My brokers difinitive word on the subject:
Dear XXXXXXXX,
Thank you for your e-mail message.
As per our prior reply, we would buy your shares in the open market, with another brokerage firm / investment dealer being on the other side of the trade, and a US clearinghouse clearing the trade. As such, your BANCORP INTERNATIONAL GRP (BCIT) shares would be registered / held electronically, and the means through which they were purchased would mean that neither would we know that the the shares we purchased are 'illegal', nor should the shares even be considered illegally obtained by us. We believe that if the other side of this trade - the individuals at the other brokerage firm whom sold the shares - obtained the shares illegally, that the selling firm would be liable for them, and that US clearinghouse that cleared the trade would usually guarantee our end of the transaction, meaning you should not be held accountable for any illicitly obtained shares that may have been sold in the market. With that said, the CUSIP number of the shares in your account are 05968X106 - though we received notice that the old BCIT shares will be exchanged for new BCIT shares (with a CUSIP # 05968X205), we have yet to receive them and do not believe that we will, as the US clearinghouse that maintains electronic records of all holdings brokerages' positions advises that CUSIP # 05968X205 has not been registered for use as of yet. We cannot advise as to when, and or if, we will be receiving the new BCIT shares.
We trust this is of clarification.
Sincerely,
Gus Chrisanthopoulos
Manager Client Relations
Client Support Group
TD Waterhouse Canada Inc.
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