GenesisIntermedia Stock Who's CEO Was Ramy El-Batrawi Listed on Initial 'SHO List' for Excessive Fails for a Period of 105 Cons

LOS ANGELES, Sept. 7  /PRNewswire/ -- GenesisIntermedia (GENI) stock who's CEO was Ramy El-Batrawi was listed on the first official SHO list published January 10, 2005.  GENI was listed as a SHO qualifier for excessive fails for a period of 105 consecutive trade days.  Yet, in those 105 trade days, not a single share in the company has traded.  Still today millions of shares are still short in GENI, states Mr. El-Batrawi.

Naked short selling, which is failing to deliver for the purpose of depressing a stock price, is a large problem in the US stock market.  The buyers all paid cash for the shares, and the sellers defrauded them by not delivering (which has been illegal for 72 years).  For years the SEC said there was a problem, and then in 2005 they passed regulation SHO to address it.

GENI was attacked by a group of aggressive short sellers intent on depressing its stock price.  Many of these short sellers sold GENI stock short without first borrowing it.  Naked shorters built a position larger than the available float.

GENI voluntary delisted itself from NASDAQ and starting in 2002 began trading on the pink sheets at .0001, but short sellers stayed short.  Their motive for not covering their position is not to pay taxes on their enormous profits they made illegally shorting GENI.  As long as they do not cover their short position they do not have to pay taxes.  That is why after three years of being delisted from NASDAQ GENI's stock was on the initial SHO List.

Selling stock short and failing to deliver shares at the time of settlement with the purpose of driving down the security's price is a manipulative activity, in general, violating various securities laws, including Rule 10b-5 under the Exchange Act.  Generally, Investors must complete or "settle" their security transactions within three business days. This settlement cycle is known as "T+3," shorthand for "trade date plus three days."

To be listed on the Regulation SHO threshold security list there must be a minimum of 10,000 shares and 0.5% of the issued and outstanding shares available recorded in the CNS system in a failed settlement status.  This level of trade settlement failures must also persist for a minimum period of 5 consecutive trade days before qualifying for the list. 

DATASOURCE: GenesisIntermedia



CONTACT:  Ramy El-Batrawi of GenesisIntermedia, [phone]

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