Whether the result of eating some strange mushrooms or drinking from the bottle with dark contents, I had a very strange dream involving the ghost of investments past and it unfolded as follows…
The Kentucky governor, after seeing the light shown to him by the fine efforts of a state legislator, announced a commitment to the alliance effort involving FFI, KFA, et al. that provides tax incentives, access to coal, and specific locations, from which the state sees increased employment, development of downstream businesses, and an improved state economy. The politicians are jubilant, it is a boom for a depressed state economy.
Once jaded investment advisors indicate this has the potential to take NSOL stock above 3 dollars in the short term. If the long term vision offered by the alliance and state come to fruition, advisors suggest a stock price north of 10 dollars. Long suffering investors are giddy; their confidence vindicated.
However, little did they know it was to be short-lived. Unwilling to accept mere millions in profits and believing themselves insulated from SEC oversight, NSOL insiders manipulate the stock once again.
Once again? Yes! But it was not something investors knew. IA proved a necessary scapegoat and screened investors from what had truly happened in the debacle of 2008…
The announcement of the IA offer was an attempt by NSOL insiders to leverage it against another potential offer. But, there was no intention of having IA as the buyer. However, when the other play fell through and their golden parachutes (exemplified by the greedy February insider stock award) were threatened, insiders arranged for a concerted shorting of the stock; which explains why, in the face of what seemed to be good news, the stock continued its downward spiral. Once the stock hit the magic one cent, the game was done. But, money had been made by the greedy manipulation. (The same thing happened again when the stock hit eleven cents, then was shorted into its current comatose state.)
In the meantime, efforts to develop the Kentucky CTL opportunity continued. In spite of Herda, FFI, with the assistance of KFA and notable others, used relationships created within the state to position the opportunity for success. And, success became possible when an alliance brought the administrative, operational, technical and financial capabilities to the game; all of which NSOL lacked.
Ultimately, this led to the state awarding 625k to KFA, which gave it to FFI to be used to further the CTL development. However, Herda, Schwartz, and others believed the money was theirs; so, they brought it to DC and passed it out to a select few. Unfortunately, the state and others called them on it and NSOL scrambled to put it back together and return it to KY, from which it was not supposed to depart.
In the meantime, the state received a letter from Rob Schwartz, who, despite the absence of legal standing, asked for 2.5 million dollars to be given to NSOL as part of the state funding for CTL development. Needless to say, the state was chagrined and disconcerted; as the money was to be part of the development, not a prize awarded to insiders at NSOL. This made NSOL look leaderless (oxymoronic it would seem, but bad leadership is still leadership) and called into question the capability of FFI to operate effectively.
Unable to obtain the 2.5 million to feed the greed and with no independent voice on the BOD, NSOL spins off FFI, reverses the stock, freeing up shares; which they award to select insiders.
Sated with his vast shares, Herda then leaves the company and becomes a consultant to FFI, attempting, like Vladimir Putin, to run things from the wings; because the individual chosen by the transition team refused to become involved in such an obvious scam.
As with all conspiracies, someone is unhappy or fearful of the future. Consequently, they make some claims that ultimately fall into the hands of key and ethical people. The FBI, which is responsible for such violations of the law, is clued into the manipulation. They subsequently use subpoenas and interviews, along with offers of freedom scholarships, to gather evidence that allows for the successful prosecution of those miscreants involved in the fraud.
Denise Barbaro decides to buy her freedom and provide states evidence. A former investigator and others, paid for by Herda with shares from the company, agree to testify about the manipulation. As the wheels come off, others step forward to provide evidence as a means to avoid prosecution. Cited in the court files as unindicted co-conspirators, they provide the finishing touches to a successful prosecution of all involved on federal RICO statutes. The key players are imprisoned for the minimum required by law…10 years. They are also fined $1 Million each and are required to forfeit all assets tied to their ill-gotten gains; which, for many, is everything.
The state of Kentucky, though previously committed to the CTL effort involving the FFI alliance, pulls their support and places it elsewhere. The creditors, under a provision of their agreement, demand accelerated repayment. The opportunity collapses and all NSOL shareholders find their shares completely worthless; finally and forever.
Numerous lawsuits are filed, but it is only the lawyers that make money.
If only we could tell the insiders to refrain from being so greedy. If only they would believe there is enough money for all. If only they would realize that no good will come of further greed. If only...
…I awoke from this dream, startled by its lucidity. But, thankful that no one combines such a level of greed and stupidity. Then, struck by a blinding flash of the obvious, I sensed the recent indictment of Illinois Governor Rod Blagojevich might suggest otherwise.
