The Banking and Strategy Initiative

Chillin' out till it needs to be funded

The Markets can do without..

Artificial demand in unlisted and penny stocks..Bridge Financing is blamed for this specific issue..Read on, a tweet showed me this:

According to Investors, a web of schemers (including several
persons no longer defendants) used securities loans to
profit contemporaneously with the inflation of GENI’s stock
price, rather than by selling the stock after the price rose
(which would have depressed the price). It worked as follows.4
Officers of GENI first issued themselves unregistered
shares of the company. Such shares may not be publicly
traded, but the GENI officers loaned them to a broker-dealer
called Native Nations Securities, Inc., receiving cash collateral
in return. Richard Evangelista, an employee of Native
Nations and apparently a longtime associate of Breedon, falsified
the records of his employer to make it look like the GENI
shares had come from other broker-dealers. Native Nations
then lent the shares (cash collateral coming back) to Deutsche
Bank. Breedon was in charge of this account, which continued
to absorb unregistered shares of GENI stock. Eventually,
Breedon and his associates at GENI developed a chain of
broker-dealers that came between Native Nations and Deutsche
Bank in order to increase the amount of capital for the
scheme and to insulate Deutsche Bank from any fallout
should the scheme collapse.

The GENI officers used the cash collateral to day-trade in
GENI’s publicly traded shares. This created the appearance of
investor demand. That appearance inflated the stock price,
which in turn required the borrowers of GENI stock, from
Native Nations to Deutsche Bank, to provide more cash collateral
to feed the cycle. It also increased the rebate payments
to the borrowers, from Native Nations down the line to Deutsche
Bank. It seems Deutsche Bank gained the most from the
rebate payments, however, because the intermediary brokerdealers
in the chain paid out a percentage of the rebates they


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