Bramson got the shares for free. He paid himself (Sherborne - SCI) $160,000 for the million shares that were granted to SCI for "consideration of SCI's agreement to make loans to a subsidiary of the Company up to $2.5 million".
Granted, he has $2.5mm on the line that may go up in smoke, but with his insider knowledge he SHOULD know the possibilities of ever recovering this money.
From the filing:
(f) On or about October 29, 2001, the Company issued to SCI 1,000,000 shares of Class A Stock in consideration of SCI's agreement to make loans to a subsidiary of the Company up to $2.5 million. The Company has agreed to register the shares under the Securities Act of 1933, as amended.
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(g) On or about November 7, 2001, Mr. Bramson purchased the shares reported in Item 3(f) from SCI in a private transaction for $160,000 using
personal funds.
(b) The 1,000,000 shares acquired by SCI reported in Item 3(f) were acquired as additional consideration for the extension of credit by SCI to a subsidiary of the Company.
sec.gov |
