So if I understand this JBI bought those media c

So if I understand this JBI bought those media credits while they were still filed as an asset on Domark's books because the SEC had not yet completed its review of said media credits.Therefore it seems as though JBI was duped by Domark/Kidd into believing the media credits had value as an asset. Mmmmmm

This is, of course, nonsense.

The SEC issue is one of improper accounting of the media credits, not their value.  The rules state clearly that you must declare the value of a purchased asset at the price paid.

This is what Mr. Zack was illustrating in his book, among a whole bunch of other accounting pitfalls unrelated to JBI.

The main question is not whether the accounting was done correctly.  It was not. It is whether there was an intent to make the company seem worth more than it was by valuing the media credits at a price it was known was improperly reported. Regardless what Domark had the worthless media credits on their books for.

The case continues. Nobody really knows where it stands.