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Originally Posted by protonewb
No doubt, he's a moron.
But the SEC is civil not criminal. They can bar him from being an officer of a public company though, which is a pretty big threat and the board might have to remove him.
The SEC has asked for contempt of court which includes jail time if the judge wants it to. He got a free pass for the worst securities fraud of the decade, and rather than take it as a gift and change, he spat in the face of the SEC, his shareholders, the agreement, and the court, not once but many times. Any sane court system would make an example of him and send him to jail for a few weeks. Unlikely it will happen, but it's the only appropriate remedy for someone as in-your-face defiant despite being
completely in the wrong (as this loser is).
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That said the stock will not drop 100pts STMP-style from this. But it's a great start and being in trouble with the SEC would complicate any fundraise/deal and just put more scrutiny on everything.
Nothing has indicated to me that demand is anything but dead (bar the smallish Europe backlog).