Quote:
``It's a cult following,'' said Falk at the company's booth at the trade show. ``I can't tell you how many people I've met who bought our stock who don't know what we do.''
A classic statement from Fred Falk that shows how much he cares about shareholders.
On 2/3/2000 as EDIG stock was declining from its peak share price of $24.50 achieved a few days earlier, e.Digial issued a press release claiming the company had applied to be listed on NASDAQ and "believed" it qualified. The PR was fraudulent as e.Digital did not at that time meet multiple well-known requirements for qualification.
Fred Falk, Robert Putnam and Renee Warden, who was then the CFO, all dumped cheap ($.08) option shares at $11 to $12 into the demand generated from the fraudulent PR. Falk also sold some the next day. Falk's profit was over $3 million. Because of massive insider dumping, the share price did not increase on the news that day.
After never accomplishing anything during his 18 years at the company (15 as CEO), it's hard to believe he remains the CEO with a salary and perk package of over $200,000/year.
