CYRXorbust
The Wells is about two things. The SPNG Balance Sheet and the actions of M&M. Some of their actions effected the SPNG Balance Sheet, but not all. I believe most of their actions effected their own personal finances. For the shareholder, the only thing that matters is the SPNG Balance Sheet. R&H has all the details concerning these SEC violations. They are prohibited from helping mamagement with these issues, but can resign at anytime. As of today, they have not resigned. This is the "good sign".
The SEC investigators have all of R&H workpapers and at least one deposition. IMO the Feb 2009 AR and Revenues are good numbers, if not, R&H would have resigned by now. Their extended auditing procedures would have discovered this fraudulent accounting and this SEC investigation just confirms their auditing work.
IMO the SEC violations concerning GAAP violations center around three major issues: 1) The relationship of RME and SPNG, 2) No Audit Committee, and 3)unrecorded liabilities related to the "unpaid employees" and other costs incurred outside the SPNG consolidated entities. In other words, M&M are playing games between the various business operations they control.
JMO but thats why D&T wasn't going to start until May 2010. They told Mosky to clean up the intercompany BS, get a real Audit Committee, hire an accounting professional and then they would conduct an audit. I believe Rielly is looking at this issue and it might be "Job #1" for him.
Just an opinion of a shareholder.
AI
