If an extra 100 million shares were sold, where's all that cash? Even at 20 cents that's $20 million, and in the time frame that I believe is being suggested, which is before the SEC shone its very bright lights, far, far more, maybe over $80 million.
Even the most blatant and stupid thief would have left some of that in the treasury.
So, no, probably didn't happen, but of course anything is possible in this popcorn movie!