Dave, these insiders didn't purchase 12 million shares. They were awarded stock options.

Robert Farrell, CFO
Options to purchase common stock:  8,000,000 shares
http://www.sec.gov/Archives/edgar/data/118231...2204_3.xml

David Lowe, COB
Options to purchase common stock:  200,000 shares
Options to purchase Series B preferred stock:  10,000,000 shares
http://www.sec.gov/Archives/edgar/data/130501...5296_3.xml

Donald Huffman, Director
Options to purchase common stock: 200,000 shares
http://www.sec.gov/Archives/edgar/data/142481...5486_3.xml