My take on the SEC rulings thus far…
Jeff Foley threw himself at the mercy of the court, who will eventually determine any and all disgorgement, interest, penalties or other amounts due for his part in the scam or any other judgement connected with it.
The disgorgement isn’t now off the table, nor is pre-judgement interest - that is clear from the filing. Jeff Foley will be forced to pay back some portion of those ill-gotten gains. His financial life is ruined forever, regardless of the amount. The SEC might take a more narrow view as to what amount is to be disgorged based on his level of past and future cooperation, but he’ll suffer regardless. And his involvement with NTEK, NTGL or any other penny play is over.
The consent judgement he signed in exchange for termination by the court in this matter is just that - his consent that the fines and penalties he faces are out of his hands, he can’t later contest them nor the court’s findings - his right to appeal has been waived by virtue of his signed consent.
It’s a bifurcated judgement - his future rights to appeal or contest or otherwise do anything other than exactly what SEC prosecutors tell him to are essentially terminated. And his final monetary (or otherwise) penalty remains open-ended, typically based on his level of cooperation, knowledge, record testimony, etc. as SEC tries to reel in the bigger fish.
The penalty amount remains open because he might be called to testify at trial, etc. All he has at this point is a loose, open-ended agreement to cooperate in exchange for concessions. He’s obviously sung like a bird to the SEC already, although we might or might not know how much unless this goes to trial.
It’s obvious they want David, Lisa, NTEK, NTGL and River North, not the players involved on the fringes. And my guess is that Jeff and Bennie sang early, loud and often.
If you look at the counsel for the defendants, they all have their own legal representation, with only David, Lisa, Nanotech and Nanotech Gaming bound together. The fact that Jeff and Bennie came out early and with their own attorneys and signed consents tells me this will not end well for David, Lisa or their former companies.
And obviously the NTEK/NTGL stocks will go grey soon and/or just shut down. If anyone hasn't figured that out by now, they are clearly not following the plot. When that occurs however, is anyone's guess, but I'd venture sooner rather than later.
PS - for shame for investors that actually want a chance at getting any money back on this scam for not binding a collective suit to this litigation. Not pointing at anyone here, but rather those on the outers than complain yet hang on.
Looking for Bennie's papers - they were filed at the same time as Jeff Foley's. so might be a minute or ten before I can locate them, FYI.
