Certainly, fraud can be purported by the auditors as well, as in the case of Enron. However, the incentives in Enron were very different than VGID. Enron was paying high fees to hide the wrong doing. In the case of VGID, there's no incentive for a CPA to mislead. It's a clear exchange for a CPA, fee for audit work. However, for the owner, CEO of VGID/FHBC, there's great incentive to commit fraud. Unless investigated by authorities, the likelihood of getting caught is slim. Most investors will just take their loss, write it off, and move on to the next prospect. Meantime, it's easy to keep selling an infinite amount of shares, make up financials, dabble in drink creation or Photoshop prototypes, create more companies to sell more stock, etc., etc.
Ultimately, the questions before us, should be asked by any prudent investor.
What's the product? Patience, RK, Roadkill, Hair salon(relative's hobby?) ice creams struck(crazy),etc. Well, ok, we got something to sell or service to offer.
Where is it sold? Still unknown. Addresses were given, but product couldn't be found. I had two different individuals tell me that they went shopping for the product and both promised to send me pics. Great! The interesting fact is that the two different individuals sent me the same exact set of pictures. Really? That is very unlikely. MediMike, if he even exists, in his genuine online identity, offered to tell me where the product is sold, but never actually gave addresses. Then, stated product is only sold in bulk, and once I offered to buy in bulk, he disappeared. Not much confidence there.
Can the management team verify validity of what is told(financials)? It's what both, the investors and company management should want, to have confidence in the numbers. It's part of checks and balances that management should strive to accomplish. It is a fiduciary duty of the CEO to project confidence in the company data. Obviously there's room to improve.
Lastly, I've requested to meet with CEO, several times, on his schedule. He always had an excuse why he can't meet. In fact, if there's a theme to this company, is that the CEO always has an excuse. It's the SEC's fault. It's the attorney's fault. It's the distributors, and the list goes on and on.
Meanwhile, the stock keeps going down. No wonder there. Ohh, unless the owner is committing fraud and diluting of the stock, multiple companies, on a regular basis. And of course, the fraud-show must go on, for when it stops, there will be even more questions to answer.
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