Hi Tommy, now that's what I call a rip-off! But I got a coupla thoughts that just might help turn rip-off into just a pain in the you-know-what to make it right....If this kind of crapola happens, and help is refused, It's time to start Getting It In Writing.....
Why accept this problem as one's own?
I would tell that poster with the problem....
FIRST - see if you can simply deposit the certificate in the account, and sell a day or two later. Maybe easiest of all.
No Dice?
#1) Get It In Writing. Get in writing that the certificate is invalid and all of the reasons why, signed by your broker or his boss. No delays, you need it today, wait in the lobby for it, tell them you will wait til its faxed from headquarters if necessary, be pleasant and persistent, they'll know what's coming. Maybe if you get lucky it'll get resolved speedily and the cert will be accepted "after all" and an apology made for the error. Have in mind - do you want that days price per share or the price on the day you tried to sell? Maybe you can nail down a better deal, and will be glad of the delay!!!
Still a problem, now's the time to talk to the Branch Manager. Don't have any documentation with you (but have it ready)...you'll want to have these as an excuse to come back maybe three times, making a pest of yourself, finding more and more papers each time. ;o) heh heh.
Errand - Take this letter to your accountant and see if it will be acceptable to write it off as a loss for 1999 with this documentation. If yes but the letter is not enough, find out what form is needed and get that from your broker pronto. Do you think Uncle Sam will like a loss from revenue due to broker error? ;o)
1A)If PNTH made a comeback from a reverse split, and you sold the shares and then delivered the certificate which was declared no good,
how come there's no Company address for PNTH if it was saleable through a broker? Start with your broker, tell the broker to get you the address, or get the number of their research department and start pestering them; telling everyone you talk to about the problem with the certificate, of course. If you don't like someone you get, call early and late lunchtime so you get someone else in that department.
Or just politely ask to speak to the supervisor or to someone else.
Hope you can find the PNTH's Investor Relations who will help you straighten it out.
2)EZ WAY maybe - why don't you take that certificate and a check
for a start-up account
to a Class A Broker (I use and like Merrill Lynch very much, the high commission is worth it because if anyone can sort out a problem it's Merrill) and see what they can do for you? And tell your present broker what's your next errand of the day.
You might get satisfaction from another more responsible and competent brokerage and if so your account is out of there, right?
(not an idle threat, I mean, why not?). Just see if that gets you some surprisingly quick action. Then, if another brokerage can't help you, open another account at whoever you like best and transfer half your account there to show the first one you mean business. Don't close your account, because then it will be more difficult to work with them because it seems that the responsibility of restitution is theirs. If they say it's not, you can say you were sold "damaged goods" by them, so even though the registration may be invalid, here's the proof of sale of the shares from that brokerage, etc.
and it was properly registered by them (here it is on the statement) and you never sold them (here's the certificate) so they need to reconfirm the original registry as in-house. Maybe that'll work ;o)
2A) If the broker still ignores you it's back to the Branch Manager.
Tell them you want a broker with more expertise in these types of snafus. Hopefully, this is all just because Broker's don't like it when clients hold in certificates. Maybe another broker can straighten it out, if so, stick with them.
2B)
Time to start gathering your arsenal- giving documentation (only carry and give out copies, never originals) and persistence will be a positive force.Be armed with your original confirmation and monthly statement when you made the purchase of the shares, and also the charge (if any) for the certificate registration. Copies of the gains lists from taxes since '95 to show you never sold the shares elsewhere will be another item to show should you need it.
Any communications subsequently received from PNTH directly (if you have any) from around that time and as recent as possible will also be important.
Photocopy all these, along with any envelopes with postmarks, and both sides of the certificate, make a generic cover letter outlining all aspects of the problem, close with a friendly hope for a quick resolution at this level, and hand out or mail this file to anyone you talk to, take names, squeaky wheel gets the grease. Never all at once, start with copy of cert., letter why its invalid, and original statement and confirmation. Save the other stuff for if you need it later and up the line.
Give 'em a week only, if nothing, then....
3) Call the Company Headquarters of the brokerage and state your problem fifty times if you must to whoever you get as you are escorted higher up the ladder of command and expertise. Be prepared to say you will fax the documentation in hand immediately, & do it.
Same friendly close, that you hope that you will receive resolution at this level. No reason to accept excuses of their troubles with a house at the time, that's their problem and why should you accept it as yours.
If still not, letters of complaint addressed to the Top Dog with CC's for everyone you named. Be careful to just state facts, no disparagement, etc. - you are out money and it's their responsibility because they issued and charged you for the faulty registry. "Failure to supervise" is a term that should be central to the letter to Bigs.
If still no satisfaction....(Remember don't close your account but transfer part of its holdings to a new broker or just cash out half and open the new account with a check, whichever).
4) Call the Headquarters of the former transfer agent and do the same thing. Talk to as many people as you can, get names of where to send your documentation and do so, fax it to them when u get someone who may immediately get on it.
5) There MUST be a contact somewhere for PNTH, a website, a phone number, something...it trades on the OTC (I looked it up just now) and I notice it's given a couple of spikes in a couple of years and otherwise lays way down there. Why not surf the internet til contacts for the company pop up... ask for the information on message boards...just a phone number will get you an address, maybe call telephone 800# information and information for the state they're in.
6) Have you been getting Company communications by mail? If you are a certificate shareholder you should have been getting something every now and then. What's the address of those? And especially, getting mail means that the Company knows you're a shareholder, of course.
7) Then of course there's the Nasdaq Small Cap, whoever runs otc's, try to get them to help you if all else fails. Ask them where the certificate registry is of the state where the cert is registered and where the Company is/was incorporated (same thing). The Central Registry keeps track of the trail of transfer agents for any company.
If the broker won't process your order, the new transfer agent probably (hopefully) will. Call Nasdaq, they should be of great help.
Track the trail of transfer agents, get in touch with the company again, send your file and pester for a reply, if this hasn't been resolved by then, probably this solve it.
If not, talk to a lawyer, if the money involved is big enough. Or,
Worst case scenario; hope at least you can file for the loss next year on taxes (if accountant says ok with whatever proper form). Use it as inspiration to trade to make up for it. Find a better broker & house. Make lemonade from the lemon somehow, find the silver lining.
Good luck to any person with this type problem (been there...)
Hope this is of help.
Best of luck to all,
Joana |
