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2000, through decedent’s signing over of the certificate for her
525,000 shares of eConnect to First Southwest Company for
transfer into the account. The value of the stock at that
juncture still did not exceed approximately 25 to 50 cents per
share. Mr. Greene contributed no property or funds to the
account at its inception or at any time thereafter.
The customer agreement used to open the account contained a
number of blanks to be completed with information pertaining to
the client, including Social Security number, address, telephone
number, date of birth, marital status, employer, bank reference,
etc. Decedent’s personal data was used to complete each such
field. The form also noted an approximate net worth of $50,000
and an absence of previous investment experience. The space for
initial transaction was marked “SELL” “ECNC”.
At some point after the account was established, decedent
expressed to Mr. Greene that she was interested in selling the
eConnect stock if it reached 50 cents per share. Mr. Greene then
decided to conduct some online research into the company and
product underlying the stock. He advised his mother that he
thought, based on the eConnect technology, that the shares had
the possibility of rising beyond her intended target and should
be held longer. As the stock later began to appreciate, Mr.
Greene participated in the excitement, tracking the rising price
online and communicating with decedent.
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Last modified: May 25, 2011