Friday, December 20, 2013

The story of the transfer request

It is my understanding that at the beginning those inside Onteco Corporation working for this hedge fund guy wanted to resist the dilution path to which he led them later. So after seeing the way I was able to buy the amount of shares I bought with millions of shares easily thrown to me when I place an order I had my doubts and wanted to check to see if I was really receiving those shares in my account. The account in which my buying of this stock was concentrated at that time was my account with Fidelity . The test I wanted to do was to transfer those shares from that account to another account of mine.While that may not sufficiently prove that those shares were really delivered to my account it would at least provide a better sign for that.


I tried two or three brokerage firms with which I have or had accounts. I don't remember exactly how many but I remember that I became confident that they did not want to do it because they were cooperating and covering for Fidelity and that I most probably can easily show a similar response from other brokers to anyone seeking more samples.All the transfer requests started with the brokerage firm accepting my application without any problem like a very routine procedure. Then it was very obvious that after they make contact with Fidelity they come with various excuses. The difference between the way they were accepting to do the transfer at the beginning ,without stating any of those objection even days after receiving the application, and the way they acted later was very clear. They were all clearly excuses intended to avoid doing the transfer because most probably ,as I suspected,Fidelity was cooperating with the hedge fund guy by enabling him to sell a big amount of shares without requiring him to really deliver those shares. Scottrade went far enough to later even fabricating a new specially designed rule that they do not accept transfer of penny stocks as the reason for not transferring the shares. 

Notice that I am aware that the above might be seen as conflicting with what I said in the story of Viking Systems (VKNG) that the hedge fund guy sent SEC officials to pretend (although very poorly) that they were interested in investigating my complaint while their real intention was to find out for the hedge fund guy if it was me who made the big buying on 10/22/2009 or some other hedge fund guy. Now one might say: if he has the power to do what you described above why would he need the SEC to find out your position of a stock?

The answer to that is, yes, if the same thing happens today he probably wouldn't choose the SEC to find out my position at Scottrade or any other broker but at that time he did. Why? Probably because at that time he did not know with which broker I had my account and /or did not dig sufficient connections to find out about my account or have the special services he wanted from the brokerage firm so he used the SEC path for being the ready easy one. In any case I clearly stand by what I said in there and here without any hesitation.    

 


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