Another way that Marvin Shannon swindled his shareholders. Remember all those wonderful press releases and webpages about how Metaswarm was going to get contracts from various big Chinese companies and government agencies?
The contracts would have been signed by Metaswarm's subsidiary in Hong Kong. Or was it in Beijing? But the facts on the ground are that Marvin Shannon controls that subsidiary. Signs any contracts and deposits any monies into a bank account of the subsidiary. If he did the legit thing and passed the revenue back to MSWM, then ultimately, his share of it is just the prorated share ownership that he has of MSWM. But he does not own all of MSWM as you surely know, because you are the shareholders who got ripped off.
So if he say has 35% of MSWM stock, he gets 35% of the revenue. But if he controls the Chinese subsidiary, he can pull out 100% and keep it.
By the way, it is hard for a US based shareholder to detect this. YOu cant get access to the bank records of the subsidiary bank account in China. The Chinese govt will certainly not recognize a US court order.
Didnt anyone bring this up?
