Create 2021-05-18-Wes-Christian-AMA-Bullet-Points.md

AMAs/Wes-Christian-AMA/2021-05-18-Wes-Christian-AMA-Bullet-Points.md

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+Wes Christian AMA in Bullet Points and Full Credits to u/Helpful_Egg2364
+========================================================================
+
+| 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/) | 
+
+---
+
+[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>
+
+---
+
+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.
+
+-----
+
+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.