Tuesday, January 28, 2003 5:40:29 PM
At the end of this week it will be exactly 5 calendar months since I sent my first email to you alerting you to the issues surrounding trading in Genemax shares and the failure of Ameritrade to deliver the certificates of shares I purchased from them.
Since that time I have communicated with Ms. Amy Chambers, Mr. Sean Gatz and others from NASD and I have Examination No. E04020595 allocated to my case. I have also contacted the SEC and communicated with their special counsel Mr. Brent Baker, Ms. Merrily W. Katz, Office of Investor Education and Assistance and others who responded with case reference numbers HO 384155 and HO00831123.
I have also received letters and faxes from Mary Jo Strong, Regulatory Attorney at Ameritrade as well as various emails from others in that firm.
Without exception everyone involved has been polite and reasonably prompt in responding. However I still do not have all my GMXX certificates and it seems everyone I have contacted is unwilling or unable to either provide answers to a few quite simple questions.
I have asked, but have not received a reply to the following:
When a failure to deliver of stocks occurs in clear breach of rule 11830 and buy-in attempts do not resolve the issue, what action does NASD and the SEC take in order to have this breach rectified or to censure the party responsible for the failure?
Have either the SEC or NASD taken any actions in this case where an obvious failure to deliver has occured and it has not been rectified after 5 months?
Amertrade informed me in writing that of 19 market makers they contacted all refused to accept a buy-in order for GMXX shares because they could not guarantee delivery. As far as I can determine all 19 were actually making a two sided market and offering "something" that they called GMXX stock for sale.
What were they selling? Why does the NASD allow Market makers to sell stock to the public when they know full well it is not valid stock issued by the company, is not, and can not, ever be registered for sale, and will never be delivered?
You, and other officers are fully aware of this situation yet it continues unchecked. Why?
My best regards,
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