Bioelectronics Corp (BIEL)

[4toSchool]

On paper, it looks like KW has loaned millions to BIEL. However, that is not true. The money was raised by selling newly printed shares of BIEL to BIEL investors, which lowered the value of existing shares. IBEX (a.k.a. KW) served nearly as a conduit between BIEL and BIEL investors, facilitating the illegal selling of unregistered shares of BIEL. Now, 15-years later she claims that BIEL shareholders owe her $6+ million, yet out of her own money she loaned BIEL a one-time nominal amount of funds.

We all want BIEL to be successful. My question is why would the person & family that used illegal schemes that defrauded investors be the one that can take a huge majority stake in the company when it proves to be successful?