And just to be clear, when you buy a stock through a private placement, you give up ALL of your legal rights. Basically you are handing your money over and saying "do with it, as you see fit".
Again, these guys are saying one thing and doing another, which is highly unethical and unfortunatly because of the way these shares are being sold, NOT illegal. But to be clear...I agree they should be in jail, and am VERY happy I am not an investor.