Optec International, Inc. (OPTI)

41. The Defendants violated Section 10(b) of the Exchange Act, 15 U.S.C. §78j(b) and Rule 10b-5 promulgated thereunder, 17 C.F.R. §240.10b-5, in that, as described herein, and in connection with the purchase, offer and sale of securities, they knowingly, recklessly and intentionally:
a) employed manipulative and deceptive devices and contrivances;
b) employed devices, schemes and artifices to defraud;
c) made untrue statements of material fact and omitted to state material facts necessary in order to make statements made, in light of the circumstances under which they were made, not misleading; and
d) engaged in acts, practices and a course of business which operated as a fraud or deceit upon the Plaintiff.

I posted this before but it disappeared. Optec's Financial Statements have come out. They changed year ends for some reason. I wish someone audited them last year.

Last year end, OPTI's Balance Sheet said it had $23 million dollars of inventory.
Current year end it says they have $4 million. That would be ok but when looking at the statement of ops they sold inventory for less than what they paid for it. They took a $3.5 million dollar gross loss. A 15% loss on what they sold, not even breaking even. Net losses are $11million. I'd be willing to bet they lied last year end and never had $23 million in inventory. They inflated the number to make the company look much stronger. The only way to get it off the books is to sell it off and if it's a lower value then what they reported it as they had to take the loss in the current period.