Grifco Inc (GFCI)

[back2basics]

[I talked to Kesha this morning.



Q. What is the status of the Restitution situation?

A. We are going through the additional documntation that was sent in.

Q. What's the latest on the restitution amounts. Requested vs how much is available for retitution?

A. There were more than 300 claims for about $7 million and a little more than $1 million in assets tat are being settled. ( At one time assets were said to be about $2.2 million. That number came from a DOJ press relase during the trial phase. I didn't ask about the dfference.)

Q. I told her that I had heard the SEC was hoding well over a million from fines they had collected.

A. That's true.

Q. Any idea when that will be paid?

now the bad news

A. in 3 to 6 months. No payments can be made until the disputed claims are settled. If anyone requests a hearing or trial and hires lawyer it could be much longer. If that happens we could need to call in 300 witnesses.

End call.

My worst fear is that a group whose claims were denied may get together and hire a lawyer. I don't know of a laywer that ever saw a case he didn't SAY he could win. Or a retainer he would turn down.

Hypothetical lawyer.

" OH yeah, I can get y'all your money! Just send me a couple of thousand each for a retainer and I'll teach the DOJ a thing or two!"

Years of litigation ensues, more DEMANDSfor retainer so four or five, or 20 or 30 fight the DOJ.

A lawyer will fight for you until you run out of money.

The other day I said there was a chance that the one day run of GFCI stock was engineered by defnce lawyers to show that GFCI shares stiill had asset value.

B2B