Mike,
Again, please understand that I am not an attorney, so if you are seeking legal advice, you are looking in the wrong direction.
I am simply making posts which state my personal opinion, backed up with the reasons why I feel the way I do. The reasons are based on my experiences with the court system gained in the insurance industry, and past personal litigation.
Now, with that said, here is what I think. I think there are three basic types of action that can be brought against Dan Fisher. It is my hope that the company is going for the max and using all three.
We know that the stop transfers have been requested. This involves the SEC, who's regulations were violated, and they will likely have jurisdiction in this matter. If they chose to prosecute, the procedings would be held in Federal Court, and they would be FEDERAL CHARGES. It is their call. They can chose to exonerate him, slap him on the wrist, fine him, or imprison him. People have mentioned that they think that Fisher will just cover the shares at the lower price, maybe pay a fine, take his punishment and still walk away with a fortune. That would be true, IF that is where the action started and stopped.
However, with a separate action, in the form of a CIVIL ACTION, the "Shareholders of Midland" could sue him for any profits he made off the escapade, as well as other damages. If he is found guilty by the SEC, it is likely he will be found legally liable in a civil action. (The exception would be the OJ case, where he was acquitted in the criminal case, but still found legally liable to Fred Goldman for millions of dollars) The problem the "Shareholders of Midland" will have in a civil act is that we will be in line with the Novagaz investors, who already have a case, as well as anybody else who has ever sued him. If he has been clever in hiding money, it may be hard to find actual assets to attach or collect. These procedings would be held at the local level, usually in the county of residence of the accused.
After all of the facts are on the table, it is possible that a third type of action could be brought against the accused, in the form of a CRIMINAL CHARGE. If there is evidence that laws have been broken, (i.e. embezzlment) the entire matter can be referred to the District Attorney or Attorney General to determine whether or not he will be prosecuted for the act. If they wish to do so, they will take the matter before a Grand Jury, who will determine whether or not there is sufficient evidence for a trial. The Grand jury can return what is known as a "True Bill", which means it goes to court, or a "No Bill", which kicks it back to the DA, and usually dies there, unless he can produce more evidence. These procedings would be held at a state or local level.
I would think that the Board is seeking FULL legal relief, meaning that they are persuing all three of the above mentioned avenues. It should be noted that Midland can really do very little to impact the case now, because this is the type of case where the evidence is going to speak for itself. Aside from requesting the above actions, which has been done already, there is not another thing that can be done. It is a waiting game from this point on. Personally, I would prefer for them to focus on something that is productive in the direction of their future rather than focusing on recovering their past. I am not saying they shouldn't go after Fisher, cause I more than anyone wants to see that. They should cooperate with authorities completely, and aggressively persue our recovery. But maybe a 65%/35% split, with 65% percent of their time & energy on future deals and acquisitions, and 35% in the Fisher fiasco. Who knows, just a thought. Sorry for the length of the post.
:-)
Binder |
