Petition Closed

This is important to the millions of employees who work at affected companies as well as the investors who invest in them directly or indirectly via funds and who suffer from the serious financial damage this type of abuse causes.

Letter to
Representative Gloria Negrete Mcleod
Senator Charles Schumer
Senator Orrin Hatch
and 19 others
Senator Patrick Leahy
Representative Judy Chu
Senator Tim Johnson
Senator Chuck Grassley
Senator Al Franken
Senator Richard Blumenthal
U.S. House of Representatives
Senator Robert Menendez
Senator Dick Durbin
Representative Lucille Roybal-Allard
Representative Dana Rohrabacher
Representative Devin Nunes
Representative Carolyn Mccarthy 2
Representative Joseph Crowley
Representative Jeb Hensarling
Senator Richard Shelby
Senator Dianne Feinstein
Senator Mike Crapo
U.S. Senate
I would like to bring a matter to your attention which has caused tremendous harm to the employees and investors in many companies and which clearly indicates the need for greater regulation, oversight or both to prevent this type of thing from continuing.

Specifically I refer to the manipulation of stock prices by Hedge Funds and other investment entities that use option trades in combination with false and/or misleading stories to manipulate a stocks to their advantage.

A recent and most egregious example of this was the way Apple Inc.' stock price was manipulated from 700 down to 500 between September 2012 and January 2013.

How do we know this happened?

Below is a link to a Joe Springer article on Seeking Alpha, an option trading website, dated Nov. 13, 2012 that pointed out that someone (most likely hedge funds) was gaming Apple stock. This was indicated by extremely large option open interest near $500. The article suggested that someone on the street was making a a multi-billion dollar bet that Apple would close at or near $500 on Jan 19, 2013 an option expiration date. They warned people to avoid the stock until after Jan 19. The stock closed at $500 on Jan 19, 2013.

How do they do it?

The ex Hedge Fund manager and now famous TV personality Jim Cramer explains how it is done in these video links:

He mentions that some of the techniques are illegal but that the SEC and Journalists are 'too stupid" to understand it and that many Hedge Fund traders do it regularly and as a matter of course and that it is basically a requirement for doing business as a Hedge Fund.

Well some journalists may not understand it, but there have also been enough examples of journalists that DID understand it and were complicit in the illegal activities, several of which have been prosecuted for it.

Either way, the fact that a highly illegal manipulation of the stock was underway and going on throughout the fall of 2012 was clearly evident to those who watch Apple stock closely. There was a string of extremely suspicious leaks, rumors and stories coming out from September to January (many of which were later discredited) but which effectively stampeded the herd. It reached such a level of ridiculousness that Fortune singled one Wall Street Journal article out for ridicule and pointed out how they "got punk'd" as part of this type of strategy:

What am I asking you to do?

1) Please have the relevant Senate & House Committees investigate the practice of Stock manipulation by Hedge Funds and other Financial Institutions with the objective of creating additional legislation and/or regulations that will stop the abuse.

2) Please investigate, or ask the SEC to investigate the specific case of the recent stock manipulation of Apple stock. It will be fairly easy for the SEC to find out who was doing this by examining who bought/sold the large numbers of options between the 700 & 500 strikes which expired in Jan 2013. And then subpoenaing their phone records and email logs.

Your attention to this matter will be most appreciated by the millions of employees and investors holding manipulated stocks directly or indirectly via investment funds.

Apple FanBoyInvestor started this petition with a single signature, and now has 6 supporters. Start a petition today to change something you care about.