Ellsworth Young (EY) conducted investigations of t

Ellsworth Young (EY) conducted investigations of the industry and hired top experts to support its claims that, in general, the practice of convertible debt financing violates both State Usury Laws, and the Securities and Exchange Act of 1933-34. As well, in most cases this is accomplished using false promises, unconscionable loan terms and penalties hidden or disguised fees, and in general are not healthy for the companies who borrow or their shareholders. The firm is seeking regulatory, legislative and judicial support of its positon's regarding this industry as it feels it is harmful to the investing community and the companies involved. Some of the lenders in the business are involved in employing stock bashing message boards and naked short sellers, using them to drive down the price of public companies shares, while benefitting the lenders with even richer returns.