The primary focus of the formal SEC investigation in MSLP is the massive insider selling of shares and the lack of reporting and accounting. Go do some research into the $ millions that were granted to Pyatt, sold and not reported.
Ok, so lets say you are correct in your assumption that Brad did this. I am not saying that I believe you or that this is accurate but lets assume it is. So that is only for 2010/2011. Nothing for 2012 per the sec investigation. You are talking old news so who cares? If you say that they will not trust Brad, so who cares they already don't trust him. Maybe the positive out of this if true, which I doubt is that Brad is forced to leave. So guess what, either way the stock should go up.