Pud, it is not really the question of how Josey came upon the information, and even if, once in the public view, it is no longer considered insider info. In any event, it is not illegal to hold insider info, it is illegal to trade based on it until it becomes public, and becoming public knowledge does not require that the source be the company. In this situation, Josey told us that he got it from the "patent holders." It is no secret that Foster and Robinson seem to think that they hold patents, even though the USPTO does not have any patents registered to either of them.

The real question is why did it take Coats three plus months to tell shareholders the truth? Apparently, when he released the PR telling us that the testing had begun, it had already been shut down. He knew that just like he knew that 100 M in sales was garbage. Maybe he thought that a genie would appear and make it work? Or just maybe so that he or other insiders could dump their shares at a higher price? Now that IS illegal IMO!

Remember that it does not require success for there to be fraud. All it requires is the intent and the attempt. There are lots of people in prison for fraud that never netted a dime, but wow, did they ever try and for some reason think that they were a victim because it did not work out like they wanted it to.