Something like that seems to have happened with PBLS, no?
I think a little research into BAQG and the CEO would dispell any fears of impropriety here.
BAQG is kinda like a pet project gone public. Much of it was established prior to even being public, and IMO, if the pps does not begin to show serious improvement, I wouldn't doubt the CEO just buys ALL the shares back, and goes private again.
The only thing to this scenario is that Jim (CEO), who obviously has a head for business, would be left without the potential advantage that a publicly traded company can have, and the expansion that can develop from being public.