I can't believe for a minute anyone (including the SEC) believes that Honest John didn't know the true value of the Media Credits, when he fraudulently listed them as a 10 million dollar asset.
John has no integrity and is nothing short of a crook....PERIOD!!
There were several pipes/equity issuances that were completed after fraudulently listing that 10 million dollar fake asset, which could ultimately prove to be the final nails in his coffin.
I think your spot on regarding the comma, and the xxxx is about to hit the fan!
Do you have any idea on what the time frame could be before the SEC charges him with fraud?
"here is an excerpt from the 8K:
Based on communications with the Enforcement staff, the Company believes that the proposed lawsuit relates to the Company’s subsequently restated financial statements for the third quarter of 2009, which were included in its Form 10-Q filed on November 16, 2009 and its financial statements for the year ended December 31, 2009, which were included in its 2009 Form 10-K filed on March 31, 2010. The restatement concerned the Company’s valuation of media credits, accounting for certain acquisitions, and equity issuances. Based on information obtained from the Enforcement staff, the Company believes that the staff may also recommend naming one or more current and former officers of the Company as defendants in the proposed lawsuit.
Notice the "comma" before equity issuances?
that comma isolates JB's printing of stock exclusively it doesn't invoke "accounting" for equity issuances
A lawsuit by the SEC always claims the defendants acted with "scienter" ( go look it up)
which means JB willfully misrepresented a material fact or failed to represent a material fact, which if made, in light of the circumstances under which it was made, would make what he did say not misleading
I suggest you also look up the federal definition of "willfullness"
so the actual Wells Notice is saying the SEC believes these guys acted FRAUDULENTLY WITH SCIENTER WITHIN A STEADMAN APPLICATION (THEY KNOWINGLY LIED)
there are 5 elements to Steadman, no one factor is controlling..
LAW CALL IS OVER: HE DONT HAVE A CHANCE"
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