[On the Record] BOMBSHELL: " DTC demanded replacement certificates from NF Clearing."
THE DTC IS ON OUR SIDE!
IN THE FIRST SETTLEMENT TOOOOOOOO FUNNY!
JH Darbie & Co. has alleged that it accepted the certificates from
these Defendants in good faith and did not know at the time that these
certificates were counterfeit. In accordance with its customers' instructions,
JH Darbie & Co. delivered the Wrongfully Issued Certificates to its clearing
broker, NF Clearing, for sale.(2) JH Darbie & Co. has alleged that NF Clearing
delivered the certificates to Depository Trust Company ("DTC"), which delivered
them to BCIT's transfer agent for re-registration. On August 16, 2005, DTC
issued Important Notice 8418, quoting a press release from BCIT indicating that
"`individuals and corporate entities involved with the illegal takeover of the
company printed invalid share certificates.'" DTC suspended all services with
respect to BCIT shares, other than custody. DTC demanded replacement
certificates from NF Clearing.
JH Darbie & Co. has alleged that it accepted the certificates from
these Defendants in good faith and did not know at the time that these
certificates were counterfeit. In accordance with its customers' instructions,
JH Darbie & Co. delivered the Wrongfully Issued Certificates to its clearing
broker, NF Clearing, for sale.(2) JH Darbie & Co. has alleged that NF Clearing
delivered the certificates to Depository Trust Company ("DTC"), which delivered
them to BCIT's transfer agent for re-registration. On August 16, 2005, DTC
issued Important Notice 8418, quoting a press release from BCIT indicating that
"`individuals and corporate entities involved with the illegal takeover of the
company printed invalid share certificates.'" DTC suspended all services with
respect to BCIT shares, other than custody. DTC demanded replacement
certificates from NF Clearing.
JH Darbie & Co. attempted to purchase replacement certificates in the
open market and tried to buy 6,668,500 shares for which it paid $118,297.59.
However, J.H. Darbie & Co. alleges that it never received those shares because
the market was flooded with counterfeit shares and there were no valid shares
available to purchase. JH Darbie & Co. has never recovered the $118,297.59 it
paid in its effort to purchase replacement securities.
1.8 Defendants Charles Weller and The Grace Trust each deny
the wrongdoing alleged in the Petition, and further deny that BCIT, Capital
Growth Financial, L.L.C. or JH Darbie & Co. suffered any damages as a result of
their actions.
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(1) See note 3 below.
(2) With respect to Barkev Kibarian, JH Darbie & Co. sold 1,140,000 shares for
$18415.70, and transferred by ACAT to Capital Growth Financial L.L.C., the
remaining 3,860,000 shares. JH Darbie & Co. remains liable to its clearing firm,
NF Clearing, which is in turn liable to DTC, for all 5 million shares.
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