Discount Print USA Inc (DPUI)

[Big Brother]

John, here is a completely hypothetical situation, tell me what you think......

Ok, lets say I started a company called 'Fuzzy Socks' where I sell socks online, I don't make a lot of money but it's a real company nonetheless.

I decide to take 'Fuzzy Socks' public and I enter into a lot bad deals, toxic convertible financing, convertible preferred, etc, I know its going to dilute the shareholders but who cares I need the $$$'s.

'Fuzzy Socks' as expected is a huge failure as a public company, the noteholders and others dump their shares to the point that the stock is basically worthless. There is no sense in me putting any more money into it, so I just give up, go back private and get rid of the shell.

A few years later, I decide to start another company, selling socks online, even though I still own 'Fuzzy Socks' but now a private company, I'll call this one 'Discount Socks Online'. 'Discount Socks Online' is really more of a DBA, because when you order from me, the socks are actually shipped from my other company 'Fuzzy Socks'......but I've incorporated it, for liability issues, to protect 'Fuzzy' in case I get sued.

Now I decide to take 'Discount Socks Online' public...deja vu??... I raise a bunch of money....but....I don't tell anyone about my previous failures with 'Fuzzy Socks' even though its virtually the same company and the same business' plan.

Then I do the same thing with 'Discount Socks Online', I enter into bad toxic convertible financing deals, that cause huge losses very quickly to those I just raised money from.

Now I ask, is this hypothetical situation ethical...?? For that matter, Is it even legal...??