The thing that kept me in to "the bitter end" was the involvement of Lord Steinberg. To have a guy as Chairman and principle investor who spent his whole career involved in the gambling industry, made his investors billions, had a reputation for high integrity and, given the industry he prospered in, would have had experienced every scam in the book, gave me a lot of confidence that EGMI could not be a scam.
I just could not get my head around the idea that this man, Steinberg, could be involved in such a tawdry little affair.
The other kicker for me was the cash. I still would like to know how the auditors missed that there was no cash. Cash is HARD to fake so either the auditors were grossly incompetent ( my guess) or Cole et al came up with some incredible new way to fake out a thorough audit. I have never heard of an audited public company where the cash was able to be faked completely as is the case here.
What is scary is that if this could happen with EGMI then NO over the counter stock is safe. There is obviously not a high enough audit hurdle to keep scammers out so what can one trust?
Between the auditors and Steinberg estate there are some deep pockets out there that were involved in this snafu. I'd sure like to hear what is going on with the class action lawsuits. These people need to be brought to account if for nothing else as a cautionary lesson.
One last thought. What exactly IS the function of the SEC if not to prosecute frauds like this??? Where THE H are they???
AI
