Tim gave you an accurate thubnail sketch of the history of this security game.
IMHO, it is probably unlawful. But in the USA, somebody has to go to court and make the case. The SEC under Georgie Porgie is asleep on the job with personnel changes a constant feature. Republicans want smaller government and ineffective government; that allows the Robber Barons and penny-ante business predators to thrive. I would guess that at the SEC in Washington, the public policy reads something like this: In the world of capitalism, greed is good. If you want to play the game, you take both risks and rewards. Should you choose to climb into the OTC.BB sewer, you may discover rats; having chosen to go into the sewer, fend for yourselves against the rats."
State regulators are no better. Neither Utah, nor California, nor Oregon have any interest in investigating, let alone, prosecuting white collar security games.
One member of the Just You Wait and See Club is an ambulance chaser from the San Jose area. He posts here and I think that he is professionally not a liability to the law profession. He just has vested interests in the form of investment in this equity so he discourages letting a ray of sunshine into the swamp here.
IMHO, we longs are doomed here. When the death spiral unwinds, we will probably see the end of RIM FULL Con Job.
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