As some of you longs here may remember, I and others have railed aganst the naked short saga for years. As an amateur I did the best I could complaining many times over the years. Realizing the futility of all this effort, I pretty well gave up in disgust and resignation. We all know the fox has been made CEO of the hen houses everywhere now...an old, hackneyed lament paid no more heed.

However, I did give it one last kick several months ago, only to get the expected type of reply that we are all familiar with. For any interested, here is the OSC reply followed by my complaint to them. ...and thanks to Silverbull for all the incredible info he posted over the months. I don't know where he gets the time and energy, but kudos to you SilverBull...and I hope you don't mind my "borrowing" of your precious efforts to send as a proof source in my last missive to those who are responsible for our protection but do the exact opposite. Can we even dent their arrogance?

Dear Mr……:

I acknowledge receipt of your most recent complaint to the Ontario Securities Commission (OSC) concerning naked short selling and citing trading in shares of ECU Silver Mining Inc. as proof of "criminality".

As we have pointed out in previous responses to you, the Investment Industry Regulatory Organization of Canada (IIROC) regulates operations and standards of practice for debt and equity marketplaces in Canada and enforces the Universal Market Integrity Rules (UMIR). UMIR has provisions relating to various trading practices, including manipulative or deceptive methods of trading, short selling, front running, best execution obligations, order entry and order exposure, as well as trading halts, delays and suspensions. IIROC will have monitored the trading activity you cited in your stockhouse quote and it will have already brought the matter to the attention of OSC staff, if IIROC determined this trading could have violated any provisions in UMIR.

With respect to your concerns regarding short selling generally, you may find the following information of interest.

Along with the other members of the Canadian Securities Administrators (CSA), the OSC is currently reviewing suggested amendments to the regulation of short selling that have been proposed by the IIROC. IIROC's proposals are available for public review in its Notice 11-0075 - Provisions Respecting Regulation of Short Sales and Fail Trades. This document is available on the IIROC website at www.iiroc.ca, however for your easy reference, I am attaching a copy of the Notice as a PDF document.

(See attached file: Regulation of Short Sales and Failed Trades.pdf)

This IIROC document, issued in February 2011, invited comments on its proposals. IIROC received 16 submissions before the comment period closed on May 26, 2011. These comments may be of interest to you, and are also available for public review through the IIROC website. Links to each of the submissions are currently provided at:

http://docs.iiroc.ca/CommentsReceived.aspx?DocumentID=14604580516B48F88A0BCFA629781242&LinkID=752&Language=en

Page 35 of the Notice makes reference to a joint notice that it proposed be published by both the CSA and IIROC. That joint notice is currently in re-draft but should be ready for release fairly soon.


Sincerely,

Jeffrey Fennell
Senior Inquiries Officer
Ontario Securities Commission
inquiries@osc.gov.on.ca
416-593-8314
1-877-785-1555

The information in this e-mail should be taken as a guide. The content is not intended to provide investment, financial accounting, legal, tax or other professional advice and should not be relied upon or regarded as a substitute for such advice. We recommend that you seek advice from a qualified professional adviser before acting on the information or content appearing in this e-mail or any information or content on a web site to which a link has been provided.


From: ……. @ ……
To: inquiries@osc.gov.on.ca
Subject: Systemic Canadian market corruption
Date: August 30, 2011 01:36 PM

Many have complained to your notice over many years to no avail. I have emailed you in the past and finally gave up re the inconsistencies in the Canadian trading markets. I believe it was up to me to provide you with proof.

The Canadian precious metals markets and others have not been free trading markets for years as the small investor, the taxpayers who pay your salaries, have been the victims of theft. The opaque criminal activities of the most powerful banking and fund institutions and others...that have endured and grown for years has now reached a most egregious peak...especially with effect to the fraudulent naked shorting of securities on both the TSX and TSV...and other illegal practices.

The OSC and other regulator bodies and monitors have turned a blind eye to all this...and as such, appear to be complicit. Here is just a speck of proof of that criminality...as provided by a poster on the Agoracom ECU board site. I expect nothing more than a boiler plate reply.

ECU: If there was any doubt about criminal CIBC's intent.....

posted on Aug 30, 11 12:07PM (Log in to use the IP Check tool) [?]

.....check out this manipulative spread at 12:00 at C$.70--7 separate offers.

silverbull50ECU: If there was any doubt about criminal CIBC's intent.....

posted on Aug 30, 11 12:07PM (Log in to use the IP Check tool) [?]

.....check out this manipulative spread at 12:00 at C$.70--7 separate offers.

silverbull50

IMO, this is what is behind the daily suppression of ECU

posted on Aug 10, 11 10:53AM Use the IP Check tool [?]

Like many others, I watch the trading of ECU 24/7, as well as the suspicious placement of pre-market offers. I had suspected shortly after the merger announcement on 6/24 that the naked shorts, which I estimate to be as much as 15-25 million shares, would begin to cover aggressively in order to completely unwind before the Sept. 2 merger would force them to cover.

Much to my surprise, not only has that not happened, but the naked short campaign has been elevated to an even higher level which accounts for the daily decline in the stock amidst higher gold and elevated stable silver prices. Furthermore, there has suspiciously been no usage of offer "icebergs" during this 6+ week decline--a trading strategy frequently utilized by large sellers determined to not reveal the entire size of their blocks. This tells me that most of the selling is not from the long position but rather fresh naked shorts whom only want to sell short strategically. (The legal "official" short position is only 3.9MM shs= 1.2% of the outstanding float.)

Yes, the "long-metal---short miner" collective hedge fund campaign has remained in full swing, but of course, ECU and AUMN/AUM have significantly outperformed the rest of the sector to the downside over the past 6+ weeks.

In past postings, I have discussed the suspicious trading of brokerage houses like Jitney, CIBC, and whomever disguises under "Anon." I have pointed out with supporting data that the average buying price has usually been higher than the selling price of each firm on the majority of the trading days. I have concluded that these are non profit-motivated entities looking to capture a penny here or there, but rather entities willing to take daily losses in order to maintain pressure on ECU, prevent a squeeze, and protect their large naked short positions. In other words, "lose a little now" but hopefully gain "big" when major shareholders bailed out down low.

Let's focus on the most visible suspect, Jitney(99). Since the merger announcement, "whomever" is trading through #99 has traded the stock on 32 days. On 25 of those 32 days (78%), the firm lost money! On 5 of those days, the firm broke even (16%). On only 2 of those 32 days, were trades through Jitney profitable (6%). NO PROFESSIONAL ENTITY COULD TRADE THAT POORLY, NOR REMAIN IN BUSINESS WITH THAT TRACK RECORD! And, ironically, Jitney has actually bought 2.57 million shares and sold 2.31 million shares during this time, for a net +258,300 long position.

Here is the supporting evidence from Stockwatch (I hope the cut/paste is successful):

Broker Positions for C:ECU Broker #99 from 20110624 to 20110810

The only modus operandi I can possibly conclude from all of this is that the entity behind this trading (as well as CIBC/Anon, et al) is determined to protect his massive naked short position by "derailing" the merger with Golden Minerals. Knowing that it will be extremely expensive to cover such a large naked short position with a deadline soon approaching (late August), this entity is desperately trying to break the willpower of ECU shareholders and drive enough of them to a "NO" vote! Or, he is praying that large insitutional shareholders will get frustrated by the price action and "dump" large blocks of stock that the entity will be able to pickup at low prices.

If you believe in ECU and this merger, refrain from feeding this illicit entity and the complicit trading houses. Or better yet, recognize the "gift' that these idiots are now providing and "double down!" The "checkmate" is right around the corner.

Silverbull50

ECU: Check out these two suspicious pre-mkt offers

posted on Aug 11, 11 08:48AM Use the IP Check tool [?]

Most legit (ie: long) sellers would never offer blocks of 500M and 120M pre-mkt without equally-substantial visible bids.



T:ECU Market Book By Order 08:35:21

ECU: IMO, this is how this "official" short/naked short saga will play out

posted on Aug 26, 11 08:37AM Use the IP Check tool [?]

BTW, Check out the leftover offers of CIBC(79) from yesterday's close.

6 separate orders all placed after 15:42 EDT--merely 18 minutes to close.

The blatant manipulative, systematic suppression never ceases to amaze, even with a merger around the corner. There is no way these are "long" sales, seeing that it would be ignorant to show so many offers. These orders remain pre-mkt at 7:35am EDT this morning(see below). Stunningly, there remains no indication of any attempt to cover yet.

FWIW, my understanding is that after the "official" approval on 8/31 by the regulators (and following the ECU/AUMN vote count/approval on 8/30), the last day of trading for ECU is 9/2. Theoretically, accounts should receive the newly issued AUM/AUMN shares on 9/5. Being a holiday in U.S., it might not show up until 9/6 for U.S.accounts.

In regards to the unwinding of the "official" and "unofficial (naked) short position, I'm sure some corrupt Bay/Wall St. firm has been making arrangements for weeks to bail out their "short" client by recruiting institutional shareholders with large blocks of ECU who are willing to sell for some premium above the otherwise-converted value into AUMN. In other words, the crossing price is some premium above the close on a specific date.

CIBC/Jitney protect their client by continuing to pound the stock lower and make sure it does not gain any upward momentum.

My guess is that the block will cross at the close of 9/2 and CIBC will be the complicit partner in crime. Any bets?

Any buyers still around might want to cause a little havoc and purchase near the close 9/2.

Silverbull50

T:ECU Market Book By Order 07:35:03

Bid Ask

Spec Time Broker ATS Size Price Price Size ATS Broker Time Spec

08-25 15:33 22 T 7,000 0.61 0.62 5,000 T 79 08-25 15:42

08-19 10:16 1 T 3,000 0.60 10,000 T 79 08-25 15:43

08-19 10:20 1 T 5,000 20,000 T 79 08-25 15:44

08-19 10:24 9 T 10,000 10,000 T 79 08-25 15:46

08-19 10:55 7 T 20,000 7,000 T 19 08-25 15:50

08-22 07:37 7 T 2,000 10,000 T 79 08-25 15:52

08-22 10:06 7 T 4,500 20,000 T 79 08-25 15:56

08-22 15:35 7 T 100,000 0.63 3,000 T 1 08-25 15:11

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