The SEC and the DA's within the States companies are registered, have taken aggressive actions against backdating and these 'shell companies' (KATX) who scam investors.
Much bigger and better informed companies via Law Firms who handled ALL their Filings have been charged and fined by the SEC and the DA's and it doesn't matter one iota who voted to approve or assign any date, ie, the company or their legal advisor.
Backdating has variations, but the reason for charges and penalties in hundreds of Firms with this issue are the 'Intentions' and come under that violation.
The risk here, regardless of the label used for the 'dividend'...
It may be deemed fraudulent and prove the 'INTENTIONS' during the pumping in 2010 was an 'ENTICEMENT.'
Who might make the claim and why?
That's not hard to prognosticate...
ALL the investors who were shareholders during the July 16, 2010 'Record Date.'
Furthermore...
I know of no reason why they failed to use the original 'Record Date as the Accurate Date', and "why they didn't make the initial distribution", never having to explain 'why' and using a backdate doesn't get them past that question - they still didn't make the 'Initial' distribution.
That said...
Backdating and this new 'Special Dividend' serves to make the entire transaction look suspicious, and casts a shadow over the issue of 'Intentions' and does not excuse the company or hold them harmless!
This information is from an Attorney.
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