That is not entirely accurate. He can increase o/s yes but he can NOT cash in or just randomly direct funds from the sale of shares as he can not sell free trading shares from the treasury even with an 8k filing. There is no mechanism for that because the TA and the brokerage firms wouldnt allow it. Any version of that scenario would require a legal opinion from an sec attorney (with their license on the line) accepted by both the TA and the broker dealer. Thats why there is a 3a10 process in place directed by court order and SEC oversight. There is no way to pocket those funds without going to prison. No way!
Again, this is debt consolidation like it or not. Accusing the ceo of essentially embezzling or misappropriating funds is irresponsible and ludicrous. That said, there is nothing wrong with questioning why he made the decision or even disagreeing with him but allowing your emotions to blindly accuse the man of multiple felonies is too far. IMO.
I would also ask, what has he lied about? The man paid the bills to a sub-contractor that has been owed this money for 3 years! What would you do, not pay, risk getting taken to court and getting a judgement against the company which without question would need to be disclosed to the public (which would just panic people as well) and in an S-1. Do you have any idea how much of a delay a legal action would cause in an S-1 process!? you could be delayed 6 months or more! Which is probably why hes getting everything expedited and out of the way now ahead of a filing.
If you dont sell you dont lose. Plain and simple
