I agree with you. I might know something about the "back end" if I had some financials to reference. Maybe Reid would have commented about Gwyn's non-shareholder friendly "well participation" in his comments section. LOL!
I doubt any shareholder could have known the extent and/or truth about what was going on. They were probably operating on the fence of illegal activity. I assume Reid had to approve Gwyn's workings or were they in cohoots together? I can imagine the conversations going down at the local strip joint over drinks paid for by those $10000's in restricted shares:

Reid: Maybe we should look at this deal Bruce? You know for the sake of market value and shareholder value appreciation?
Bruce: No that would only provide capitol structure but wouldn't get you and I paid. Don't you want to be paid Andy?
Reid: Yes because I see the hounds coming for our hides and the more I can rake in during my short tenure the better for me!
Bruce: Then we should work on the deal that benefits us personnally and screw the loyal shareholders.
Reid: Well we can't afford the accountants anyways so let's bleed it all to death without transparency into what we're really doing.
Bruce: Sounds good to me!