HLNT/NIR/.... Lawsuits Followup:
Humphries latest adventure in litigation was ill-advised. As yet, HLNT has not mentioned anything about any criminal action. Humphries may have tipped the scale there, and could be tempting HLNT to support any Criminal actions brought against Humphries, Walters and Ribotsky. If I were the other two, I would be furious with Humphries, but if either of them supported Humphries in this, then they will be deserving of any criminal actions.
In the New York case, it was delayed (stayed) for 30 days while Walters found himself a new lawyer. That should end tomorrow, as that is technically the 30th day. If he doesn't come up with a lawyer, he will be pro-se (representing himself) and his companies, Monarch Bay and STI Group, will be in default (subject to sanctions and immediate summary judgement by HLNT). The next status conference is slated for August 7th, and it is going to be a very interesting one at this point. As this was the order by the Judge (Document #180 on the SCROLL system, dated 06/29/2012), this indicated that the Depositions of both Walters and Humphries had been completed. Would love to have witnessed those depositions, if both men answered truthfully, their testimonies should have solidified HLNT's case. With the 30 day stay, which though inconvenient, HLNT has had time to prepare for this next week, and review any documents that they may have received in discovery from Walters. It is not expected that Humphries has provided any documents, he has on two occasasions stated that he has turned over all the documents to the SEC/FBI. This is known to be a falsehood, as he provided some SSEV bankstatement information as his evidence in a response against HLNT in his prior bankruptcy filing attempt. For that falsehood, he is subject to charges of perjury in the New York case.
None the less, once the stay is lifted, the New York case should pick up speed after the next status conference, and we can actually expect some progress on these cases and their issues and for them to start wrapping up. A trial date should be set now for the New York case, which could be anytime in September or October, but very likely around the 1st of October. As this time frame approaches, we can expect an increase in the discussion of settlement offers, even though it probably won't be known to shareholders and investors that this is happening.
While the appeals are yet to be heard, there may be issues hearings revolving around them as well over the next month or two, appellate judges are not prone to waiting until the last minute to deal with something. Expect PWC's appeal to be immediately dismissed, and HLNT has a good chance of winning theirs and getting the NIR group and Funds reinstated as a principals in the fraud.
In summary, the dark cloud over HLNT that NIR created is beginning to break up now. Looking forward to HLNT prevailing and putting this all to rest, so that HLNT can completely focus on sales with its JV partner and on the production processes.
The opinions expressed herein are my own and investors should conduct their own due diligence, allowing them to form their own opinions and to be able to make appropriate investment decisions.
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