Replies to post #121837 on World Surveillance Group Inc (fka WSGI)

[WarpCore61]

I can list a few reasons:

1. The SEC threatened revocation of shares over 31 months ago. Hasn't happened. Why not? Slow wheels of justice? Believe that if you want, but I'm not buying it. Pretty weak argument for those continuing to beat that drum, and each passing month further weakens the possibility of revocation. If I thought that was a real possibility, I wouldn't be buying shares. The only wishful thinking being done in this scenario is by those who are hoping share revocation is still a possibility. Even in your recent private message, you stated you hope the SEC shuts down Sanswire. Sounds like you're not very confident in that possibility, so now you hope it happens. Certainly sounds like wishful thinking on your part.

2. The fraud claimed by the SEC has not been repeated since the company terminated all the former employees involved in that fraud. Because of this, the SEC have no grounds to revoke shares at this point. There is no evidence or even claims by the SEC that the fraud continued past the employment periods of these specific individuals.

3. The SEC cannot possibly recover their costs of litigation from the company under their current financial state. Do you really think the SEC brass is going to allow this circus to continue much longer? The SEC has kept the case dragging along in order to try to bring charges against Leinwand, but they haven't uncovered any evidence to allow them to do so. There is nothing to be gained by going to trial. Going to trial isn't necessary to revoke the shares, which won't be done at this point for reasons described above. The only other explanation for continuing to push out the trial date is the possibility of contracts and revenue, which can be a factor in the fine imposed by the SEC if they win the trial, and that can't be possible if they revoke Sanswire shares.

I believe the SEC will settle before the trial date in order to save face. With the pressure on the SEC to cut costs and become more efficient with their limited resources, continued litigation against Sanswire makes little sense given their charges and convictions of those responsible for the fraud, and their inability to bring any further charges. Plus, the company is actively searching for a new CEO. If a reputable individual is found to fill that role, it will weaken the SEC's case even further, making a settlement prior to trial even more likely, in my opinion.