Replies to post #165788 on Dewmar International BMC Inc (DEWM)

[Det_Robert_Thorne]

Revenue was received from alleged criminal enterprise

I suppose it can be downplayed in some way, but DEWM's HWRC 2014 and 2015 revenue appears to have been obtained from a criminal enterprise.

MB was concerned that the money was subject to forfeiture, though Moran disagreed, and that's likely why MB pulled out.

Prior to its resignation, on April 5, 2017, MB stated that it had become aware of a complaint for forfeiture filed against a former customer of the Company. The Company terminated business with the customer in 2015. The complaint filed in February 2017, alleges a number of civil infractions committed by the former customer.

Despite the Company’s indication that it does not appear in any capacity in the complaint (nor does the Company have assets listed as property being sought for forfeiture in the complaint), MB indicated that it believes that if the complaint were further investigated, the information may have caused MB to be unwilling to be associated with the financial statements of the Company. Due to MB’s resignation, MB did not conduct such further investigation.

https://www.sec.gov/Archives/edgar/data/1269879/000139390517000123/dewm_8k.htm


I'll be doing more research on the Medworx case, and will be firing up my PACER account to look at the filed complaints.