Easton Pharmaceuticals, Inc. (EAPH)

[User-65225]

Its all a matter of how its done... A CEO can buy a new car with shareholder cash and say its a "company car" right? SF#I CEO had a $250,000 per year auto allowance listed in the filings, for just him. lol

Insiders are allowed to compensate themselves. There is no law on how much. They govern themselves, esp penny stocks without an independent compensation committee

Insiders can buy property and other things, then lease it to shareholders, allowing them to pay it off... depending on the terms, this can be a good or bad deal for shareholders

Insiders can buy many things and claim its a General Admin Expense, sales support, etc. They do not have to detail every expense in the 10K, only the amount spent... Trips, fancy dinners, etc can all be paid for on the shareholders dime.

What else do you need to live?

The way i understand it, embezzlement is when you have an agreement on how a specific amount of $$$ will be used. If you use that $$$ for other purposes, it is embezzlement