here's an unbiased perspective,...it's actually a real news event and something that actually occurred to investors... that could potentially have costly implications for any pinksheet investor.
since there appears to be the ongoing back & forth debate amoungst A*** posters regarding shorts and naked shorts and bashers,...
when people ask why particular stocks get "bashed"......
("bashed" to me is hearing the the other side of the story,...and a more complete due diligence that most company principles, misc. insiders, stock promoters, third party affiliates, ect use as an attempt to keep the scam away from the (potential) investors reading eyes)
send this article to answer their wondering,...
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The former chief executive of Pegasus Wireless Corp. was sentenced Thursday to 21 years in federal prison - nearly three times as long as the term sought by prosecutors - for a multimillion-dollar stock fraud that led to the bankruptcy of the Fremont technology company.
U.S. District Judge Jeffrey White of San Francisco told Jasper Knabb he had caused "unspeakable ... misery" to investors who had lost their life savings. White said Knabb had concealed his funds and might commit new frauds "if given the opportunity." He ordered Knabb jailed immediately after the hearing.
The Securities and Exchange Commission has ordered Knabb to repay $40.8 million that he allegedly reaped from stock sales. Prosecutors acknowledged in a court filing that Knabb would be unable to make that payment.
Knabb, 46, pleaded guilty in July to securities fraud and conspiracy. Pegasus' former chief financial officer, Stephen Durland, pleaded guilty to similar charges in March 2011 and was sentenced by White in October to two years and nine months in prison. Prosecutors said Durland made $2.1 million from fraudulent stock sales.
Starting in 2005, when Pegasus was founded, prosecutors said, Knabb and Durland issued nearly half a billion shares to friends and associates to pay off a fictitious company debt, then pocketed the proceeds when the shares were sold for inflated prices.
When the scheme came to light, the stock price fell from more than $18 per share to less than $1 in four months. Pegasus filed for bankruptcy in 2008 and has relocated to Florida.
Prosecutors sought a sentence of seven years and three months, the maximum recommended by federal guidelines, saying they were bound by their plea agreement with Knabb, and credited him for admitting his guilt. Defense lawyers asked for three years and four months, saying Knabb had fully accepted responsibility and was not concealing his assets.
But White said the court's probation office had found that Knabb had hidden assets and could not be trusted. "His instinct has always been to lie and cheat," the judge said.
True of most every pinky CEO!
invest at your own risk, based on your own due diligence, at your own risk tolerance
