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Message: RE: MM Myth imo

RE: MM Myth imo

posted on May 24, 2006 07:52AM
Drebbin:

What dribble are you posting???..I used to work for the NASD and conducted many examinations & investigations of OTC brokerage firms. Have been on the floor of the old Pacific Stock Exchange and in brokerage back offices. Later, I was the Compliance officer for a bond house.

While at NASD,I personally uncovered a bond manipulation scheme in a thinly traded stock. Two to three traded the bonds back and forth to each other ran up the price, then bailed. I`ve also seen brokerage firms move people into high-risk strategies when the customers profile is directly opposite. I`ve also seen forged trades and firms directly trading a customers account without customer knowledge. Wedbush, a big regional firm in LA, ``clears`` i.e. executes for many small OTC firms, they are in a league of their own. I`ve seen guys trade lettered stock, Rule 144 restricted stock. Salt Lake City, Western OTC used to be the home of more convicted broker-dealers than in all of the U.S.

NASDAQ has come a long ways and regularly reviews suspicious trading patterns in individual stocks. If you`re in OTCBB land, forget it. They don`t call them the ``Pinks`` for nothing. NASD is responsible for regulation in this area, but rarely looks at anything in this area, they are much more concerned with NASDAQ trading patterns. The major problem is lack of enforcement. Rarely, are individuals hit with anything more than a slap on the wrist, assuming they are even brought to court. NASD takes care of their own.

Virt

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