"the SEC is likely to prevail. Bordynuik and Baldwin are accused of not only pumping the books but of then doing a large private placement based upon those numbers. Then, once the private placement was complete, the company announced the overstatement and adjusted the assets back to the appropriate level. I don’t think this is something that can be effectively defended." http://serious-speculator.com/2012/01/11/jbi-inc-stock-unusually-strong-despite-sec-action-alleging-securities-fraud/