Post 4
Just finished reading a post from John 19-35 over on the IHub board. The post, to the degree it is true, makes a few things clear:
First, the President is not in control of this company, and he has a history of not being in control of the companies he starts, a history of allowing others as he says, "the lawyers," or "the certain people" to hijack control of the company and its market interaction. His not wanting to be knowledgeable about, involved in or responsible for the operations of a public company he IS responsible for don't excuse his mistakes and omissions. He IS responsible for what is going on, but he doesn't even KNOW what is going on? He says he has been set up as a patsy before... so it is not a shock that he is being set up to be one... or is willingly playing the part... again? Sarbanes et al was designed specifically to prevent this sort of claim of ignorance as a defense against corporate officer corruption... and allowing others to run your company for you while you don't know or care what they are doing or how... is a fairly outrageous level of corruption. "The lawyers" of course, should have explained all this to him.
Second, it looks like there is a very short window of time in which to fix the problems and avoid more difficult paths to resolution. The stock will likely not resume trading until "something" changes... that means JPs choices... and right now the lack of responsible governance is likely to be enough to kill it outright.
Third, JP could find lots of people to talk to about the difficulties he and the company are in... without creating additional risk for himself... and he should do that. I think there is enormous risk for him right now... and the wrong advice is likely to land him in jail.
The rest boils down to "follow the money" type stuff... it is clear enough to me and has been from the start of my involvement here that "someone" is self-dealing and probably wants to drive the stock down, push share prices down to zero, and kill the company off if necessary in order to take it over, or take ownership of the assets. It is pretty hard to know "who" that is right now... without greater cooperation from the company.
What I expect now is that "the lawyers"... they have to be the most likely suspects in operation of the ongoing efforts at manipulation... will try to come up with the bandaids necessary to meet the minimum requirements that will allow this manipulated corporate entity to trade again... while convincing JP that is what is best for him and for shareholders. When trading resumes, the shares will drop off a cliff, and the "good old days" of shares selling for $0.02 will soon be ancient history. Using a very generous value of $450,000 for a tainted empty shell with huge potential legal liabilities, the company should trade for around $0.0015. Once it is there, the manipulators will buy the company for nothing, strip it of its assets, and throw it away. If that doesn't work, they'll just issue more shares until it does.
I'd rather have it not resume trading. It would be useful for shareholders to cooperate and concoct a legal strategy that prevents it trading again, until the corporate governance is fixed, in order to preserve the value of their holdings.
Post 5
Lawyers are hourly employees. Just like Spitzer's whores, they'll only tie your hands if that is what you ask them to do. The lawyers work for you... and if that is not what is happening, then the lawyers AND the CEO should go to jail.
It is easy for a coward to be cowed by the legalities of the process, or by others involved in the process. Having already screwed up badly enough once before to have been interviewed by the FBI on another case, having this problem AGAIN is not easily excused. JP... you screwed up... you are in serious trouble, and the ONLY way out of it is to have the courage to take control of those things you've been allowing others to control for you... and do the right thing, instead of what the lawyers will tell you is the lowest risk option.
Doing the right thing is what you signed up for when you took the job as CEO of a public company. Doing the right thing now isn't going to eliminate the risk, which has already been imposed... but, neither will trying to avoid your responsibility do anything to reduce the risk. The CEO is going to be the fall guy... BECAUSE THAT IS HIS JOB... to be responsible for making the choices... and to accept the consequences that come along with having made the choices. If you allowed someone else to make the choices... you are still responsible exactly as if you'd made them... because you did.
If no one has told you before... your job is to protect the interest of each shareholder equally... not to cooperate with "some" of the shareholders who might want to take advantage of others. If you don't want to do that, you'd better quit and appoint someone else as CEO really, really quickly... so that someone else can salvage this thing for you before it blows up on you, which I can pretty well guarantee you that it will... unless something changes pretty quickly.
The right thing now includes:
Cooperating with the SEC
Working to ensure shares do not resume trading again until AFTER the governance is brought up to snuff... and the coordination is in place to ensure the stock is not being and will not be manipulated when trading resumes.
