I think ATNO's real control person, W.S., was in jail and they didn't allow him to run his business, so he told Doo-buy to write that it's illegal to trade stocks. But jailhouse laws don't control the world, property rights are protected regardless of where you are.
The company made some grave errors in their handling of this suit, and if I were them, I'd immediately hire an attorney and beg the judge for leave to file a new answer.