World Surveillance Group Inc (fka WSGI)

[coastiretired]

"wouldn't the SEC have named the "other things" as the predominant reason?"

1. The SEC most likely informed Globetel exactly what those "other things" are. Globetel just chose not to specify them in their press release.

2. The 8K that went along with the press release stated this:

Globetel "announced that it has learned that the Securities and Exchange Commission has issued a formal order of investigation concerning, among other things, certain accounting issues, including the treatment of certain acquisitions and the valuation of certain intangible assets. Additionally, the Company's Audit Committee has authorized an internal investigation into the same matters."

This statement, to me, would imply that the company knows precisely what the "other things" are. Otherwise, how could their own internal audit committee investigate "the same matters?"

3. If the "predominant" reason for the SEC investigation was solely related to acquisitions and intangible assets, I would think that the company's audit committee would have had plenty of time to resolve these issues and report their findings in the past five months.

4. We should see a report from the company's audit committee before we see anything from the SEC.