Wes Christian AMA in Bullet Points and Full Credits to u/Helpful_Egg2364
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| Author       | Source       | 
| :-------------: |:-------------:|
|  [u/Hopai79](https://www.reddit.com/user/Hopai79/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/nfnvil/wes_christian_ama_in_bullet_points_and_full/) | 

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[Discussion 🦍](https://www.reddit.com/r/Superstonk/search?q=flair_name%3A%22Discussion%20%F0%9F%A6%8D%22&restrict_sr=1)

All notes directly from [u/Helpful_Egg2364](https://www.reddit.com/u/Helpful_Egg2364/). Thank you fellow ape for allowing me to post this! Their account is not old enough to post here.

Link to the AMA: <https://www.youtube.com/watch?v=2rJujnpKiqM>

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AMA: "reported SI is *garbage*"

AMA - He believes there are 2 sets of books "like ENRON"

1.  through DTCC - audit trail

2.  ex-clearing - broker to broker outside the SEC

Everything is Fake News in the financial sector - the system is rigged

- From AMA - horses mouth -AMA: Bona Fide Market Makers - They have no actual affirmative obligations - just the privileges (from what I understand)

AMA: Bona Fide Market Makers and Prime Brokers are center stage in the rigging of the system

- He speculates that this began in late 90's early 00's when DTCC purchased the NSEC (loan stock).

- Proprietary trading became the main business of prime brokers as opposed to IPO's and wealth management

- Proprietary trading in stock lending is really just "driving the company into the ground" as a business model- We're finding that we are rarely wrong about our assessment of the system. We may be wrong about specific moves and dates but rarely about how it all comes together.---

- Confirming that the DTC is a self regulating body which was a good idea turned into a monster due to lack of enforcement. Electronic delivery is environment ripe for fraud.

- Require that stocks be delivered: This is lying, cheating, and stealing!

- He has never gone to trial on these cases because they typically settle to avoid airing dirty laundry.

- No lending shares more than once!

- Creating artificial supply undermines the entire mechanism of the stock market

- He has helped clients fight for a year to get their 10's of millions of shares.

- They are working on tools to identify when you are being delivered actual shares or counterfeit shares

AMA:

This is the same thing as a car owner xeroxing their car title and selling the same title 100 times. In that case they would be in jail but this is the *Cabal*

DL: "too big to jail"

AMA: they are preparing a major bench case!

- He is doing this for the principle

- Takes a gargantuan effort - "GOTTA BE STRONG AS APES"

- He likes us calling ourselves apes

AMA: Good lawyers representing crooks.

-"do we want to be on the side of right or the side of wrong." To be on the side of truth "or those who lie cheat and steal"

- Their team (which notably includes DAVE) is tackling this hardcore!!

AMA:

DL: This is pretty much the first time this has gotten attention "AT THE TIME" of the short selling. The popular uprising is instrumental in making a difference in breaking this cabal's influence on the market

WC: "I think this has the best chance of being successful." Referring to GME breaking the power of this cabal

WC has successfully tackled stock manipulators, working with DOJ, FBI, etc. But the punishments for many of these cases are slaps on the wrists relatively speaking.

AMA:

WC: It will take massive amounts of people to show the bullies HF + Prime brokers proprietary trading desks (make money by you buying, shorting against you, and lending your stock!).

- The "investing public" can share information and fight this behavior.

- Use cash accounts, monitor that they are not being lent, keep an eye on what your pension funds do, and other changes of behaviors.

- This behavior by Prime Brokers and HF is not right, illegal, and impacts the bottom line of all investors.

AMA: Synthetic Shares and Failures : MECHANISMS

WC:

- only answers using publicly available shares

- they have been called rehypothecation, reverse conversions, etc. But he calls them popeye and whippy principle (give me the share and I will pay you next wednesday... which never comes)

- Results in dissemination of false info. Which they (proprietary trading desk) can show to their internal compliance office, who can show the regulators,

- Naked short seller asks another broker who will sell him some shares which are marked long but are actually SHORT

- Just strategies to buy them time so the compliance and regulators off their backs.

- Naked shorting is essentially a Futures contract to do something in some form of shares which NEVER GETS consummated

AMA:

- I missed a bit to let my dog out.

- many of the trading platforms are just servers in a data centers (in NJ) making it easier to lie and harder to regulate

AMA:

WC: has seen firms using Large ITM options trading hands as a means to spoof the market

- A lot of favors between brokerages. They will sell each other options contracts which will last 90 days and then 2 days before will tear it up

- [u/Itz_Ape](https://www.reddit.com/u/Itz_Ape/) *explanation:* A option seller can "neutralize" a sold option via buying it back. It looks like when time to "neutralize" sold options comes, they ask for a new option. Rinse and repeat.

- fails sometimes exist for years

- The mission of the bad people is to drive the price down so they can keep the cash

AMA:

To be certified as a "class" for a class action suit, you have to be "in the same ball game with the same bat" all damaged in the same way.

Roundup example: All people were injured by the same company but were not a class because they were not injured in the same way (however changing because they are seeing that it leads to cancer (same damage))

AMA: Discovery process (GETTING INFO)

- Most cases have protective orders, so only parties (sometimes only the lawyers) can see them

- sometimes they get published by SEC or the parties on accident.

- They have ways to check public information with cross-sections of data but this often requires cooperation with the issuer

- Issuer contracts with DTC for certain services , such as a daily Position report to the issuer

- Daily position report will let you compare how the debits and credits are happening in comparison with what is happening in the market place

- Best way is for Issuer to contract with 3rd-party entity to "stock-track"

AMA: Synthetic Shares voting over 100%

- WC has seen this many times in many companies - SOMETIMES OVER 200%

- over half of the 60-70 companies he has worked with

- THIS DOESNT EVEN TAKE INTO ACCOUNT THE PEOPLE WHO DON'T VOTE AND THE PARTIES ENGAGED IN THE NAKED SHORTING

- he has brought this up to legislators and bureaucrats and they talk big but do nothing.

AMA: Impact of Synthetic shares

- Impairs corporate governance // company unable to carry out their basic functions

AMA: GME RECOURSE FOR OVER 100% SHARES

- GME CAN SUE the parties (Direct Claims)

- Shareholders can sue the parties (Derivative claims)

- Corporation owes fiduciary duty to shareholders, NOT SUING CAN BE A BREACH OF FIDUCIARY DUTY BY CORP.

- CORPS WHICH DO NOT SUE OFTEN TEND TO GO TO $0

AMA: CAN SHORTS OFFLOAD THEIR SHORT POSITIONS ONTO NON-DTCC PARTIES?

- No answer

AMA:

- Dilution is a damage -is compensable to various extents.

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How helpful are Judges/DTCC when it comes to discovery?

WC: You are dealing with PEOPLE. Generally: Harder to get discovery from judges in NY. State Judges take more interest in it, Federal judges less.

- KEY: be extremely precise with your motions to compel (discovery motion) explain why each document you are requesting is relevant to the trial.

AMA:

WC has been in the cause for 20 years. And he will be part of this until it is resolved or he dies. This cause is extremely important -- has the country and global economy at risk.

He is open to do a part 2.
