Well perhaps Megas was getting bad legal advice from Clem and crew back in 2005 in regard to Cap Growth, but even so, covering those shares took care of the actual fails that the counterfeits created, so in theory, BCIT should have been tradable and clearable.
But, since all the retail brokerages sold (read naked shorted) perhaps 2 Billion more shares to the public, there are no certs available to back them up.
The DTCC knew what was going on by 8/11/2005, and put out their notice on 8/16/2005 if I recall, but the stock still traded for two more weeks after this. They only exascerbated an already growing fail problem by not shutting it down completely.
The problem BCIT has now is not with the fails created by the counterfeit certs, but with the much larger naked short positions created by retail brokers taking orders even after the 8/16/2005 DTC notice.
