The story of VKNG involves the most outrageous fraud I have
ever seen in the market.The fraud I am talking about here is
not in the stock itself.Instead this fraud is related to the activities
surrounding the stock.
It seems that after the stock slipped out of control of someone
who intentionally was trying to keep it low to even beneath a penny
and keep individual investors away until some desired time in the future,
that someone refused to accept the reality of that situation.What he
did instead is that he started his naked shorting activities and the
stock remained on the SHO list from 11/13/09 to 01/04/10 continuously.
ftp://ftp.nasdaqtrader.com/symboldirectory/regsho
During that same time a big shareholder (Midsummer Investment
Limited) filed a group of filings claiming the buying back of shares they
sold when the stock was moving up and filed for that selling on the
16 of November.The buyback filings happened on the 14,15,17
and 18 of December 2009 and claimed the buying back of all
2428000 shares they sold earlier.That buyback couldn't sound
more fake than it did.
Shares were very scarce,yet there were not any sign of an attempt
for buying shares to be delivered to the naked positions.Instead the
price kept going lower and lower.
All that left the following conclusion unavoidable.The shares buyback
claim was just a trick to make the fake shares sold during the naked
shorting attack stay in the system and treated as real shares.
But wait..there is more..
The company was in need for some financing for its new project.
So it appears that to complete the trick ,on 01/07/2010 Dutchess
Opportunity Fund,II, LP.signed a very special financing deal with
the company allowing it to sell at unknown future market prices.But
the deal put a condition of effective registration before the company can
use that financing.
While the first part of the trick did not need any support to be seen
clearly,nevertheless with the later part we seem to have a complete
plan.Now everything around seems to fit in an appropriate place and
make strong connections with other things.
The plan is simply to sell fake shares to drive the price lower.Then keep
those fake shares in the system with the help of that shares buy back
claim.Then keep the price low and wait for you or your partner who
singed that financing deal to receive shares at theses low prices.
Until the end of April we were defrauded of about 4.4 million shares
and more could be sold after that or on their way to be sold.
Thursday, June 3, 2010
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