Bourque Industries Inc (BORK)

[BobEye]

BORK Restricted Shares
I posed the question to Ameritrade on the possibility of
depositing BORK restricted shares to my account.

Answer
Thank you for the information on the shares of BORK you were hoping to deposit. I regret we would be unable to accept the deposit. This is a business decision based on our understanding of regulator guidance concerning the deposit of any Over-the-Counter/Bulletin Board (OTC/BB) or Pink Sheet security. The restriction on the certificate has no bearing on the decision.

OTC/BB and Pink Sheet stocks, also known as Penny Stocks, have been deemed as a higher risk deposit type than a Listed or NASDAQ security. The regulatory bodies warn that penny stocks are high risk, these risks include (but are not limited to) limited liquidity, market manipulation, lack of transparency in financial reporting and share origin, fraud and regulatory risks. Recently regulatory litigations and fines have focused on a firm¿s ability to control deposits of this nature and protect market integrity.

The Financial Industry Regulatory Authority (FINRA) issued a notice to members concerning penny stock certificate deposits: (http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p117716.pdf. Please read it at your convenience for more information on this issue.

Based on our understanding of regulator guidance, TD Ameritrade has implemented a stringent approach to scrutinizing penny stock transactions including certificate deposits and transfers. A thorough review is performed for each penny stock deposit which may result in a business decision to not facilitate the client¿s request to deposit a certificate or accept a transfer of a penny stock. TD Ameritrade¿s review process and justification for not accepting these transactions are proprietary. We are unable to disclose confidential information used in making this business decision.