This was a non-DTC eligible security, so everything would have needed to be done manually.....I did have the forms necessary to get the shares re-registered from the seller to me but I was not given that option, before they removed the shares from my account and busted the trades.
I'm almost certain they inadvertently sold shares to me, so the brokerage firm who set up the symbol asked TDA to 'bust' those trades. Once they did, the seller got their shares back and sold them within a couple of hours on the ASK @ $18.
I might have a case to fight this but there is very little info out there on busted or reversed trades, or what power the brokers have to do this. I'm sure FINRA or the SEC has some sort of rules or laws in place to limit this. Otherwise, say you were a short or someone who made a bad trade, you could just call up your broker, slip the guy at the Trade Resolution Desk a few bucks and make the trades magically disappear....poof....like it never even happened.
There is not much that can be done. There are clauses in your brokerage contract that do not allow you to sue them. So your only choice is FINRA mediation or arbitration. Mediation, they can just reject right away.....so that only leaves arbitration and they have powerhouse lawyers, so more often then not, those cases are dismissed with prejudice...especially if you represent yourself. Then your stuck paying the arbitration fees, on top of what they stole from you.