Tom, this sounds like a raw deal for sure. So, just by them citing that rule in their brokerage agreement, they can bascially comandeer your shares. If you have not traded any of your pre-split shares, I do not see how you could have even potentially violated a rule. I am with Fidelity, so I am not familiar with their rule # 5, but it does not sound like they are fairly applying it.
You also mentioned they would give you fair value. How are they going to determine that? Typically I would say the market dictates the value, but in this case, I am having trouble understanding how they would accomplish this. To liquidate, wouldn't they have to be sold on the open market? So for ST to get the shares back, wouldn't they have to buy them on the open market, or are they going to pay you a $ amount for your shares without going to market. Don't see how that would be legal.
I really apprectiate you and the other ST and Zecco account holders sharing info with the board. It really gives insight to what a mess this is for them. I hope you and their other clients do not get robbed blind as this gets settled and do not have to resort to legal action to seek fair treatment. Looking forward to the next update.
Thanks, LB
