Dear Mr. Berko:

I’d like to know what you can tell me about Aharon Bronfman, who is a recognized growth stock guru and publishes a free newsletter called The Growth Stock Guru. His latest epistle recommends Guangzhou Global Telecom, which is a small company poised for enormous growth. He’s a real genius, because some of his recent picks have appreciated over 500 percent in less than a month. I’d like to buy 30,000 shares of this stock, which trades at $1.50 a share. My next question concerns my electronic banking account. If a hacker makes an unauthorized $4,500 withdrawal from my account, is the bank required to reimburse me for the entire amount?

H.C., Moline, Ill.

Dear H.C.:

I’ve never heard of Aharon Bronfman nor his publication, the Growth Stock Guru. But thanks for sending me Aharon’s glossy, multicolored, eight-page “tout sheet” eulogizing Guangzhou (Gwang-zoe) Global Telecom (GZGT.OB-$0.79), which sells mobile phones and prepaid phone cards in China.

Aharon’s varnished publication is full of tommyrot, taradiddle and rotting green baloney. His claims of 551 percent returns in 30 days, 341 percent returns in four days and short-term gains of 225 percent are pure patented puffery and moonshine. However, the bigger the lie, the more apt greenhorns like you are willing to believe it. This grifter mails tens of thousands of tout sheets to a purchased list of marks who have a history of falling for the big lie. So your name is on a mailing list with other pushovers, pigeons and dupes who still believe in Santa Claus and honest politicians.

GZGT is worth slightly more than the ink upon which its stock certificates are printed. Though it should post revenues (if you can verify the numbers) of $13 million this year, it’s certainly small potatoes in the Chinese telecom market, where China Telecom, China Unicom and China Mobile have revenues of $22 billion, $13 billion and $39 billion, respectively.

GZGT has as much impact on the Chinese telecom market as would the addition of a teacup of water to a rice paddy. I don’t know who GZGT’s major stockholders are, but one should ask why Aharon would spend a fortune to purchase a suckers mailing list, print and design a glossy eight-page tout sheet then mail it (free) to tens of thousands of chumps like you. As Cleopatra said to Marc Antony when he proposed marriage: “fuhgetaboutit!” I recommend that you take her advice.

Your second question was a new one for me. I spoke with two bankers and they didn’t know the answer to your question. So I called my daughter (she’s an attorney) and she said: “Sure, Dad, I know the answer, because I was involved in a case in which someone got zapped out of $17,000 two years ago.” According to Hilary, a bank is not obligated to pay for electronic theft that occurred more than 60 days after the electronic depositor was sent the oldest of the bank statements detailing the unauthorized electronic transfers.

Basically the onus is on you, and your bank is snickering all the way to its profit-and-loss statements, because it doesn’t need systems in place to protect electronic depositors like you.

You can collect all or part of the unauthorized transfers within 60 days after the oldest bank statement was mailed to you, and your maximum liability during that time is $500. If the unauthorized transfers during those 60 days were less then $500, the most you will be out-of-pocket is $50.

The lesson here is DO NOT bank electronically. It may be convenient for a lot of folks, but it can be catastrophic for those who do not check their statements every month. Banking electronically can be hazardous to your wealth. You can thank your congressman for legislation that favors the banks’ profit-and-loss statements over the safety of your deposits. It certainly saves banks a ton of money on labor, time and paperwork, but at your expense.

I’m an incurable Luddite and prefer the good old-fashioned, safe way of vacationing my extra money. If someone bebops into a bank with my passbook or checkbook and withdraws and writes a check for $2,000, it’s the bank’s responsibility. I’m covered and don’t have to worry about an electronic Bonnie and Clyde or John Dillinger. The old ways of doing things are often the best way of doing things.

Please address your financial questions to Malcolm Berko, P.O. Box 1416, Boca Raton, Fla. 33429 or e-mail him at malber@comcast.net.

© Copley News Service