Which makes sense does it not? They were trying to get things straightened out...presumably due to the looming timeline of the new filing requirements, but then get blindsided by SSM and are forced to defend against it. The court obviously agreed that Calissio had a case with some merit and subsequently dismissed the custodianship application. While you are not wrong in your assessment that the OTC is full of scams and frauds, this situation does not seem to suggest that is occurring.
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