The SEC's Case Against Naked Short Sellers of Medis Technologies Ltd,... -11/06/09 at 2:04 PM CSTby Judd Bagley

You can hardly blame Fat Squirrel Trading Group (FSTG) and Rhino Trading, LLC. After all, it was 2007, and illegal short selling was almost the norm. The SEC, in passing a toothless Regulation SHO, had demonstrated that it didn’t care much. With just a few exceptions, America’s financial press had made it clear that the shorts were to be belie...