Honest question- how is it NOT fraud? The CEO has been falsely stating this company was generating $5m in revenue each year. Then, all of a sudden, he puts out an unannounced quarterly report where he confirms that those revenues were never received and wipes the slate clean?

It is 100% fraud. No one cares about this fraudulent company enough to report it, but that doesn’t mean what Steve Berman did wasn’t fraudulent.