Not sure there is much they can do, OTC Markets can be very stubborn about removing a CE, I once even saw a company file a lawsuit against them, to try and get them to remove it, with no avail.
Assuming the SEC even does investigate, if they find nothing, then the CE should be removed, as it certainly hurts any RM chances, but there are no guarantees.
If everything is legit, then the shareholders got a raw deal, all because of some wealthy arsewipe with no clue how the OTC works.