It could be it's done all the time in as much as naked shorting occurs as well. However, if this is a bank stock, (which we know is on the verge of tightening regarding naked shorting) may there still be room for shorting against restricted shares? May there be a difference between the private equity group or insiders who got those shares, versus others? Regardelss, is there some way of exposing this information?
Everything is known. It's been known from day one. The SEC is a captured agency. Guys in the business say, the only way to stop all this is jail. The money is so huge, jail. That's why you see the SEC just step over stuff. The doj is moving. And that will be your clue it's over. Everything else is Kleine NachtMusic. By the way, if you know people at a company getting fucked over, it's a rather long list, do them all a favor. Tell them to physically remove any legend stock. It's the least you can do.
Assuming you are right that it is illegal to short against restricted shares, and with the cracking down, I cannot understand how people are still doing this. Is it like an addiction that even if they get caught?