more urgent. The current credit crisis has shown the importance of transparency to a healthy marketplace — and how costly hidden risk can be."

Mr. Chairman Cox, let’s face it, the SEC’s hands-off approach has allowed manipulative hedge funds to continue to abusively naked short sell, which has contributed to the financial mess the country is in. You’re doing too little, too late. The purpose of this letter is to show one aspect of this SEC’s sympathy for short sellers and beg you for corrective action.

In Interim final temporary rule “17 CFR Parts 240 and 249 [Release No. 34-58785; File No. S7-31-08] RIN 3235-AK23” DISCLOSURE OF SHORT SALES AND SHORT POSITIONS BY INSTITUTIONAL INVESTMENT MANAGERS, you have protected the short sellers by keeping the identity of the large short sellers hidden from public. This is appalling. The reasoning given is the copycat concern:  "We are concerned that publicly available Form SH data could give rise to additional, imitative short selling."

Te real reason behind not wanting to make this information public seems to be the fact that big short sellers would be embarrassed and companies will know their enemies (many of whom may be posing as friends!). No wonder hedge funds have lobbied so aggressively to not have their hands exposed. If long positions are reported and can be copied, how and why is that different from short positions? The excuse that it may make the market drop is absolute nonsense. The markets drop more when abusive short sellers attack. When a company knows its enemies, it will know who to deal with. Companies will not look to their enemies to raise funds –enemies who turn around and use the shares against the company. Instead, you should be working to create a level of transparency the investors have the right to have.

The fact is, agents of certain short sellers continually posting on message boards and use other means to create fear, anxiety, doubt, and misinformation to get people to sell their shares.  And now the SEC continues to show sympathy for the short sellers. In addition, the SEC has done little to enforce its own naked short selling rules. Why does the SEC continue to follow a hands-off approach that lets the abusive short sellers and illegal naked short sellers do anything they want to destroy hard working companies who are trying to make the world a better place?

When are you going to stop showing so much sympathy for hedge funds who are ruining the economy? <...background...>

Furthermore, I encourage you to make short selling of ALL companies illegal for a period of one year, and aggressively enforce your naked short selling rules, and add a pre-borrow requirement, and require the prompt disclosure of all failures-to-deliver, including those which occur outside of the DTCC’s continuous net settlement system. Replace your head of Enforcements – a division that appears sympathetic to naked short sellers. Lastly, please reinstate the uptick rule immediately. Short sellers don’t need any more help and sympathy than they’ve been getting.

Thank you very much for your kind consideration.

Respectfully,

Reza Ganjavi

<contact info snipped for web posting>

Distribution List:

-                      Ms. Kathleen L. Casey, Commissioner, SEC

-                      Ms. Elisse B. Walter, Commissioner, SEC

-                      Mr. Luis A. Aguilar, Commissioner, SEC

-                      Mr. Troy A. Paredes, Commissioner, SEC

-                      Mr. H. David Kotz, Inspector General, SEC

-                      Mr. Eric R. Sirri, Director, Division of Trading and Markets, SEC

-                      Mr. Robert Colby, Deputy Director - Division of Market Regulation, SEC

-                      Mr. Daniel Gallagher, Deputy Director - Division of Trading and Markets, SEC

-                      Mr. James Brigagliano, Associate Director - Division of Market Regulation, SEC

-                      Mr. Timothy Geithner, Next US Treasury Secretary

-                      Representative Barney Frank, Chairman, House Committee on Financial Services

-                      Representative G.K. Butterfield, Vice-Chairman, House Subcommittee on Energy and Air Quality

-                      Representative Henry Waxman, Chairman, House Committee on Oversight and Government Reform, Member, House Committee on Energy and Commerce

-                      Representative John D. Dingell (MI), Chairman, House Committee on Energy and Commerce

-                      Representative Nancy Pelosi, Speaker of the House of Representatives

-                      Representative Rick Boucher, Chairman, House Subcommittee on Energy and Air Quality

-                      Representative Spencer Bachus, Ranking Member, House Committee on Financial Services

-                      President Elect, Barack Obama

-                      Senator Barbara Boxer

-                      Senator Charles E. Grassley, Ranking Member, Senate Finance Committee

-                      Senator Charles E. Schumer, Senate Banking, Housing, and Urban Affairs Committee

-                      Senator Christopher J. Dodd, Chairman, Senate Banking, Housing, and Urban Affairs Committee

-                      Senator Dianne Feinstein

-                      Senator Edward M. Kennedy

-                      Senator Harry Reid, Senate Majority Leader

-                      Senator Hillary Rodham Clinton

-                      Vice President Elect, Joe Biden

-                      Senator John F. Kerry

-                      Senator Richard Shelby, Ranking Member, Senate Banking, Housing, and Urban Affairs Committee

-                      Dr. Patrick Byrne, CEO, Overstock.com

-                      Mr. Jonathan E. Johnson, III., President, Overstock.com

-                      Dr. Mitchell Gold, CEO, Dendreon Corporation

-                      Greg Schiffman, CFO, Dendreon Corporation

-                      Mr. F. William Capp, CEO, <> Corporation

-                      Mr. James Spiezio, CFO, <> Corporation

-                      Mr. Matt Lazarewicz, CTO, <> Corporation

SEC Must Urgently Disclose Large Short Positions to Help Protect Small Companies Against Predator Financiers & Toxic Financing

28 December 2008

Chairman Christopher Cox

Securities and Exchange Commission,

100 F St. NE, Washington, D.C. 20549-1090

Copy to: Distribution List (hereinbelow)

Feedback on Interim Final Temporary Rule Number 34-58785 / S7-31-08 

SEC Must Urgently Disclose Large Short Positions to Help Protect Small Companies Against Predator Financiers & Toxic Financing

Dear Mr. Chairman Cox:

The SEC should disclose large short positions immediately to expose large short sellers in order to protect small companies from predator financiers and toxic financing. The administrative part of this is just a bureaucratic question which seems to be in favor of short sellers (e.g. rule number 34-58785 / S7-31-08), and hopefully SEC’s new Commissioner will cut through this red tape and let investors and small company executives have the information they deserve: who are the large short sellers?

What’s the point of protecting large banks and financial institutions against short selling when every day numerous small companies are victims of toxic financing? Without emerging, innovative small companies the future of the economy is at stake, and these polite short sellers who are lobbying SEC heavily to protect their anonymity, are killing small companies.

<...example...>

And there is a case of a large shareholder who was involved in providing financing for the company, who sells, and it seems that whenever he starts selling, the short interest goes down. It is important for the company to know if the people who provide it financing by buying shares and obtaining warrants are also short or not.

Keep in mind for the financiers who are also short this is a very lucrative business:

a)     short the stock to death

b)     provide financing. Obtain shares at a discount to market. Obtain warrants.

c)     Maintain the short position as it is protected by the warrants against a “short squeeze”.

d)     Sell the discounted shares.

e)     Pressure the stock knowing the company will need more money and slowly kill the company through this toxic financing and never cover your short position.

And meanwhile, count on SEC to never reveal who the large short sellers are. Don’t you see something toxic about this? On the other hand, look at your rationale for wanting to protect the short sellers: so other short sellers don’t learn their recipe. Do you see how utterly lame this rationale is? Please see http://www.sec.gov/comments/s7-31-08/s73108-32.pdf for more discussion of your sympathy for large hedge funds who short and are out to destroy good companies like <>.

Isn’t it time that the SEC and other regulating agencies to stop their sympathy for large hedge funds who run the show and control the media, analysts, and brokers (one large hedge fund reportedly pays over 100 millions dollar in commissions every year)? Isn’t it time for the SEC to live up to its charter and protect the integrity of the investor community and protect sharks from victimizing small innovative companies which the future of the economy depends on, against toxic financiers and hedge funds who provide financing hedged by their short position?

Isn’t it fair for a company owner, for shareholders of a company to know if the guy who’s providing them financing is also an enemy who’s short the stock? Isn’t this pure and simple common sense? Isn’t it time that after years of neglect (e.g. letting naked shorts run wild and predator pipe financiers plague good companies) our financial regulators take an active role in cleaning up this mess?

Thank you very much for your kind consideration.

Peacefully & Respectfully,

Reza Ganjavi

<contact info snipped for web posting>

Distribution List:

-                      Ms. Kathleen L. Casey, Commissioner, SEC

-                      Ms. Elisse B. Walter, Commissioner, SEC

-                      Mr. Luis A. Aguilar, Commissioner, SEC

-                      Mr. Troy A. Paredes, Commissioner, SEC

-                      Mr. H. David Kotz, Inspector General, SEC

-                      Mr. Eric R. Sirri, Director, Division of Trading and Markets, SEC

-                      Mr. Robert Colby, Deputy Director - Division of Market Regulation, SEC

-                      Mr. Daniel Gallagher, Deputy Director - Division of Trading and Markets, SEC

-                      Mr. James Brigagliano, Associate Director - Division of Market Regulation, SEC

-                      Ms. Florence E. Harmon, Deputy Secretary, SEC

-                      Ms. Mary Schapiro, Next SEC Chairwoman

-                      Mr. Timothy Geithner, Next US Treasury Secretary

-                      Representative Barney Frank, Chairman, House Committee on Financial Services

-                      Representative G.K. Butterfield, Vice-Chairman, House Subcommittee on Energy and Air Quality

-                      Representative Henry Waxman, Chairman, House Committee on Oversight and Government Reform, Member, House Committee on Energy and Commerce

-                      Representative John D. Dingell (MI), Chairman, House Committee on Energy and Commerce

-                      Representative Nancy Pelosi, Speaker of the House of Representatives

-                      Representative Rick Boucher, Chairman, House Subcommittee on Energy and Air Quality

-                      Representative Spencer Bachus, Ranking Member, House Committee on Financial Services

-                      President Elect, Barack Obama

-                      Senator Barbara Boxer

-                      Senator Charles E. Grassley, Ranking Member, Senate Finance Committee

-                      Senator Charles E. Schumer, Senate Banking, Housing, and Urban Affairs Committee

-                      Senator Christopher J. Dodd, Chairman, Senate Banking, Housing, and Urban Affairs Committee

-                      Senator Dianne Feinstein

-                      Senator Edward M. Kennedy

-                      Senator Harry Reid, Senate Majority Leader

-                      Senator Hillary Rodham Clinton

-                      Vice President Elect, Joe Biden

-                      Senator John F. Kerry

-                      Senator Richard Shelby, Ranking Member, Senate Banking, Housing, and Urban Affairs Committee

-                      Mr. Roel C. Campos – Obama Transition Team

-                      Dr. Patrick Byrne, CEO, Overstock.com

-                      Mr. Jonathan E. Johnson, III., President, Overstock.com

-                      Mr. F. William Capp, CEO, <> Corporation

-                      Mr. James Spiezio, CFO, <> Corporation

-                      Mr. Matt Lazarewicz, CTO, <> Corporation

Letter to SEC Chair, Mary L. Schapiro

Also posted on: http://www.sec.gov/comments/s7-31-08/s73108.shtml

http://www.sec.gov/comments/s7-31-08/s73108-64.htm

15 March 2009

Dear Honorable Mary L. Schapiro:

First, congratulations on your new role. I wish you the best.

May I ask you to revisit the letter that Mr. F. William Capp, the President and CEO of <> Corporation wrote to you on January 13, 2009, and my letter of January 11, 2009 which is on SEC’s docket for “Disclosure of Short Sales and Short Positions by Institutional Investment Managers (Interim final temporary rule) [Release No. 34-58785; File No. S7-31-08]”.

The direct link to these articles are:

http://www.sec.gov/comments/s7-31-08/s73108-62.htm

and

http://www.sec.gov/comments/s7-31-08/s73108-61.htm

I heard your fine nomination hearing and was happy to hear that you want to protect investors. The SEC, before your time was more about protecting Wall Street. This is not merely rhetoric. I am happy you are looking to reinstate the uptick rule. Additionally, what is really hurting small companies is toxic financing where a financier shorts a stock heavily and provides financing that allows him to get low price shares and have his short position protected by warrants. These vultures are presently protected by the SEC that has decided not to release their names.

The SEC has decided not to disclose the identity of short sellers so a competitive situation among shorts is not created (this is an utterly lame argument). But it does disclose identity of large longs. This absolutely makes no sense and is an excuse the previous SEC used to protect these vultures. The letters above discuss this in further detail and the impact of this irresponsible SEC practice on small companies and investors. It is hurting investors and the small innovative companies we invest in. PLEASE TELL US WHO THE LARGE SHORT-SELLERS ARE. You have the data. Why hide it from public?

Please protect us Chairwoman Schapiro, we need your help. We need to know if the next guy who comes to us offering us money is one of the people who has short-sold almost 10 million shares of our stock or not. Help protect us against these vultures. If the SEC doesn’t do this job who should? You are suppose to be policing the crooked elements on Wall Street not helping them by keeping their identities confidential. There is absolutely no reason for it other than sympathy. Please stop SEC’s sympathy for short sellers and protection of toxic financiers.

Thank you and good luck in your new role.

Reza Ganjavi

<personal data snipped for web posting>

~~~

NOT PART OF LETTER TO SEC -- ADDED TO THIS PAGE 22 MAR 2009 BY REZA GANJAVI

When crooks get hit themselves then you her shouts. Take UBS for example. They published a faulty report about Dendreon while Dendreon’s short numbers were huge. Brean Murray admitted themselves they have clients who are short Dendreon. And attack after attack. Was Lehman Brothers not doing this? Were they not catering to large hedge funds who short to kill? Then they got killed themselves. It’s a jungle out there:

(from: http://www.bloomberg.com/apps/news?pid=20601109&sid=aB1jlqmFOTCA)

“As Lehman Brothers Holdings Inc. struggled to survive last year, as many as 32.8 million shares in the company were sold and not delivered to buyers on time as of Sept. 11, according to data compiled by the Securities and Exchange Commission and Bloomberg. That was a more than 57-fold increase over the prior year’s peak of 567,518 failed trades on July 30.”

“When traders spread false rumors and then take advantage of those rumors by short selling, there’s no question that it’s fraud,” Pollack said in an interview. “It doesn’t matter whether the short sales are legal.”

And where was the policeman? In bed with the crooks?

“While the commission’s Enforcement Complaint Center received about 5,000 complaints about naked short-selling from January 2007 to June 2008, none led to enforcement actions, according to a report filed yesterday by David Kotz, the agency’s inspector general. The way the SEC processes complaints hinders its ability to respond, the report said.”

I am not at all sure if it was the process. A faulty process could have handled at least 1 exception. None. Zero. SEC did not prosecute a single flipping naked short case despite thousands of report.

Letter to Director of SEC Division of Enforcement

*** URGENT ***

22 October 2008

To: Linda Chatman Thomsen, Director, SEC Division of Enforcement

Securities and Exchange Commission

100 F St. NE, Washington, D.C. 20549-1090 

Copy:          Distribution 

Subject:

THE SEC HAS FAILED TO PROTECT INVESTORS AGAINST WALL STREET’S ABUSIVE NAKED SHORTING PRACTICES. SEC’S DIVISION OF ENFORCEMENT HAS NOT BROUGHT A SINGLE CASE AGAINST NAKED SHORTING MANIPULATION.  IMMEDIATE, URGENT ENFORCEMENT ACTION IS NEEDED NOW! WALL STREET HAS NOT AND WILL NOT POLICE ITSELF. 

Dear Ms. Thomsen:

Your division has failed investors and America, the economy, and the hard working small companies who are victims of illegal and manipulative naked short selling. You have not enforced SEC’s rules against naked short abusers. Your division has not brought a single case against illegal naked shorting, according to an SEC attorney. You have apparently turned a blind eye to illegal naked short sellers. 

Despite numerous formal complaints filed by investors, numerous email, calls and cries of citizens, you have not stood up for the investors, and instead you have let the institutions who naked short companies, who destroy companies by maliciously attacking their stock and prospects and financial lifeline simply get away with it.

Isn’t it time that your division, which is chartered with the noble task of protecting investors against manipulative, abusive, and illegal activity, live up to its charter and bring a case against abusive naked short selling that your own boss, Mr. Cox, has termed as criminal? Why have you not done so? Is it difficult? Is it unsympathetic to Wall Street? 

Now that you have the list of major short position holders – which I can not believe you’ve decided not to disclose publicly (another sympathetic move to Wall Street?) – you should be able to actually investigate complaints, e.g., my numerous complaints about <> (symbol: <>) having been a victim of naked short abuses. <> has been on the Regulation SHO Threshold Security List for over 74 days (yes, not the legal 3 days, but 74 days). I understand how a hedge fund can try to go around the 3-day rule, but that is also manipulative and therefore illegal.

Ms. Thomsen, the criminal naked shorts are killing the economy and great companies such as <> as an example. <...background...>

Naked short sellers are out to destroy <>, and many companies like <>. They have destroyed the stock by selling numerous phantom shares and they continue to do so, without any fear of SEC because apparently SEC does not bother about enforcing any rules when it comes to naked shorts. Making new rules makes no sense when rules are not enforced. Existing rules with regards to naked shorting are not enforced by the SEC and this gives the criminals a green light to destroy great companies like <>. Your department has not brought a single case against naked shorts. 

Ms. Thomsen, Why is <> on the naked short list for over 74 days? How do we go about requesting your division to investigate this? So far you have ignored our calls and emails. All we’ve gotten has been automatic replies from Mr. Reed Stark’s group. We need your lawyers to get to work and investigate this matter. Reading email complaints is not enough. We need action and we need it now, not next year or after bureaucratic reviews and policy discussions. The rules are there now. Your division must enforce those rules now. You have not done so, to the advantage of large hedge funds and large institutions who naked short and are killing American companies.

We need investigation and results and a cessation of so much sympathy for the crooks who have got away with it for so long because of their faith in SEC: faith that your division will never bring charges against this illegal activity. And so far these crooks have been right. Get started. Take <> as your first case. I am confident you will find that <> is a victim of illegal naked shorting. If you won’t investigate it who will?

You’re not doing the policing that is necessary to keep Wall Street from manipulative, illegal abuses. Wall Street has not and will not police itself. It is your job to do that, and you have not done so with regards to illegal naked shorting.

Prosecute a case, send the criminals to jail, and sleep better at night. It will set a tone that will help restore investor confidence. Presently, the lack of enforcement has meant people are afraid to buy shares in companies on the naked short list because they know they will probably buy phantom shares instead of real ones.

The naked shorts view SEC as irrelevant when it comes to enforcement. I’ve seen online postings from parties posed as naked shorts bragging about never having to cover, being all mighty in manipulating the company, and with no fear of the SEC. When not even a single case has been prosecuted, I believe that naked shorts have no fear of getting busted because SEC has not enforced its own rules.

Mr. Cox has said you do have enough resources to enforce the rules. So lack of resources is not an excuse. The SEC has failed. I am tired of seeing criminals run around, calling the sheriff, and the sheriff turning a blind eye. That is apparently what is happening now. Your job is to protect investors not Wall Street.

Related Note re: disclosure

You do not need extended public comments to determine if large short positions should be disclosed publicly or not. The answer is simple. Just like large shareholders need to make their holdings public, large short positions need to be public information. The shorts argue it may be anti-competitive, but that is exactly the same case with long positions.

It is time that the SEC starts creating a level playing field for all investors. Your charter is to protect investors. The public needs to know who the large short holders are. That is an act of transparency, and will reduce abuse.

In summary, investors are tired of getting raped and defrauded by naked shorts. The Division of Enforcement must take an interest in this subject and start acting NOW and enforce SEC’s own rules. Having rules is useless if they are not enforced. Is the sheriff ready to put on her hat and get out there? The citizens are crying.

Please initiate immediate formal investigations into the naked shorting of <> (Nasdaq: <>) and other companies which have been on the Regulation SHO Threshold Security List for months.

Thank you very much for your kind consideration.

Respectfully,

Reza Ganjavi

<email>

<phone> 

Distribution:

-                      Christopher Cox, Chairman, SEC

-                      Kathleen L. Casey, Commissioner,

-                      Elisse B. Walter, Commissioner, SEC

-                      Luis A. Aguilar, Commissioner, SEC

-                      Troy A. Paredes, Commissioner, SEC

-                      H. David Kotz, Inspector General, SEC

-                      Eric R. Sirri, Director, Division of Trading and Markets, SEC

-                      John Reed Stark, Chief, Office of Internet Enforcement, SEC

-                      Samuel J. Bezek, Senior Counsel, Division of Enforcement

-                      Robert L. D. Colby, Deputy Director - Division of Market Regulation, SEC

-                      Daniel Gallagher, Deputy Director - Division of Trading and Markets, SEC

-                      James Brigagliano, Associate Director - Division of Market Regulation, SEC

-                      Gloria Smith Hill, Supervisor, Office of Investor Education and Advocacy, SEC

-                      Representative Barney Frank, Chairman, House Committee on Financial Services

-                      Representative G.K. Butterfield, Vice-Chairman, House Subcommittee on Energy and Air Quality

-                      Representative Henry Waxman, Chairman, House Committee on Oversight and Government Reform, Member, House Committee on Energy and Commerce

-                      Representative John D. Dingell (MI), Chairman, House Committee on Energy and Commerce

-                      Representative Nancy Pelosi, Speaker of the House of Representatives

-                      Representative Rick Boucher, Chairman, House Subcommittee on Energy and Air Quality

-                      Representative Spencer Bachus, Ranking Member, House Committee on Financial Services

-                      Senator Barack Obama

-                      Senator Barbara Boxer

-                      Senator Charles E. Grassley, Ranking Member, Senate Finance Committee

-                      Senator Charles E. Schumer

-                      Senator Christopher J. Dodd, Chairman, Senate Banking, Housing, and Urban Affairs Committee

-                      Senator Dianne Feinstein

-                      Senator Edward M. Kennedy

-                      Senator Harry Reid, Senate Majority Leader

-                      Senator Hillary Rodham Clinton

-                      Senator Joe Biden

-                      Senator John F. Kerry

-                      Senator Richard Shelby, Ranking Member, Senate Banking, Housing, and Urban Affairs Committee

-                      Dr. Imre Gyuk, Program Manager, U.S. Department of Energy, Energy Storage Research Program

-                      Dr. Patrick Byrne, CEO, Overstock.com; Founder, DeepCapture.com

-                      Jonathan E. Johnson, III., President, Overstock.com

-                      Bill Capp, CEO, <> Corporation

-                      Jim Spiezio, CFO, <> Corporation

UPDATE :

Dear Natasha:

Thanks very much for your email from the office of the Inspector General of the SEC. I am happy that you took notice of the issues I raised and found them valuable. Three items regarding the points you made:

a) Chairman Cox has said that there is no resource issue with regards to enforcement. They apparently have the resources but not the willingness. The manipulators seem to have too much power.

b) Many short sellers are out to destroy good companies. <> for example, is a leader in clean technology, emission-free energy-storage. A short seller, in light of the stock manipulation wrote:

"New multi year low is here. What a joy to be short seller. I loving to see this junk going down the tubes." And he's also on record for spreading lies about the company. They're out to destroy good important companies which in turns means destroying the future of innovation and the economy.

c) Until the SEC (1) imposes a requirement that prior to a executing a short sale, a seller must have a legally enforceable right to deliver by the delivery date the shares that are to be shorted (like has been done in Hong Kong, Japan, Switzerland, etc.), (2) enable transparency by requiring timely disclosure of true volume of all failures-to-deliver (including those that occur “ex-clearing”), (3) makes permanent its interim hard-delivery requirement, and (4) actually enforces these rules, naked short selling will continue to wreak havoc on our financial markets.

Best Regards

Reza Ganjavi

UPDATE :

A few days after release of this memo, the company I mentioned was removed from the Nakes Short list. But others are still there. Interesting analysis by Dr. Patrick Byrne, below:

"There. Was That So Hard?

October 29th, 2008 by Patrick Byrne

In mid-2004 the Securities & Exchange Commission (itself a kind of a joint venture of the US federal government and Wall Street) adopted

Regulation SHO. Among other things, "Reg SHO" insisted that exchanges publish the names of firms being victimized by naked short selling. They left plenty of loopholes (grandfathering, offshore failures, option market making abuse) and used lots of weasel-words to say it, and

courteously stipulated no penalties for failing to follow the rules, and gave everybody until January 2005 to figure out new ways around them,

but tepid though these measures were, curtailing naked short selling was their basic thrust.

[graph shows number of naked shorted stocks drop in October 2008].

I have maintained all along that naked short selling was not a hard problem to solve: it was just a hard problem to solve without seeing

about 20 rich guys get their asses handed to them. And because they were rich and well-connected, efforts to persuade the federal government to

enforce the law were stopped dead in their tracks.

Somewhere in the middle of 2008, after the horses bolted from the barn, the barn collapsed, the barn burned, and the barn's ashes scattered to the four winds, the federal government decided to close the barn door. They enacted a subset of the reforms which Deep Capture and a handful of other activists had been suggesting for a few years. The data suggests those reforms are working. I would not stake money on the likelihood that this means much, but hope springs eternal...."

Another Plea to SEC To Regulate Financial Vultures

DATE:         16 July 2009

TO:              Honorable Madam Chairman Mary L. Schapiro 

CC:              SEC Commissioners, Selected Members of Congress, New Jersey Attorney General

FROM:        Reza Ganjavi

SUBJECT:    "The House Is On Fire" & We Need U.S. SEC To Act

Dear Honorable Madam Chairman Mary L. Schapiro:

INTRODUCTION

Madam Chairman, I have no doubt that you are sincere in stating that the SEC under your direction will protect investors, and congratulate you for the number of new investigations that have been initiated, specially in light of the organization’s past habit of deregulation and siding with Wall Street, however implicitly. Still, a lot more needs to be done, as you’re aware, outside just dealing with the financial chaos and mortgage fraud, etc. – there is a lot of violations of law occurring for so long that they’re part of the operation of the financial system and rely on SEC never intervening.

RECAP OF GENERAL URGENT ACTIONS REQUIRED 

You are well aware that there are a number of urgent changes that need to come about and I trust you are diligently working on them. They include:

a)      A mandatory "pre-borrow" requirement for shorting all stocks which is absolutely necessary in order to curtain criminal activity that often goes undetected. 

b)     Public disclosure of those who hold large short positions in public companies. The public simply has the right to know that; moreover, this information is absolutely critical for the companies themselves so they can distinguish their friends from their enemies and avoid toxic financing. The opponents of this rule argue it hurts competitive advantage (“front running”) among short sellers who often victimize companies whose only fault is they’re an innovative small company and can’t stand up to large vultures. This argument is frivolous. Instead, the same rule to long positions should apply to short positions, namely, public disclosure with a slight, not long, delay.

c)      Establishment of a circuit breaker and an uptick rule which seems to be taking ½ a year to do. The house is on fire Madam Chairman. Every day that Wall Street is favored over Main Street the people and the economy suffer.

And this is why Wall Street hates more regulation – it is used to a SEC which is a cop asleep at the wheel. You witnessed the reactions of Brian Conroy of Fidelity (who claimed there is no problem with short selling), Larry Leibowitz of The New York Stock Exchange, Dan Mathisson of Credit Suisse, Kevin Cronin of Invesco at your last roundtable! They were absolutely appalled at the idea of more regulation. And meanwhile Main Street is crying for protection. Wall Street wants to make its Billions grow, Main Street wants to protect its investments against Wall Street vultures and manipulators who have set up an uneven playing field with no referee around, and small companies want to take their products to market and need a financial structure which is free from the manipulative practices of criminal vultures, brokers, hedge funds, and ruthless, shameless, ethics-less entities that dominate Wall Street. SEC is presently is our only hope. Please do not let us down. 

WE NEED THE SEC TO INVESTIGATE MANIPULATIVE TRADING OF <> CORP. (<>)

With that lengthy introduction, I bring to your attention a recent case of alleged abuse by short sellers which I encourage you to vigorously investigate. Abusive short selling is happening every day and it all goes unnoticed by the sleepy cop, which is the SEC as we’ve known it, but hopefully this is changing. I warned you about Dendreon a few years ago and it went unnoticed but no everybody is talking about the manipulations that went on with Dendreon. <> is another case. Here is this great company that’s doing great work (see recent statements of two Senators below), but manipulators are trying to kill the company. We need SEC to step in and investigate this. 

KEY QUESTIONS

In the case of <>, was the short selling that was done legal? Were shares located? Was the 3-day rule abused? Was there an attempt to short in order to manipulate the price so as to hamper the company’s ability in raising the money needed to meet US Dept. of Energy requirement? Were these short sellers connected to the already large short interest in the stock? Did the short sellers engage in the public distortion of the company? Were the large blocks posted on the ask side slightly above the current ask not designed to manipulate the stock? 

For God’s sake, it’s worth investigating at least one company’s trading. I told you about Dendreon’s alleged manipulation a few years ago, you ignored it, now you’re all talking about Dendreon. <> is another case. Another great company which is heavily manipulated by the very Wall Street entities you’ve been protecting (e.g. by not telling the public who they are). 

ENDORSEMENT OF U.S. DEPARTMENT OF ENERGY

After over 10 years and 150 million dollars spent on development of a state of art innovative clean energy storage system which is at the heart of the Green Economy, <> (Nasdaq: <>) secured the third ever granted loan guarantee by the US Dept. of Energy. 

THE SEC IS SIDING WITH WALL STREET NOT MAIN STREET

The current short interest in <> is 8,240,325. SEC has protected the large short sellers from having their identities revealed to the investors and to the company. This by itself is a case of the SEC siding with Wall Street and protecting Wall Street’s interest instead of Main Street’s. 

ALLEGATION OF MANIPULATION BY CLIENTS OF ISE AND OTHER ENTITIES

Ever since then, a market maker, ISEG (ISE) has been placing very large lots up for sale in a way that appears manipulative. A Google of ISE indicates other companies had the same issue with this entity. ISE is an exchange and its clients are brokers whose clients are hedge funds. An ISE representative, Sean, told me that they place orders to short stocks without ever checking if the stock has been located or not. That due diligence, he said, has to be done by the entity that places the order to short, and my guess is the SEC never checks if that due diligence is done prior to these large shares, which my gut feeling, having followed <> for years, is that they’re not pre-located and not pre-borrowed. This is an allegation not an accusation of wrongdoing but it seems very strange that as soon as <> gets this great news, such large blocks are sold by ISE’s client(s) and in many instances large blocks are placed at slightly above the ask price so as to scare buyers and promote others to sell – in a nut-shell, a possibly manipulative practice.

Motives for it would be for ISE’s client to buy lower, to cover a short position, to increase a short position, to hope in participating in fund raising by getting a bigger chunk of <>, and so on. Whatever the motive, this practice, if this entity is not locating the shares or does not have the shares to sell, is manipulative and illegal. 

The SEC should investigate the trading of <> after July 2, 2009 when the U.S. Department of Energy offered $43 Million Loan Guarantee to <> to build the world’s first Flywheel Energy Storage facility in New York. In addition, the New York State Energy Research and Development Authority (NYSERDA) granted the company $2 Million for the same project. 

The most active market maker / exchange in this period has been ISEG (ISE): “International Securities Exchange” stock exchange, which is owned by Direct Edge (545 Washington Boulevard, 6th Fl., Jersey City, NJ 07310 , 201.942.8200) which is partly owned by ISE Options Exchange (60 Broad Street, New York, NY 10004  (212)943-2400) which is a subsidiary of Eurex derivatives exchange which is jointly owned by Deutsche Börse and SIX Swiss Exchange.

CONGRESSIONAL ENDORSEMENT OF <>

Here are a couple of quotes about the significance of the event which was followed by massive manipulation and short selling to hurt the company, the country, the economy, the small investors, and to help the short sellers which already hold a big grip on the company with a large percent of the float.

Senator Edward M. Kennedy said, “<>’s electricity storage system is exactly the type of technology the nation needs to meet the clean energy goals essential to a safe and sustainable future. With this strong support from the Department of Energy, this ground-breaking company will help lead the way forward.”

Senator John F. Kerry said, “This loan guarantee is an example of how the federal government and Massachusetts technology pioneers like <> can create a partnership between government and industry to solve the greatest global challenge of the 21st century.”

Congresswoman Niki Tsongas (D-MA) said, “<> is just the second company in the country to be offered a Department of Energy loan guarantee for innovative clean energy technologies. Their homegrown technology is helping to drive the clean energy revolution across the country, while creating outstanding new clean energy jobs in our community.”

Thank You Very Much

Kind Regards

Reza Ganjavi

<contact details withheld for web-posting>