Kingslake Energy Inc. (fka KGLJ)

[downsideup]

I'm not sure yet how much the problems within the regulatory system apply to the problems with KGLJ. Don't know yet to what degree the initial drops in share prices were driven by short selling based on inside information obtained from within the SEC... but that seems to be one set among the possibilities... that the investigations were targeted to benefit shorts... or that the news was leaked to allow them. Those potentials could exist side by side with other problems, too... so that problems related to the involvement of company insiders are not yet excluded just because there are other potential sources of problems.

The SEC has a history of major problems accumulating, reflected in the best people leaving, and it has been going on for a long time. The fact now is that the SEC coop is being and has been run by the foxes over a long period.

Here's a short and abbreviated history of the troubles:

Low morale all the way back in 1987
http://query.nytimes.com/gst/fullpage.html?res=9B0DE3DF1031F933A0575AC0A961948260

Remember all the Enron associated Accounting Scandals a few years back? A former FBI Director served on the board of company that committed fraud, then he gets appointed to oversight of the SEC accounting standards board... leading to the the resignation then Chairman Harvey Pitt:
http://www.usatoday.com/money/companies/regulation/2002-11-05-pitt-resigns_x.htm

More recently, those running the show have been bailing out left and right... Here's the recent exits from the left:
http://www.directorship.com/sec-commissioner-resigns

My understanding is that now ther1e has been yet another resignation from the commission.

Strange, isn't it, that while the market implodes the resignations and flagrant, blatant incompetence from industry shills manipulating from within the SEC don't even make the news? The naked short selling issue is toxic. The regulators are obstructing justice. Counterfeiting securities has always been illegal, no matter what rules the SEC might make to try to allow that crime, and no matter whatever the other rules that they have that they fail to enforce. I think that when the laundry finally airs fully, as it will, some regulators will go to jail along with industry operators. Congress is investigating... laws will change... the next election will see changes that ENSURE heads will roll.

Meanwhile, there is vastly more concern in Washington about undermining of investor confidence by revealing the truth... than there is about undermining investor confidence by allowing the fraud to continue. That is about to change... because the government here does not FULLY control the media or the people, so the will of the people that the market be fair... will be imposed.