Lets hope!!. You would think that the SEC would get really acclimated to all the crooks like him. There's the war on terror, and there should have been a war in the making for financial fraudsters who use the internet, and their rules to accomplish their goals. If they would take away the incentives for what makes them want to go public in the first place would be a start.
There should never be the allowance for money to go to them from a 504, S-8, or anything that gives them ability to be able to sell certs or common stock unless they purchased these in the open market. Their preferred stock, or controlling shares should have to remain restricted permanently, or up to the time when they sell the company. In this case the controlling shares would go to the next owner, and again those shares would have to remain restricted. If the SEC would set the rules in place that these people would have to have a revenue source outside of them going public, it would keep the bums out, and from stealing all that they can get their hands on. If the agency would stipulate in the rules that only until such date, and only when the company begins to generate the kind of revenue, and profit to afford them a salary, only then can they expect to have income, and that salary would be determined by shareholders agreeing on the amount by proxy..
It has to be this way for a private business in many respects, but the only thing they the private enterprises don't have is the ability to be able to raise money in a public market like this. The ability to be able to raise a million + to help with a new enterprise is astounding to begin with. First an foremost there should be a real business to begin with, not bullshit bases on some model they've cooked up, and doomed to failure. These pinks don't do anything for the job market, nor do the BB's.
There should be alot more going on before anyone is allowed to take one of these public. Wouldn't ya think that some reforms would have taken place considering all thats happened within this market?. Its like a back alley where all the crooks come to see what kind of corruption they can get away with.
If there were at least some sensible things taking place here the SEC would at least look they're trying, but as of yet the kind of market reform we heard about must have got lost with all that bailout money.
