Misconception about PTOI's media credits from anot
Post# of 43066
Posted On: 12/08/2014 12:48:18 PM
Misconception about PTOI's media credits from another board:
"They certainly WERE when DOMK (publicly filing company) had them on THEIR books..according to the SEC in LETTERS they sent to the company. But the SEC can be WHIMSICAL....so when JBII/PTOI bought them from DOMK.....guess what.....We got our <__> wacked......Now this was after enemies of PTOI complained BITTERLY to the SEC about the 'value'.....And since certain 'members' of the SEC are in the bear raiding shorting crews pockets.....well....you can guess the rest........."
I think it's important for investors to understand the Media Credit asset situation better.
With GAAP, assets are put and kept on the balance sheet at the lower of cost or market value. Before the media credits were purchased by PTOI from Domark, Domark did have the media credits on their own books at a valuation of $10M. Domark traded the media credits to PTOI for one million shares of PTOI stock. PTOI shares were trading at $1.00 at the time.
We don't know the market value of the media credits, other than PTOI wrote the value of the media credits down to zero shortly after Mr. Bordynuik and Mr. Baldwin competed a financing where investors relied on PTOI's faked financials, but we do know the cost of the media credits. The cost was the one million shares of PTOI traded to Domark in exchange for the media credits and PTOI shares were trading at $1.00 at the time. The cost of the media credits purchased by PTOI was effectively $1,000,000.
That's cut and dry. Even if the market value of the media credits was higher than $1,000,000 and if PTOI really got a great deal by only trading $1,000,000 worth of shares, the cost is still $1,000,000. The media credits shouldn't have been listed any higher than that cost under any circumstances. That's not a difficult concept.
The tired story that Mr. Bordynuik was just naive and trusted others too much doesn't fly. Mr. Bordynuik took it upon himself to insert the $10M valuation of the media credits into the balance sheet. The improper accounting showed PTOI's company book value at millions of dollars rather than the negative millions of dollars as proper accounting should have shown. Against advice Mr. Bordynuik was given by being told the accounting was improper, Mr. Bordynuik then conspired with an auditor to sign off on the fake valuation. Mr. Bordynuik even paid for the auditor's legal representation after the auditor landed in jail for violation of probation and felony DUI. The auditor certainly wasn't unbiased when he signed off on the fake valuation.
You can read about the SEC's investigation at https://www.sec.gov/litigation/complaints/2012/comp22220.pdf
What it comes down to is that PTOI's founder, Mr. Bordynuik, is a swindler willing to stoop very far to lie to investors in order to get their cash. When you hear people trying to re-direct blame, keep in mind that Mr. Bordynuik directly cooked the books and he knew very well that he was defrauding investors.
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"They certainly WERE when DOMK (publicly filing company) had them on THEIR books..according to the SEC in LETTERS they sent to the company. But the SEC can be WHIMSICAL....so when JBII/PTOI bought them from DOMK.....guess what.....We got our <__> wacked......Now this was after enemies of PTOI complained BITTERLY to the SEC about the 'value'.....And since certain 'members' of the SEC are in the bear raiding shorting crews pockets.....well....you can guess the rest........."
I think it's important for investors to understand the Media Credit asset situation better.
With GAAP, assets are put and kept on the balance sheet at the lower of cost or market value. Before the media credits were purchased by PTOI from Domark, Domark did have the media credits on their own books at a valuation of $10M. Domark traded the media credits to PTOI for one million shares of PTOI stock. PTOI shares were trading at $1.00 at the time.
We don't know the market value of the media credits, other than PTOI wrote the value of the media credits down to zero shortly after Mr. Bordynuik and Mr. Baldwin competed a financing where investors relied on PTOI's faked financials, but we do know the cost of the media credits. The cost was the one million shares of PTOI traded to Domark in exchange for the media credits and PTOI shares were trading at $1.00 at the time. The cost of the media credits purchased by PTOI was effectively $1,000,000.
That's cut and dry. Even if the market value of the media credits was higher than $1,000,000 and if PTOI really got a great deal by only trading $1,000,000 worth of shares, the cost is still $1,000,000. The media credits shouldn't have been listed any higher than that cost under any circumstances. That's not a difficult concept.
The tired story that Mr. Bordynuik was just naive and trusted others too much doesn't fly. Mr. Bordynuik took it upon himself to insert the $10M valuation of the media credits into the balance sheet. The improper accounting showed PTOI's company book value at millions of dollars rather than the negative millions of dollars as proper accounting should have shown. Against advice Mr. Bordynuik was given by being told the accounting was improper, Mr. Bordynuik then conspired with an auditor to sign off on the fake valuation. Mr. Bordynuik even paid for the auditor's legal representation after the auditor landed in jail for violation of probation and felony DUI. The auditor certainly wasn't unbiased when he signed off on the fake valuation.
You can read about the SEC's investigation at https://www.sec.gov/litigation/complaints/2012/comp22220.pdf
What it comes down to is that PTOI's founder, Mr. Bordynuik, is a swindler willing to stoop very far to lie to investors in order to get their cash. When you hear people trying to re-direct blame, keep in mind that Mr. Bordynuik directly cooked the books and he knew very well that he was defrauding investors.
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