It was an accounting error. They booked virtually the entire 10Q like a reverse merger, even stating the year ago financials of the "acquisitions" as if they were part of the company the year prior. That's what you do with reverse merger accounting.
The whole nonsense calling it "fraud" is laughable to anybody with an IQ higher than a grapefruit. The 10Q spells out clearly I believe it was 9 different times that the media credits were acquired with 1 million shares of stock. Some people foolishly act is if JBII was hiding this fact when, in reality, they were broadcasting very clearly.
JBII's response annihilated the case with facts. Their response, and much of the facts with it, weren't necessarily available to the single SEC attorney in a local office (who no longer even works for the SEC). It's more than conceivable, and all evidence points to it, that the attorney made a mistake because the entire sum of info wasn't available like it is now. Therefore I predict the fine with be a pittance in size along the lines of fines typical of an accounting error rather than fraud.
And, if I'm right, the basher-spin will be epic.
