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SOP for the lead investigator.
IMO the Wells is all about M&M actions, not SPNG itself. I believe Feb 2009 Balance Sheet is accurate. And I believe the Feb 2010 Retained Earnings (deficit) will be about the same as Feb 2009. I know you think 2009 SPNG customers are fraudlent in nature. I wholeheartly disagree with that premise, but you could be correct. Thats why I'm on the sidelines watching the action.
So the point of this thing dragging on much longer, benefits the Boys. And thus the shareholders, at least in the short term.
Just waiting, and hoping, for the dropkick.
Wealthy men (women too) got rich by CONTROLLING products and services. God knows where we stand on SPNG. But "CONTROLLING" is not in the 2010 picture. Unless you're a paid pumper.
They need a new management team with a strong banking relationship. M&M are a joke and can't trusted. JMO
And SPNG can dance around Rosen, and get out cheaply. A deal will be cut, if it comes to that. And Rosen will take "the bird in hand". Remember, Rosen is going after M&M too.
A lot of good things could happen if the SEC "dropkicks" the M&M boys.
I don't think the "number" has anything to do with it. JMO
I hope it does drag out for 5 months. $$$$$$$$$$
You are getting ahead of yourself on the "penalty phase". A trial/hearing must take place first.
But there is no question, the SEC has the evidence to support the 16 violations. Some may be weak (or just fluff), but they have strong evidence concerning some of these violations. Which one(s) is anyone's guess.
The fact it's over 70 days since the verbal Wells, is a good sign for SPNG shareholders. Maybe not M&M. But then you have Rosen, so who knows for sure.
Your use of the "penalty phase" is a bit premature. The SEC will give Greenberg & Reilly a chance to review the case and all the related facts. They will have a ONE meeting to discuss various issues, but only ONE. Thats why an accounting professional was retained. "Hard cold facts" will rule the day.
The SEC "field investigation team" is done. Before they left in Mid-December they informed Mosky of the Wells notice and sent a letter confirming this on Dec 24th.
Unless additional evidence comes to light, the investigator's workpapers "speak for themselves". No more document requests, no more questions or interview requests from SPNG mamagement. The field work is complete, thus the Wells. Their workpapers will include, at the very least, the audit workpapers from D&D and R&H and related depositions; personal accounting and tax records of the officers, and all their related telephone, fax and email records.
It's on to the next step. And it's rapidly approaching. Thats why Greenberg and Rielly were retained. Get the "cold hard facts" and establish a game-plan, and then execute the best plan possible under the circumstances. They have the same records the investigators have requested.
Will Someone Buy Mosky an Accounting Software Package, so he can keep track of the checkbook balance. Might help the auditors too. Handwritten checks is a little weak, and cheap too.
For him to have an accounting system like this, it has to be due to a limited number of transactions. No one uses handwritten checks anymore, but a $500 million company trying to get on the NAS is still writing checks by hand. No wonder they had no Audit Committee, there's no internal controls.
Makes you wonder. Quickbooks is not that hard to understand. Maybe it was because of the printer, they're very expensive.
"he can trust" = obtaining hard cold facts
please do not put words in my mouth, I never used the word "guilty".
But I think I know what you mean.
If there's a direct personal relationship between Reilly and Pike Capital, then I would assume the Pike limited partners want the truth and they want it ASAP. What could have triggered this reaction was the Wells. Losing $15 million, and being "stuck", makes for "pissed off" shareholders. And it makes the first step following the SEC investigation much easier to implement.
IMO Reilly's involvement means no one trusts Mosky's accounting skills, especially his lawyers and certain shareholders. No one has access to accounting records except Mosky and the SEC investigators.
Yes R&H has access, but they cannot get involved in the Wells process because it's a management issue. They sit on the sidelines until the "smoke" clears. Thus the reason for Reilly.
It's Mosky vs the SEC investigators. Reilly is there to determine whose right and whose wrong.
JMO, but it makes perfect sense to me.
why James P. Reilly was hired?
OT
He was retained (not hired) per Greenberg's request because he (Greenberg) needs help with the evidence found by the SEC. He needs an independent accounting review (and opinion) of all pertinent accounting information and issues. He needs someone he can trust to find the truth, the whole truth and nothing but the truth. Greenberg needs the hard cold facts to properly represent his clients.
R&H cannot get involved with management issues per SOX, but Greenberg has their workpapers (and D&D workpapers). Reilly is Greenberg's "wingman". It's that simple.
Indirectly this helps with the audits and the required disclosures, but is not the primary purpose. If it were directly related, he would have been retained in the Sept ~ Nov time period. Greenberg and Reilly are a "package deal".
My best guess is Reilly is reviewing RME accounting records and all related personal and business entities. Greenberg needs someone he can trust.
"Pike Management and Mr. Pike disclaim ownership of the shares of common stock owned by the funds reporting on this Form 4 except to the extent of their pecuniary interest therein."
thanks for Confirming the above CFO's statement concerning Mr Dan Pike's ownnership interest.
"Pike Management and Mr. Pike disclaim ownership of the shares of common stock owned by the funds reporting on this Form 4 except to the extent of their pecuniary interest therein."
Per Pike Capital CFO, Mr Kevin Arps
In a Delaware LPs, the limited partners control. Mr Pike is a General Parntner thru his LLC. General partners in a Del LP can simply be a entity with no capital and no profit and loss sharing. He's simply a manager, whose duty is to comply with the wishes of the limited partners, per the partnership agreement.
Until the CFO of Pike Capital discloses Dan’s ownership share, one has to assume the Limited partners own everything. And the CFO stated as much in the document you “cut and paste” from. I believe you copied footnotes 1 and 2. There is a 3rd footnote and a statement by the CFO about Dan.
The 5 or 6 limited partners contributed $16 million, not Mr Daniel Pike. Dan simply manages the partnership, and is paid for these management services.
Pike Capital is a Delaware Limited Partnership. And Dan is not one of the limited Partners.
SPNG tax return due Tuesday, the 16th. On Wed, SEC will seek a copy, with proof of payment.
"so he can be the conduit for the Mutt Brothers to tell the nasty accounting stuff to and HE can filter out what to tell the other accounting firm and what NOT to tell them."
100% incorrect. If anything, it has the opposite effect. Reilly will have to sign-off on the 10k "Litigation Footnote, related liability accruals and all related 10K diccussions" (and G&T). This is done via an "Attorneys Letter", an auditing procedure. Having spent 8 years with E&Y, he is fully aware of this auditing procedure. In addition, he may and probably will, have to sign off on the "Management Representation Letter".
He can NOT withhold information from the shareholders and the auditors. Since the SEC want the filings, all relate SEC issues need to be cleared first. Whatever Reilly finds in his consulting/attorney status, R&H will want to know about it.
Reilly is not lying or withholding information for anyone. Being an attorney, he is very much a negative for the Mutt Boys. Whatever Mosky tells or discloses to Reilly, he's disclosing to R&H. pretty simple
Can't get a st8 answer from anyone concerning Dicon. I didn't know about the lease deal. Just like I don't know anything about their Balance Sheet and the Mosky/Dicon handshake agreement.
Thanks everyone for the help
Thanks "1jk1" for confirming that SPNG does NOT own the Ga real estate.
No one said they own it. But that's the whole point, Metter said the shareholders would get details about the Dicon Balance Sheet. Shareholders got nothing from Metter; not a list of assets purchased or liabilities assumed. NOTHING except it cost $4.75 million and that Dicon had a cash flow problem and owns some equipment.
So Bryan County owns the GA Dicon property. Right???????
And Dicon is leasing it from them.
RE = Real esate (associated with Dicon)
My question is very specific and quite easy to answer. Who owns the RE?????
My question is very specific and quite easy to answer. Who owns the RE?????
You think!!!!! It appears this action took place in 2008, well before the SPNG purchase date.
Usually RE is setup in a seperate entity and leased to a related entity. This done to protect both parties from legal problems arising from their individual operations. This is done via a valid and reasonable lease agreement between the two entities. Very unusual to own RE in a closely held corporation. RE partnerships are very common and are an excellent way to avoid "passive loss limitation" tax problems for individuals.
So my question is "Who owns the DICON operating facilities?"
Are Ga real estate records available to the public? Any transfers of Real Estate that Dicon operates and conducts business from?????
Does Dicon own the RE or do they lease these properties from any unrelated parties?????
Does anyone have a copy of the DICON Balance Sheet as of July 9th, 2009, the date of the SPNG/DICON agreement? Audited, Unaudited or Whatever.
That's why the shares are owned by limited partners. "He" owns nothing.
Mosky's 8k Wells Notice changed everything. The investigation team has evidence of wrongdoing and management's explanation is unacceptable. That's a fact. It's now in the enforcement guys hands, and Mosky deals with these guys via the submission, a pre-trial "One-time shot" to state management's case, without the "lead investigator" involved. The investigator's evidence files and workpapers "speak for themselves" and along with any submission, the enforcement guys make a simple decision to go forward or "chit can it". Its pretty simple.
Pike knows this and who the hell knows what the OS is. Thus he'll do whats best for the limited partners. Screw the filings because it only hurts them because the PPS goes into the tank if he files. If he's selling, it's his only option. And he hangs his hat on the Wells notice.
My only point is, if Pike Capital starts selling shares, they are not filing anything with the SEC.
I do the same thing with my investments. Great system.
Is Lampert one of the limited partners of Pike Capital??????
He's guessing, and based on the Completion of the SEC investigation, as disclosed by Mosky in the 8k. Thus the OS could be WHATEVER.
IMO if he's selling, he's not filing based on the WHATEVER. There's not a jury in the world who would convict based on the current facts and circumstances. And the limited partners know this, and thus will take their chances. If they file, the PPS will take a HUGE drop and they lose even more.
Exactly Mr Hasher. His state of mine could be different now, and he may think the OS is WHATEVER. His limited partners have lost 14 Million. He'll do exactly what's best for the limited partners of Pike Capital LP and QP. As the General Partner his duty is to them.
The only question is "COULD the OS be higher than is 1.6 Billion (or whatever) at this time, based on all available information? Including the SEC violations outlined in the 8k".
So Pike knows the OS?????????
Why must he File Puppy?????
They have it all, including accountant's workpapers and related depositions.
Lord knows, I'm trying
And "so be it" will never happen
IMO
I believe this is nothing more than a "cut and paste" of the opening summary paragraph of the Wells Notice. Of course, you don't focus on that when you have all the detail. So the answer to your original question, "without the detail I don't know for sure".
Haven't seen SPNG's Wells. Have You????