Unauthorized Transfer of Stock

[jeanflournoy]

I am an artist. About 3 months ago I received email from interested art buyer. We agreed on $5,000 for an oil painting. The man sent the cashiers check. I did not have a valid Drivers Licence ID so a friend of mine who has a friend who works at a bank cash the check for the cost of $200.00.

I paid off my bills and three weeks later the guy comes and tells me the check was bad. That I owe the person at the bank $5,000
He gave me no proof of that the check was bad.

He went to my boss (who is is friend) and told him and got my stock certificate worth $50,000, 2000 shares at 25 dollars a share asking price is not $2,000.

This$ was without my permission. I told him if he gave me my stock ( i worked 8 months free for this stock) that I would go to my broker and get him the $5,000. He said no. He has already charged me $2,000 in interest.

First off, when I gave him the $200 to cash the check I would assume he would check to make sure it was a good check.

Second, can they take my stock worth $50,000 and not give it to me?

What shoud I do now?
Thanks

[aaron]

If your friend cashed the check, he got the cash. If he did not give you the cash, he still has it and can repay the bank. If he gave you the cash, ask him to establish that the check was actually invalid.

Your boss has no business paying off any debts, real or imagined, on your behalf, unless a court orders him to do so.

[jeanflournoy]

Thank you so much for your reply. I have asked him for the proof of the check but he still has not come up with it. I also asked for my stock and he won't give it to me. I would want proof first of the bad check and then if all turned out OK, I would pay him the money, but I don't want to pay these loan shark interest rates he is charging as he holds my stock at randsom.
And I need the stock to use to pay him.

Yes, I know my boss should not have given him the stock, but it;s done and now I just want it back. This bank guy knows I just quit my job and I cannot afford to pay him out of my pocket now, I need that stock to use to pay him.

I am thinking of just going to the District Attorney's office and try to straighten it out there. What do you think?

This guy I feel had no right to take my stock, my stock opens at $25.00 but and asking price is now $2,000 a share . I have 2,000 share (preferred ). How can he hold $50,000 worth of stock for a $5,000 dept (if there even is a dept.)? What do you think I should do? Him holding my stock is hurting my finances at the moment.
thanks again

[Mr. Knowitall]

Did your boss just give him the stock to hold, or did your boss actually somehow assign the stock to him? Either way, that could be grounds to sue your (ex?) boss.

There is a good chance that the check you received was bad. This is a common type of check fraud.

[jeanflournoy]

Thank you for the response. No he did not tranfer the stock to him. The stock is still registered in my name. They Bank guy is just holding it. I think maybe he is hoping I will forget about it, or before long the interest he is charging will be so high he will make a killing. I just don't know what is going on.

I figured I could sue my ex boss, but my main concern is getting back my stock. If the check was bad, I have no problem with paying him back. My point is, I need the stock to do so. I don't see why he can't just have me sign some agreement to pay him after cashing some of the stock in, or even giving him a few shares. Right now as it is, I am being charged a lot in interest, and I need my stock to help with some other things I could use the money for. I with he would have checked to see if the check was bad before he cashed it, since he does work at the bank.

I don;t see how he can hold that amount of stock for this money he says I owe him. If he wants I told the "go between" that he can go to the broker with me to get his cash. It would seem the banker would just want to be paid for the bad check, but it seems not. WHo knows, maybe they illegally signed my name and cashed in the whole amount. I just don't know since they are not willing to work with me to get paid back.

do you think I should just go to the DA office?
thanks again ,

[aaron]

I would venture that $2,000 over three months would violate your state's usury (unlawful interest rate) laws, in a big way....

You can try making a police report. The police may tell you that it is a civil matter, but they may try to help or to recover the stock, depending on department policy.

[jeanflournoy]

thanks for the reply, can I ask, is it legal to hold onto my stock like that? I did not agree to that?

[jeanflournoy]

Bottom line is.....do I have legal rights to get my stock back, or another way of askings... is he (the banker and the other guy) illegally holding my stock?

Thanks

[Mr. Knowitall]

The primary options appear to be: Ask them, sue them, or try to involve the police.