Element Global Inc (ELGL)

[momentumtrader]

I e-mailed Rich about the SEC charges against Merl in 2002
http://www.sec.gov/litigation/litreleases/lr17328.htm

His Response:
It was a long time ago, and it was view as no contest. The CFO at the time Frank, left the country with 5M dollars. As of this date, he is still wanted for felony and civil charges.

Becaues the board and officers where indirectly involved, the SEC went after them. Upon negotiation and payments from the insurance for DO insurance. Merle paid off the SEC civil penality. The cost of trying to fight the sec was not an option since the insurance company found the board/officer except frank not to be a fault. Thus, the settled with the SEC.

Nothing criminal was done by merle, I know for a fact because I had to testify my knowledge to the SEC/

Rich

I also spoke with him this morning and talked in detail about it. I am not worried about this anymore..