Replies to post #296643 on CMKM Diamonds Inc (fka CMKX)

[Investorman]

Brokers had a legal obligation to check the status of those securities to see if they have been registered.

No, they don't

As long as the company was registered with the SEC, they are permitted to trade the shares. When the registration is rovoked, they can no longer trade the shares. It isn't the brokers responsibility to determine if the shares were legally registered or not. Brokers do not evaluate, or even see, opinion letters and company records.

These shares were not stolen so your example doesn't apply.

[janice shell]

Brokers had a legal obligation to check the status of those securities to see if they have been registered.

No they didn't. And they wouldn't have been able to anyway. Had anyone asked the TA about the shares, she would have said that they were freed up for trading by opinion letters. The validity of opinion letters can only be ruled on by the courts.

Which is what eventually happened.

[tiger760]

Chisl, it was the DDTC and the SEC that are responsable for them to allow the conterfeiting of shares, and then again the main brokers of Knight, Jeffries and Ameritrade. All of the above is in my opinion! That's ny story and I'm sticking to it.

[jimmym4]

Brokers had a legal obligation to check the status of those securities to see if they have been registered.

That would make sense!

[Iggy_Bot]

a guy selling a hot stereo' is not the same a license broker selling stock.