If one is an affiliate/officer/director and purchases shares in the open market to play with, well the shares purchased in the open market are aggregated with the affiliate shares and become automatically restricted and subject to the same Rule 144 Resale Restrictions as the affiliate stock.
So long as he/she does not lie to the financial institution, which is financial fraud.
If the company ever gets audited, the auditor will request a transfer activity report from the T/A directly as well as a shareholder list from the T/A directly, the issuer is not allowed to touch it for obvious reasons. If and when the financials are filed with the SEC, the reviewer will find the discrepancy and discipline the issuer and the affiliate.
It is not hard to find, it sticks out like a sore thumb. And if the issuer files a 10-12g, they will let it go effective and then immediately revoke it the next day if they whack the hornets nest.
