They had to have a reason to start checking the share count. Remember, they don't "vet" filings. The filings are there for when they need to look at them.
its penny stock .. and has been explained by the sec, blog's, FINRA newspapers and message boards all over the Internet with of 100,000 of pages dedicated to the penny stock world of pump and dump scam .. its huge risk and big time scam ..
the SEC has Pages and pages warning people about the risk .. in pennies .. NO way anyone has the right to blame the feds their bad judgments in the stock markets ..
this bunch of con artist set everyone up from day one to scam people .. and people are still defending them