NSS ~ Counterfeiting Stock ~ MM Games Played

[jmbar2]

Penson stock/brokerage situation update 05-27-11 at 10:45am
(Thanks Fourkids, Janice, Chroma-Z, Kingrat, Rocketman, JackRoch, Hyborianwar - Yahoo board)
-------------------------------------------------------------
Background
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=62772188
-------------------------------------------------------------
Good News!!

5/27 9:45am: Chroma-Z reports that Fidelity will accept his MMTE shares if he transfers the whole account. Fidelity covered the transfer fees temporarily so that the old brokerage account could be closed. Then Chroma had to reimburse Fidelity for those fees.

THANK YOU Fidelity!! And thank you Chroma-Z for sharing this important information!

---------------------------------------------------------
In other news

(05/26 1pm) E-Trade will not allow any incoming transfers of OTC stock, including MMTE.

URGENT REQUEST: We need to find a new home for MMTE shares that are trapped by Penson. Please check TDA, Fidelity, etc on the list below and report back whether they will accept MMTE share transfers. We need to do this before any more PRs. TIA

Clearing firm rattles investors (Barron's May 21, 2011)
http://online.barrons.com/article/SB50001424052970203869804576327382200170672.html?mod=BOL_twm_col


Stocks affected by Penson freeze as of May 2, 2011 (Thanks to Hyborianwar - Yahoo board)
http://www.tradingdirect.com/Static/StandAlone/non_dtcc_list.pdf#zoom=80%

Explanation of the high fees charged by Penson
"Trading non-DTC eligible securities will incur additional settlement fees including; a certificate fee $75, DTC TRF fee $90 and shipping fee $40 (when necessary). There will also be a DTC NYW fee and a transfer agent fee, which will vary and may be substantial." (Source: Chroma-Z)

---------------------------------------
Brokerages that use Penson as a clearinghouse - may not allow trading of certain pennies, or charge exorbitant fees
- eOption
- Firstrade
- Noble trading
- OptionsHouse
- Scottrade- can buy/sell MMTE, but cannot transfer in.
- Sogotrade
- SpeedTrader
- Thinkorswim
- Tradeking
- ZECCO


Brokerages that don't use Penson (check and report back)
- Fidelity- accepting shares if you transfer whole account!
- TD Ameritrade
- E-Trade- can buy/sell MMTE, but cannot transfer in OTCs
- Interactive brokers
- Merrill Lynch
- Schwab
- Sharebuilder
- Vanguard
- WellsTrade
- USAA

http://www.onlinebrokerrev.com/2011/01/broker-clearing-firms.html

----------------------------------------
What you can do
- Add your knowledge, experiences to this board so we can track the situation as if affects real investors

- Contact SEC, FINRA etc and ask for help

- If SEC FINRA can't help, contact your elected officials, especially those on banking, financial reform committees.
--------------------------------------------
Complaint links

SEC https://tts.sec.gov/oiea/QuestionsAndComments.html

FINRA http://www.finra.org/Investors/ProtectYourself/p118628

--------------------------------------------
My complaint to SEC (Sent May 5 - no response as of May 12 )

URGENT REQUEST FOR CLARIFICATION/ASSISTANCE

I am a small individual investor/trader of penny stocks. On Thursday, I tried to sell some shares of MMTE through Zecco and was told that I could no longer do so without paying a $200-700 fee! This exceeds the value of the holding, leaving me trapped.

I talked to ZECCO and they said this was not their decision, but that of their clearinghouse, Penson Financial. Apparently, Penson has distributed a list of stocks that can only be manually-cleared to brokers, and will now require each investor pay a $200-700 to buy or sell that stock.

I am in communication with other traders on trading boards and so far we have identified several stocks being affected, including MMTE, APCX, CPRKQ, and STAU.

The inability to freely trade these shares put many small investors at high risk if the stocks tank on us and we cannot get out of them quickly. This affects many thousands of small stock investors/traders. We are not only professional investors, but also housewives, teachers, retirees, and active duty armed forces personnel trying to augment our incomes with small stock trades. We need immediate help.


My questions to you: How can this be legal to impose such a fee with no notice or recourse? What can we do to trade our small stocks without such fees.

We urgently request your input on this situation as a new trading week dawns and we are now at risk of uncontrollable losses.

Thank you