What was the consideration for $101,000 of stock? Or was it remuneration?
If it was remuneration, he, as the sole officer is required to report his remuneration in 2016 to the IRS as income, and he as an individual is required to report it as well.
Clearly this issuance is just to manipulate the affiliate formula as a deceptive means, and his lack of reporting his income will become tax evasion. Not very smart on his part. Either way, he put himself in a box.
But someone has to report him, unfortunately, next May.