The company lawyers never filed an injunction against the SEC on that basis in Oct 2012. Reid violated securities regulations, and the SEC suspended the stock. No "conspiracy".
Reid never submitted a Form 10 to the EDGAR site. Neither has the company lawyers filed a lawsuit against the SEC claiming a "conspiracy". Wonder why? Probably want to avoid the embarrassment of being laughed out of Fed court.
Now there's sumpthin for the proxy:
It is proposed that KMAG initiate legal proceeding against the SEC for their hijacking of the KMAGinary Form 10.