Replies to post #78678 on CyberKey Solutions fka CKYS

[jking1999]

Divine Madcap: That's my point. With the CEO admitting that fraud occurred, but it wasn't him, pretty much damns Cyberkey's case.

In the eyes of the SEC, any fraud committed by a companies officers (and a comptroller is an officer), is fraud committed by the company.

Look at USXP - The company got fined just about 21M, yet the CEO who committed all of the infractions got nailed for about 3.5M.

[Dickmo]

There may have been some admission of fraud but I question whether this story will stand up under scrutiny. For JP, an obvious control freak for which there are dozens who will testify to that aspect of his behavior, to claim no knowledge about what's in the checking account, the details of the company's contract representing 75% of annual sales, etc. is a huge long shot.

The bookkeeper may attempt to take the rap, for whatever reason. But I cannot believe that the court is going to buy that story. The very same people who may be concerned that JP is going to throw them under the bus in the criminal trial will see to it that the story is set straight in the civil trial. There's a lot more to come even after the government gets finished. There's still the possibility of a massive class action suit by shareholders. Knowing how much this may cost the former officers, directors, and consultants, they may want to see to it that the bottom of the bus has room for just one.

Again, just my opinion until proven correct in court. Then it becomes fact.