A company can file their Forms, make everything look legal, or even be legal according to the Letter of the Law, and still be fraudulent.
CBIS, for instance. While they have been making promises of revenues, etc., something has been missing: actual revenues.
And I don't mean something along the lines of $1,038/quarter.
So CBIS continues to make false promises, paying out millions$$$$ to their executives, losing millions$$$$ Somewhere??? Who knows where???? every quarter, handing out 100s of 1,000,000s of free shares, and filing their reports, keeping the letter of the law.
And the PR history, along with the rotten financials are proof.
The cash is going somewhere. This is how a stock scam operates. They take the cash. They appear to be legitimate, but they are so not. CBIS is an obvious one.
All they have to do is sow some doubt, and people who want to believe eat it up.
