Money, Money, Money: Why Is the Cash / Equivalents Number Always the Problem?
As my reply to walrathcrai, these frauds like buying shares back in order to show their legitimacy. In China, we called this "CI DI WU YIN", which means you are more likely to commit a fraud if you have to do something totally different from the past to show your legitimacy. Carson Block learned this Chinese culture. He said he is particularly aware of a company starts buybacks after the company's legitimacy is questioned by the public. Simply, if you don't buy back even one single share before the fraud claims, why do you buy now? Typically, these buyback announcements have very short-term positive effect on these stocks' price.