I just received a letter today from Scottrade which was also addressed to a gentleman named David B Powers at the SEC, in response to an SEC complaint I sent a couple of weeks ago. I used the info from post #5187 in my complaint just to stir up some action, and this was the reply back:
"This is in response to a complaint that Scottrade receied via email on July 17, 2006, xxxxxxxxxxxx. The complaint was regarding the issuance of restricted Paivis Corporation (PAIV) shares in exchange for Jupiter Global Holdings Corporation (JPHC) shares resulting from a merger between the two companies.
XXXXXXXXXX states that he has been waiting for his restricted PAIV shares since the merger between JPHC and PAIV on May 17, 2006. He states that he contacted the transfer agent for PAIV and they informed him there was a huge discrepancy between the CEDE&CO share count and the brokerage participants share count. XXXXXXXXXXX believes that Scottrade has not provided the PAIV transfer agent with customer account information because we have loaned out JPHC shares to Merrill Lynch and we are in the process of getting those shares back from Merrill Lynch.
XXXXXXXXXX claim that Scottrade loaned shares of JPHC to Merrill Lynch is completely false. Scottrade did not loan shares of JPHC to any other brokerage company, including Merrill Lynch. At the time of the merger, Scottrade did have some unsettled JPHC trades pending with Merrill Lynch that we have since settled.
Scottrade was given a deadline of July 21, 2006, to provide the transfer agent with a list of shareholders. This list was delivered on July 20, 2006. After receiving the list, the transfer agent requested that we provide additional information. This has also been sent. It is our understanding that now this proces has been completed, the shareholders will receive the restricted shares of PAIV directly from the transfer agent.
We hope this answers any questions you or the client might have regarding the issuance of the restricted PAIV shares. If you have any further questions, you may reach me at 1-800-888-1980 ext.2835.
Sincerely,
Clinton Borchardt
Complainace Examiner
