Patrick: Hot news--DHMG's Auditors Quit!! Niessen, Dunlap & Pritchard, P.C. resigned the account on December 15.
The official explanation is that is discontinuing all SEC work, but why would an accounting firm do that? And if it decided to drop SEC work as a matter of policy, why would it walk away from a publicly held client two weeks before the end of the client's fiscal year, without waiting for a new accounting firm to be hired, so it could aid in the transition? If it thought DHMG was not a fraud, wouldn't it make this move after the annual audit?
The answer appears obvious, at least to me. The auditors realize DHMG is a scam. If Hagen wants to go to jail, that is his business, but the auditors would rather be on the outside looking in, rather than the other way around.
This tells me that the SEC has been moving on this case a little faster than I thought. It also means that the NASD listing is a dead issue, and so is the spin-off plan to manipulate the stock higher.
The truly astounding thing is that Hagen knew all this when he announced last Monday that DHMG was going to be acquiring a money losing company to reduce its tax bill, and he knew it the next day too when he put out a press release about the spin-off. He devoted plenty of space in those press releases to attacking both short sellers and DHMG shareholders who sell the stock (not counting himself, of course).
Yet he didn't see fit in two press releases to mention that the auditor leaped off the sinking ship. That gave him and his buddies another week to unload the stock, even as he was making false promises to his dupes on Wall Street of a short squeeze. That is indefensible, and I suspect it will be one more thing held against him at a later date. |
