"The Court found that, through three relatives, Harris attempted, unsuccessfully, to sell up to 1.6 million shares of Conversion into the public market during the time period alleged in the complaint, while the stock was trading at dramatically inflated prices as a result of his fraudulent misstatements about Conversion's purported assets in Conversion's press releases and SEC filings."
OMG, where does one start with this one. Since when does a broker care what you sell or when you sell it? They do it for commissions. The are not a regulatory entity. They will sell whatever crap shares on whatever bogus company they can get their hands on. To think they would have the gall to stop trading in shares of a stock they were in no position to judge, nor did they have the right to judge. And besides, they were not restricted shares, they had EVERY RIGHT to sell those shares if they chose. There was no rule, law, or regulation that would have prevented them from selling. On what basis did ML stop the selling? Recent events in the market should serve to convince everyone that the system runs on greed, not morals. The great economists of our age understand this principle. It is pretty basic stuff. No, here is how it really went. Shareholders wanted to borrow money AGAINST the value of the CSHD shares. At no time did they wish to sell them....that was and error on the part of the broker, and they corrected it. The broker screwed up...he is on the hook for $40K because he had to buy back the shares at a higher price. He is covering his ass....pure and simple. SEC just saved him $40K...by putting the blame on RPH. Very slick, but also very transparent.
BCIT? Preventing it from unfreez-... what? In your dreams canteen boy. - clarity Oct 22, 2008
