I have set up a car cleaning operation and I request you as investors to invest in the operation. I set myself up for $300000 remuneration for services rendered and you supply me as investors with a building, cleaning supplies, an accountant, lawyer and finance guy.
At the end of every year, I take my $300000, you pay the accountant $100000, the lawyer $140000 and the Finance guy $250000. The report shows that revenues were $2 million but then with expenses above, ($790000) the costs of the building, supplies and all other overhead, year after year, there is no money left for you the investors and in fact there is a loss. No one questions the enormous amounts collected by the support staff who are garnering these salaries based upon a $2 million revenue operation.
The problem is that the support staff is way too rich for a $2 million dollar operation. If the operation was $200 million, no one would be saying anything BUT it is 1% of that and by the way there is no one promoting the product and revenues are going down now year over year.
What's the STORY Cliff, or SHOULD I say Bernie???????????????? Great Ponzi.
I think you need a lawyer working for you and I think that someone outside the organization like the SEC needs to see what is happening to you the investors.
