I don't think you understand what is happening yet.
To start with there were no unauthorized shares.
The 2.1 billion shares in question were from the Authorized Share count of RCCH.
They were legally sold into the OS by Newton at a discounted price to the market. (30 to 50% discount)
After this completely legal but extremely dilutive transaction, the buyer broke the law by selling the shares into the float. It is the sale of the shares into the float without the proper registrations that has upset the SEC.
They are not concerned with the perfectly legal and authorized dilution into the OS.
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