CFA Society of Los Angeles Hosts Panel Discussion ``Exposing Systematic Fraud in The Stock Market''.

LOS ANGELES -- CFA Society of Los Angeles will host a panel discussion and luncheon on June 6 offering a rare look into stock trading practices known as concerted failure-to-deliver (FTD) and naked short selling (NSS). By law, "short sellers" are required to borrow and deliver the shares sold short within three days of sale. But reports indicate naked short selling may be widespread. DTCC allows electronic entry of shares in buyers' accounts despite sellers' failure to deliver.

Dr. Patrick Byrne, CEO of NASDAQ-traded Overstock.com, will discuss his firm's buffeting by trading of "shares" that appear to outnumber those officially issued and outstanding. In March at a New York conference, Byrne named a dozen large brokerages with clients who claim several million more OSTK shares than the number held by the brokerages at DTCC.

Dr. Susanne Trimbath, a Santa Monica research economist with operations management experience in clearing and settlement of trades at DTCC, will illuminate current trading practices.

Portfolio manager and financial writer Arne Alsin will provide insights gained as an investor in large-lot trades in markets systemically flawed by FTDs.

The panel will address the following questions: Are hedge funds and banker/brokers conspiring to swindle ordinary investors by failing to deliver shares sold short? Are self-regulatory organizations such as NASD ignoring concerns while industry-wide organizations like Depository Trust & Clearing Corporation (DTCC) aid the illicit activity? Are investors already exposed to such large losses that the SEC is frozen into inaction?

CFALA, www.cfala.org, is a non-profit membership organization established in 1931. Among its 1800 members are mutual fund and investment company in-house financial analysts and portfolio managers, banks, insurance companies and other buy-side firms, sell-side analysts, investment bankers and broker-dealers, investment advisers, academics, regulators, accountants, and investment consultants. CFALA is one of 131 member societies of the CFA Institute, www.cfainstitute.org, the global, non-profit professional association that administers the Chartered Financial Analyst(R) (CFA(R)) curriculum and examination program worldwide, publishes research, conducts professional-development programs, and sets voluntary, ethics-based professional and performance-reporting standards for the investment industry. CFA Institute has more than 79,000 members in 125 countries and territories.

To request an interview with CFALA or a press pass to attend the panel discussion on June 6, call Dan Pomerantz, CFALA Public Awareness at 213-627-1500 X703.

CFA Society of Los Angeles
            555 W. 5th St., 31st Fl., Los Angeles CA 90013