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To: Joe NYC who wrote (215185)	10/27/2006 9:34:03 AM
From: pgerassi	Respond to of 275872

Dear Joe: If you were with an unscrupluous broker, they could still lend out your shares without your knowledge. You wouldn't know any different. When you sell, they would just be more FTDs into the market. You better check the laws in your state to make sure. Still you could be the victim of fraud. Especially, if the broker goes belly up or is shut down by the government. They check their stock pile and if there isn't any real shares, you are left with a unsecured claim on any leftover assets. They probably also faked any bonding authority or insurance policy that would pay out in such a situation. And to further tick you off, only the state in which he is incorporated or is based will make sure their citizens get first dibs leaving out state clients with nothing. It happened to my Dad. The insurance company based in MA went belly up and his retirement account got only $0.05 on the dollar while MA residents got $0.75 on the dollar. $300+K up in smoke. And according to his lawyer, there was nothing he could do. Of course now his retirement fund is based in WI in a state run fund. Wisconsin does have very tough laws and goes the extra mile to make sure clients get as close to whole as possible from any state. Pete