8000inc Issues Letter to Josephine Tao SEC Presenting Naked Short Evidence

May 31, 2011 - PRLog -- Dear Associate Director Tao:

This analysis compares differences between the certified TA records and the shareholder count for only 13 brokerage firms and the shares held within their accounts evidenced by shareholder records and testimony. Those brokerage firms are the following:

Data

The data used for the analysis was the transfer agent (“TA”) certified shareholder reports and the verified testimonies and shareholder account records. Both sets of data are deemed to be accurate. The greatest number of shares recorded by the 13 broker since, as outlined in Assumptions below, when the data is compared, is taken as the absolute shareholding.   It is assumed that neither brokerage nor shareholder would claim to hold more shares than they actually hold and as, and in any event, is confirmed through certified and verified records. As the Company is only assessing the difference, the analysis only identifies shares greater than the total number of shares issued by the company confirmed through the TA certified records.  

Assumptions:  

We assume for this analysis that (i) the shareholder records and written testimony are true and (ii) using the “TA” “certified” shareholder records (that is, the mandatory TA record of shares held by named individuals and brokers).

   Any difference between the two sets of figures must be added to the total number of shares counted because, simply, given both sets of data are verified, any greater verified figure must be deemed as more reliable; and
   Added because the figures given to the TA, as absolute by the brokerages must be deemed correct and minimal based not the fact that the short positions held and admitted by E*Trade are not included in the TA records.
•   The figure calculated can only be assumed to be the minimum naked short position held in EIGH.pk, as the analysis only uses the facts from 13 brokerage firms and from 60% of the shareholders.  

As stated by the SEC, there are short positions held in EIGH.pk; and if there were a fair and orderly market then the indentified naked short position would be zero.

Process  

Using the TA certified report for all other recorded brokerage firms holding EIGH stock and representing 40% of the total number of shareholders of 8000 Inc.

Total shareholding by shareholders using only those figures that could be unquestionably proven
(A)    136, 379,047
Total shares recorded by the TA certified records for the brokers NOT counted in the shareholder brokerage share count
(B)   10,251,585
Positive difference (excess shares) between the 13 brokerages counted for the shareholders and the certified records provided by the TA for the 13 brokerages. Simply, the higher number recorded must be correct
(C)   21,236,048
Total number of shares verified and accounted for (verified shareholder count plus certified TA figures for the 13 brokers plus the positive difference ((A) + (B) +(C))
(D)   167,866,680
The data for this analysis is available through the TA and the Company, all of which has been supplied or can be supplied again to the regulators by the Company.

Data Excluded:

•   To clarify, this analysis does not include the records of 45 brokers, or 40% of the total number of shareholders, listed on the certified TA reports of shareholders and records.
   
Key Points:

•   Based on the above analysis in “Assumptions” above, if a broker claims to hold a higher number of shares than has been counted by the Company, then it is assumed the brokerage firm is right.  Based on the above analysis in “Assumptions”  above, if the Company’s shareholder count by broker, evidenced by shareholder records and written testimony to confirm their shareholdings, is greater, then the shareholder count is assumed to be correct.  •   
Findings:  

1.   The total number of common shares issued by the Company is 151,824,700 (of which 13,000,000 are in the process of being cancelled relating to two cancelled acquisitions noted above).
2.   The difference between the total number of shares claimed by the brokerage firms assessed using the shareholder records and the certified TA records, and thus assumed to be holding naked short positions, is 21,236,048.
3.   Using only the verified figures for just 60% of the total number of EIGH.pk shareholders and only the certified figures for 13 brokerages, the minimum number of EIGH.pk shares counted in the market is 167,866,680.
4.   Therefore, we submit the minimum empirical number of naked shorts held in EIGH.pk (based on factual records from the TA , selected brokers whom we believe are carrying illegal short positions and shareholders is 16,041,980 being confirmed and verified.

We submit that it will be hard, if not impossible, to argue against these facts and this analysis. The Company has diligently provided the information, its opinion and evidence. Notwithstanding being maligned based on the Consent the Company is quite prepared to enter into relating to its prior careless press releases, the figures and diagrams issued within this statement are based on facts and, we submit, are unassailable.  We believe that all non-provable, incomplete, inexact or interpretative data has been removed. The figures and the facts are based specifically on the maximum provable and demonstrable figures provided by the named brokers, the Company and a significant number of our shareholders. No figure is included that, in our considered judgment, cannot be proven. Therefore, the conclusion of 16,041,980 naked short shares sold in 8000 Inc., in our opinion, can be relied upon as the minimal number of naked shares sold to the public.

Candidly, we believe the only reason the Company could establish this analysis is its close relationship with its shareholders who are incensed about this fraud.  Moreover, this has led to the trail between brokerage firms cooperating with this shorting against EIGH.pk, the import of which suggests that brokerage firms participating in shorts do not report illegal naked shorting in any available format (other than internally), thereby successfully hiding behind REGSHO and SEC records.  

~       We ask the SEC to take action as this information suggests (and, in our opinion, dare we say, proves).  We believe the SEC and the public have been misled, probably defrauded and your rules (and those of FINRA) have been ignored.  And for these reasons plead that the SEC and/or FINRA require a buy-in and/or take other pre-emptive regulatory action that will reverse this fraud upon both EIGH specifically and, more generally, the public markets.

Thanking you in advance, Ms. Tao, I am

Yours truly,


Thomas Kelly, CEO
8000 Inc.

www.8000inc.net

For the full version of this analysis, please visit the 8000inc Facebook page.

This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. The words "estimate," "project," "intends," "expects," "believes," and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbour" provisions of the Private Securities Litigation Reform Act of 1995. For a more complete description of these and other risk factors that may affect the future performance of 8000 Inc., see published disclosure documents at www.OTCMarkets.com  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made and the Company undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

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