Last comment on this discussion which is going nowhere. You say: "The SEC is not alleging that Phan received money from the improper sale of HRCT shares. The money went into HRCT's bank account. "HRCT the company" is named as defendant in the suit."
Here is my reply: The money that was taken (whether it went into HRCT's bank account or someone's personal account) was done by Who??? Some "Person" did this action, NOT the "Hartcourt company"! Hartcourt the company is named in the suit you say. Who is "Hartcourt the company"??? The company is not human and therefore can do no wrong! It is the HUMAN behind the company that did wrong, not the company itself. The HUMAN did the misdeed, which brought about the complaint in the first place (by other humans).
Hartcourt the company is composed of several shareholder/owners, which had NOTHING to do with the actions which led to this complaint/suit.
To penalize the "company and all of it's shareholder/owners" for the misdeeds of a single individual in upper management would not only be illogical and unfair, but unjust as well.
By your reasoning and logic, if what you say is true, whenever any single individual does anything wrong or illegal, his entire family, friends, community, state, and race should be held accountable and be punished.
The thousands of innocent shareholders of HRCT will not suffer from the misdeeds of a single individual by this civil suit.
Your reasoning is faulty and if you can't see that, then we will just have to agree to disagree!
