IB took in a large block of OTC stock that I received in compensation. They had full documentation and confirmation from the transfer agent which was one of the top TA's in the country. AFTER they got the stock they decided they wouldn't let me trade it, after about a year of wrangling and lies the TA finally stepped in and got it back for me.
That entire account was non marginable, but IMO - they loaned the stock out anyhow. They made money on it and I couldn't sell any.
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