Muscle Pharm Corporation (MSLPQ)

[bellator_exec]

This was in April as well as CEO Brad was saying it's over and nearly every contributor on this site disagreed with me on the timeline and said NASDAQ uplisting would occur any day this past spring and summer.

The rumours surrounding the SEC investigation of MSLP go beyond the obvious stated issues in the 10k and 10q regarding disclosure and accounting.

The real issue is similar to the ArthroCare investigation that took 7 years to resolve.

This issue is the possible parking of fake inventory (not shipped thus using fraudulent Purchase Orders) into select retail channels in order to show the outstanding growth in top line sales. ArthroCare did this and the SEC required the executives involved to step down (both are under indictment) and fined the company $30m USD. The investigation took 7 years to resolve.

The good news is the management shakeup currently under way that looks as though MSLP may be attempting to appease the SEC. I doubt the SEC will say no harm/no foul though.

I suspect this investigation has a significant period yet to run and will in no way be resolved in a couple quarters.