TO A RELATED PARTY and then just gives them more shares for FREE. Read Footnote 6 of the 10Q where is says this:
"As of March 31, 2012, the principle balance owed on this loan is $0 and the Company recognized $23,835 in income related to the forgiveness of accrued interest. In connection with the loan, and for no additional consideration, the Company issued to the note holder an aggregate of 500,000 shares of common stock."
Due to the SEC's limited ability to scrutinize SEFE and many other companies who exploit the gift of the free enterprise system, the market becomes more of an unregulated casino and less of a vehicle to support legitimate business ventures; by which, investors and companies may both benefit from growth from hard work. Simply put, SEFE is a scam masquerading as a company.
Rory, most people that post on message boards are either paid pumpers that self rank their own posts or people that have no concept of markets. It's funny, I use the word casino to describe these markets all the time because that's 99% of OTC and Pinks these days. Like casinos, these scammers cause a lot of financial damages to older Americans.
It used to be that using the word scam in a post brought on a slapp lawsuit but not these days. Last thing some of these companies want is to see the inside of a courtroom even if they would be the plaintiff. Finding shares to short is key to making a few bucks at the casino. Thanks for your post, it was very well written.