8000 Incorporated (EIGH)

[bkbirge]

Shareholder Statement April 28, 2011 – In Support of the Shareholders
“The brokerage admissions surrounding the EIGH.pk share imbalance”
Due to the significant nature of communications received by the Company and its shareholders from
Brokerages in response to reasonable questions, it is the Company’s belief that providing this
information is in the best interests of both the shareholders and the public and that it has a duty of care
obligation to do so.
Background
The Company has over an extended period provided detailed information to its shareholders and to the
market at large. The evidence to support a significant illegal naked short position and stock
manipulation is overwhelming. All information has been provided to all regulators, usually in advance so
there will be no excuse for them to not act.
Having taken an open policy, and followed the politically correct route of non-confrontational discussion
and accommodation of those the Company believes have engaged in the activities catalogued over
many months, the Company undertook a detailed review of the company’s common shares and the
certified shareholder stock positions in EIGH.pk. Further detailed analysis called for more information
and the response and support from all individuals who have legally acquired Company stock, has been
exceptional, identifying greater numbers of discrepancy and more issues. These results are being
compiled and will be made public and they will ask questions of several trading and stock institutions.
Due to some alarming facts and admissions, the Company feels that it has a duty of care to its
shareholders to expose the situation and provide full disclosure to enable all to understand the severity
of the situation and to have the justification to act to defend themselves. All information within this
reprint is fact and is supported by included documentation.
To have it admitted by senior management of a Brokerage that they have a “share imbalance and mess”
that needs to be sorted out with no follow up action as stated, is wrong and an admission that goes to
the cause. Knowing that there are discrepancies, knowing that shareholders will not be eligible for the
planned share exchange because brokers do not know if they sold legitimate shares to their clients is not
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acceptable under any circumstances. The shareholders rights dictate that they need to be made aware
of the truth and the facts.
Introduction
Key Points
? More shares have been sold into the market than have been issued by the Company, proven
by shareholder records and testimonies. The figure is growing and currently stands at more
than 200MM representing 62% of the known shareholders.
? Brokers have admitted there is a “share imbalance” and that there are failures to deliver, seen
on many occasions in several brokerages over 18 months.
? Knowing these facts and that shareholders and the Company have requested remedy and
relief of the Brokerages and the regulators, the situation, in our opinion representing an illegal
naked short is perpetuated at the cost of the shareholder and Company.
The information contained in this document is issued in order for all concerned to understand what has
occurred and why it has been so difficult to do anything about the know facts. All shareholders should
be aware that all information, all facts and interpretations have been sent to the regulators. It has been
confirmed that the regulators are communicating with the Brokerages directly on this matter relating to
sorting out the situation.
The Company and its shareholders have been exposed to severe consequences of these events and for
admissions to be made with no action, and to be literally left to fight and deal with this matter alone, it
irreprehensible. The information presented in this disclosure is fact, is supported by fact and is provided
for the good of and benefit of the shareholders of 8000 Inc.
The Company states, has always stated and will continue to state, its request is to identify any issues
surrounding the stock, and if any exist, for the brokers, dealers and clearing firms to address those
issues. That is a reasonable and correct request in our opinion under these circumstances.
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Share Imbalance - The facts
Below are the communications in received in response to the many questions and concerns of the
shareholders and the Company presented to the Brokerages. The Company has provided its opinion, but
will leave the interpretation of the facts individually to the reader.
Brokerage Communications
E*Trade and Ridge Clearing Solutions
In the Company’s opinion, the issues and questions that need answering are below and based on the
actual responses received by E*Trade management and representatives. The Company asks that all
shareholders read the communications in full to understand the extent of the apparent issues.
Failures to deliver are acknowledged and yet not acted upon, why? If the stock is not delivered to the
investor who purchased through E*Trade, who receives the shares in the share exchange, do these
purchased shares exist, who owns them and why leave this an open issue?
Why is the failure to deliver and close out of stock transactions undertaken by a Brokerage for and on
behalf of their client the responsibility of the Company, and why does a Broker think that it is
acceptable to not settle or deliver stock legally purchased prior to a share exchange which may render
the investor exempt from the transaction, unless this is a know naked short position.
Why is the situation described as a “mess” if there are no short positions or discrepancies? Surely as a
stock traded through DRS as it is not DTCC eligible and can only be transferred in certificate form and
is not eligible for any short sales, how can there possibly be a mess relating to the numbers of shares
held by investors?
The total number of shares reported by E*Trade is less than the number of shares reported by 8ooo
Inc. shareholders, verified by their account statements. So there is a mess, acknowledged by E*Trade,
there is a discrepancy surrounding the number of shares held at E*Trade and there are failures to
deliver. In our opinion that appears to suggest irregularities relating to 8000 Inc shares held at
E*Trade, alternatively as stated by Courtney, we have a “share imbalance”.
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Communications received from E*Trade
From: Arndt, Paul F
Sent: 25 April 2011 15:42
To: ; Fioribello, Paul; Eberhart, Courtney; Dror, Eli
Cc: Bishop, Robert L; Baker, Anthony
Subject: RE: 8000 Inc (EIGH.pk) Shareholder complaints and discrepancies
I have not acted on the fails since the corporate actions has not allocated yet.
I think you need to see if maybe our Fail Control or Buying department has?
Sent: Monday, April 25, 2011 3:39 PM
To: Fioribello, Paul; Arndt, Paul F; 'Eberhart, Courtney'; Dror, Eli
Cc: Bishop, Robert L; Baker, Anthony
Subject: RE: 8000 Inc (EIGH.pk) Shareholder complaints and discrepancies
Hi Paul,
Thanks for your reply, you guys have been very helpful and proactive, which I am grateful for.
Please can you advise whether you have acted on the fails to deliver and receive under 11800?
Obviously I am aware that FINRA are watching, monitoring and making contact so we should all work
together to get this resolved.
With thanks,
From: Fioribello, Paul
Sent: 25 April 2011 08:37
To: Arndt, Paul F; Eberhart, Courtney; Dror, Eli; @tbgfund.com
Cc: Bishop, Robert L; Baker, Anthony
Subject: RE: 8000 Inc (EIGH.pk) Shareholder complaints and discrepancies
is there any other information that is required?
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From: Arndt, Paul F
Sent: Monday, April 25, 2011 8:23 AM
To: 'Eberhart, Courtney'; Dror, Eli; '@tbgfund.com'
Cc: Fioribello, Paul; Bishop, Robert L; Baker, Anthony
Subject: RE: 8000 Inc (EIGH.pk) Shareholder complaints and discrepancies
Currently we hold the following
Fail to Receive 95,167 shares
Fail to Deliver 78,067 shares
Firm name (Physical) 43,196,703 shares
Physical Box 97,766 shares
From: Eberhart, Courtney
Sent: Wednesday, April 20, 2011 2:34 PM
To: Dror, Eli
Cc: Fioribello, Paul; Bishop, Robert L; Arndt, Paul F
Subject: RE: 8000 Inc (EIGH.pk) Shareholder complaints and discrepancies
Ok thanks Eli, I figured it had been passed on now.
Paul please keep me in the loop on this mess so I can field the customer inquiries. Currently I
am just advising customers that we are working with the company and there is no action
required from the bene holder.
Please let me know if I can assist with anything.
Courtney Eberhart
TL - Risk Trading Team
E*Trade Financial Corp.
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From: Dror, Eli
Sent: Wednesday, April 20, 2011 2:26 PM
To: Eberhart, Courtney
Cc: Fioribello, Paul; Bishop, Robert L; Arndt, Paul F
Subject: 8000 Inc (EIGH.pk) Shareholder complaints and discrepancies
Courtney,
I am not handling this, I only did the initial inquiry with the company because we received a Voluntary
Tender instruction from Etrade in a workflow. This is a mandatory offer is handled by Paul Arndt.
SECURITY: E008256
8000 INC
CUSIP: 28251Q109
Thank you,
Eli
From: Eberhart, Courtney [mailto:[e-mail]]
Sent: Wednesday, April 20, 2011 2:03 PM
To: Dror, Eli
Subject: FW: 8000 Inc (EIGH.pk) Shareholder complaints and discrepancies
Importance: High
Hey Eli, are you doing anything with this or has it been passed on to someone else? This
company is creating a frenzy amongst the shareholders and I want to make sure we are doing
what we can get to rid of this position and evaluating our interest in taking on the new.
Thanks
Court
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From: [mailto:@tbgfund.com]
Sent: Monday, April 18, 2011 1:02 PM
To: Eli.Dror
Cc: Desatnick, Jason; Corporate Actions Trading; Eberhart, Courtney; Vickie.Dang; Paul.Fioribello;
Robert.Bishop; [e-mail]; [e-mail]
Subject: 8000 Inc (EIGH.pk) Shareholder complaints and discrepancies
Importance: High
Dear Isabella,
In response to your enquiry, and advice from FINRA, I am contacting you regarding the current situation
surrounding 8000 Inc (EIGH.pk). As you are aware the Company is undertaking a corporate action
whereby the common shares will be exchanged. Through this process it has become clear that a
significant identified naked short position is present within the stock. We would ask that you review
your client accounts to ascertain the shares held within your organisation.
My role is as consultant to analyse all the audit data and broker actions currently identified.
The Company is about to undertake a share exchange transaction which calls for the cancellation of all
existing common shares. In order to execute, an audit was undertaken by the existing shareholders
using their verified accounts and testimony.
To date it has been shown that 120MM shares, and still rising, have been sold in excess of the number of
shares issued by the Company. So we are in the process of contacting all brokers to alert them to the
fact and to ask for their assistance in remedying. The first action would be to confirm and or identify the
number of shares held by yourself. Below are the figures aggregated for shareholders specific to Zecco.
Currently Pershing shareholder accounts hold as proven by account records and testimony, 48,110,598
shares of EIGH.pk (8000 Inc) in 137 shareholder accounts. This data is held in spread sheet format for
all broker dealers by individual account. Please also note that there are 89 broker dealers that trade
the stock. It is therefore impossible for the number of shares recorded in the audit to be recorded as
sold and duly held in accounts to be possible unless there is a significant short position. Furthermore,
the number of shares recorded as purchased in your accounts added to just Zecco in the past 4
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months and held currently equates to more shares than all the other 86 broker dealers held and hold
and thus this is impossible.
Please can you review and get back to me so we may address these errors. In addition, I would ask on
behalf of the Company and the shareholders, that if any discrepancies are identified, then Ridge
immediately covers this position.
Yours,
Communications received from E*Trade individually
It is the Company’s belief that the below statement included within the E*Trade communication needs
no explanation and is clearly a matter that should cause immediate action and resolution of the issues
raised by the Company. But to clarify:
There are many instances of e-mail communications recorded outling incorrect statements and reason
by E*Trade. The Company has decided that although filed, the latest statement by E*Trade, issued to
many shareholders is sufficient, in its opinion, to raise alarm and outrage of shareholders and is an
indictment on its own to ensure that E*Trade should act, and act immediately. If this statement is
taken cumulatively with the above statements, we now have a situation that by admission
acknowledges a mess relating to the numbers of shares sold and held within E*Trade accounts,
failures to deliver and receive, non-action which may result in shareholders being exempt from the
planned share exchange and a staggering admission that E*Trade does not know if it has sold
legitimate or illegitimate shares to the public and believes the Company should sort this out for them.
It is our opinion that this admission is more than enough and the shareholders deserve the truth and
the “mess” or “share imbalance” at E*Trade needs to be “sorted out” immediately and by them.
From: XXXX
Sent: 04/27/2011 05:38 PM
Subject: Portfolio
Topic: Account Positions
Account: XXXX-XXXX
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Reference Number: XXXXXXX
Message:
Dear XXXX,
Thank you for your message regarding your EIGH shares on your E*TRADE Brokerage account.
The 8000 INC has received the CUSIP number for the preferred shares relating to the announced
exchange and cancellation of all currently issued common stock. The Company is in the process of
identifying and verifying the shareholders of record and will exchange on a "like for like" basis as stated.
CUSIP NUMBER: 28251Q 208
ISIN NUMBER: US28251Q2084
ISSUE DESCRIPTION: PFD
In response to the shareholder vote approving the share exchange, shareholder testimony and verified
brokerage account information has shown that more shares are held by individuals in brokerage
accounts than have been issued by the company. The Company believes these facts identify an illegal
naked short position in EIGH.pk. The Company is currently in the process of reconciling these apparent
discrepancies. The shareholder information has been sent to the relevant authorities and FINRA OTC
Corporate Actions is aware of the suspected discrepancies relating to the share exchange.
The Company will continue to update shareholders and the public as information is received and
believes that the regulators will address any identified discrepancies prior to the imminent corporate
action contemplated and announced.
In this regard, E*TRADE has no way to verify if what you have is legitimate or not. We will still be
awaiting for their final review and audit results.
Sincerely,
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Oscar Rodis
9:00AM to 6:00PM EST (Monday to Friday)
1-800-ETRADE-1 (1-800-387-2331)
Financial Service Representative
E*TRADE Securities, LLC
Communications received from Zecco
As has been stated publicly, the company has questions it cannot answer surrounding the number of
shares held in Zecco trading accounts by Company shareholders. Zecco have been strong enough to
state they will address the situation on the provision of empirical data supplied by the Company. That is
current and on-going and will be made public as soon as the Company has correlated all the new
information received and the account records as requested by Zecco. The Company commends Zecco
for their openness and willingness to address.
However the issues, in the Company’s opinion, go much further.
Zecco clear, principally through Penson who know own Ridge who clear for E*Trade. Pesnon thus has
the lion’s share of the clearing of the Company’s stock, based on these clients and others they provide
clearing services for. Therefore it is our opinion Penson has in real terms a monopoly and if a naked
short position is identified at E*Trade and Zecco, then it can be assumed that the practice has been
permissible and could be permissible within these institutions across many brokers and dealers. The
Company is further concerned that E*Trade have already admitted a “share imbalance”, a “mess” and
failures to deliver and receive and this must have implications and an effect on the institution that
provides their clearing services.
As has been recorded on multiple occasions by shareholders, information given out to the public by
Zecco representatives has been misleading, incorrect and generally wrong, giving in our opinion
misdirection to the Company’s shareholders and their clients.
In our opinion, the most damning aspect of this communication trail is that in order to appease, or in
the Company’s opinion, mislead a shareholder, Zecco representatives state clearly that the regulatory
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bodies and as well DTCC were responsible for the “freeze” on the trading of EIGH.pk. The Company is
aware that the freeze was instigated by the clearing firm for Zecco coincidentally immediately after
the Company informed the form that they were being misrepresented to the 8000 Inc shareholders by
Zecco representatives.
Zecco Trading Customer Service
Monday April 11 | 9:21am
Dear xxxx xxxxxxx,
Thank you for contacting Zecco Trading.
The DTC has frozen trading on EIGH. This means that there are no opening or closing transactions
allowed. EIGH is in the process of indentifying legitimate shares and will replace them with new shares
once their investigation is complete. We do not have any information as to how long this will take or
when trading will be allowed.
For any questions concerning this action, please direct customers to contact the company directly at
703-881-7834. Their website is www.8000inc.net.
We hope that this information has been helpful. Please feel free to reply to this message if you have
additional concerns.
Sincerely,
David Kim
Financial Service Representative
Zecco Trading, Inc.
P.O. Box 60670
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Pasadena, CA 91116 USA
ph 877.700.STOCK (877.700.7862) | fax [phone]
Monday April 11 | 9:36am
That is a strange response since there were 530,000 shares traded Friday. Why are other brokers still
allowing buy and sell orders to be placed. EIGH was never a DTCC company so why is zecco saying this
now when you have allowed trading for so long? Here is a statement from EIGH.
The Company is now reconciling all the shareholder data and so far it shows that 221MM shares will
need to be issued to accommodate the approved share exchange. The Company is still awaiting the
data from 41 broker dealers known to hold EIGH.pk stock in its' client accounts.
Management is also investigating a broker dealer statement to shareholders that DTCC has placed a
freeze on the Company's stock. This is obviously not true due to the trading volume seen on Friday.
but we will advise on all responses.
The Company is also awaiting confirmation on how it is to determine which shares sold to
shareholders are real shares. As there are more shares sold to shareholders than issued this is a real
concern for the shareholders but we are confident a solution to the situation will be forth-coming
shortly but we would recommend that shareholders keep in contact with their brokers regarding this
matter. As the 10 day notice for corporate action is rapidly coming to an end, the Company will
continue to update its shareholders on all developments regularly.
Monday April 11 | 9:54am
There is also 32,000 shares that have traded so far today. Why is that??
Zecco Trading Customer Service
Monday April 11 | 10:13am
Dear xxxx xxxxx,
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Thank you for contacting Zecco Trading.
I apologize for the inconvenience, but unfortunately I could not tell why those numbers are being
provided by our Data Provider (quotes). Please direct your questions to the company in question.
Contact Information:
703-881-7834.
www.8000inc.net
We hope that this information has been helpful. Please feel free to reply to this message if you have
additional concerns.
Sincerely,
Andy Candelaria
Financial Service Representative
Zecco Trading, Inc.
P.O. Box 60670
Pasadena, CA 91116 USA
ph 877.700.STOCK (877.700.7862) | fax [phone]
Monday April 11 | 10:22am
That answer makes no sense. You can look at quotes anywhere and see the volume for Friday and
today. Look at yahoo finance and you can see the volume. Why is zecco saying EIGH is frozen when
there is trading? EIGH says there hasn't been a freeze by the DTCC.
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Monday April 11 | 11:16am
Volume is 142,000 on EIGH now. Can I get a straight answer why zecco won't allow trading of EIGH?
Thanks - xxxx
Zecco Trading Customer Service
Monday April 11 | 11:57am
Dear xxxx xxxxx,
Thank you for contacting Zecco Trading.
Please review the attached link for further information from the OTCBB
http://app.quotemedia.com/quotetools/newsStoryPopup.go?storyId=40054797&topic=EIGH&symbol
ogy=null&cp=off&webmasterId=89753
There are trades occurring however they are not being settled by DTC. Zecco Trading will not settle
outside of DTC. For example these could be individuals swapping certificates or transferring shares
between 2 individuals. These trades still have to be reported and logged.
We hope that this information has been helpful. Please feel free to reply to this message if you have
additional concerns.
Sincerely,
Eugene Lee
Financial Service Representative
Zecco Trading, Inc.
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P.O. Box 60670
Pasadena, CA 91116 USA
ph 877.700.STOCK (877.700.7862) | fax [phone]
Monday April 11 | 12:09pm
Trades have never been settled by the DTC for Zecco. EIGH is not DTC eligible. Why is Zecco concerned
about the DTC now?
Thanks - xxxx
Zecco Trading Customer Service
Monday April 11 | 12:21pm
Dear xxxx xxxxx,
Thank you for contacting Zecco Trading.
I can understand that you are upset about the issue with EIGH however we had received notification
to stop all purchase and sell orders for EIGH by the regulatory authorities. Even if EIGH is not DTC
eligible (which many penny stocks are) DTC can still act in authority regarding settlement capacity. This
halt was enacted by the underlying company. Please review the attached link in the previous
correspondence for more information. Your inquiries would best be answered by investor relations at
EIGH. We would be more than happy to place your trades and charge you a commission to make
revenue but unfortunately we are unable to do so until we have received further notification. We
thank you for your patience and understanding.
We hope that this information has been helpful. Please feel free to reply to this message if you have
additional concerns.
Sincerely,
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Eugene Lee
Financial Service Representative
Zecco Trading, Inc.
P.O. Box 60670
Pasadena, CA 91116 USA
ph 877.700.STOCK (877.700.7862) | fax [phone]
Monday April 11 | 6:16pm
I just received an email from EIGH stating there is no freeze by the TA, DTCC, FINRA, SEC or anyone
else. Which authorities is Zecco referring to above?
Also, is Zecco concerned about the large illegal, abusive naked short position on EIGH?
Thanks - xxxx
Zecco Trading Customer Service
Monday April 11 | 6:41pm
Dear xxxx xxxxx,
Thank you for contacting Zecco Trading.
We apologize for any confusion. Zecco trading has no control over this corporate action and has not
received any updates. A case was submitted to research further and to gather additional information
available for EIGH.
We thank you for your patience and understanding.
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Sincerely,
Michelle Boucher
Financial Service Representative
Zecco Trading, Inc.
P.O. Box 60670
Pasadena, CA 91116 USA
ph 877.700.STOCK (877.700.7862) | fax [phone]
Monday April 11 | 6:46pm
What do mean by corporate action? Zecco is saying EIGH has been frozen by the authorities. Which
authorities is Zecco referring to? EIGH says no authority has frozen them.
Zecco Trading Customer Service
Tuesday April 12 | 6:06pm
Dear xxxx xxxxx,
Thank you for contacting Zecco Trading.
We apologize for any confusion. We have been informed that EIGH has never been DTC eligible; all
historical transactions were settled via physical certificates. DTCC will continue to provide custody
services of physical certificates for broker/dealers that do not have their own vault systems. Thus,
clearing firms are responsible for the settlement of trades through physical delivery of certificates.
If a customer wants to liquidate only and has a substantial dollar value position, we have confirmed
with our clearing firm that the security can be traded ex-clearing. The fees associated with this are
unknown until the transaction occurs, but we have been given a range of $200 to $700. If you wish to
close the position, you may contact us by phone.
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We hope that this information has been helpful. Please feel free to reply to this message if you have
additional concerns.
Sincerely,
Michelle Boucher
Financial Service Representative
Zecco Trading, Inc.
P.O. Box 60670
Pasadena, CA 91116 USA
ph 877.700.STOCK (877.700.7862) | fax [phone]
Tuesday April 12 | 8:18pm
So you sold me shares of eigh that you shouldn't have and now you want to charge me an arm and leg
to sell them? Is that correct? What do you consider substantial? What if you don't think it is
substantial? Are you saying I can't sell my shares?
xxxxx
Friday April 15 | 11:29am
Can you answer my questions above and tell me why you would have charged me the regular
commissions 2 weeks ago but are now trying to charge the higher costs?
Zecco Trading Customer Service
Friday April 15 | 11:38am
Dear xxxx xxxxx,
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At this time, our clearing agent, Penson Financial Services, Inc., has stopped clearing trades for EIGH
through their standard settlement process. In effect, they are no longer accepting trades for this
security to be settled through normal channels. It is possible to liquidate your positions by settling
trades with delivery of physical certificates. However, this does generate fees upwards of $200 and
possibly as high as, or higher than, $700. If you would like to discuss this further, please contact us
directly at 877-700-7862 and a Financial Services Representative will be happy to assist you.
Sincerely,
Joe Chung
Senior Compliance Officer
Zecco Trading, Inc.
P.O. Box 60670
Pasadena, CA 91116 USA
ph 877.700.STOCK (877.700.7862) | fax [phone]
---------------------------
Can you please tell me what is the latest is regarding trading for EIGH? Orders were getting rejected
earlier this week.
Thanks -xxxx
Friday April 15 | 11:44am
Is it because of the illegal, abusive naked short position on EIGH? Please answer.
Thanks
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From: Steven Ivey [mailto:[e-mail]]
Sent: 18 April 2011 12:47
To:
Subject: RE: 8000 Inc - EIGH.pk shareholder discrepancies and complaints
Thank you , I do not see the correspondence with our Customer Service from the shareholder. Was it a
separate attachment?
Steve Ivey
Customer Service Manager
Zecco Trading, Inc.
P.O. Box 60670
Pasadena, CA 91116 USA
ph 626-529-7101 | fax [phone]
Communications received from Fidelity
The Company’s issue here is r simple and repeated many times over with multiple brokers. It is our
opinion that providing incorrect, unclear information to shareholders, to clearly deliver sub-standard
service in relation to a situation that there is public concern surrounding the number of shares sold
relative to the number of shares issued, is not serving the client, the customer of the industry.
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Subject: RE: Acquiring physical certificates
From: [e-mail]
To: Xxxx xxxxx
Date: 3/14/2011 3:36 PM
Message: Dear Xxxx xxxxx:
Thank you for the follow up email regarding the shares of 8000 Inc. (EIGH). I apologize your last
question did not get answered. I have some additional information that should resolve the
remaining question your have.
I did some research and the shares for a company bought and sold don't always flow through
the transfer agent. Some shares will be purchased through market makers on the secondary
markets. While other shares will be purchased from the respective transfer agent. Also, because
the transfer agent conducted this audit we have no way of knowing where the information is
originating.
With this information presented, please understand, we do have records of you purchasing your
shares of EIGH the transfer agent mentioned in the audit. The result is, in order to obtain a
stock certificate for your shares of EIGH, you will need to call and speak with a Fidelity customer
service representative. My colleagues are available 24 hours a day, 7 days a week and can be
reached by calling 1-800-544-6666. Once you call, we can the request the certificates. There is a
$100 fee per certificate.
I hope this specific information is helpful Xxxx xxxxx. If you have any other questions or
comments, please feel free to send me another email. We truly appreciate your business and I
hope you have a great day!
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Sincerely,
Nathan Hollingshead
Fidelity Brokerage Services LLC, Member NYSE, SIPC
--- Original Message ---
From: Xxxx xxxxx
Received: 3/14/11 2:36:48 PM MDT
To: [e-mail]
Subject: RE:RE: Acquiring physical certificates
Thank you for your reply but I think you misunderstood me. I wrote: "Also, a stock audit done by
the company shows that Fidelity only recorded 31,000 shares on two purchases for a period of
more than a year ending on 9/30/2010. I personally made ten separate purchases for more than
292,000 shares over that same period. How can this be?" For a period of over one year, ending
on 9/30/2010, Fidelity only recorded two purcahses of EIGH for 31,000 shares TOTAL. I'm not
talking about my account, I'm saying in TOTAL. Over that same period (again ending on
9/30/2010), I personally purchased more than 292,000 shares. Again, I'm talking about the
period ending 9/30/2010. I purchased more after that date, but that was not caluclated in the
company's audit. All that said, I'm wondering how I could purchase more than 292,000 shares,
but Fidelity only registers 31,000 over the same time period in TOTAL for ALL of its customers.
That's why I'm wondering where physical certificates would be generated. Please advise and
thank you.
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Options Express
Dear 8000inc,
Below is an email transmission that I"ve had with my broker, Optionsxpress for the past few days
concerning getting the certs for my shares. Please start at the bottom (1st email) and read through to the
latest email. It starts with a message from the TA stating that they had no knowledge of any corporate
action by 8000inc, to the broker wouldn't issue certs until instructed by the TA to do so to the latest that
says I need to contact you for further information on getting my certs.
Please help me understand what this means as well as what my next step should be as well as my legal
basis for doing so.
I would also like to add that I emailed Signature Stock Transfer yesterday morning and have not gotten a
response yet. Also, none of my shares show up on the November cert list. In fact, I own 8 times the
number of shares of 35,041 that appear under my broker.
--- On Wed, 3/9/11, Joyce Jackowiak <[e-mail]> wrote:
From: Joyce Jackowiak
Subject: RE: 8000 Inc. (EIGH)
To: "xxxxx xxxxxxx"
Date: Wednesday, March 9, 2011, 11:21 AM
Hello again Mr. Xxxxxxx~
In regards to your inquiry, we as a brokerage firm hold all non-DTC eligible securities in street
name physical form in our vault. The shares are held in a bulk quantity for all customers of
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optionsXpress Inc. When a customer requests a physical certificate for a non-DTC eligible
security, we submit a bulk certificate to the transfer agent to have specified shares returned and reregistered
in your name. As stated in my original email, I sent the request to the transfer agent and
emailed you their response.
Any further questions, as to why the transfer agent will not process any requests for 8000 Inc,
should now be directed to the Company (http://www.8000inc.net/).
I have again attached the original response from the transfer agent for reference.
Thank you
Joyce Jackowiak
Securities Specialist
T: 312.267.6632
F: 312.629.5256
From: XXXX Xxxxxxx
Sent: Tuesday, March 08, 2011 9:36 PM
To: Joyce Jackowiak
Subject: RE: 8000 Inc. (EIGH)
Ms. Jackowiak,
Thank you for your assistance thus far with my inquiry into my stock's certificates.
I have a Share Certificate list as at Sept 30, 2010, and not a single buy transaction of mine appears
on this list. This share certificate list shows where each and every share certificate was being held
as of Sept 30, 2010. What are your thoughts as to why none of my shares are on this list? EIGH is
not and never has been DTC eligible which of course means all trades must be done with paper
certs. It is my understanding that as my broker, Optionsxpress should have the paper certificates in
hand for my shares. I need for Optionsxpress to verify that they have the certs for my shares
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inhand. I don't understand why I was advised to contact signaturestocktransfer for verification of
my certs when I purchased my shares through Optionsxpress.
Thank you,
Xxxxxxx
--- On Tue, 3/8/11, Joyce Jackowiak <[e-mail]> wrote:
From: Joyce Jackowiak
Subject: RE: 8000 Inc. (EIGH)
To: "xxxxx xxxxxxx"
Date: Tuesday, March 8, 2011, 11:42 AM
Good morning Mr. Xxxxxxx~
I have read your information, however Signature Stock Transfer is the actual company that would
issue a physical certificate for 8000 Inc. You will need to contact them directly regarding the
Company 8000 Inc, [e-mail].
Please let me know if I can be of further assistance.
Sincerely,
Joyce Jackowiak
Securities Specialist
T: 888.280.8020
F: 312.629.5256
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From: Xxxxxxx [[e-mail]]
Sent: Monday, March 07, 2011 9:18 PM
To: Joyce Jackowiak
Subject: Re: 8000 Inc. (EIGH)
Hello Joyce,
Thank you for looking into this for me. There seems to be some confusion concerning my
inquiring about getting certs for a Portion of my shares. You state that no certificates will be issued
out until you receive further information from the TA. Please see the below law regarding
Certificate requests for corporations formed in Nevada.
8000 Inc. was incorporated in Nevada in 2007. Nevada law NRS 78.235 mandates that each
shareholder has the right to request and receive certificates of ownership from the company for their
stock, especially critical for issuers whose shares are not DTC (electronically transferrable) at this
time. The statute states specifically that “…every stockholder is entitled to have a certificate, signed
by officers or agents designated by the corporation for the purpose, certifying the number of shares
owned by him in the corporation…”
As you can see, I am clearly within my legal rights as a shareholder to request partial certs for my
shares. I do not need approval from Signature Stock Transfer.
Once again, I am formally requesting that you confirm that I can receive partial certs for my
shares. Once confirmed that these certs exist for my shares, I will advise you how many shares I
would like in certificates. I need verification that the certs exist prior to me formally requesting the
certs. Also, please advise me what the process is for requesting my certificates as well as the
timeframe to receive them.
Thank you,
Xxxxxxx
--- On Thu, 2/10/11, Joyce Jackowiak wrote:
From: Joyce Jackowiak >
Subject: 8000 Inc. (EIGH)
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To: "
Date: Thursday, February 10, 2011, 3:10 PM
Hello Mr. Xxxxxxx~
I have received your inquiry email regarding your shares of 8000 Inc. I spoke to the
transfer agent Signature Stock Transfer. Here is the information I received.
“In regards to any pending corporate actions or press releases put out by the 8000,
Inc., at this time we do not have any documents on any actions as described in the
press release, no official corporate actions or no procedures to report to brokers or
shareholders.”
If you were told to order out a certificate please note this was told to you either
prematurely or in error as there are no actions are approved or officially taking place
as of this time.
SIGNATURE STOCK TRANSFER, INC.
Email – [e-mail]
Until I receive further information from the transfer agent, no certificates will be issued out.
If you should have further questions, please feel free to contact me.
Thank you
Joyce JackowiakSecurities/LP Specialist
T: 888.280-8020
F: 312.629.5256
The Company’s Opinion and closing
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The Company and the Shareholders to date have received similar responses from Schwab, RBC
Dominion, ING, Scottrade and so on. Either no clear answer is received or more time is required to get
the information requested with no response to date to report. The Company will continue to ask and
will continue to wait.
It is our clear opinion that these communications and these words form the Brokerages that represent
and serve the Company’s shareholders, their clients, speak for themselves. We believe they identify that
there is an issue specifically relating to more shares of EIGH.pk being sold into the market than have
been issued by the Company. The fact that there is apparently a “mess to be sorted out” certainly
supports the Company’s and its shareholders belief. There is more evidence and facts which the
Company is documenting and filing. The instances of failures to deliver are not specific to one
brokerage. The very fact that certified shareholder records confirm that investors hold more shares in
their accounts than have been issued should be enough for any institution to act, to at least review and
report. To receive communications stating, that failures to deliver, directly impacting on Company
actions, will wait until after a corporate transaction and share exchange and after the Company has
audited all shareholdings is shocking and should not be tolerated. The Company has been told that there
are no short positions held in the stock that it was wrong and it was wasting its time. Confirmed actual
documented communication from Brokerages contradicts this, and there is in fact a Brokerage mess
relating to 8000 Inc stock that it needs sorting out. The Company has done nothing other than ask on
behalf of itself and its shareholders that the Brokerages check there are no irregularities. To date they
have not done so and ignored our requests. In our opinion, this small selection of received
communications clearly demonstrates both an illegal naked short position and non-reporting issues.
Worryingly, as has been quoted, it is not clear in some circumstances if brokerages sold legitimate or
illegitimate shares to investors.
In closing, it is the Company’s strong opinion that its request for review and action is and always has
been correct, reasonable and justified. To have to go through this on its own and for its shareholders to
experience such trauma is a sad testament to the events and the processes. It is our belief that the
Brokerages have through their own words clearly demonstrated that there is an illegal naked short
position, or more correctly a “share imbalance” that needs to be addressed. Again, on behalf of its
shareholders, 8000 Inc asks that as requested on multiple occasions, will all Brokerages immediately
address all the naked short positions they appear to have identified?
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The Company thanks all shareholders for their support and will continue to keep our shareholders and
the public informed of all responses and events.
For more information please visit:
www.brand8000.com
www.8000incgroup.com
www.8000inc.net
Or contact:
enquirie8000inc.net
Also keep updated on 8000 Inc developments on Facebook or Twitter
-ENDSThis
news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual
results to differ materially from those projected on the basis of such forward-looking statements. The words "estimate," "project,"
"intends," "expects," "believes," and similar expressions are intended to identify forward-looking statements. Such forward-looking
statements are made based on management's beliefs, as well as assumptions made by, and information currently available to,
management pursuant to the "safe-harbour" provisions of the Private Securities Litigation Reform Act of 1995. For a more complete
description of these and other risk factors that may affect the future performance of 8000 Inc. see published disclosure documents
at OTC Markets. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of
the date made and the Company undertakes no obligation to disclose any revision to these forward-looking statements to reflect
events or circumstances after the date made or to reflect the occurrence of unanticipated events.