Imjin, I had the occasion to talk to a SEC lawyer at a function of a friends. I gained much insight into what the SEC is willing to investigate. KBLB is small time to an extreme. Do not fret over little ole KBLB getting into trouble or anything I brought to light. The fish the SEC are after are larger or institutional types, more than individual investors anyway. Anyone can file a complaint and they do deal with many small claims for OTC and Pinks, but if there is plausible deniability it is dropped. If there is no money made, it is dropped. The evidence needs to be overwhelming. The important thing to recall is that we are talking about people that do not sell shares. End of story. This is why people speak freely. Take what they say as encouragement. You certainly aren't going to make a ship load of money with the financiers unloading and severely limiting movement to pay for production....if that is what is happening. I have told the private trading boards I am on not to buy KBLB at this time, on the mere possibility of dilution going on.
If an individual investor assists in getting a JDA done, these kind of things are completely legal and occur often....especially in the oil and gas sector. But certainly not limited to any given sector. This is why you have extremely well connected people on your BOD etc. Their is nothing to sweat, so long as you don't profit in the short term, from what you do.