BioTech Medics, Inc. Files $1.1 Million Breach of Warranty Claim Against Wells Fargo Bank Medallion Guarantee Program
08 January 2009 - 3:19AM
Marketwired
BioTech Medics, Inc. (PINKSHEETS: BMCS) announces pursuant to SEC
"material events" regulations that in November 2008 BioTech made
nearly $1.1 million in claims against Wells Fargo Bank, Las Vegas
and their "medallion guarantee" for breach of their medallion
warranty that endorsed shares of BioTech and its predecessor Corbel
Holdings at Wells Fargo Banks in Las Vegas.
Wells Fargo, a member of the Securities Transfer Association
(STA), overseers of the medallion stamp program, was established in
accordance with SEC Rule 17Ad-15. Under the Medallion Guarantee, if
"warranties are breached, the guarantor is liable for loss
resulting from the breach to any person taking or dealing with the
security in reliance on the guarantee. Its use protects the issuer
(BioTech) and the owner(s) of the security."
In signed Affidavits of Loss, BioTech has claimed that Wells
Fargo officers and employees failed to ascertain if an individual
who signed BioTech share certificates was an appropriate person or
otherwise authorized to sign share certificates which were later
determined by BioTech to be lost, forged and/or stolen.
In a sworn deposition recently released by the SEC, one Wells
Fargo "personal banker" stated that she was "not aware" of any
"written policies on how to do medallioning." She further stated
that she did not keep any "logs of medallioning."
Under the STA Guarantee and statutes Wells Fargo was to reply to
BioTech's claim within ten business days. Wells Fargo failed to
respond within the required time. However, Wells Fargo has retained
outside counsel regarding the claim who has denied wrongdoing on
behalf of Wells Fargo. BioTech has made a claim directly to the STA
oversight management company due to Wells Fargo's failure to
respond in a timely manner.
Keith Houser, CEO of BioTech, stated: "Based upon the evidence
we have submitted and the sworn testimony of a Wells Fargo personal
banker who medallioned 'literally hundreds' of stock certificates
without due diligence; we are shocked by this testimony that
indicates that this bank personnel was not adequately trained to
affix the medallion stamp. This conduct of Wells Fargo personnel
casts serious doubt on Wells Fargo warranties conveyed by its
affixation of the medallion stamp on our stock certificates. We are
vigorously pursuing our breach of warranty claims against Wells
Fargo and the STA bond."
Contact: David Morris Attorney for BioTech 972-274-5533
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