I think what HJOE's trying to prove in court is KBM made more than enough money already off their notes. With the usury laws ( the illegal action or practice of lending money at unreasonably high rates of interest).

From what I understand happened is HJOE offered to pay off the balance in cash but KBM refused wanting the shares instead. I'm certainly no lawyer but I think when all the things Asher, KBM, Seth and Curt Kramer have done come out in court (if it really gets that far without being settled first). Plus I'm fairly certain a judge would want to see KBM's and probably Asher's trading records in HJOE before and during their financing's. If they were shorting the stock to get more shares than they would otherwise have gotten. I'm fairly certain it would be grounds to dismiss the case or void the financing contract since KBM didn't act in good faith. There's nothing illegal about shorting a stock but it is illegal to manipulate a stock to profit off the manipulation in anyway. Given their track record with other companies and outright lies to the government with their HUD financings I'm certain they did everything they could to line their pockets with more cash, legal or illegal doesn't seem to matter to the Kramer brothers.

Just my 2 cents for what it's worth.