Check out the 1270-11 .pdf dated September 09, 2011:
"Special Alert Regarding National Stock Transfer..."
"This notice is to inform participants that DTC has coded all securities serviced by National Stock Transfer as non transferable. In addition, the issues have been chilled for all physical services(Deposits, WTs and CODs). The chills are effective September 8, 2011 and the impacted CUSIPs are listed below."
I was on the ask on the 8th and 9th on one of the stocks in this list and had no idea about a chill on the security. It gets harder and harder to stay out of trouble lately with penny stock sales.
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