This is a mere repost of a Letter addressed to the SEC, and a forum post, and a few other findings on Bancorp International Group that traded under the ticker BCIT.

June 2, 2008

I am a shareholder of BCIT, Bancorp International Group,
and after our stock was subject to criminal counterfeiting in 2005, and our CEO, once he learned of this, immediately contacted the appropriate authorities (FBI, SEC,DTCC) the stock was allowed to trade for 2 weeks while considerable price appreciation was noticed, until various brokers stopped buys, then sells, while others continued to allow full trading which unfair actions caused those who could sell to dump shares while others, like myself, who were not allowed to sell, saw the value of their shares plummet during the last few days of August until finally the SEC suspended the stock entirely.

Next, out CEO, Thomas Megas, took the counterfeiters to court, determined the number of counterfeits issued, and through the Oklahoma Courts our company and CEO were exhonerated from any complicity and
the counterfeiters were found quilty. The CEO issued replacement stock for these counterfeits to clean up the mess. (Later, in 2008, this year, the SEC also found the counterfeiters quilty (Mario Pino, and his associates). But, although our CEO issued stock to cover those counterfeited, alas, this did not equal the number of shares sold which were short sold so the DTCC refused to clear trades, implying that more counterfeits had been issued than those discovered in the Oklahoma trial. But because of a lack of transparency in trading records the exact number of naked short shares has been difficult to determine and those who sold them reluctant to own their actions, to determine that the overabundance of stock versus our company’s records of both authorized and countefeits our company made good after the trial, show additional large number of naked short sales.

We are certain certain brokers sold naked short shares, because the count of outstanding shares, after the counterfeits now have been removed, exceeds wildly the authorized shares. So large an amount of naked shorts exist in BCIT, that the SEC’s indefinite suspension of rule 203 in 2005, has never been lifted, which rule mandates such shares be covered within 3 to 13 days of trading, and this failure to enforce rule 203 has, for nearly THREE YEARS, protected those who sold shares that did not exist, pocketed the (mine, among 1500 other shareholders’) money and commissions, but cannot provide/produce certificates of ownership. Meanwhile the DTCC has placed a global freeze/lock on trading, to protect the naked short sellers from a huge squeeze that would result if they were forced to buy /cover for their naked shorts in this equity,, all the while hiding behind the original trouble with counterfeits that occurred and was settled in 2005.

There must be transparency of who bought what from whom and when, to uncover these naked short sales which represent, we have reason to believe, naked short selling that has never been covered. We need a RECORD OF ALL BUYS AND SELLS FOR THE PERIOD OF APPROXIMATELY MAY 2005 TO AUGUST 30, 2005 to unravel this crime. and we need to be allowed to trade so that those who sold naked short shares will be forced to cover their phantom shares. This needs to be resolved fairly for all those, like myself, whom the company cannot recognize as a legitimate shareholder but who, nonetheless, bought from a legitimate broker, had their buys settled, but cannot get certificates for their purchase, and cannot sell their shares, for nearly three years.

This is outrageous lack of transparency hiding a very profitable crime of naked short selling. And it affects me, a small shareholder, by robbing me of my legitimate buys and the money I paid nearly three years ago to obtain my 321,615 shares of BCIT.

Subject: File No. S7-08-08
From: Mary L Jacobs

And now for the forum post;

Source here from 2011

A brief history of BCIT events:

Ø In the spring of 2005 there was 4,750,000 shares of BCIT stock.
Ø The company share price dropped more then 90% in the spring of 2005.
Ø In the summer of 2005 the CEO, Thomas Megas alerted the SEC and the DTCC that there seemed to be a problem with the trading of his company stock. There were way to many shares being traded on a daily bases. Considering the stock only has 4,750,000 tradable shares in the market and on some days BCIT traded well over 100,000,000 shares.
Ø In August 2005 the company issued a press release reaffirming that they only issued 4,750,000 tradable shares and there was definite manipulation going on with the stock. The press release was a cry for help by the company to the regulators, hoping that this would force them to wake up and investigate the company’s price drop and the never-ending supply of shares being traded.
Ø The regulators reaction to BCIT press release had the opposite effect. Instead of the regulator going after the brokers, for counterfeiting millions of shares, they did the complete opposite and went after BCIT.
Ø The DTCC placed a global freeze on BCIT starting in August 2005. The global freeze still remains today, three long years later.
Ø A global freeze is a suspension of DTCC services, without DTCC services the brokers won’t trade the stock.
Ø A global freeze is only supposed to be a temporary event. Any share imbalance should be immediately investigated and rectified by the DTCC. That is what is supposed to happen, unfortunately for BCIT and BCIT shareholders the DTCC seems to be able to break their own rules to serve their own agenda.
Ø In the BCIT case the DTCC is using the global freeze as a means to keep BCIT from trading.

Why would the DTCC not want BCIT to trade?

Ø Thomas Megas the CEO proved through his own investigation, that at a minimum there are 350 million counterfeit shares in BCIT.
Ø The only way that many counterfeit shares are sold to the public is if the DTCC is woefully negligent or part of the fraud.
Ø If the DTCC were to follow the laws in place they would have to rectify the share imbalance in BCIT prior to or immediately at the start of BCIT trading by following these rules:
1.) The DTCC would have to admit to the public that under their watch the brokers counterfeited a minimum 350 million shares of BCIT stock.
2.) The brokers would then be forced to return the millions of dollars they stole from the BCIT shareholders.
3.) The public might finally realize that the counterfeiting that took place with BCIT is not an isolated incident but actually a common occurrence that has happened to over a thousands other companies.

All the things BCIT has done to try to get the global freeze lifted.

Ø It doesn’t seem to matter to the DTCC and the SEC that over the last five years, BCIT has filed 35 separate filings with the SEC, filed 16 filings with the Nevada Secretary of State, 2 separate protracted lawsuits in Oklahoma, 1 lawsuit in Arizona, purchased two new CUSIP numbers, and filed form 15c211 all in an effort to lift the global freeze.
Ø BCIT has satisfied every regulatory requirement with the Nevada Secretary of State, the SEC, and the Financial Industry Regulatory Authority (FINRA), but BCIT is still blocked from trading similar to that of CMKX.
Ø Everything that BCIT has done is twice the amount of filings and requirements that any other company has been asked to do to maintain their trading status, yet the DTCC still keeps BCIT under a global freeze.

Exposing the DTCC

Ø The DTCC is not a federal agency but a multi billion dollar private corporation, which somehow been given the power to oversee the clearing and settlement of virtually all equity trades in the United States.
Ø Most private companies have a Board of Directors in which the company’s executives answer to. The private DTCC is no different, they too have a Board of Directors in which their company executives answer to.
Ø The big problem with the DTCC is who is allowed to sit on the DTCC Board of Directors.
Ø How is the DTCC supposed to objectively oversee broker trading when many of the DTCC Board of Directors members work for the same large Wall Street Brokers they are set up to oversee?
Ø The conflict of interest inside the DTCC is truly alarming.
Ø As mentioned above, the Institutions involved in Naked Shorting as outlined in the Overstock.com lawsuit are: Goldman Sachs, Morgan Stanley, Bear Stearns, Bank of America, Bank of New York, Citigroup, Credit Suisse, Deutsche Bank, Merrill Lynch and UBS.
Ø Now look who sits on the DTCC Board of Directors:
o Mark Alexander Managing Director – Global Markets, Merrill Lynch
o Art Certosimo Executive Vice President, Bank of New York
o Randolph L. Cowen Chief Information Officer, Goldman Sachs
o Neeraj Sahai Senior Managing Director, Citi Markets & Banking
o Michele Trogni Global Head of Operations, UBS AG
Ø It should now make perfect sense to anyone with half a brain, who the DTCC is protecting and why they are hell bent on preventing BCIT from trading. CMKX Shareholders having been waiting years to trade again also and it has been rumored that there were 2.25 Trillion phantom shares of CMKX, the largest in Wall Street History.

How many counterfeit shares are there in BCIT?

Ø We know it’s well over 350 million. The only reason we know this is because of BCIT own investigation. The SEC did nothing for BCIT when it came to Naked Shorting, they refused to investigate the counterfeiting of shares in BCIT.
Ø In the spring of 2008, BCIT management issued a proxy vote. A proxy vote is where all the shareholders are allowed to vote on upcoming company actions.
Ø In a proxy vote each known share is counted and weighted equally. So if company X issued 1000 shares total, and all the shareholders voted, the total vote count should equal 1000 shares.
Ø Now if a company stock contained Naked Shorted shares, the evidence would be seen in the vote count. All votes exceeding the 1000 number would indicate the number of shares that were counterfeited and mixed in with the real stock.
Ø With a typical proxy vote its up to the brokers to send out the voting material to their clients. The broker must send out the material well enough in advance to insure their clients have plenty of time to review the voting material and then have enough time to cast their vote prior to the voting cut off date.
Ø With BCIT proxy voting, almost 50% of the shareholder did not receive their proxy material in time to vote. It seemed that many brokers conveniently did not send it out in time.
Ø Still with little more then 50% of the BCIT shareholders participating in the proxy vote, the amount of votes above the amount of shares BCIT issued, was roughly 350 million votes. Which indicated at a minimum 350 million counterfeit shares in BCIT and this is with just slightly more the 50% of the shareholder base voting.
Ø Imagine if all the shareholders were allowed to vote the real amount of counterfeit shares is likely closer to 600-700 million shares.
Ø Regardless, even with a known 350 million counterfeit shares and taking a conservative price of 15 cents a share (the last trading price of BCIT), the amount of money stolen by the brokers is 52.5 million dollars (15 cents * 350 million). Again, this is with a conservative 15 cent stock price. BCIT most likely would be trading at several dollars if it weren’t for all the counterfeit shares diluting the share price down to 15 cents.

Blackmail

Ø In an October 2008 meeting between BCIT and the DTCC, the DTCC finally gave BCIT an ultimatum after years of giving BCIT management false promises about lifting the Global Trading Freeze.
Ø BCIT management was told if they ever wanted the Global Trading Freeze lifted they first had to issue enough new shares to cover all the existing Naked Shorted shares the brokers created out of thin air.
Ø Issuing new company shares would essentially allow the brokers to cover up all of BCIT shares they counterfeited.
Ø This would also allow the brokers to keep all of the money they stolen from the BCIT shareholders without penalty. Furthermore, all the extra shares would severely dilute the share structure and cause even further damage to the stock price. This is nothing more then BLACKMAIL by the DTCC. There are no other words to describe it.
Ø How the SEC and Congress continue to allow the DTCC to blackmail BCIT is beyond comprehension.
Ø Anthony Carlisle, Isaac Montal, Larry Thompson are three officials at the DTCC who are directly involved with the BCIT case. How they can allow the brokers to sell 350 million counterfeit air shares to innocent BCIT shareholders and then later block BCIT from trading which further injures the BCIT shareholders is beyond comprehension.
Ø I just hope that their families and friends get sent this email, so one day they will understand what these men have done to the BCIT shareholders.

The suffering BCIT shareholders

BCIT shareholders have had well over 50 million dollars stolen from them and unless, BCIT trades again, that money will be forever lost, and the brokers will forever keep that money.

The majority of BCIT shareholders are not wealthy. On the contrary we are struggling everyday middle of the road Americans who made an investment. An investment taken away from us, not because of any fault of our own, or any fault of the company we invested in, but because of a corrupt Wall Street System. So corrupt that blatant robbery of its citizens falls on deaf ears. It is the Whole in the System within the DTCC called the Stock Borrow Program that allowed the counterfeiting of these phantom shares to grow and grow out of control all throughout the DTCC system with the FAILS TO DELIVER ( FTD’s ) by the big brokerage houses and the ever growing hedge funds that exploited the hole in the system.

We never envisioned that any of this could ever be remotely possible in a great country like America. Sadly, for our sake and our families’ sake we were terribly wrong.

Like many Americans, many BCIT investors are now facing tough times with the current economy:
Ø Some have lost their jobs and need their BCIT money just to keep them from losing their homes.
Ø Some were planning on using their BCIT money to pay for their kid’s college education.
Ø Some need the money to pay their medical bills.

There’s a lot lot more words on the original post;
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=68490382

The Forum post

goes on and on about systemic issues and the unsavory swindling of Naked Short Selling-

Anyways, here’s a random comment from the internet;

Blackmail

October 2008 meeting between BCIT and the DTCC, the DTCC finally gave BCIT an ultimatum after years of giving BCIT management false promises about lifting the Global Trading Freeze.

BCIT management was told by the DTC if they ever wanted the Global Trading Freeze lifted they first had to issue enough new shares to cover all the existing Naked Shorted shares the brokers created out of thin air.

Issuing new company shares would essentially allow the brokers to cover up all of BCIT shares they counterfeited. This would also allow the brokers to keep all of the money they stolen from the BCIT shareholders without penalty

-source

Additionally, for reasons

Here is the SEC order to freeze trading on BCIT;

SECURITIES EXCHANGE ACT OF 1934 RELEASE NO. 52363 / August 31, 2005

Here is a forum post of a letter from a brokerage to a Retail Trader Sept 2005;

Got a reply letter from Scottrade…

In December 2012, Bancorp issued a statement;

Bancorp International Group,Inc. BCIT, Announces A Last Opportunity For Any Reporting Institutions To Surrender Unauthorised BCIT Share CertificatesOnCusip05968x106

“it is alleged that 41 unauthorised stock certificates representing approximately 245,000,000 shares allegedly entered the marketplace.”

There was even a case brought up against FINRA ~2014,

that resulted in a dismissal.

That case above is extra juicy because of the sheer audacity in FINRA’s claims.

Here’s some quotes to keep ya thinking

“. . . When a society establishes criminals-by-right and looters-by-law—men who use force to seize the wealth of disarmed victims—then money becomes its creators’ avenger. Such looters believe it safe to rob defenseless men, once they’ve passed a law to disarm them. . .” -Ayn Rand

“When Plunder becomes a way of life, men create for themselves a legal system that authorizes it and a moral code that glorifies it.” – Frederic Bastiat

“Crime is contagious. . . if the government becomes a lawbreaker, it breeds contempt for the law.” -Louis D. Brandeis

In Closing,

I’m just digging up dirt from the morgue, call me a grave digger I guess. Financial Crimes typically get buried, not all of them see the light of day, but you can bet there’s people out there digging.

Why do I do what I do? For shits and giggles, of course.

The SEC and DTCC aren’t playing on the side of the gladiator companies competing in the open markets, they’re playing on the side of brokers and bankers.

And If you don’t know,

Brokers are not your friends.

As always,

There are No Safe Bets,

Not in this life, not in your past lives, and not in the next life. That’s a fact, probably.

Anyhoot,

*Not Valid Financial, Legal, Life, or Any Advice