SOURCE: Universal Express, Inc.

June 21, 2007 07:30 ET

Universal Express CEO Requests Investigation Into Ex-Clearing Portfolios

NEW YORK, NY--(Marketwire - June 21, 2007) - Universal Express, Inc. (OTCBB: USXP) CEO, Richard A. Altomare, today requested a Federal financial and tax investigation into the Ex-Clearing accounts between brokers where the naked short sellers hide their daily short settlements and fail to deliver and receive by not entering those numbers into the existing depository system.

"This broker to broker loan system exceeds one trillion dollars, according to the New York Stock Exchange Focus Report. After the failure of the REG SHO program and its recent grandfather clause reversal, those naked short sellers now have only two choices: either cover or hide those positions in this process where brokers trade with each other without entering the depository system," said Mr. Altomare. "On July 24th it will be eight years since the ill thought out REG SHO program was created. During this period our stock control groups have been eliminated, accountability of market makers has deteriorated even further, and American shareholders have lost trillions of shareholder equity through trading scams, yet this Ex-Clearing process remains unsupervised and exceeds a trillion dollars!"

Grandfather Clause reversal: http://www.sec.gov/news/press/2007/2007-114.htm

"Has our government received the tax payments? What are the interest rates, durations and tax expense deductions of these transfers? Are they loans? Who supervises these transactions? Let us always remember if a Company stock is naked shorted and after the shorting the company fails -- there is no taxable revenue recognition event for the broker or account that shorted the stock," continued Mr. Altomare.

"Today, I call upon the appropriate committees of Congress and even the Courts hearing our case to seize those funds pending the outcome of Universal Express' $700,000,000 existing judgment lawsuit or to institute a thorough federal criminal and tax investigation into those accounts. The American trading system demands a level playing field, by a regulatory agency that is both capable and willing to create that type of environment.

"I have often spoken of naked short selling, its avoidance of Federal taxes, and the protection of our shareholders. We have openly lobbied against the unconstitutional grandfather clause initiated to protect market makers during the last 3 years of naked short selling. Why must I now point out a trillion plus dollar broker to broker non-transparent account process? Isn't that what we expect of a functioning regulating agency?

"I request that the SEC deal with this question rather than malign the whistle blower. We've played that game before when the SEC actually denied that naked short selling existed and attacked those of us who revealed it. Today sadly the SEC admits that criminal naked short selling exists. Let's not today deny this trillion plus dollar process. Solve this loophole! Acknowledge the oversight! Protect the dignity of our capitalistic electronic trading system!

"This press release will be distributed to the appropriate members of Congress and the Justice Department.

"As the criminal naked short sellers scurry to find non-transparent loopholes, this Ex-Clearing account must be closed or seized.

"Denials, delays, defensiveness and now deceptive accounts. Is it any surprise, our regulatory agency's grade should be a 'D'?" concluded Mr. Altomare.

About Universal Express

Universal Express, Inc. is a 23-year-old logistics and transportation conglomerate with multiple developing subsidiaries and services. For additional information please visit www.usxp.com

Safe Harbor Statement under the Private securities Litigation Reform Act of 1995: The statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements including, but not limited to, certain delays beyond the Company's control with respect to market acceptance of new technologies, products and services, delays in testing and evaluation of products and services, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Mark Falk
    Universal Express, Inc.
    561-367-6177
    Email Contact