Excellent post from RB by imsoweary...
By: imsoweary
13 Jun 2007, 10:26 AM EDT
Msg. 47828 of 47828
(This msg. is a reply to 47822 by kenco.)
kenco, no, you are wrong. The DTC refused to allow BCIT to trade until the fraudulent certs had been identified and removed from the market. The DTC did not question whether there were fraudulent certs in the market, they insisted there WERE fraudulent certs in the market and that all the shares beyond the issued and outstanding were backed by those fraudulent certs.
Based on the DTC's insistence that there WERE fraudulent certs in the market and that all the shares beyond the issued and outstanding were backed by those fraudulent certs, Megas had the basis for making the allegations against the shareholders. The DTC insistence that there were fraudulent certs in the market WAS the evidentiary support needed to make the allegations. If the DTC insists it is so, then it must be so, right?
Since Megas had no way of identifying who had shares backed by fraudulent certs, unless the brokers opened their books, which they refused to do, the ONLY alternative for Megas was to sue all the shareholders, requiring them to identify the source of the shares they owned. By offering amnesty to those who did deal in fraudulent certs, if they turned them over to the company, he had reason to believe that the lawsuit would indeed identify the source of the fraudulent certs.
When it became clear from the individual shareholder's statements that none of the shares they held were back by the claimed fraudulent certs, there was no reason to continue with the lawsuit. Megas had the evidence he needed to go back to the DTC and tell them they were wrong. None of the shares out there were backed by fraudulent certs but rather were sourced directly from the brokers themselves, thus proving beyond a shadow of a doubt that a massive case of NSS existed.
This is so simple that anyone who cannot understand and accept it as the truth must either be an idiot or choosing to deny it for their own reasons. Mark my words, watch and see what happens.
AI
