July 17, 2016
The OTC Equity markets exist for 1 reason: FRAUD. Securities fraud, money laundering, and tax evasion. At the heart of ALL of the fraud is KCG/NITE which trades 1 TRILLION shares of high AML risk penny and fractional penny stocks on the Pink Sheets and OTC BB. A material fact KCG does not disclose in any SEC filings or investor presentation. In their "Shell Factory" complaint recently, the SEC begged the question: "Why would anyone need a publicly traded shell with no real business or purpose"? The answer: Securities fraud (naked shorting), money laundering, and tax evasion. I filed SEC and IRS whistleblower claims detailing the activity. The SEC, bailed out a criminal enterprise in Aug 2012 with the KCG manufactured trading "glitch" and has been doubling down on obstructing an investigation of my claims ever since. KCG is the key player in the SEC facilitated fraud on the investing public. Stocks like IMDS,CGFIA,APCX,STBV,VELA,VOIS, MHYS,NEWL,FREE, and hundreds more. Entities like Hanover/Magna,IBC,Dutchess,Asher/Vis Vires,JSJ,JMJ,Whalehaven, Alpha Capital, Southridge,Union/Beaufort/LG, etc etc etc pass fictitious notes around then convert the notes into free trading certs. BD's like Buckman Reid, Dawson James, etc participate in the illegal activity as well. UBS and Credit Suisse cross border customers are behind all of the activity. In May, 2013 Sen Wyden asked the NV,WY,DE Sec of State for information pertaining to Shell corporations set up by MF in the Panama Papers. The response was consistent: NO law enforcement inquiries in at least the last 3 years. The SEC and IRS have had my info for at least 5 years. On 4/28, 2016 2 IRS CI agents flew to Denver to meet with me and discuss my claims. Agents Vikas Arora and Nathan Sarnacki. They were blown away. NO SEC REFERRALS for ANY of the examples I showed them. Including the infamous Brown Brothers Harriman AML complaint. Like Agents Kevin Sophia and David Wagner in the HSBC whistleblower case, Agents Arora and Sarnacki were told to "stand down" and not investigate the overwhelming evidence I provided. I have also detailed my claims to House staffer Brett Sisto and Senate staffer Daniel Goshorn. But, this fraud being perpetrated goes beyond political affiliation. TWICE, the Stop Tax Haven Abuse Act has been introduced and died in Congress. WHY? Because Congress has a vested interest in perpetuating the fraud on the American people through the enacted JOBS Act. When Congress passed this legislation, there was no empirical evidence ("hard data" as Chair White likes to say) of job creation or capital formation associated with the Pink Sheets or Bulletin Board market. In fact, the opposite is true. Reverse mergers and reverse stock splits approved by the SEC and FINRA DESTROYS capital. The abusive naked shorting by KCG et al destroys capital. The shell corporations employ only a few individuals who act as CEO,CFO,Directors who facilitate the fraud. Law firms like Greenberg Traurig and Debevoise Plimpton facilitate the fraud. Now, the Panama Papers show that UBS,HSBC, and Credit Suisse were the top creators of shell llc's and corporations. ALL 3 cross border businesses are very much up and running despite Deferred Prosecution agreements. Chair White and Andrew Ceresney represented UBS and Credit Suisse while at Debevoise. But the SEC corruption doesn't stop there. Former UBS CEO Robert Wolf was a big Obama fund raiser. He is also a big HRC fund raiser. In 2009, HRC as Sec of State flew to Switzerland to "negotiate" the UBS cross border DPA based on just 4500 accounts. UBS whistleblower Birkenfeld handed the SEC and DOJ 52,000 accounts. The DPA was structured so that the activity could continue. In 2014, while the SEC was "investigating" the Credit Suisse cross border complaint, Chair White got TWO waivers to "investigate" her former client Credit Suisse. Also in Feb 2014, the BBH complaint that details my claims: Swiss banks,executing broker dealers,foreign/domestic hedge funds, penny stock money laundering. ALL of the entities un named. In a March 2014 letter to the SEC I detailed an astronomical increase in penny stock trading volumes at KCG while all of this was happening. AND, current KCG CEO Dan Coleman ran Equities at UBS under Mr Wolf and during the cross border activity detailed in the UBS DPA. The SEC IG also has my information and is actively obstructing an investigation of my claims. Mr Zinn, the OTC markets exist for 1 reason: FRAUD. CERT printing/distribution/abusive naked shorting/accounting fraud/money laundering/ and tax evasion. KCG/NITE is the market. Trading 1 TRILLION shares of these shells year after year. This is why the SEC orchestrated the glitch and bailout. So the activity can continue. Please feel free to contact me and refute my allegations.
Christopher J DiIorio