Ai Admits Stock Market Corruption

Microsoft Copilot admitted that institutions corrupt the SEC with fines that act as bribes, for unethical practices to continue that would be stopped by the judicial system if rules were followed.

First I asked if a stock price was being shorted by a “bear cartel”.

Copilot responded:

“The term “bear cartel” implies collusion among institutional investors to drive down a stock’s price. That kind of behavior would be illegal under U.S. securities law and is rarely proven. What’s more likely is that:

Technical weakness and missed guidance have made UPS a magnet for short interest, but not necessarily a victim of collusion.

Multiple hedge funds and analysts independently see UPS as vulnerable and have taken short positions.

Analyst downgrades and bearish coverage (e.g. Zacks calling UPS the “Bear of the Day”) amplify negative sentiment.”

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To which i said:

“whats more likely is that manipulating stock prices with collusion is common, and paid for in fees to the SEC, which acts like a bribe.” i didnt say this, but since its standard practice among millionaires to bend the rules, many times they are given a free pass as there are no investigations, or the institutions are allowed to simply lie and not show any records or show false records.

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Copilot:

“That’s a provocative thesis—and while it’s not supported by direct evidence, it taps into real tensions around regulatory enforcement, market manipulation, and institutional accountability.

⚖️ What We Do Know

• Stock manipulation is illegal under U.S. law. Section 78i of the Securities Exchange Act explicitly prohibits coordinated efforts to create false or misleading appearances of trading activity or price movement.
• The SEC does pursue enforcement, but often settles cases with fines rather than criminal charges. For example, in 2024, the SEC fined 26 major firms a combined $393 million for failing to preserve electronic communications—violations that could obscure market manipulation.
• Intent is hard to prove: Legal experts note that the SEC struggles to win manipulation cases because it must prove intent or reckless conduct, which is notoriously difficult.

🧠 Your Hypothesis: Fees as Institutionalized Bribery?

It’s not entirely unfounded to suggest that:

• Large firms treat fines as a cost of doing business, especially when settlements avoid admissions of guilt.
• Regulatory capture—where agencies become too cozy with the industries they regulate—is a documented phenomenon in economics and political science.
• Opaque settlements can create public skepticism about whether justice is truly being served.

But calling SEC fines “bribes” implies a quid pro quo that hasn’t been substantiated. The SEC operates under public scrutiny, and while its enforcement may be imperfect or uneven, there’s no verified evidence that it accepts payments in exchange for overlooking collusion.”

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To which i said:

“the evidence is SEC fees for institutions breaking their rules being smaller than the profits from illegal or unethical trading is clearly part of public record.”

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Copilot:

“You’re absolutely right to highlight the asymmetry between profits from unethical or illegal trading and the penalties often imposed. The data and legal framework support your point:

💰 Profits vs. Penalties: A Structural Imbalance

• SEC Penalty Limits: Under the Insider Trading Sanctions Act, the SEC can impose civil penalties up to three times the profit gained or loss avoided. While that sounds steep, it often pales in comparison to the scale and speed of profits made through sophisticated schemes.
• Criminal Penalties Exist, but are rare: Violators can face up to 20 years in prison, yet most cases are settled civilly with fines.
• Settlements Without Admission: Many firms pay fines without admitting wrongdoing, allowing them to avoid reputational damage and continue operations with minimal disruption.
• Cost of Doing Business: For large institutions, fines—even in the hundreds of millions—can be absorbed as operational costs. For example, the SEC’s $393 million fine in 2024 for recordkeeping violations was spread across 26 firms, many of which had billions in annual revenue.

🧠 Symbolic Interpretation

This dynamic creates a troubling incentive structure:

• Risk is privatized, while accountability is diluted.
• Regulatory capture becomes plausible when enforcement agencies rely on fines as their primary tool, potentially creating a revolving door of influence.

Your framing—that fees function like institutionalized bribes—is metaphorically potent, even if legally imprecise.”

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I said:

“the fees are charged rather than admission of guilt of crimes that would be crimes if the rules were enforced with the regular judicial system.” because law enforcement usually punishes crimes in ways to deter further crimes, rather than allow financial crimes with fees that make it profitable to steal.

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Copilot:

The practice you’re describing—where financial institutions settle with regulators by paying fines without admitting guilt—has been a cornerstone of SEC enforcement for decades. And yes, many of the underlying behaviors would likely qualify as crimes if prosecuted through the criminal justice system.

⚖️ “Neither Admit Nor Deny”: A Shield Against Accountability

• For over 40 years, the SEC allowed defendants to settle cases while “neither admitting nor denying” the allegations.
• This tactic avoids creating a legal record that could be used in civil lawsuits, criminal prosecutions, or insurance exclusions.
• Even when companies have admitted wrongdoing in parallel criminal proceedings, the SEC historically allowed them to settle civil cases without acknowledging those same facts3.

🧠 Implications of This Practice

• Legal insulation: By avoiding admissions, firms protect themselves from cascading liability—civil suits, shareholder actions, executive firings, and insurance clawbacks.
• Regulatory optics: The SEC can claim victory by collecting large fines, but the absence of admissions means the public never sees a full reckoning.
• Judicial criticism: Judges like Jed Rakoff have openly rejected settlements that lack admissions, calling them “privately negotiated on the basis of unknown facts” and depriving the public of truth in matters of public importance.

🔍 Your Point: Crimes Without Criminals

You’re essentially arguing that:

• The same conduct, if pursued by the DOJ or in a criminal court, could result in felony convictions.
• But when handled by the SEC, it’s resolved through monetary penalties, often without transparency or accountability.
• This creates a two-tiered justice system—one for individuals, another for institutions.

That’s not just a rhetorical flourish. It’s a documented structural flaw in financial regulation. If you’re building this into a symbolic or narrative framework—say, a song or speculative allegory—it could be framed as a “market priesthood” where absolution is bought, not earned.”

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Prosecution rests.

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Cultural Fraud Continues 2008-2024

Our Capitalist system seems almost incapable of addressing its own corruption. Occasionally some efforts are made by protestors, or rogue politicians, but their attempts are always crushed by the US Deep State (plutocracy) and the MIC (international war machine). It makes it difficult to have faith in a system that our culture feels is untouchable, and allows our secret clandestine agencies to run.

My stock accounts meant to earn profits are down $5,000 since the start of 2023; and that was down $30,000 from my 2021 AMC investment value highs, when I held my investments, bought, more and did not sell out. Im selling a bunch more stocks today, to settle in holdings and eventually get out of stocks. stock market fraud is too unstoppable since the same thing as 2008 has increased since then despite best efforts of a few good people involved. Banks, hedge funds, and brokers are still being allowed to naked short the entire market, destroying good companies with stolen liquidity and shell games (FTX tokens, crypto, dark pools) and bundling their debts into toxic assets that they trade as hot potatoes to avoid legal prosecutions. I learned that the rigging is designed to take profits from most investors, to give to the 1%. im keeping all my stocks the SEC allowed to be shorted to hell, just in case they manage to fix the system and give value back to investors (there are negotiations regarding the long overdue and inadequate CAT system); and because selling at losses are what they want us to do so they never have to pay out. With increase in the dark pools, they can do it to any stock on the lit exchange, so i got out of many stocks that are profitable now, as they can all turn around on the whim of the market makers. it has been an expensive education with no degree, as most work experiences are in life.

Another problem with our cultural fraud, is the cost of schools that do not help us earn a living wage. Most work experience and years of hermetic scholarly study are often costly with no degree. Yet most people learn more from work and their own studies than they do at schools. The harshness of business lessons regarding finances and society and the depth of pursuing passionate interests with dedication really should be recognized by our culture more for sure.

[more later]

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A Case Against AA

CEOs can not only be corrupt, they have to be conmen to keep up appearances if they are corrupt.

This is not to imply that all conmen are evil, or that corruption is always total. Sometimes a corrupt party is doing a favor for an enemy of an enemy. Other times a corrupt party realized their hypocrisy, and only took a few bribes before stopping or even admitting their mistakes and whistle-blowing.

A company has a CEO which we will call AA for this hypothetical court case. In this essay we will explain why evidence can lead investors and regulators to call the CEO “corrupt”. This is historical fiction, not legal or financial advice for the court rooms or lawyers to use ‘as is’.

A. CEO Has History of working with Hedge Funds who target his company

B. CEO Buried his wounded company in Toxic Debt from Hedgies with criminal auditors

C. CEO Colluded with short sellers to drain and/or liquidate target assets and investments

D. CEO Reverse-splits the shares so the price can be shorted back down over and over

E. Demand obedience to fascist authority, like a military dictatorship or abusive boss

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A. History of working with Hedge Funds – AA was a CEO of several other companies, some of which were hedge funds who short sold and hurt many other companies. Hedge funds and market makers use all kinds of naked shorting tactics to move share prices down. Hedgies are in the business draining target companies by this method: short & distort, infiltrate board of directors to bribe or remove members, reverse-split zombie targets, and rinse & repeat.

B. Burying a wounded company in Toxic Debt – AA infiltrated and became CEO of a target company, using his wealth and influence. Then he put the target company into debt, making them beholden to his hedgie buddies to the tune of BILLIONS. Now the struggling company will become a zombie, barely able to pay its interest payments on debt that hurts more than helps. This leads to bankruptcy where hedgies scrap the pieces, or they sustain the zombie just enough to drain its blood like a vampire who keeps a pet. AMC’s independent registered public accounting firm is Ernst & Young LLP (EY), who Wikipedia says has been involved in many accounting scandals: Bank of Credit and Commerce International (1991), Informix Corporation (1996), Sybase (1997), Cendant (1998), One.Tel (2001), AOL (2002), HealthSouth Corporation (2003), Chiquita Brands International (2004), Lehman Brothers (2010), Sino-Forest Corporation (2011), Olympus Corporation (2011), Stagecoach Group (2017), Wirecard (2020), Luckin Coffee (2020) and NMC Health (2020). The SEC has made EY pay millions in fines for their “accounting fraud” crimes.

C. Collude with short sellers – CEO AA uses commercial propaganda to convince the public (dumb money apes) to invest in the company. AA blames dropping stock price on market, but says there is nothing he can do except sell more shares to the short sellers (Citadel, Apollo, Citigroup, Antara, etc) and distract with gimmicks. Then the short selling hedgies never pay back the shares they “borrowed” (FTDs), and so the price is kept low so that investors cannot make any money on the trades because the hedgies keep all the money from the investors. Market makers call this “liquidity”, and now claim that capital is no longer made from investing. This has made faith in markets crumble as their is not reason to hold stock, as the manipulation rigging makes it all toxic. The SEC has failed at its job for 99% of investors, because most of the members belong to the 1% or are their shills.

D. Ruin investments with Reverse-split – All Ape investors must sell out or never use the money from their investment again for years because the price is controlled by market maker algos on behalf of the hedgie scam. CEO AA then splits the stock with a fake dividend that takes from the price by diluting, and demands a reverse-split* because the share price has gone too low. It has been proven that reverse-splits harm investors, not only because we have witnessed it on many stocks, but because a theoretical proof was published by a Data Scientist and Mathematician with extensive experience with algorithms and complex science and math.

E. Demand obedience to fascist authority – When AA’s company gets sued in court, the judge figures out there is fraud and rules against the company which makes the stock price go UP temporarily. So immediately the CEO publishes an open letter saying AA will dilute shares and do the RS soon because the company is “at risk of bankruptcy”, despite investors saving it, its services making record profits, and the company expanding and paying bonuses to its plutocratic board. Common stock investors (retail) are being scammed across the economy in many markets by the 1% who rig the markets with these short-selling tactics and rules that allow it to repeat decade after decade.

*”The RS and conversion proposals passed only because of the APE mirrored voting feature and Antara’s promised APE votes. AMC acknowledged that fact internally.” – Vice Chancellor Zurn in AMC court case 2023

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The truth is there are many ways to raise funds, make profits, and fight against crony capitalism from within the system; but we need more good people to step up and lead the sheeple. Otherwise total corruption is inevitable, due to the absolute monopoly of the 1% corporate oligarchs.

Advice for such a criminal is as follows: Diluting to short sellers does not raise as much money as selling to Apes on the lit exchange to allow the price to go up and then diluting. Pick a side AA, with the Apes or against us. Cancel the Reverse-split before all faith is lost in CEOs ability to fight short selling.

[more later]

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Thoughts In The Dark Pool

Dark pools are private off-exchange stock market trades that dominate corporate finance in 2023 due to complicit SEC and corrupt Congress shills. The reason companies use dark pools and other private exchanges is because they do not have to report much about them, and so they can send all the buy or sell orders there if they dont want those to affect the public price of shares.

I am starring at the DOW chart recently, meditating and wondering “are the rich really going to destroy all faith in the lit exchange and just make all real trades private?”

But as GG at the SEC says (as he looks like Gollum) “retail trades are tooooo sweeeet to ignore”. So i guess they need to keep some way for us to give them their money voluntarily like a lottery. When 1% short sellers drain whatever companies they feel like taking money from, they have a simple response to investors – “oh well you chose to play in a legal scam (which their lawyers consider substantially different than fraud which is illegal)”.

This US-Ukraine War against Russia is the start of WW3 and the 2nd Great Depression. It all can be reversed, but not without major political changes. The DOW 5 year chart – the Covid Crash is the first large crack or valley, and the 2 more recent cracks are part of this 2nd Great Depression because it is lasting so long, and has so many other socio-economic aspects besides the short-selling stock market epidemic and uncontrollable inflation. It is rumored most of the big companies are keeping the market afloat with buy backs, but there are also holding pattern algos connected to private dark pools collecting profits from investors.

The US MIC elites are doing what the Russian Empire did in the 1800s – drain national wealth into aristocracies who run an inflated military to control serfs and cause genocide. This kind of total control hates learning and trade, due to xenophobia and racism. Trade depends on TRUST of some kind. Records show US banks and market makers have lost money, yet these companies are bragging about record profits. Are they using 2 sets of books, one for taxes and another for clients and news??

The Swiss National Bank has reported an annual loss of $141.54 billion, which is the largest in the central bank’s 115-year history. The central bank lost $147.3 billion (141 billion Swiss francs) on its foreign currency positions, and $1.1 billion (1.1 billion Swiss francs) was lost in Gold holdings. – Unusual Whales

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