CMKM Diamonds Inc (fka CMKX)

[Chrisl]

Investorman,,,You are proving my point every time you respond.

If I buy a stereo off the street and find out it is stolen what happens when the police come to my house? They confiscate that stereo. But I tell the police I have a bill of sale and the guy I bought it from said it was not stolen.

I give them the name of the individual and they arrest this person. They find out he stole this stereo and now it is my chance to recoup the money that was stolen from me when I bought the stereo.

Same scenario here. Brokers had a legal obligation to check the status of those securities to see if they have been registered. If they did not check they become responsible regardless of the people they received those securities from.