8000 Inc. (EIGH.PK) Statement to Shareholders – March 8, 2011 - THE RULES

March 8, 2011 - PRLog -- Broker dealer key, summary table and detailed references and events we have prepared identifying FINRA rules and regulations and associated sanctions attributable to broker-dealer offences (not conforming to FINRA’s rules and regulations) associated with EIGH shares.                                                                                                            

EIGH and a number of its shareholders firmly believe, through evidence that broker-dealers have engaged in manipulative trading practices in EIGH’s stock, in direct contravention of FINRA’s Guidelines.

Summary table – list of activities by date undertaken by broker-dealers which EIGH and concerned shareholders believe prove stock manipulation and the associated FINRA Rules contravened

Key - Broker Dealer and Clearing Firm identification trading EIGH.pk

1. (B1), 2.(B2),3. (B3),4.(B4),5.(B5),6.6.(B6),7.(B7),8. (B8),9. (B9),10. (B10),11.(B11)All Brokers

Customer Protection Rule—Failure to Comply With Rule Requirements
FINRA Rule 2010 and SEC Rule 15c3-3

Shareholders have requested delivery of physical certificates since February 2, 2011. To date, 1,364,000 shares in certificate form have not been delivered.
Brokers: B1, B2, B8, B10

Recordkeeping Violations
FINRA Rule 2010, NASD Rule 3110 and SEC Rules 17a-3 and 17a-41

Shareholders have provided account records showing stock purchases that are not recorded or traceable on the verified certificate records. Intra broker dealer transactions are recorded on the transactional records but not on the trading volume records or verified certificate records. Brokers: B11

Conversion or Improper Use of Funds or Securities
FINRA Rules 2010 and 21501, and NASD Rule 2330 and IM-2330

Transactions to purchase shares have been identified by shareholders whereby
the share purchase is recorded on the shareholder account but is not recorded on either the verified transaction records or certificate records and thus we believe constitute
“phantom” or naked short sales. One sixth of the shareholders own more than the enitre issued. Brokers: B1,B2,B4,B8,B10   

Forgery and/or Falsification of Records
FINRA Rule 2010

Intra broker dealer transactions undertaken but not recorded on TA verified
certificate or shareholder records, in excess of both the verified trading and certificate
transaction volumes recorded. Shareholder records verify stock purchases that cannot be
found by certificate number, nor trade. Greater than 1.2% of the issued float has been
requested for delivery over 30 days ago and not delivered. This represents both failure to
deliver and should require listing of the stock on the threshold list for short positions. No
such reporting has been made under the SEC RegSHO Rule and FINRA Rule 4210.

Brokers: B1, B2, B4, B5, B6, B7

Best Execution—Failure to Comply With Requirements for Best Execution FINRA Rule 2010 and NASD Rule 23201

Multiple examples of broker-dealers undertaking certificate transactions which are not identifiable on the verified certificate lists. Broker-dealers have also admitted to shareholders that they can’t find their certificates.
Brokers: B1, B2, B3, B4, B5, B6, B7, B8, B9, B10

Prohibition on Transactions, Publication of Quotations or Publication of Indications of Interest During a Trading Halt
FINRA Rules 2010 and 52601

For 9 trading days of the 10 day EIGH.pk temporary trading suspension, certificate transactions were undertaken by multiple broker-dealers. One transaction was even recorded in the transfer agent’s verified records on Saturday 13th November!

Brokers: B11

Short Sale Violations
FINRA Rules 4560, 7230A and 7330, and Regulation SHO

There are multiple examples of broker-dealers undertaking certificate transactions which are not identifiable on the verified certificate lists.  Certificate transactions have been recorded constantly greater than the available number of shares and greater than the total trading volume.
Brokers: B1, B2, B3, B4, B5, B6, B7, B8, B9, B10

Trade Reporting—Late Reporting; Failing to Report; False, Inaccurate or Misleading Reporting FINRA Rule 2010 and Equity Trade Reporting Rules

Stock purchases on shareholder accounts and yet according to the verified certificate lists, the broker-dealer has not recorded the purchase of a certificate for over 7 months. Intra broker-dealer transactions recycling certificates is evident and the fact that the broker-dealers cannot produce enough physical certificates to cover 1.2% of the issued, suggests a significant naked short position which has not been reported.

Brokers: B1, B2, B3, B4, B5, B6, B7, B8, B9, B10

Churning or Excessive Trading
FINRA Rule 20102 and IM-2310-2

Trading volume at times has been in excess of 100% of the transactional volume. Brokers: B1, B2,  B3, B6, B7, B8

Customer Account Transfer Contracts—Failure to Comply With Rule Requirements FINRA Rule 118701

Shareholders have transferred stock into and out of broker-dealer accounts which have not been recorded on the verified certificate list. Broker-dealers refuse or cannot provide delivery of physical certificates of EIGH.pk when requested, and are not conforming to SEC Rule 15c3-3 or the basic contract they have with their client, the 8000 Inc. shareholder.

Brokers: B2, B4, B5, B7

Pricing—Excessive Markups/Markdowns and Excessive Commissions FINRA Rule 2010, NASD Rule 2440 and NASD IM-24401

The Company is aware of open orders that have not been executed. These market orders were in place and ignored. The stock traded at 0,005 cents. The market has been made consistantly at a significantly lower share value than the open orders placed since Dec, 2010.

Brokers: B1

Unauthorized Transactions and Failures to Execute Buy and/or Sell Orders
FINRA Rule 2010 and NASD IM-2310-21

Multiple open orders which are not being filled since December 2010. In addition, there are a number of examples evidenced whereby shareholder stock purchases are not recorded on the verified certificate list and shareholder certificates either cannot be located on any list.

Brokers: B1, B2, B8, B10

Conclusion

It is our conclusion that there is more than enough evidence to support our request for action from the relevant authorities duly empowered to regulate and police the markets. Minimally, we would ask for and on behalf of both the shareholders and  EIGH  that Rule 15c3-3 is adhered to as promulgated, and the SEC and/or FINRA  immediately issue an order to close out any EIGH short positions pursuant to the Rule.

EIGH will continue to keep its shareholders apprised as events unfold. Also keep updated on 8000 Inc. developments on Facebook or Twitter.

www.brand8000.com
www.8000incgroup.com
www.8000inc.net

-ENDS-

This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. The words "estimate," "project," "intends," "expects," "believes," and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. For a more complete description of these and other risk factors that may affect the future performance of 8000 Inc., see published disclosure documents at www.OTCMarkets.com. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made and the Company undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

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