I think this may involve the practise where brokers "cover" company executives warrants and options, until they are sold. Meaning, for example, an executive, or director of a company may wish to exercise their warrants, but do NOT have the money to buy them with. The broker, on what could be considered as "good faith", recognizes the shares/warrants, as being actual shares, sells these shares, actually creating a "naked short", and pays the director/exec the balance, then delivers the shares to the new owner within 3 days. This practise is actually quite easily traced and does infringe and perhaps even incriminate the stocks Transfer Agent. In all actuality, the practse is illegal and is yet another example of how the money people take advantage of oblivious participants in the markets. In the case you post about, it is clear "enticement", through the promotional efforts, that offer incredible civil action with incontestable evidence. However, because of the way the judicial system is designed, (to favor money people and the perpetrators), any Civil awards granted by the courts are never paid, because the accused has already disposed of most, if not all of their assets before a civil suit ever got to court. Not only this, but the securities levy fines to the perpetrators, which advertently cuts into the rewards an investor may receive. As you can see above, the investor is up against systems that leaves him/her, the victim of not only the loss of investment, but the interferrence of security agencies cutting into the pennies on the dollar received by the investor as a reward.