Excellent point. I was a 5% owner of IBCL back in the early 2000's and the story is eerily similar.
The CEO did something illegal (put out a bogus PR suggesting the government was interested in buying their product when they weren't) and the FBI and SEC didn't particularly like it. They didn't launder $400 mil in government money through a publicly traded company - just a bogus PR. The FBI secretly investigated and the SEC waited a bit before acting.
One day, I bought $35k worth of additional stock - just a few shares short of having to report. I was excited about the possibilities of this great company. I watched my trade go off and seconds later, the SEC halted the stock. They waited until my trade went through. I was sure the stock was a winner when I hit the buy button. Instead, the FBI contacted me a couple weeks later and asked if I would testify against the CEO. I got a free trip to Atlanta. They put me up for two nights in a fairly average hotel. I testified against the CEO. Cost me $1.2 mil in worthless stock.
I get it. What if? Maybe they will get a really good CEO. Maybe DEWM won't get halted even though real money was funneled illegally through DEWM. Maybe the FBI or SEC will let things slide for the "good of innocent shareholders." It is possible. But prepare yourselves for the stock to be halted and your shares to become worthless. It may never happen, but it could.
I honestly hope you all do well, but don't play with real money here. There are a ton of crappy stocks with a decent story. Find one where the CEO didn't plead to a felony such as this.
