First of all, thank you so much for hopping onto this at the last second that uh. We really really appreciate it here and we're just kind of trying to learn a bit more uh. A lot of us have been following, especially with the super sonic ama, and then you followed up with fox uh literally yesterday and like with national attention and everything like i know. Those clips are very short, so we thought we could learn something from you and give you a platform to give us a more in-depth explanation of what's going on, there's a lot of interest right now: amc gme, naked shorts um.

So thank you and i'll. Just kind of let you take it, you could introduce yourself and we could just run from there sure so, i'm wes christian uh our firm's actually been renamed because of the exit of some partners. It's christian levine law group. Now so it's christian levinelaw.com, our new website's up in a couple days, um other than that the same people here just a couple of uh partners who frankly didn't want to continue uh doing these kind of courageous fights that we do across the country uh on.

Not only on wall street, on other things, so anyway, let's talk about what's going on in the naked shorting space and in particular, why, frankly uh the the reddit and the subgroups wall street vets and others are changing that landscape. Thank you, god. Okay, that's happening! Okay, so for 20 years i've led several legal consortiums, uh and and that consortium i will tell you you're, going to hear more about it in the future. I don't want to name firm names, but i've just added two more national firms to my consortium to help fight this.

So there will be, you know, a total, including all the law, firms about 1500 lawyers. A total are in those firms and there will probably be 20 lawyers every day of every week, working on fighting this uh when we started this out 20 years ago. Frankly, we didn't know what we were doing uh we had to learn the clearing system and and more appropriately, the deficiencies in the clearing system and the loopholes that were being used. At that time, i will tell you my personal opinion is: is that this really started when the depository trust corporation purchased the national securities clearing corporation in the late 90s and early 2000s, the nscc, if you go to the dtc website, basically, is there for continuous net Settlement functions and those functions really uh are are in connection with stock lending or lack of a better word, okay, so so uh at the end of the day, um we learned about all those systems and we at the time was john quinn, who was a billionaire Lawyer, who was a a client of mine personally and also a partner in the big cases uh frankly, i went to him when we need financing and these these cases cost an astronomical amount to prosecute.

So back then, most of this was being done to bulletin board companies and lower level companies. It was being done by making the spiral financings by that they would loan you money, the bad guys would they would get repaid in stock and whatever stock. What your stock was at ten dollars at that time, they would manipulate it to two cents and then, and by virtue of making you a three million dollar loan, they would own your whole company because they manipulated it down from ten dollars to three cents. So the game back then, was not only to uh get cash; it was to buy technology or destroy your company, because if they could destroy the company they bury all the naked shares.

I call them dead bodies, they bury all the dead bodies by virtue of uh. Nobody care nobody wants to deal with it. Nobody wants to admit to their wife, they even invested in this company because it's zero okay, you lost all the family's money, uh the best story of that which i think back then we were on nbc. Uh was rodney young and eagle tech communications so from there the bad guys at that time were mainly hedge funds and people that did convertible debenture financings, also called pipes: private investment in public equity pipes, what wall street figured out which they always seem to do is That they can make more money doing this and they're one thing: i've learned about wall street.

Is they don't let their clients make more money than them? So what they figured out is hey, i'm going to start doing this myself and so the the bad guys uh grew from being some hedge funds and some outliers to the proprietary trading deaths of the main firms. Okay, goldman merrill credit suisse, deutsche bank, ubs, morgan et cetera, okay, that doesn't mean they're, not that they're, the only players there are some of the players um and then uh in that process. We began to see that that all the big firms were getting involved in it and the first big case we did was overstock. We did that with the infamous patrick byrne, who is a dear friend, is an incredible patriot and, as we say in texas and i've used this phrase before has cantaloupe balls.

Okay, the the bottom line is, is that um, patrick and ian o'quinn filed that case in california, with the local council stein and lubin uh. That case was it was against a dirty analytics firm. So what you see in these cases is uh an incredible amount of misinformation. Misinformation is the stock.

That's being sold, isn't real in a large part because they're electronically selling it when they have nothing. They involve analysts that talk smack about the company. They pay analysts. In this case, we proved that rocker partners uh paid a a a a analytics firm, called gradient, analytics camelback research to write crap about overstock every time.

Every time they would give overstock an f. Well, guess what you give a company an f every time, people start to short the stock, so another way to make sure that your short position that you're taking is rigged. Is you get other you? You seminate false information, so that other people pile on? We call it the pylon effect, sorry to cut you off, but do you think that could be going on actively against amc because i feel from i i don't have the exact numbers on it, but anecdotally. Every time i look at something from market watch.

Motley fool. Cnbc just to list three, it's always negativity. In my opinion, it doesn't seem to be balanced. Do you think that could be occurring again like a consortium? I don't know what's occurring with respect to amc, because again i'm i i like to report on evidence and facts.

I haven't looked at that, so i don't have that evidence, but if you want my opinion in general, is it still going on systemically and habitually? Yes, it is um, we call it. You know, report and distort okay, so so uh are distorted. In short, there are several phrases so from there uh we handled other companies sedona. You you've heard me talk about that.

That involved some criminal elements amro and and the badian brothers. We worked with the justice department. There. We worked also with the justice department operation.

Bermuda short in the early 2000s that involved mark valentine another criminal uh from canada, uh uh. We we, you know, took depositions. In austria, we took depositions in bahamas. This has an international flair.

Organized crime uh was - and i believe, still is involved in this at a very high level. It's a great place to launder money uh. You know so there's money laundering in this uh, which some of my colleagues have talked about, uh, so um uh. We then uh lobbied congress, along with others to get reg show passed, which went into effect january 1 of 2015.

It's a toothless rule, but at least it required closeout requirements uh under the 200 series, rules of rec show at least required you to borrow a share or have a reasonable basis to believe you borrowed a share, but wall street like always figured out ways to circumvent It when reg show first came out it published over thousands of companies on the list and how that worked back then is there were fails to deliver lists. Well, unfortunately, the name of the company that got raped got published the rapist didn't get published. The people that were naked shorting, but nonetheless it showed it helped us in the court system because before then the judges said basically i'm a fruitcake that i need to go live on mars. Okay, because this can't be happening and i need to wear a spacesuit.

One judge used exactly that phrase next time you come into court. Mr christian wear a space suit; okay, wow, something like that: okay, uh and - and i don't know if he's talking about me or one of my colleagues in atlanta that wasn't the case in georgia. So anyway, long story short from there um we began to see a trend of massive stock lending, which is another big component of this okay uh. The the same share is being lent and led how that happens.

Uh, a hedge fund will call for a locate, a locate means i want to borrow a share, that same locate will be given to attend, i'm making it up 10 people on the same day and there's only one share. If you look at the regulatory actions, many much of which many of which we've been involved in providing evidence for with the sec you're going to see that the stock lending is an enormous money maker, sometimes the the fee for lending that stock on hard to borrow Stocks is 50 or 70 percent yeah. You may ask: how could you pay that? Well? The answer is because you paid nothing for it: okay, yeah, because you sell something it cost, you nothing, you made it up electronically, you sell it and so, and so, if you give a locate when you don't have shares it's like free money, it's just another way To steal money, guys right so when those locates are given that facilitates the creation of another counterfeit share. Okay, so imagine how that multiplies in milliseconds over time it's astronomical yeah, so so another way that the the whole information pipeline is distorted is once reg show went into effect.

The broker said well, i know how we can do what we can do. We can take these shares instead of marking them short, because on a share you got a a sales ticket, so to speak. You've got to mark short long or exempt well, they would mark it long, which is a lie. It was a short and, of course it would fail to deliver, but then guess what it doesn't.

It's not subject to reg show because all this is done by computers, so the computer doesn't pick it up because it's mark long. So guess what that doesn't go into the reported short interest that the sec reports every two weeks, so whatever the short interest, whatever you think the short interest is in amc and any of the others is a lie. Okay, because there's a an incredible amount of longs out there that have been marked long, that are short now. I don't know that i can't tell you that from an evidentiary perspective, because i have not done the analytics on those two companies, i will tell you every company we've looked at.

That's that's occurred, go google up sec.gov and look at the enforcement actions for mismarking your tickets. It's hundreds of millions of dollars, they're they're they're in the regulatory actions. Okay, go! Look them up: okay and those same regulatory actions, you're going to find that that firms big big companies, merrill goldman, were fined for pre-programming computers to where the the computer programs it along when it's a short, so they actually designed intentionally software to lie. Okay.

In addition, it would it would, it would take a hard to borrow stock, which puts it in a separate bucket and make it say it's an easy to borrow stock, all of which is designed for more carnage to to to allow them to to to create more Havoc, okay, more stealing so ultimately, uh. Then we begin to see other ways: they're, manipulating the system, one they have. They get with class action, lawyers to file class actions against the company, because that's bad news for the company they go after the company's auditors. That's another way: they whack you um uh hell in the taser case.

One of the other big cases we did was the taser gun company a great company, the smith family owned. In fact, one of the smith's sons is a part of reddit okay because he got so upset about it. So the point is there is that they would they would not only loan stock they didn't have that would not only sell stock they didn't have, they would go to the option market and and create synthetic shares. So what that means is party a gets together with party b, one buys a contract for 50 000 shares of puts.

Another party to the conspiracy buys 50 000 shares of calls and if you have a put in a call and a contract that expires the same time that is referred to in all these wall street terms. As a synthetic share, they would show that to the compliance department to say, hey, i have these shares coming. That's my reasonable basis that i can borrow them so give me i'm going to short 50 000 shares, but guess what two days before those contracts matured they rip it up. So it's another lie.

It's a fake document. It's something they created to look like something other than what it is. Okay, so that's another way they game the system. They then begin to hide the fails to deliver in their subsidiaries, which again is in these regulatory actions.

Everything i'm telling you is in in public information that can be substantiated, not from our cases, because i can't really share any evidence from those cases because they're subject to protective orders unless, unless it's been put in the public domain like for example, in overstock, you know The the the defendants mistakenly filed some documents with the court, which is on the internet. It shows that that that uh either merrell or goldman, i forget which uh we're we're telling their customers. We will. Let you fail, don't worry about it, we will let you fail.

I mean basically admitting you could sell endless amounts of shares and never deliver anything. So anyway, from there, we've learned that market makers now are intimately involved in this they're involved in two ways. Although we continue to work with congress and sec on reg show one of the loopholes that still exists is if you're a bona fide market maker, you don't have to borrow shares. Well, i got news for you.

I haven't seen any bona fide market makers in all the cases we've looked at, you know we filed and prosecuted 20 of those cases, including the most recent one we just filed in new york, which is styled harrington h-a-r-i-n-g-t-o-n, that's filed in the southern district of new York, you could download it on pacer, but but these market makers i believe, are now housing a bunch of these naked shorts. That exemption is being abused by many market makers, and what that means is is you can hide in the bowels of a market maker, a ton of naked shorts? That's number one number two market makers are there to make a market. The concept of making a market which is a viable function, is to create some buys and some cells in the company, okay create activity. I support that um.

Just like i support you know. Bonafide shorting, if a company's bad and the the the the the board is lying and their financials are crap. Well, yeah short them. I don't care, but do it legally not illegally, so so anyway, what else the market makers are doing is they are doing spoofing? Go.

Look there's there's several new regulatory actions on spoofing and and stacking stacking is another way, so imagine the company's fixing to come out with good news, and imagine i want to stop that because one thing you have to understand these failures to deliver are contingent liabilities on These brokers books. They do not want that stock to go up because if they lose control of that it could break them. Okay, which is why they're scared of your group? All you all you all! You uh apes out there, okay seriously, it's the you're beating them at their own game. So so that's a contingent liability that they got to write a check for, in fact, their auditors require them to keep enough cash on hand to buy in that share on a given day.

In other words, i have to have an offset to that contingent liability in the form of cash, which is why they manipulate it down every day. Why? Because the more they manipulate it down that cash reserve, they have to have to go, buy that stock in they get to put it back in their operating account because they don't need to hold that cash anymore, because that stock is marked to market every day. That contingent liability is marked to market every day, so the lowering goes, the more that cash they get to use for themselves. You follow me yeah it's, instead of having to hold it to buy that stock in if the stock goes down whatever.

That number is that it goes down you get to put that in your piggy bank, okay, okay, so so what they're doing is putting all these offers up. So imagine that there's 10 market makers that are putting 10 000 share blocks of stock at 10.. 1001. 1002.

1005, 1008 and there's so much stock there that you almost can't plow through it, but guess what happens again. Much like the options. I talked about two minutes before the close. All those offers come down.

Okay, so they're lies all they're doing is attempting to control the market by fake information. Again, the amount of fake information in this thing from soup to nuts is endless. It's all lying, cheating and stealing, that's simple. That is, base form lying, cheating and stealing so so that brings us up to today, and so now, what they're doing, i believe is is uh taking more uh, uh uh failed, delivers and putting them overseas.

Okay, uh one of one of the ways to circumvent this is to put them overseas and then, lastly, another way they're doing all this is x clearing. What you need to understand is the failed data that i talked about yesterday, which is just a glimpse of the failed data on fox business did not include the x clearing trades. The failed data reported by the sec bi-monthly comes from the dtc. The x-clearing trades do not go through the dtc.

You could look at it. If i was going to talk to a jury, i would say they got two sets of books. Ladies and gentlemen, they got the dtc books and they got the other books just like in ron y'all, remember that company, which of course was in houston where i live. Sadly, so those are off balance sheet type things, and so that those that x, clearing is where merrill clears directly with goldman or goldman clare is directly with morgan they're doing it.

I believe, they're doing a ton of trades that way. Okay, these regulatory actions bear some of that out too. So all of you apes can learn a lot by reading at scc.gov. All these regulatory actions go back starting with 2002.

I would tell you that a good percentage of those has a lot of our work involved in them. Okay, and so i applaud the sec for what they've done. The problem is uh, there's so much of it going on that. Frankly, it's not making what they're doing isn't making an impact, but at least what they're doing is proving up what i'm telling you okay, so you got to start with what you guys are doing, exposing it to the light okay and in in informing people, because it's So complicated that most people don't understand it, but i think after the example i gave yesterday about xeroxing your car title 100 times selling it to 100 people uh, but you only have one car.

You know we say in texas. You know that's just stealing. Well, that's what that's, what they're doing they're they're electronically creating shares? You might say: how are they allowed to do this i'll, tell you why? Because they they converted the whole system to electronic. I wonder why, oh because of efficiency, my friend efficiency, yeah, right, okay, so the bottom line is this whole electronic transmission um, is what where the problem is okay, and so what we've done in our cases, which is important for you understand matt, is, is imagine you're A church or you're a synagogue and you're at one of those cake walks and you're walking around to the music at the fair and there's 12 chairs.

But there's 24 people walking. We figured out a way to stop the music and expose the 12 people that are standing up, that don't have chairs okay. Now that may or may not be the people that perpetrated it all, because all this stuff happens in milliseconds, you know all around, but ultimately there are many many more shares that are issued because of this loophole that they can do it electronically and they're, not delivering That exists in every single case. I've looked at which i've looked at over 60 or 70 cases we've only taken 20 of those, so that's kind of an overview, a quick journey through the stock fraud space uh from 2000 to present man.

I really really appreciate that foundation um. I think that helped a lot of people - and i just want to be respectful of your time, so i want to specifically dive into like one thing and maybe in the future. If you have time, we could bring you back. I got about eight minutes, then i got ta go okay, eight minutes like so.

We can cover this so a little foundation just for the newer apes, listening, basically uh and correct me when i get wrong. If i own a million shares, i can. I have the capability to loan those out and someone can short the million shares. So what you're saying right now is, if i own a million shares and let's say i'm a hedge fund, i call my brochures, i'm like yeah sure loan it out.

I want to get those interest payments you're, saying that these brokers are allowing multiple shorts to actually short. My million shares. That's your xerox example of like okay, one of them is legitimate. If they took my million, it's the other nine behind them that they're they're reusing it as if so they're almost um.

I know you use spoofing for a different example, but they're almost spoofing the fact that they were allowed to borrow that's how they're getting away with it. Because that's a big question is like we. We hear this term naked shorting a lot, but there's confusion of how they pull it off and you're, saying that brokers are they're, saying you're, saying that they're reusing the exact same shares of oh sure sure you could borrow these. You could borrow these and, at the end of the day, when they're clearing their trades at the dtcc, that's when it comes up they're like oh, no, we actually xeroxed it in your example and like that's, where it's kind of coming from is it am i getting That right and then you did i'm going to make it even simpler.

Yes, the answer is yes to your question. They are loaning the same share out multiple times. That's number one but number two in many instances, because don't forget if they're doing it on their prop trading desk they're the seller they're the clearing agency. They don't borrow anything because it's all done in-house.

Okay, do you understand so so it's both ways: they're they're loaning out, shares multiple times, making money on that and then they're selling shares that don't exist and borrowing nothing okay. So that's like a straight up naked choice. Yes, i'm taking it. Okay and and many of those are done x, clearing because again, it's harder to find - or it's done through a dark pool or whatever, which is why there has to be more transparency here.

Okay, now something else, you need to know that the apes need to know, and this is real important. If you keep your your shares in a cash account, that means they can't be lent they're segregated by law under rule 15 c33. It can't be touched, but guess what several years ago, merrell got fined over 400 million dollars. You want to know why, because they were using the cash account shares of their customers worldwide, not just in houston, texas, worldwide to operate their proprietary trading desk shorting platform.

You understand so what? What does that tell me? There are no boundaries in this game. Okay, it is simply, you know, going to be hand-to-hand combat, which is what we've been doing, but your group has added a new dimension to that not only of awareness and not only of investing in companies that that are good companies. In your mind, i don't know uh and need help, but also uh being another bully out there. That's not gon na.

Let a company get bullied. Okay, because what's gone on until you guys showed up, is that the the kids in the in the school yard? You know who are sitting there. Fighting you know are fighting eight or ten guys trying to beat me up. Okay, so this that you changed the dynamic now i've got eight or ten bullies that have come to help are coming to help me, okay, and so that way, you know it's a fair game because now they're exposed, which is why you're, seeing as charles said yesterday, You're, seeing a lot of firms saying i'm not going to take those open options, i'm not going to take those trades.

You know why they're saying that they don't want the risk associated with the illegal aspect of it. You understand they don't want the exposure, knowing that, ultimately somebody's going to come, knocking saying hey, you need to you need to close that out. Okay, because in the old days i picked up the phone and said i got to buy you in, which is what they're obligated to do. Then.

They'd hang up the phone and their friend that they just had on the phone is going to call him and say i'm buying you in also oh you're, going to buy me in well, then i'm not going to buy you in because it's so rampant, it's so Systemic, our whole system is full of i o use, which they have a legal term, for it called security entitlement. It's actually under the uniform commercial code. It is basically an iou and a poker game. Okay, that's how i would tell it to you so and but but the problem is they can't make good on the iou, because don't forget the corporation is the only person who has the right to legally issue shares.

That's why we got them once we get. This figured out they're dead. Okay, because the corporation is you know, as we say in texas, is the only mother cow that can give the milk okay there's no more cows out there, boys? Okay, it's real simple! So if you don't have anything from the cow you're dead, so the the corporation can only issue so many shares, and so in these cases they've issued electronically multiples of those issued in outstanding shares, and so that's where they get exposed. And then you guys have come alongside and said: hey.

You can't have 150 percent of the issue in outstanding shares in gamestop or whatever i don't know what the numbers are in amc and and you you can't do that and and and that's the first little indicator and then you dive in and then and then you Go down all these roads, i've described and again good for us after 20 years in the ditch fighting hand-to-hand combat, we pretty much know every little sword, they're going to use every little trick, they're going to use whatever and and they're always trying to be smarter, but Guess what you know stealing is stealing and ultimately, if you can get past all the motions and all the fighting they're going to settle the case because they don't want any of these cases to go to trial. That's how nasty they are because they are stealing from good companies that can save lives that can give us a better lifestyle that could do all kinds of things to improve our life. So it's not just the money, they're, stealing matt, it's the jobs, they're killing the families they're impairing the technology, they're, destroying the lack of the the lack of integrity in our capital markets. For god's sake, you know and really the stability of the united states.

This is financial treason on the united states of america. This is financial treason on the united states of america. I'm telling you i believe strongly. I trust our experts we've had for many years.

I mentioned a couple of them yesterday: suzanne trimbath, rob shapiro and others. I believe it's over a hundred trillion dollars this problem in the united states over a hundred trillion a hundred trillion stock market trillion. Just like now, that's over 20 years. Okay, the the the point is uh uh, a a trusted friend said it best.

They have stolen, in my belief, the entire retirement of an entire generation wow. Okay, wow, i mean that's my belief, okay and and i'm entitled to my belief after putting in you know, tens of thousands of hours literally my personal time, in addition to everything else, i do this isn't. This is only one group of cases i do so, but but it's it's my passion this one, because it's impairing the united states and families and marriages and jobs and people, and when you do that by god, that's a that's sacrosanct. You need to be punished, not fine! You need to be put in prison, you know it's real simple: either, deliver it or go to jail if matt you and i counterfeited 20 bills, we'd be in jail by next thursday, okay, really and what's happening here.

None of these people have gone to jail, some lower life people have, but none of these big firms have gone to jail. It's ridiculous! It's ridiculous! Anyway. I got one more minute yeah, so i mean just to be respectful of your time. Obviously, uh you're more than welcome to come back when you have more time.

We can discuss this, but right now just to give something my viewers to like kind of hang on to right now, in your opinion, who has the smoking guns? Is it actually these prime brokers, who are just like willy-nilly, printing new shares, or is it the hedge funds, or is it like a concerted effort between the two who is holding the smoking gun right now? It would, it would depend on which company you're talking about, but i would make a general statement and then let me give you the evidence for that general statement, but i think it's primarily the prime brokers. Let me tell you why. Okay, go look at the financial statements, they're public record they're in queues and case with the sec of those financial firms and see where they make their money. Proprietary trading, ding ding, ding stock, landing, ding, ding, ding, okay.

So that's all you need to know. Secondly, back that up with who has the sec find for all of this in the violation of rex show, space just put in sec.gov reg show violations which is really naked. Shorting violations. Okay, a ballpark go look at who's being fined.

For that. I will bet you and i'm just guessing 80 of those fines, if not more, are against prime brokers and so again follow the money. Like every other legal case, i do follow the money. Follow the money.

The prime brokers generally aren't going to let their clients make more money than them, so will they loan money to hedge funds, sure uh or einhorn, and those guys and stevie cohen, who i'm not a big fan of and others? You know doing this uh uh. You know, don't know depends on the particular company, but but and yes, they have to have a prime broker involved in this. Because don't forget the people with with the big money are the clearing firms. They call them the primes, the prime brokers, uh merrill goldman credits, duchy bank, ubs, morgan, um, and so ultimately, that's where most of the evidence is uh and then i'll end.

With this statement, thank you go look at the obligation warehouse. The obligation warehouse is the graveyard where a lot of these shares are being kept. Those include x, clearing shares, actually the obligation warehouse is advertised on the dtc's website. Imagine that you're not delivering shares - and you actually have the balls to put it on your website and say here - is where we're housing them in hopes that we're going to somehow get those shares delivered.

Well, that's, ladies and gentlemen, it's called the obligation warehouse. What a nice name for the poor person who purchased those shares, who got nothing that are dwelling in the obligation warehouse, so wow we're going to be looking into that. Frankly, as time goes on with this larger consortium and as uh sunny and cher said, the beat goes on. Okay, i like that uh well uh.

Thank you so much for joining in we'll catch you another time. When you have a bit more time, we could dive into this even more, but i know everyone just thanking right now. They really really appreciate your time and enjoy the rest of your day and we'll catch you soon. I will and let me just say thank you to all of your group.

You keep it up. You write your senator. You write your congressman, you keep everybody informed, you make more demands, you help those companies that you think have some fundamentals to invest in and and come together and fight this okay, because it's truly going to be a total effort and you guys and gals are an Integral part of that believe me to my core: that's the truth! Okay, all right, we will definitely fight on. Thank you.

So much have a good one. You too bye-bye you.