Interesting post Cash, agree with some of what you said.
My impression is most people are willing to give a CEO the benefit of the doubt in regard to selling shares in order to grow a business in this area of the market. The problem people have, and rightly so, are laws and outright lies related to breaking the law. If Jim Plant has grossly exaggerated his claims of government contracts or financial numbers, that's simply against the law and anyone defending his actions based on "it's tough to start a business" has lost the big flick.
Yes, it's tough to start a business, but we as a society don't allow fraudsters carte blanche in order to do whatever it takes to make money. Laws are what holds the system together and keeps the marketplace somewhat credible. There is a level of trust in every investment whether on the pink sheets or big boards. Trust in the integrity of the system gives people confidence to invest their money.
Obviously, "level of trust" is on a long scale and many people accept exaggeration and errors along that continuum. The pink sheets is an area where trust is often abused, sometimes grossly. In those cases we should be grateful the SEC takes action against the accomplices in order to dissuade others who may be inclined to follow in their footsteps.
The recent suspension of trading in 35 companies on the pink sheets is a real eye opener and change of direction for the SEC. Perhaps they've finally heard from enough citizens to send a message that an enforcement agency is going to take action.
I sincerely hope Jim Plant has only exaggerated and not grossly lied about the government contracts and financial statements. It now appears he has lied based on the corporate silence and assumption the SEC would only take this kind of action unless warranted. Only time will tell for certain though.
In the meantime, we banter back and forth here.
At least it gives some of us an outlet.
