Whistle blowers do not get $500,000 in Restricted Stock from the CEO for providing information. This was in violation of S-8 Securities Law. In the Bankruptcy he was name as a defendant and agreed to a settlement that required him to pay back the $500,000 to the shareholders who were wiped out by the bankruptcy.
It was illegal to receive any compensation He performed no bonified services for this payment. He agreed to a settlement to avoid any further proceedings. When you violate Securities Law and agree to a Settlement it will be a consideration from the CSE to deny a stock to be listed unless the person or persons (now wife Amy) are removed from the company. Persons who are shown to have been involved with companies that have caused harm to shareholders will be required to be removed before the company could be listed.
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