To explain the significance of PPP/Pandemic aide received by RETC's subs further:
It is not unlawful to use prior year payroll data (2019) for the PPP application AS LONG AS a company intends to retain their workforce. The Paycheck Protection Program (PPP) is there to help companies KEEP their workforce hence massive layoffs ARE NOT allowed if you become a recipient of PPP. In order to justify lawful receipts totaling $900K, RETC & its qualifying subs had to retain their entire workforce from 2019.
The issue here with RETC/subs are as follows:
*Per their 2019 10-K, they stated that there were 3 "employees/contractors"
*On/about 03/16/2020, they closed all of their operating units & laid off substantially all of their workforce (page 12 of 10K)
*According to the testimony of the subcontractor on 5/18, RETC has 6 employees and 15 subsidiaries, the latter that are NOT operating.
Further, United States MUST BE the principal place of residence for ALL employees of applicant. Whether $RETC had 3 or 6 employees, the fact of the matter is that the CEO of RETC is also the CEO of BluWire, resides in Hong Kong and the CFO resides in Japan. On this basis, no monies received from PPP can pay either CEO or CFO according to federal guidelines. We need to examine if CEO/CFO are the payroll of any of the subs that received federal aide.
Clearly, RETC received federal aide AFTER they laid off substantially all of their workforce. Also according to RETC witness, she was not paid for the 50 hrs/week of work she provided for the company which begs the questions: WHAT DID YOU DO WITH THE $$ & WHY DID YOU KEEP THE MONEY when you weren't paying employees or those you might have paid do not qualify due to residency rules?
Finally, where are the 8-Ks covering these when the company has done a lot of whining about COVID?
Can we continue to trust these people?
