Replies to post #67813 on World Surveillance Group Inc (fka WSGI)

[followinsnsr]

Nerd, I agree with you. Globetel announced its own formal internal investigation, it is possible the SEC may not have started thier investigation until GTEM finished thiers.

GlobeTel Announces SEC, Audit Committee Investigations, AMEX Delisting Decision
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Oct. 6, 2006--GlobeTel Communications Corp. (AMEX:GTE) today announced that it has learned that the Securities and Exchange Commission has issued a formal order of investigation concerning, among other things, certain accounting issues, including the treatment of certain acquisitions and the valuation of certain intangible assets.

Additionally, the Company's Audit Committee has authorized an internal investigation into the same matters. The Company and its management intend to fully cooperate in both investigations. The outcome of the investigations cannot be predicted at this time.

http://investor.globetel.net/phoenix.zhtml?c=67726&p=irol-newsArticle&ID=913165&highligh....


4. Should a corporation conduct an internal investigation? This is one of the most difficult decisions that must be made in an SEC investigation. An internal probe has a number of potential benefits. For example, if the corporation decides to conduct one and disclose the fact of the investigation to the SEC, it may be able to persuade the SEC to delay its investigation until the corporation's own investigation is complete.
In addition, such an internal probe allows a corporation to assess whether it has committed securities violations, and whether it should actively defend itself in the SEC investigation or, instead, fully cooperate with the SEC by providing information about the violations.
While an internal investigation has certain benefits, it also has potential pitfalls. Once a corporation informs the SEC that it is conducting an internal investigation, the commission will expect to be given the results of the probe. To the extent that an organization refuses to disclose an investigation's results, the SEC may conclude that the probe has uncovered serious securities violations--and that the corporation's silence is evidence that it is not cooperating. The result may be harsher sanctions if the SEC ultimately decides to bring an action.

Well worth reading, the difference between a informal and formal investigation.

http://www.allbusiness.com/finance-insurance/288977-1.html

As posted this morning another reason why Globetel looks like a company on the run.

[futuristic4stocks]

nerd, that's a good analogy.
I'm strictly speaking of the likelihood that an audit committee could complete its internal investigation, share results, and report them to the SEC. After further thought, I agree with you though. The notion that GlobeTel's audit committee won't complete until the SEC completes, is a much more likely scenario.

imho


futuristic