My GUESS on what happened:
EGMI generates almost all it's revenues in Europe while the new management team is mostly based in the US. I'd guess that Lee Cole controlled the cash coming in to EGMI UK and that there has been resentment building as he saw US operation, with new highly paid staff, month after month needing infusions of cash while generating no revenue. Poken comes along causing a further split as LC thinks it's a distraction and waste of their efforts. Kevin Donavan meanwhile is going merrily along organizing Sundance etc and putting out PR's about this great new frontier for EGMI.
As LC sees the cash going out and , in his opinion, being wasted, he starts to tighten the screws by making it harder and harder for the US side to get cash from UK, finally resorting to not sending any funds at all. He might have gone as far as moving the accounts to keep any other signers from having access. This explains the lack of bank verifications that Anna H mentions as occurring in late fall 2009 as well as the lack of paychecks.
When the Lord dies, things break down entirely and LC refuses to pony up the $ for the Poken deal,effectively killing that. KD et al refuse to sign anything binding that LC needs to consummate any deals in Europe and thus we "revert to licensing" deal in Europe as mentioned by LC.
People tend to get pissed when they aren't getting paid. Most don't have the ready cash to keep body and soul together after a few months and AH and possibly others become increasingly angry about the deadlock and not getting paid. The auditors get wind of the issues concerning the bank accounts in UK being transferred and, as LC won't co operate with US team, things quickly spin out of control and the audit opinions are withdrawn and the SEC suspends trading and here we are at $0.21!!
It's only an educated guess, but I think it fits the sequence of events pretty well and explains the overall situation better than "it's all a scam and always was" as some here would propound.
