Carini......your 100%d RIGHT.....and IMHO, it is NOT a " transparency issue " OR " a lack of FAILING to give full disclosure "......Scott was doing that for the most part. He was just using it to " entice " new investors/creditors into buying those CHEAP SHARES he had. He was doing this well before he obtained his " line of credit ". He was desperate for CASH and once he had it, the FREE FOR ALL SHARE DISTRIBUTION & PRINTING PRESS OPERATION BEGAN!
It boils down to a BLANTENT MANIPULATION OF SEEK by Scott, et all, so a PROFIT can be obtained for the ELETE FEW. From the selling of CHEAP SHARES 10X below market price with NO RESTRICTIONS to the very LIMITED RESTRICTIONS so they could be ultimately DUMPED at the expense of the SHAREHOLDERS.
It may take some time to root through all of Scott's transactions at handing out shares, correlate them to the market and sales at the time to find the pattern BUT that is what those SEC & IRS " legal eagles " are for.
Scott is fully aware of the SEC rules being an ex-broker and he knows he has broken them SEVERAL TIMES in the course of 4 years now. He also knows he is in PINKY LAND where a few LIES and MANIPULATIONS can get your hands slapped by the SEC but usually nothing more. In the mean time, WHO is reaping the benefits?
If those few LIES and MANIPULATIONS were able to generate some CHA CHING for his pocket book......all the better for SCOTT, FIFE and the " other " creditors....right! Maybe not!!
Sooner or later Scott will get more GREEDY than ever and we are probably seeing some of that " trickle down effect " right now with his SILENT TREATEMENT, PRINTING PRESS RUNNING 24 X 7 and along with his previous accountant BLOWIN THE WHISTLE on him......Scottie could be in a WORLD OF DO=DO right now.
Who knows.....that " accountant " may have snapped up MILLIONS & MILLIONS of shares in anticipation of all of those " GREAT THINGS " Scott was dishing out Quarter after Quarter. BUT, that accountant also had the FULL PICTURE compared to what SHAREHOLDERS had.
Everyone remember the couple of instances ( CC's ) where he eluded to the fact that one could become RICH by his actions? I remember he just couldn't WAIT to make that statement.
It appears ALL of that BS was just those LIES and MANIPULATION. Funny thing, the VOLUME didn't show that....it was just going UP & UP as the PPS was spiking with it UNTIL everyone found out that NOTHING was truly happening. And then BOOM the bottom fell out.
Just like those SIRIUS issues, Fox Business TV Ad's, Call Center NEVER getting started or even staffed.......pack of LIES it appears now.
Hence, the only way for the accountant to get back at Scott would be to TURN HIM IN since they should have been privy to ALL of his financial dealings. Once the accountant put ( the factual ) 2+2 together, they obviously came up with the SAME ANSWER as the SEC & IRS ultimately will.......( 4 ).
As far as I know.....MANIPULATION, LIES and all the other little things some CEO's like to do are still ILLEGAL and will get you in front of a Judge to explain why the SYSTEM shouldn't put you in JAIL for a few YEARS! Sure, CEO's can try the " forward looking statements " ploy BUT, LYING with intent to MISLEAD is still illegal and very provable by one's CONTINUED ACTIONS AT DOING IT!
One just NEVER KNOWS who will roll over on whom!
MY opinions are just that.......40+ years of trading experience and take it for what it is worth.
