I sold shares of GVRP through Ameritrade

[Mr. Bill]

MDNO. Not quite as bad. Looks like ST is going to issue paper certs again free of charge? LOL

Having to sue to not have to cover.

The crap allowed by the SEC to go on here is just outrageous.

[garrett800ca]

Thought I'd break the 2 year silence on this board.

I stopped trading after this debacle, but now I'm back in the game. Anyone know of any GVRP's for 2007? I'm looking for another 100 bagger. Hehe...

[Mr. Bill]

GVRP- Notice how AT protect their customers. Abuse or Protection? Which? You decide!

NOTICE the UNDERLINED part and HOW AT PROTECTs their CUSTOMERs (NOT - IMO) You can SELL and be at RISK but not BUY and NOT BE at RISK. LMAO. Thanks so much AT.

http://www.dailycamera.com/bdc/national_intl_business/article/0,1713,BDC_2464_3809239,00.html

Tiny Gluv could turn into big headache for Wall Street

By Dow Jones/AP
May 27, 2005

NEW YORK — Over-the-counter trades involving millions of shares of a tiny Florida company called Gluv Corp. could soon become a major headache for some securities firms.

The trades involved stock improperly sold into the market by one of Gluv's shareholders last week. Although Gluv's stock currently trades at a fraction of a cent, the stakes are high because securities firms that handled these shares could fail to complete the transactions if they are not unwound by regulators.

Advertisement

If transactions involving improperly released Gluv stock are allowed to stand, investors who sold stock they thought they owned could find themselves short Gluv, having sold shares that they didn't really own. That could result in losses for investors who would have to purchase shares to deliver to their brokers in order to complete the transactions.

Chris Nagy, Managing Director of order routing for Ameritrade Holding Corp., said that as a precaution, the brokerage stopped allowing clients to buy shares of Gluv on Monday. The company continues to allow clients to sell the stock.

Gluv stock trades on the Pink Sheets. The company has recently attempted to restructure its stock ahead of a planned merger with Media Magic Inc. Gluv spun off its assets into a private company, leaving all but a corporate shell for Media Magic to slip into.

According to a press release, Media Magic, based in West Palm Beach, Fla., produces videos and CDs for children.

In order to get rid of existing shareholders, Gluv conducted a 1-for-6.5 million reverse share split on May 12, which reduced the shares outstanding to just 11. It wasn't clear how shareholders with less than 6.5 million shares were compensated.

A week later, Gluv said it would conduct a 3 million-for-1 forward stock split that would bring the shares outstanding to 33 million shares. None of these 33 million shares were supposed to trade before Monday, May 23.

But here's the rub: Apparently one of Gluv's 11 shareholders got his 3 million new shares early and started selling stock that was not supposed to be trading.

In a press release issued Sunday, Gluv warned shareholders that shares had improperly made their way into the marketplace and that investors should "not trade these shares until further notice." The company said it's investigating the matter and that it would cooperate with regulators.

Gluv said it asked the Securities and Exchange Commission to halt the trading of its stock. That has not happened. Instead millions of shares of Gluv continued trading and that could result in some securities firms ending up stuck with nonexistent stock.

"This is not a problem we had anything to do with," said Steven Dreyer, a lawyer who represents Gluv.

Dreyer said that he has seen the dividend information sent by the company to the Nasdaq Stock Market, which has the Pink Sheets under its purview, and that it correctly reflected Gluv's plan to complete a 3 million-for-one split on 11 shares outstanding.

Nasdaq disagrees. "We don't believe that we imputed the information incorrectly," said Jenifer Coragelo with Nasdaq's Market Operation Dividend Department. "We did process what we had correctly," Coragelo said.

Coragelo said an investigation by the SEC and the NASD is ongoing. NASD which, has a majority control in Nasdaq, also serves as its regulator.

[coalesce]

Thanks for the update. I'm glad someone here at IHUB has those connections [security lawyer]. Hopefully we won't need one though....

[CPTMatt]

To Whom it May Concern:

I have not yet contacted the securities lawyer I was introduced to through a friend of mine. I am waiting until the time which it becomes clear that legal action is necessary. I do not wish to waste his time. I am also unsure how much time he would be willing to spend on this issue before legal fees would become an issue.

[shmolton]

I just got off the phone with Ameritrade right now...

...they were not allowing me to remove any funds from my account even though I only sold $288.99 worth of GVRP post split. I got them to allow me to remove the funds from my account, but they are requiring that I leave the proceeds from all sells of GVRP(pre and post split) in my account and that it must be cash, not stock. I would strongly recommend that everybody who sold GVRP post split, remove everything they can from there accounts, that way, at least we have our money and they have to come after us to get it, instead of them just taking it, and us having to fight to get it back.

[CPTMatt]

Don't you mean busting the trades the week prior to the split? If they busted all the trades following the split then it would be like we never sold our shares at all right? I'd still have my 300 million or 100 pre-split (if the split is reversed), etc.

[shmolton]

Is there something that has happened that leads you to believe that this will happen?

[Modern_Rock]

GVRP For those who successfully sold: if you dont have a large account prior to selling, I would take out all my cash and close the account. You have your money, so take it. Makes it harder for the broker to come back to try to get you to pay back your sold shares in the event that the SEC decides something silly like busting trades for only 1 week following the split (thus the sellers would be net short).

[XV19]

they would need to bust ALL trades from last week as well, don't you think??? Those of us that bought at $2+ plus before the 23rd are owed out F/S shares.

[CPTMatt]

If you sent me your email address please check your inbox.

[Bunny]

Hi Matt i put another post on our board for you..

GVRP - If any of you birdies sold GVRP A/trade please contact Matt.. g/l to all on this trade...

http://www.investorshub.com/boards/board.asp?board

[CPTMatt]

Those of you that contacted me and did not provide an email address where I can contact you please do so. I am compiling a list of email addresses so I can update you all privately of what I find out if/when I speak to the securities lawyer I know.

[PDC ™]

wow. where was that?

[nostinkinc]

DJ IN THE MONEY: Gluv Could Turn Into Headache For Wall Street

By Carol S. Remond
A Dow Jones Newswires Column

NEW YORK (Dow Jones)--Trades involving millions of shares of a tiny Florida
company called Gluv Corp. (GVRP) could soon become a major headache for some securities firms.


The trades involved stock improperly sold into the market by one of Gluv's shareholders last week. Although Gluv's stock currently trades at a fraction of a cent, the stakes are high because securities firms that handled these shares
could fail to complete the transactions if they are not unwound by regulators.

If transactions involving improperly released Gluv stock are allowed to stand,investors who sold stock they thought they owned could find themselves short Gluv, having sold shares that they didn't really own. That could result in
losses for investors who would have to purchase shares to deliver to their brokers in order to complete the transactions.

According to market participants, Ameritrade Holdings (AMTD) is one of the brokerage firms that handled some of these improperly released shares.

Ameritrade said it stopped allowing customers to buy Gluv shares on Monday. The firm continues to allow clients to sell the stock.

Gluv is a Pink Sheets company that was recently attempting to restructure its stock ahead of a planned merger with Media Magic Inc. Prior to the merger, Gluv

spun off its assets into a private company, leaving all but a corporate shell for Media Magic to slip into.


In order to get rid of existing shareholders, Gluv conducted a 1-for-6.5 million reverse share split on May 12, which reduced the shares outstanding to just 11. A week later, Gluv said it would conduct a 3 million-for-1 forward
stock split that would bring the shares outstanding to 33 million shares. None of these 33 million shares were supposed to trade before Monday May 23.



But here is the rub: Apparently one of Gluv's 11 shareholders got his 3 million new shares early and started selling stock that was not supposed to be trading. In a press release issued Sunday, Gluv warned shareholders that
shares had improperly made their way into the marketplace and that investors should "not trade these shares until further notice." The company said it's investigating the matter and that it would "cooperate with regulators in resolving the situation." Gluv said it asked the Securities and Exchange
Commission to halt the trading of its stock.

That has not happened. Insteadmillions of shares of Gluv continued trading and that could result in some securities firms ending up stuck with non-existent stock. A spokesman for the SEC had no comment.

The SEC has the authority to suspend trading. The loosely regulated Pink Sheets market falls under the tutelage of NASD which may be waiting for guidance from the SEC. A spokeswoman for the NASD declined to comment.



Trading data shows that some 590,000 shares of Gluv traded last week. It's unclear how many of these shares were not supposed to be trading before May 23.

But since only 11 Gluv shares were really outstanding at that time, it's a fair assumption that most of the shares that changed hands last week were improperly traded.



It's also unclear just how many shares of Gluv are now outstanding. Under the company's 3 million-for-one forward split plan, each of the 11 shares outstanding last week became 3 million shares on Monday. But it's possible, and
even likely, that some of three million shares improperly released prior to Monday were also treated as pre-forward-split stock and broken up into even more shares.

A trading volume of 2.15 billion on Monday certainly indicates that more than just 33 million shares were floating around the market that day. (Trading volume was 556 million shares on Tuesday and 799 million shares Wednesday).

It typically takes three days for transactions to clear. And with settlement time right around the corner for Monday's monster volume, some market participants are wondering whether firms that handled large amounts of Gluv stock will be able to deliver shares.

Neither Gluv, nor Interwest Transfer Co., the company's transfer agent, were available for comment.

Chris Nagy, Managing Director of order routing for Ameritrade, said that as a precaution, the brokerage firm stopped allowing clients to buy shares of Gluv on Monday. The firm has continued allowing customers to sell Gluv stock however.

Nagy said the situation continues to be investigated. Gluv stock closed at $0.0001 a share Wednesday, down 50%.



(Carol S. Remond is an award-winning columnist and one of four who write the "In The Money" feature)

-By Carol S. Remond; Dow Jones Newswires; 201 938 2074; [e-mail]

[PDC ™]

http://www.investorshub.com/boards/read_msg.asp?message_id=6462915

[PDC ™]

nothing. but something is making me feel more positive. Not sure what.

[ORCA]

Any update from Ameritrade???Maybe we will be short tomorrow, as we sold Monday,settlement day is tomorrow.Someone has to deliver the shares that do not excist.I hope it is not us.

[shmolton]

I think we're in the clear Taki...
...for those exact reasons. If there was a problem here, this wouldn't still be trading. I think they're using the confusion to cover.

[PDC ™]

Posted by: Susie924
In reply to: Mr. Bill who wrote msg# 21 Date:5/25/2005 9:00:09 AM
Post #of 23

I usually don't know what I am talking about but if someone wants to cover a short, they buy. Wouldn't that be a "closing transaction" on their part?

BTW.......I don't think Mr Bill can see this so if someone thinks what I am saying may be correct please copy and paste it.

[ORCA]

GVRP:The biggest nightmare.The scam pos,that they still allow to trade that is the regulators.
They should bust all trades Monday and Tuesday.Then today they should have a halt,to clear mess.
Ameritrade did not allow buys yesterday.I tried to BUY it back yesterday what I sold Monday on the internet and got this
:Opening transactions for this security are not accepted:
So the little investor has no cover.F him to the end.

[Susie924]

I usually don't know what I am talking about but if someone wants to cover a short, they buy. Wouldn't that be a "closing transaction" on their part?

BTW.......I don't think Mr Bill can see this so if someone thinks what I am saying may be correct please copy and paste it.

[Mr. Bill]

AT Email- They wont let me BUY (and verbally said I could sell)

Dear Mr. Squat:
Good morning and thank you for contacting Ameritrade. Per our conversation this morning, Ameritrade is not allowing any opening transactions for the security GLUV Corp, stock symbol GVRP, at this time.

If you have further concerns or inquiries, please reply to this message.

Sincerely,

Isolda Brunson
Client Services - Ameritrade
Division of Ameritrade, Inc.

[Mr. Bill]

Another reply from AT - with name changed of course

Dear Mr Squat:

Thank you for contacting us today regarding GVRP.

We have posted the shares based on the information that we received from the company. We did not receive any indication that the shares are restricted shares. If the company rescinds the payment, then the dividend posting will be reversed. Should this happen and you have sold the shares you would be short the position and it would need to be covered. At this time, we have not received any indication from the company that the payment will be rescinded.

If you have further concerns or inquiries, please reply to this message.

Sincerely,

Debra Williams
Apex Reorganization and Safekeeping, Ameritrade Division of Ameritrade, Inc.

[CPTMatt]

Well considering that there should be only 33 million outstanding I would guess not.

DTC can't deliver shares that don't exist, I still don't think they know what they are talking about.

[Mr. Bill]

An Email I got from AT which seems misleading to me. I have changed my name on this email otherwise it is as I received it.

FWIW from AT - Opinions ? Does this mean my shares have been delivered and settled on?

-----Original Message-----
From: APEX Client Services [mailto:[e-mail]]
Sent: Tuesday, May 24, 2005 10:47 PM
To: Mr Squat
Subject: Re: Reorganization and Dividends (KMM27037909I20725L0KM)

Dear Mr Squat:

Thank you for contacting us today regarding GVRP.

I show you currently have 3,002,000,000 shares of GVRP. On May 20, 2,999,999,000 shares were delivered as payment for the stock split.

If you have further concerns or inquiries, please reply to this message.

Sincerely,

Terrie Lee
Apex Client Services, Ameritrade
Division of Ameritrade, Inc.

[Modern_Rock]

Trades are usually busted based on a date and time range. So any trade, buy or sell within a specific interval will be busted. So if your BUY was within that timeframe that they bust, but not your SELL, you will be net short. If your SELL was within the timeframe to be busted, you will sill have your long shares...

[CPTMatt]

Question there is what is the definition of a "proprietary short sale"? Also, I placed my order over the phone directly with an Ameritrade Apex broker, so not "electronic".

[bobkubecka]

And referencing the brokerages responsiblities even further ( this would certainly explain whose at "blame" for the original insider sales):

Notwithstanding the fact that the
customer may not intend to sell
short, a member that offers online
trading services to its customers
must program such systems to
ensure that the member is complying
with all trading and market-making
rules, including the short sale
rules. In other words, when the
above referenced situations occur,
members’ systems should consider
the stock positions in customer
accounts and the number and status
of all orders and cancellation
instructions. Member firm automated
systems should execute such
short sales in compliance with the
short sale rules, and NASDRSM and
Nasdaq recommend that firms
design their systems to provide
customers with notice when they
may have placed an “inadvertent”
short sale. In sum, the means of
receipt of a short sale and the
“inadvertent” nature of a short sale
in no way eliminate or reduce the
obligations of member firms to comply
with the short sale rules.

[Emptyhead]

What alternative might they leave me? I will do what is necessary,in good faith.

[bobkubecka]

Matt. Just my 2 cents but in my experience most of the people at brokerages are as clueless as the CEOs of some of these scams.
Posted by: Buckey
In reply to: bobkubecka who wrote msg# 52636 Date:5/24/2005 9:10:39 PM
Post #of 52647

ZACTLY I have been preaching that ALLLL DAY - Brokers take a ton of our money and have HUge responsibilities here - there are a ton of checks and baalances and this is one of them.

If the regulatory aganecies fuck this up they have compromised theior own system.

[Art2Gecko]

Posted by: timmage
In reply to: timmage who wrote msg# 52585 Date:5/24/2005 8:38:55 PM
Post #of 52631

Inadvertant Short Sales: http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&ssDocName=NASDW_004038



NASDR also notes that the obligation
for making an affirmative determination
and complying with the
Bid Test Rule rests with member
firms and may not be shifted to customers.
For instance, members
may not satisfy the Affirmative
Determination Rule for short sales
by merely giving warnings to customers
that they are required to
make good delivery of the securities
or that they will be financially
responsible for any losses incurred
from covering short sales.

[EVO]

smells like there will be some serious lawsuits if only 1 side of the trades will be busted

[PDC ™]

I dont know. It isnt right.

[Emptyhead]

Updated:Include me in this mess. I sold Monday afternoon 300 mil/shrs after spending three phone calls and much time on the phone with Ameritrade during the morning hours having been convince by them it would be fine. My original buy in on the stock was for 1500 shares last Wednesday and Thursday. Friday I did not sell a single share.
Today I received a call from them that I could be potentially Short the stock if the shares do not show up on Wednesday/Thursday. I asked them then,today,if I could buy the shares back at the price I sold,.0001,and they told me I could not. They would no longer allow a market with GVRP shares for Ameritrade clients. This is nightmare! How they can do this and allow the trades to take place in the first place is beyond my comprehension. If I can not trust what I buy through Ameritrade how can anyone else?

[CPTMatt]

No, I didn't have access to the internet all day so I called Ameritrade during lunch, they told me best bid was .000002 so I sold for a couple hundo percent.

Didn't make $1k let alone $30k

[ez2flip]

sold 300m shares on monday.
I still have 300m but that doesn't matter, if buy-in is required.

I'm a Ameritradeizone user(old freetrade).
on monday, I sent 3 emails that asked my shares were real and I could sell. they answered there was no indication that there was any issue on the stock split. they also said I could sell that share.

I tried to take out some money from my account. they rejected.
I sent email that asked what the fxxx was going on.
they replyed that the SEC and NASD were investigating the last friday and this monday trades.

[PDC ™]

what?

[EVO]

a $150-400 investment could of returned a $30,000 profit

[shakerzzz]

im very confused anyone make or loose money on it

[EVO]

so you booked a nice 30k or so profit off a couple hundred investment...good job

[PDC ™]

I set a sell on friday night when i noticed i got my shares. I was gonna pull it so that I could get more but FRIGGIN overselpt on Monday for the first time since SPEA.

I had a represtative call me over the weekend. I confrimed that I was recieving the split and that it was able to be traded, etc... she confirmed all of this.

Then I start reading about possible short position ... Blah, blah, blah. All I know is that I bought a stock with DUE BILLS attached and within the NASD and SEC regulations am obligated to recieve those shares.

I hope that accidentally sleeping in doesnt ruin my life. I COULD never cover the short that NITE took in the a.m. It might be more $$$ then I have ever or will ever see.

Right when I arrived I tried to get the trade broke but NITE wouldnt allow it. Fuggin shame to sleep in and have this as the consequence.

Took me along time to build assets post bankruptcy and I just pray that I do not lose it due to the fault of others.

[CPTMatt]

Sold 300 million shares on Monday. Was told on Sunday evening that I would not end up with a short position if I sold Monday. Was not informed of possibility of company reversing the split until today (Tuesday).