This fraud is not so small. Under Security Act of 1934 and especially under SOX, it is quite possible for people who sign intentionally false F/S to go to jail.
Here we don't know how far reaching the fraud is, but it might be uncovered eventually once somebody sues the management, Board, and the auditor.
Basically, the JRT management, with the help of Board, took over the company from existing shareholders. Nice move, but there might be a bunch of legal problems with such move. Who voted? How voted? On base of what? Where the shareholders' laws broken? Many questions can arise.
Can you imagine for example a Board of any publicly-visible US corporation just get together and wipes existing shareholders without going BK? Not likely. Let try BAC or C, for example, wipe out the government as a shareholder and you will see what happens.
Here JRT management thinks that nobody will notice or notice but not care or care but not have enough resources to get back on them. They might be right. Or might be very wrong. We will see how it goes.
>Here JRT management thinks that nobody will notice or notice but not care or care but not have enough resources to get back on them. They might be right. Or might be very wrong. We will see how it goes.
Just file it away for next time.
My lesson with financial stocks on the way down was with Texas banks ca 1986. It went pretty much the same as JRT is going. Down, down, down. Rights offerings. Reverse splits. Management begging for more money.
Then, the end. First off, the stock being worth less than the commission to sell. For some, it was years later until the notification "deemed worthless, and will no longer be shown on your statement".
Next time, you will have this experience to base your reaction on.
John Robert has given a ton of money to the Obama people, and being a Washington insider has strong friends at the SEC. He'll sooner die from his brain cancer than get prosecuted by his friends. I don't wish the man ill health by any means (he has been a philantropist), but thre is something to say about Karma.
If I were the crooked management and Board at JRT, I'd try to make existing shareholders whole in the next few days. Otherwise, a little birdy at a major newspaper in Washington told me that they might be doing a story on a certain influential person's fall from grace.
Then, and only then, will you see the SEC and Feds prosecute these crooks. Stay tuned...class action to be filed within days.