Q: I am stuck in a shorting position of 4000 shares of $CETC (Hongli Clean Energy Technologie) that I am unable to cover
since the stock was halted on April 2017 and delisted from Nasdaq and never relisted on OTC. My broker at first said they wouldn’t charge short interest fees since the stock is halted.
But then they suddenly start charging “Stock Borrow Fee” ranging from $500-$700 every month since May 2017. My account is now on the negative since there has been the erosion of the account from short interest charged by the broker.
I cannot exit my position. I tried talking to my broker about finding a solution but they refused to help. I believe the next step is to find an attorney who will represent me during the arbitration or mediation proceedings with FINRA.
A: There are some critical facts missing from your facts: (1) Why are you asking for advice in mid-September 2019 about events that you say occurred in May 2017? There must be more than you are telling us.
(2) EXACTLY when did you short the security?
(3) EXACTLY when was the end date (the call date) of the short?
(4) EXACTLY when did you learn that the stock had been "delisted" from NASDAQ?
(5) EXACTLY when did your broker tell you no worries?
(6) EXACTLY when was the stock delisted?
(7) EXACTLY when did "they" start charging you interest on your short position?
(8) What was the price of the stock on the EXACT day you shorted it?
(9) What was the price of the stock when it was "delisted?'
(10) Who is your broker--the company, not the person? (And the clincher):
(11) Have you ever made any effort to find out whether (or where) the stock was RELISTED?
If you can provide answers to all questions I will try to answer your question; look me up.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.