I think he did the best job of lying to shareholders, he was capable of. He knew he was diluting and he knew there was no friendly financing for a small money losing penny stock
there is no excuse - he used the loyal longs and threw them away!
Eric knew that if he fed a little bit of information to certain people that would blow it out of proportion on the IHUB and Yahoo board and that's exactly what they did to bring in new investors. If Eric told someone he had a conversation with the stock boy at Sear's by the time it got to IHUB it would be that he was talkling to the CEO of Sears about a $20 million deal.
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