In regards to the TASER case I think you can see that the TASER plaintiffs not only got cash for the settlement and disposition of the case but also a certain amount of “hush” money. Wall Street and the hedge fund community had to prevent this case from serving as the template for possibly thousands of others. The risk is that the investors in thousands of development stage issuers through the years might learn that their investment never did have a chance to succeed.
Part of the engine driving these crimes is the method in which hedge fund managers are compensated. These guys typically make “2 and 20”. This means 2% of funds under advisement and 20% of all profits. How are the 20% of profits measured? For “open positions” like naked short sales that haven’t been covered yet they are marked to market by current share prices. If the crooks attack a “XXX” at the $2 level and drive it to 2-cents then “on paper” they’re up about 99% on their investment.
This is partly why they never cover unless forced to. “On paper” they’re making a fortune. They can solicit more wealthy investors by bragging about their “on paper” results. It’s easy to drive the share price of a company targeted for destruction down 99%. All you do is sell nonexistent securities all day long and refuse to deliver that which you sold. The mere act of covering and delivering what they sold, perish the thought, might turn a 99% profit into a 1,000% loss.
As long as the hedge fund managers collectively keep spending about $11 billion per year on fees and commissions directed to the most corrupt of the MMs and clearing firms willing to aid and abet their sale of nonexistent securities they nothing will ever change UNLESS the corporations under attack can make internal breakthroughs that weren’t planned on by the crooks.
Where the problems arise is not being able to finish off a company whose share price was manipulated downwards by 99% before the company proved to the world that it was far from the “scam” the crooks had it diagnosed as. Saying OOPS! doesn’t quite cut it as the attackers of TASER just learned.
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