In a nice land of pretty daisies, it is not illegal to bond together, as the SNHs did, and help negotiate a settlement. Even if that settlement happens to only cover up through part or all of just their investment. That's life. And actually, that is what happens in most bankruptcies. But where things appear to have crossed over, was them also trading in securities, etc. This might help explain where it is believed the SNH's crossed over the line, and the Debtors helped with it... http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64832392