NO QUARTER FOR CORRUPTION (Focussing on The Fed./FRBS)

[abh3vt]

"There was nothing wrong with our business," says Dempsey. "We fell prey to the perfect crime."

Hold on. If "nothing was wrong" with his business, then why did he get in bed with these guys? If he didn't know this was going to happen, he needs to have his head examined.

"In the case of Pet Quarters, the suit alleges that Badian's hedge fund lent the firm sorely needed operating capital on terms that allowed the hedge fund to convert the debt to shares at any time. Through naked short selling, Badian then pushed Pet Quarters stock from $4 to just pennies. Badian balanced his massive short selling with cheap shares obtained after he converted the loan to stock.

Without the operating capital, this company would have folded ANYWAY. It appears that no bank was going to loan them money, otherwise they would have tried that route. And no one was willing to take shares in a private or secondary offering either.

I'm just as angry at those that short on bogus reasons, but how is that the case here? Would any of you have bought shares in this company prior to this floorless convertible?? And why?