Replies to post #26552 on Bancorp International Group Inc (fka BCIT)

[Art2Gecko]

Added the following to the ibox >>>

Suggested format for Letter to Media/Congressional leaders/Senators
http://www.investorshub.com/boards/read_msg.asp?message_id=7767825

TIMELINE of events
http://www.investorshub.com/boards/read_msg.asp?message_id=7768333

[H2NRG]

Got an email from Scottrade...
reply to an earlier email sent to them yesterday. I sent a reply--here's the exchange so far...

Me: BCIT is now trading again after the SEC suspension. When will Scottrade
allow it to trade again? Please explain why Scottrade is not currently
allowing trading, while many other brokerages are. Thank you.


Scottrade: Thank you for your e-mail.

We understand the dilemma that not trading BCIT may be causing. However, this security cannot be settled properly here at Scottrade until DTC has said otherwise. This stock has been "chilled" at DTC, meaning settlement is not possible. It is our hope that DTC will be in contact with us shortly as to when we can begin trading this again. Once again, we apologize for the inconvenience.


Me: A few questions for you... yesterday, I received a letter dated September 12, 2005, on Scottrade stationary, from XXXX. In it, he stated the following:

"The SEC notified Scottrade prior to August 30, 2005 of the trading suspension on BCIT. We acted accordingly to the SEC suspension and notification. The SEC has temporarily suspended trading of BCIT due to the possibility of counterfeit certificates on the stock. Scottrade was not aware of the issue prior to August 30, 2005. Scottrade will allow trading on BCIT when we have the proper notification that trading will resume, but we can make no guarantee as to when trading will resume on BCIT. We apologize for your displeasure with this situation. Scottrade will be happy to transfer the shares or your account to a brokerage firm of your choice at no cost. Simply fill out that brokerage firms transfer paperwork and we will process the transfer when notified by that firm."

How can Scottrade transfer my shares of BCIT to another brokerage firm if you do not have the proper certificates to back them up? Or do you have valid "March Indy" certificates to back up my shares in my account? Also, why was Scottrade informed by the SEC prior to the suspension--is this common practice, and legal? How could Scottrade not have "been aware" about the counterfeit certificates prior to August 30 , when the DTC had issued a memo http://www.dtc.org/impNtc/ope/ope_8418.pdf a couple of weeks earlier?

Regarding your email... why and how are shares being traded on the open market (both yesterday and today), if the DTC has "chilled" the stock? What market makers are trading the stock?


It'll be interesting to see how (and if) they respond.

[ljk]

You've consistently and reliably done an excellent job for us and I thank you.

[Zardiw]

UPDATED TIMELINE (somebody add to this pls). Thx, z

UPDATED TIMELINE

You may decide to include this in your correspondence to Congress/Media. A template letter is available in the post I am replying to.


BCIT TIMELINE 6/05 to present


-- June 13 to Aug 1 --

First indication of potential "problems" with BCIT stock.
http://biz.yahoo.com/pz/050613/79836.html
http://biz.yahoo.com/pz/050801/83109.html

Broker reaction: None.


-- Aug 11 --

Confirmation of share forgeries announced by BCIT
http://biz.yahoo.com/pz/050811/83779.html

Broker reaction: None.


-- Aug 16 --

DTC memo confirming forgeries, "DTC ceases all clearing services for BCIT"

Broker reaction: None. Although this memo was allegedly circulated to all brokers on August 16, "normal" trading continued at most brokers until August 29.

Total share volume for this same period following DTC memo was 247,910,00 shares.


-- Aug 17 --

BCIT is removed from SEC Reg. SHO list, meaning that an existing naked short position has been covered. The obvious question: How does on cover a short position when only counterfeit shares are available for purchase?


-- Aug 19 thru Aug 23 --

First brokers react: Fidelity closes down buy side -- changes to "sell by phone only" policy. Raymond James closes all activity in relation to BCIT.


-- Aug 26 --

Appointment of BCIT transfer agent. True OS = 4M shares, Float = 1M shares.
http://biz.yahoo.com/pz/050826/84638.html

Broker reaction: Ticker disappears from Fidelity accounts, replaced by cusip only. All brokers except Fidelity and Raymond James still "open for business."


-- Aug 29 --

First public mention of DTC Aug 16 memo verbally cited by Ameritrade as justification for AT "global freeze".

Presumably In reaction to the confirmed float announced by TA, share price skyrockets to .053 in the first 1/2 hour of trading. Ameritrade still allowing sell orders, but begins rescinding buys placed days earlier and warns customers that buys/sells placed in the the last 13 days may also be rescinded. First reports by customers of sell orders being denied. Most brokers still allowing "sell only" orders. By 10:00 AM, Ameritrade halts all trading for BCIT.

Ameritrade states in writing: "We have every reason to believe that the SEC is investigating the stock BCIT."


-- Aug 30 --

First public mention of DTC Aug 16 memo verbally cited as justification by Scottrade.

Izone and Scottrade close down all trading on BCIT. Scottrade Compliance Manager claims SEC asked Scottrade to stop trading BCIT before market open on Aug 30, 05. Ameritrade provides first written admission that they were aware of the Aug. 11 company PR and the Aug. 16 DTC Alert of counterfeited stock.

Shareholders with other brokers begin selling their stock. AT/ST customers watch helplessy as SP plummets 60% on thin volume.


-- Aug 31 --

SEC announces suspension of trading @ 9:30AM EDT
http://tinyurl.com/behvh

Broker reaction: Ameritrade and Scottrade provide Aug. 16 DTC Alert memo in writing to investors.


-- Sep 2 --

BCIT announces finite share exchange and hints at forced buy-in: "The exchange will identify brokerage positions with the hopes of seeing the Customer Protection Rule enforced."
http://biz.yahoo.com/pz/050902/85138.html


-- Sep 9 --

Ameritrade releases written correspondence indicating they WILL NOT TRADE BCIT after the suspension because "The stock BCIT is undergoing Chapter 11 bankruptcy."


-- Sep 12 --

BCIT CEO Thomas Megas formally requests Ameritrade to "cease and desist" their attempted manipulation of his stock via rumors of bankruptcy. Megas complaint also filed against Ameritrade with SEC.

Scottrade admits in official correspondence that they were made aware of the impending SEC suspension PRIOR to August 30...."The SEC notified Scottrade prior to August 30, 2005 of the trading suspension on BCIT."


-- Sep 16 --

Although the suspension is officially lifted, Fidelity Investments announces, "Currently, there is no trading on this stock due to suspicious trading activity."

[RedneckInvestor]

Serf, thanks for the updated timeline...

UPDATED TIMELINE

You may decide to include this in your correspondence to Congress/Media. A template letter is available in the post I am replying to.


BCIT TIMELINE 6/05 to present


-- June 13 to Aug 1 --

First indication of potential "problems" with BCIT stock.
http://biz.yahoo.com/pz/050613/79836.html
http://biz.yahoo.com/pz/050801/83109.html

Broker reaction: None.


-- Aug 11 --

Confirmation of share forgeries announced by BCIT
http://biz.yahoo.com/pz/050811/83779.html

Broker reaction: None.


-- Aug 16 --

DTC memo confirming forgeries, "DTC ceases all clearing services for BCIT"

Broker reaction: None. Although this memo was allegedly circulated to all brokers on August 16, "normal" trading continued at most brokers until August 29.

Total share volume for this same period following DTC memo was 247,910,00 shares.


-- Aug 17 --

BCIT is removed from SEC Reg. SHO list, meaning that an existing naked short position has been covered. The obvious question: How does on cover a short position when only counterfeit shares are available for purchase?


-- Aug 19 thru Aug 23 --

First brokers react: Fidelity closes down buy side -- changes to "sell by phone only" policy. Raymond James closes all activity in relation to BCIT.


-- Aug 26 --

Appointment of BCIT transfer agent. True OS = 4M shares, Float = 1M shares.
http://biz.yahoo.com/pz/050826/84638.html

Broker reaction: Ticker disappears from Fidelity accounts, replaced by cusip only. All brokers except Fidelity and Raymond James still "open for business."


-- Aug 29 --

First public mention of DTC Aug 16 memo verbally cited by Ameritrade as justification for AT "global freeze".

Presumably In reaction to the confirmed float announced by TA, share price skyrockets to .053 in the first 1/2 hour of trading. Ameritrade still allowing sell orders, but begins rescinding buys placed days earlier and warns customers that buys/sells placed in the the last 13 days may also be rescinded. First reports by customers of sell orders being denied. Most brokers still allowing "sell only" orders. By 10:00 AM, Ameritrade halts all trading for BCIT.

Ameritrade states in writing: "We have every reason to believe that the SEC is investigating the stock BCIT."


-- Aug 30 --

First public mention of DTC Aug 16 memo verbally cited as justification by Scottrade.

Izone and Scottrade close down all trading on BCIT. Scottrade Compliance Manager claims SEC asked Scottrade to stop trading BCIT before market open on Aug 30, 05. Ameritrade provides first written admission that they were aware of the Aug. 11 company PR and the Aug. 16 DTC Alert of counterfeited stock.

Shareholders with other brokers begin selling their stock. AT/ST customers watch helplessy as SP plummets 60% on thin volume.


-- Aug 31 --

SEC announces suspension of trading @ 9:30AM EDT
http://tinyurl.com/behvh

Broker reaction: Ameritrade and Scottrade provide Aug. 16 DTC Alert memo in writing to investors.


-- Sep 2 --

BCIT announces finite share exchange and hints at forced buy-in: "The exchange will identify brokerage positions with the hopes of seeing the Customer Protection Rule enforced."
http://biz.yahoo.com/pz/050902/85138.html


-- Sep 9 --

Ameritrade releases written correspondence indicating they WILL NOT TRADE BCIT after the suspension because "The stock BCIT is undergoing Chapter 11 bankruptcy."


-- Sep 12 --

BCIT CEO Thomas Megas formally requests Ameritrade to "cease and desist" their attempted manipulation of his stock via rumors of bankruptcy. Megas complaint also filed against Ameritrade with SEC.

Scottrade admits in official correspondence that they were made aware of the impending SEC suspension PRIOR to August 30...."The SEC notified Scottrade prior to August 30, 2005 of the trading suspension on BCIT."


-- Sep 16 --

Although the suspension is officially lifted, Fidelity Investments announces, "Currently, there is no trading on this stock due to suspicious trading activity."

[goodkarma37]

Fructose... Read Serf's post # 26523. I found only one so far. This is the volume information for a very limited period.

Take a look at the event of August 16.

I read other postings telling the accumulated volume. Let me try finding other posts by next Thursday. :):):) I cannot guarantee that, though. I hope someone else who can see L2 posts the volume information from mid July till mid August.

[Art2Gecko]

serfie, do you have an updated timeline of this? http://www.investorshub.com/boards/read_msg.asp?message_id=7768333

tia

[Iluvbbs]