I disagree with that assertion. Additionally, the word "mainly" indicates there are other reasons for the CE warning.
Some companies have been dark (i.e. have the stop sign) for years without getting a CE warning. The suspicious trading and appearance of market manipulation on a stock that does not have adequate and accurate current information is almost certainly the reason for the CE warning.
If Val Westergard submits another bogus annual report and gets the attorney who shares an office with the IR firm that MDGC used, to issue another opinon letter affirming them, they are inviting regulatory scrutiny.
If OTC Markets became aware of an SEC or FINRA investigation of MediaG3 and its insiders, they would not be able to reveal that as investigations are confidential unless the SEC takes action.