Whatever their former Transfer Agent did wasn't the company's fault.
You're kidding. Believe me: Rubin knew very well what Korem was, and who he really worked for. The story of the failed Embassy acquisition suggests that there was indeed something going on: missing issuance or transfer records for some apparently large shareholders. Not hard to guess who they may have been. I'd ask Korem about that, but he hasn't posted at IHub since early 2010, before he was arrested.
As to "fault", it's any company's responsibility to make sure that stock issuances and transfers are legitimate. And whatever a company does or doesn't do, if there's something wrong there can be a price to pay. That price is often exacted by FINRA and DTC.
In August 2012, FINRA brought an interesting disciplinary action involving sales of unregistered stock by a number of individuals and entities. In all the cases but one, the defendants were company management or other company insiders. More recently--a few months ago--DTC slapped Global Locks on all of the companies in question, even though some of them had changed management since the offenses occurred. And many of those offenses had occurred years ago.
A Global Lock means your stock will barely trade for at least a year. Or ever again.
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