More experienced penny scammers (or those on the SEC radar) will "get into debt" as a ruse... but really what's happening is the owner of the convertible debt will do the dumping rather than the company itself. Kickbacks then happen in the background. It's a form of laundering I suppose. Another way to launder funds might be to settle an internal lawsuit over an undisclosed issue.

Does anyone know if Hipples CF financial is related to the other CF that we know...?