Your apparent expectations are IMHO totally inappropriate considering what the dead standard practice is.
RE:"Right, they are getting discounted, free trading shares instead of having to wait to see if the company fails or succeeds so their risk is very low"
OF COURSE CSC is allowed to sell the shares at any time. What CSC is doing is operating a secondary sale of stock for KBLB and under such sales, the broker handling the sales is never required to hold them for a period and THEN sell them. (If they were, no early startup company like KBLB would be able to get a broker to do the sales.) CSC is not investing* in KBLB, it is brokering shares for it. Once again, you are twisting a term to make it appear as if there was a "problem" when none whatsoever exists.
It is highly misleading to suggest that CSC has some sort of obligation to hold onto the shares as an investment. That simply is not in the nature of the deal
*CSC has the OPTION of choosing to hold onto the shares as an investment if and when it so chooses (which is no different than if CSC had just bought the shares on the open market, which any such company could do without any prior agreement with KBLB.) But it very clearly is under no obligation whatsoever to do so. If they were doing a standard, one time, secondary for KBLB instead of a periodic ongoing one perhaps that would be even more obvious.
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