Replies to post #144335 on World Surveillance Group Inc (fka WSGI)

[WarpCore61]

Ren, I understand your point of view, and somewhat agree with it. The case never went to trial and was settled with the SEC. The SEC obviously saw the actions taken by the company in the aftermath of the criminal acts to try to correct the problems, and it's my understanding the company fully cooperated with the SEC investigation. The company even self identified the IRS payroll tax issue.

But the company is viewed by most as the management team who conduct business, and their actions and successes/failures form the perception of "the company". It was proven that Huff and several other executives/employees scammed shareholders by generating false documents in order to report revenue that didn't exist, and the CEO did sell shares through a loan scheme without proper reporting per SEC regs, effectively selling millions of shares without notifying shareholders. The CEO gave investors false hope and a false image of how well the company was doing by his fraudulent actions. I don't see how anyone can view this as not being a scam (at the time).

So while I understand your view that this was never proven in court because it was settled by the company out of court, I still view it as investors being scammed at the time by those who were convicted of fraud. Fraud equals scam in my book, regardless of the settlement with the SEC and admitting no fault. I'm certainly happy there was a settlement and the company wasn't dragged into court.

I continue to give many thanks to both current and previous management teams who have tried with varying levels of success to keep this company afloat and turn things around. It certainly isn't a scam today, but as an investor I do feel scammed at the point where the false revenues and hidden stock sales were being perpetrated on investors. The only reason I began to average down was due to the efforts of those left holding the baggage. Yes, there were several false starts, but I believe things happen for a reason, and everything that transpired after Huff served as CEO laid the groundwork to get the current management team in place.

That being said, only a moron would call the company a scam today, given the amount of baggage that's been cleaned up and seeing the initial DoD and government contracts that have emerged. I think we can both agree on that point. Claiming WSGI is still a scam is like claiming Apple is still bleeding red and headed for bankruptcy. That claim was true at one time, but no longer, and making such a claim only proves the poster is either an idiot, or has an ulterior motive to deceive. If that poster is in the financial services industry, such a claim could also end in termination if investigated.

Thanks for your post.

[indyjonesohio]

Ren, given your perspective, and assuming the following regarding defamation:

The elements of a defamation suit; whether slander or libel, are:

1. A defamatory statement;

2. Published to a third party;

3. Which the speaker knew or should have known was false;

4. That causes injury to the subject of the communication

Would a lawsuit be dismissed out of hand based on posting the accusation on this board? I don't need to know it is winnable, winning is often just getting your day in court.

My second question would be, do you think a shareholder or group of shareholders could bring such action? In other words, if I deem a person's actions were malicious and intended to lower the share price of a stock I own, would I have standing to bring an action in court.

I am just asking because if that is the case, all of us should be circumspect about our statements here. You could say that the best defense against libel is the truth, but if I have to pay to defend that I am speaking/writing the truth, that is certainly an unwelcome cost. Google it up on the internet and give me your layman's perspective if that is possible. Best regards, IndyJonesOhio

[WarpCore61]

Ren, my apologies. I made my post before I saw the link to your previous message.

I agree with you that WSGI was never proven to be a scam. However, I stand by my view that it was perceived by many to be a scam because of the actions of Huff and a few others. In the investment world, perception often drives people's actions regardless of the reality of things. The recent drop in Apple's share price comes to mind. The company continues to deliver the best earnings in the history of the company, yet the perception is somewhat different and the share price has dropped over the last few months. Some of the opinions offered by clueless analysts haven't helped either. These are the same analysts who laughed at the iPod when it was introduced, who scoffed at the iTunes Music Store as a break-even business (when it was designed to drive hardware sales of iPods and was hugely successful in that regard), and who said Apple's retail store plan was doomed, based on Gateway's failure in the retail space. Now Apple has the highest revenue per square foot of any retailer in the world. It's amazing some of these "analysts" are still employed given how many times they've gotten it wrong. It might be a good field for one of our favorite jet mechanics to enter. Being right obviously isn't a job requirement. LOL

Our viewpoints obviously differ on this point, and that's fine with me. You are an investor. I respect your viewpoint. I don't respect the viewpoint of an idiot or someone with ulterior motives. At some point perception has to align with reality, even if it goes against one's wishes to see the company fail.

[flybyday]

Thanks Ren agreed, Cole is quite deserving of a defamation suit.