One Step Ahead

[zeninvestor32]

SOME ODDITIES

There are certainly some procedural oddities that have surprised me. Obviously, first I was surprised that the judge ruled on the SEC's motion in limine without even having received cmkx's response. Unless I'm missing something, that's procedural error. Even if ordered on an expedited basis, cmkx is entitled to a response. But what I really find unusual is that depositions on the witnesses have not occurred. Generally speaking, both sides are entitled to an opportunity to depose the other side's witnesses to properly understand what the witnesses' testimony will encompass and properly prepare any necessary defense. This is just basic discovery. If SEC admin hearings waive this process, that seems procedurally unjust, however, it probably would be to cmkx's advantage anyway. Basically right now the SEC has NO IDEA what our auditor, our attorney and Maheu will be saying at the hearing. It makes me wonder if the SEC just simply did not want their testimony on the record during depositions. Did the SEC agree to waive depositions with cmkx who probably would gladly have allowed that for the opportunity of surprise testimony in front of the judge? I consider this HIGHLY unusual. If I'm the SEC, HOW IN THE WORLD am I going to this hearing without first deposing cmkx's auditor, securities attorneys and Maheu. Are they REALLY going to hear their testimony for the first time at this hearing? Apparently so. I'm sure many naysayers will imply that maybe this testimony was already covered either during the usca investigation or the cmkx 10-day halt. Well, if so, that testimony would HAVE to be introduced on the exhibit list or else it could NOT be used at the hearing to contradict or pin down any testimony by that witness at the actual hearing.

So really, is the SEC this ill-prepared for most of their hearings, or is there a REASON they did not want testimony by Levine, Buck or Maheu on the record? It does make one go hmmmmmmm.

And I'll just say that maybe I'm unaware of some procedural rules that dictate why this is happening. But man, that's pretty bizarre that you don't even have the opportunity to discover what your opponent's witnesses will say. For those unfamiliar with courtrooms, there aren't too many surprises by the trial/hearing date since most witnesses have been thoroughly deposed and most exhibits thoroughly reviewed.