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Law Pro
Law Pro, Attorney
Category: Legal
Satisfied Customers: 24870
Experience:  20 years legal practitioner: real estate, collections, estate, civil, business, and criminal law
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I am beinng asked to pay a de-restriction charge on shares

Customer Question

I am beinng asked to pay a "de-restriction" charge on shares I own in a firm called TotalTrack so they can be sold. Is this a scam?
Submitted: 8 years ago.
Category: Legal
Expert:  Law Pro replied 8 years ago.
Is the company "Totaltrax" a US company or UK company?
Customer: replied 8 years ago.
US Incorporated in Florida
Expert:  Law Pro replied 8 years ago.

Restricted stock certificates customarily bear a legend identifying them as restricted. The absence of a legend does not mean that there are no restrictions on the sale of the shares. The main purpose of a restrictive legend is to prevent you from transferring ownership in violation of securities laws or contractual agreements. Certificates bearing a restrictive legend normally will not transfer until the securities represented by your certificates have either: been sold in accordance with the applicable regulatory or contractual restrictions, or are no longer subject to regulatory or contractual restrictions.

 

So, that being said - were you aware of restrictions of your stocks?

Customer: replied 8 years ago.

No restrictions were not mentioned. No word "restricted" shows on the share certificate. I am being asked to send money to Lincoln Trust Transfer Agency LLC by Northpoint M&A.

Are they genuine companies?

Would you expect an escrow account in Hong Kong? with an account name that looks like a person s name not a company?

Expert:  Law Pro replied 8 years ago.
Did you want to sell the shares? Why is this coming up?
Customer: replied 8 years ago.
I note that on the back of the share certificate it states ..."not registered under the securities act of 1933....."
Expert:  Law Pro replied 8 years ago.
Did you want to sell the shares? Why is this coming up now?
Customer: replied 8 years ago.
I am being asked to sell the shares to a company called Nortpoint M&A Advisors who is supposed to be buying them for another company
Expert:  Law Pro replied 8 years ago.
Then don't accept the cost(s) of the removing the stock restrictions - that's their problem unless you really want to sell the shares.
Customer: replied 8 years ago.
I am happy to sell the shares but I am worried this is a scam and I will send funds to a false company
Expert:  Law Pro replied 8 years ago.
I have been researching the name Lincoln Trust Transfer Agency LLC by Northpoint M&A (any and all parts of the name) and come up with nothing. It's a serious risk that I probably wouldn't pursue - let them pay for the removing of the stock restriction.
Law Pro and 6 other Legal Specialists are ready to help you
Customer: replied 8 years ago.
Thanks for the help
Expert:  Law Pro replied 8 years ago.
Your more than welcome. That company should have come up in my search - it didn't.