2013-01-21 15:10:10 -
Barker Minerals Ltd. Reports Dr. Susanne Trimbath's (STP Advisory Services, LLC) Trading and Settlement Event Analysis Studies Confirms Settlement Failures
Prince George, British Columbia CANADA, January 21, 2013 /FSC/ - Barker Minerals Ltd. (BML - TSX Venture), ("Barker" or the "Company") reports that in February 2012, in conjunction with its Pro Long Strategy, it had requested Susanne Trimbath, Ph.D. of STP Advisory Services, LLC ("STP") to provide an update review of its trading and settlement data from November 2010 until December 2011. The intention of the review was to determine the range of manipulative market activities occurring in the Company's public share market; to provide an update on the actions Barker took since the 2010 Report prepared by STP, emphasizing
the ability to trace settlement failures back to individual trades and to provide discussion as to the Company's future plans to counter the problem. STP's review specifically examined "failures to deliver" ("FTD"), commonly referred to as "naked short selling" ("NSS"). The update review included event analysis studies which indicate evidence of intentional settlement delivery failures in Barker's public share market during the event time period studied.
Pro Long Strategy
The Company has been concerned, for some time, about a potential link between defamation and apparent abusive trading activity and has incorporated a number of initiatives under the banner "Pro Long Strategy". The core of the Pro Long Strategy is built around the use of the Pro Long System ("PLS") which is a methodology which effectively provides transparency in trading and settlement activities in public companies capital share markets.
STP Advisory Services
Dr. Trimbath is a former operations manager for depository trust and clearing corporations in San Francisco and New York. Since 2003, STP has provided support, primarily in securities litigation, to law firms, investors, companies and regulators. STP services can be viewed on the following link: www.stpadvisors.com/
Susanne Trimbath, Ph.D. is CEO and Chief Economist of STP. Dr. Trimbath's credits include appearances on national television and radio programs (CNBC's Power Lunch and NPR's Marketplace and most recently The Wall Street Conspiracy Documentary) and the Emmy(r) Award nominated Bloomberg report Phantom Shares. Trimbath's articles appear in the national publications US Banker, The International Economy, The American Enterprise, and The Mergers & Acquisitions Advisor.
Dr. Trimbath was formerly Senior Research Economist at the Milken Institute and Senior Advisor on the Russian capital markets project for KPMG. Dr. Trimbath taught at both the University of Southern California's Marshall School of Business and New York University's Department of Economics. She gained 20 years experience in financial services operations at Depository Trust Company in New York, Pacific Depository Trust and Clearing Corporations in San Francisco and the Federal Reserve Bank of San Francisco.
STP Update Report Summary
The purpose of the review was not simply to re-examine the previous data but to include the expanded new data sources including 14 months of trading and settlement data. Dr. Trimbath describes the system as: "Barker executives developed and refined a straight-forward data capture and analysis that can be used to discover which brokers and how many shares on what dates are involved in manipulative activity. Even when trading volume spikes (to millions of shares from tens of thousands) Barker's PLS reports make it possible to connect specific trades with settlement failures. Barker's tracking and reporting efforts provide the information that makes early intervention possible."
STP reports that the analysis of the volume of cumulative data that has been compiled by Barker "shows serious evidence of fails-to-deliver (FTD), specifically identifying the broker-dealers who are passing the fails-to-deliver and fails-to-receive back and forth amongst themselves to avoid detection, regulatory reporting and potential tax consequences."
In her 2012 report Dr. Trimbath states that, "Recognition of a 'fail to deliver' at settlement is the first line of defence against 'naked short selling.' Failure to deliver at settlement is the event that will alert most regulators to possible manipulative and/or illegal market activity. Barker executives have developed an excellent process for tracking the settlement failures independent of support from the central clearing and settlement organizations or any regulatory authority. The underlying problem being addressed by Barker Minerals is that securities are being sold by broker/dealers who do not have them (and do not borrow them) so that the number of shares in circulation exceeds the official supply."
Intentional FTDs have historically been difficult to prove as fraud and that such activity could be used to manipulate companies and markets. Barker's trading and settlement activity tracking efforts indicate that these activities have occurred in Barker's share market as a result of the abuse of loopholes within the settlement and clearing system which basically enables brokers to short sale securities without having to report a short sale as required by regulatory authorities.
Dr Trimbath writes, "In mid-May 2012, documents in a U.S. court case were publically revealed, exposing broker dealer internal emails, in which the type of trading activity evidenced in the 2010 Report on Barker's tracking methodology is discussed as commonplace despite various U.S. rules and regulations to the contrary (Cirangle 2012). Those emails show that broker-to-broker settlement failures (FTDs and NSS) are used for the purpose of manipulating stock prices." She goes on to say "In light of these revelations, the evidence discovered and organized by Barker should be taken even more seriously by regulators and the judiciary in Canada."
The STP report goes on to say, "As the NSS activity Barker is finding is not officially recognized by the Canadian government - hence, there is little or no regulatory pressure on the brokers to settle the outstanding trades." The report goes on to state "Filing a lawsuit could bring the political process to bear on getting rules/regulations and enforcement tightened. It could also generate a significant amount of publicity, urging shareholders to remove their shares from the pool of unregistered shares available for backing fraudulent trades."
In conclusion Dr. Trimbath states that, "Through the efforts of Barker management, the evidence of manipulative activity is becoming increasingly obvious. Barker Minerals Ltd. has passed the stage where more and further research is necessary. The latest developments and improved methodology and reporting which they are calling the "Pro Long Strategy" provide solid evidence upon which they can take legal action" and she continues "I also recommend that Barker consult lawyers about bringing action against specific broker-dealers identified through PLS reports"
Barker Pro Long Strategy
As part of its Pro Long Strategy, Barker will continue to provide formal complaints to the regulatory bodies providing evidence and information regarding the irregular patterns in its trading and settlement activities, specifically information from the time period of the event analysis conducted by Dr. Trimbath. Barker is also considering the legal options to take actions against those who are proven to be responsible in any way for perpetrating fraudulent activities against the Company.
The continuous use of the Pro Long Strategy has been incorporated by Barker since November 2010 while in its developmental stage. Now that it is refined, Barker has found the system effective and the monthly summary results very informative at providing transparency in Barker's public share market.
Once the components of, and how, the FTD strategy functions are understood, it becomes much easier to do the due diligence using the Pro Long System with the paper trail to prove the fraud; or, at least it significantly increases the chances of proving the probability of its existence such that there can be fewer, if any, alternative explanations.
The conclusions in this news release are assumptions of the Company made from trading and settlement data collected from sources deemed to be accurate and reliable.
About Barker Minerals
Barker Minerals is advancing exploration on its mineral properties in the Cariboo Gold District, one of the most mineralized belts in British Columbia. The Company has more than 20 projects on its exploration properties, all of which are 100% owned by Barker Minerals. Eight projects have drill-ready gold and/or massive sulphide targets.
Certain statements in this press release may be considered forward-looking information, including those relating to "plans" of the Company. Such information involves known and unknown risks, uncertainties and other factors -- including the availability of funds, the results of financing and exploration activities, the interpretation of drilling results and other geological data, project cost overruns or unanticipated costs and expenses and other risks identified by the Company in its public securities filings -- that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE VISIT OUR WEBSITE www.barkerminerals.com OR
Louis E. Doyle Robert H. Kuhl
Tel: (250) 563-8752 Tel: (604) 321-0709
Fax: (250) 563-8751 Fax: (604) 321-0719
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Source: Barker Minerals Ltd. (BML - TSX-V)
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