Lifeline Biotechnologies Inc. of Reno said last week it's still trying to straighten out problems with the company that's halted clearing services for trades in Lifeline's stock.
The Depository Trust & Clearing Corp., the largest securities-settlement company in the United States, decided in May that it no longer would provide trading services for shares of the company's stock.
The decision came after the Securities and Exchange Commission filed an administrative action against a New York brokerage firm that alleges the brokerage didn't adequately supervise trading in shares in Lifeline.
Lifeline executives have complained that their company was caught in the crossfire between federal regulators and the now-closed brokerage firm, Leeb Brokerage Services Inc.
During 2006 and 2007, the SEC alleged, a customer who was affiliated with Lifeline delivered more than 1 billion shares of Lifeline stock into his accounts at Leeb. The SEC says Leeb should have recognized that some of the trading may have been illegal.
Jim Holmes, Lifeline's president, said in May that his company didn't know anything about the transactions at Leeb Brokerage. Last week, he said the company's lawyers continue to negotiate with The Depository Trust & Clearing Corp.
But he added, "It is very difficult to determine when this issue will be resolved."
Lifeline's shares trade on the Pink Sheets.
