Redwood Scientific Technologies Inc (RSCI)

[gnosis]

forfeiture would seem to imply they have to give the proceeds over to the government right? (much of the proceeds to be forfeited are from sale of stock rather than fees.) forfeiting the proceeds is not the same as not collecting the fees is it?

as i read this, fees due to the levys would potentially still be payable and then would be forfeited to the government, as much as that denies common sense. it doesnt say people dont have to pay the levy's as far as i can tell: it says the levys have to give up what they are paid (and what they made in stock sales).

that doesnt seem like a sensible way to do things though. i would hope that the result of all this would be that they already don't have to pay the 2.2 million. from a laypersons point of view that seems like the just and sane way to handle it.

but if the government does not explicitly rule that they dont have to pay the levys at all, the levys are still not in any position to come collecting and GDGI could have a civil dispute that they would certainly win to avoid paying the 2.2 million for the favor of being defrauded. again, seems crazy that the SEC decision would not resolve this, but the forfeiture is not exactly the same as saying they cant collect is it? in the long run though, it seems beyond the bounds of possibility that they would ever have to pay that 2.2 million.

as far as anybody paying damages, i dont see that happening. the proceeds of their scam are being forfeited to the government

the levys will be liable to GDGI, but they are also likely going to be judgement proof. which means broke. you cant squeeze blood from a stone.

will the government give some of the proceeds of the forfeiture to GDGI or the former stockholders of the other two defrauded companies? that seems unlikely to me but i am certainly no expert.

anyone else ever hear of a suit where the SEC made someone forfeit money to them and then paid it out to victims?