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BioTech Medics, Inc.: BioTech Medics, Inc. Files $1.1 Million Breach of Warranty Claim Against Wells Fargo Bank Medallion Guara

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  Published in Stocks and Investing on Wednesday, January 7th 2009 at 8:37 GMT, Last Modified on 2009-01-07 08:38:22 by Market Wire
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LAS VEGAS, NV--(Marketwire - January 7, 2009) - 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."