LocatePLUS Holdings Corp. (fka LPHCQ)

[jurisper]

Prosecution's sentencing memo filed, not under seal fortunately.

- Asking for 9 years jail plus restitution of $7.5M (jointly & severally wih JL).

- Lower than their & probation's calculation of guideline range of 20+ years, but they made clear at JL's sentencing that they believe the guidelines are too severe & the judge tended to agree.

- The restitution would be to named investors, rather than to everybody buying LP stock over the period covered by the charges. Not really sure of the equity of this. Most of the amount would be to professional investors - Special Situations Fund, Greenberg etc. The memo says SSF performed substantial diligence but that's dubious. If some schmo positing on a message board (eg, me) could easily see that Omni, ASR, Paradigm & other activities not charged were obvious frauds just from LP's filings and simple searches, why couldn't they? About $1M of the $7.5M would go to LP itself, but that would get soaked up by LP's creditors; nothing for small investors.