Subpoena Update – SBAY Edition (SBAY)

Ah, Subaye (SBAY) the one-time home of James T. Crane, the company whose audit committee is still overseen by septugenarian super-director Lawrence Schafran, and the favorite of some really dumb Yahooligans, recently received a subpoena from the SEC.

From SBAY’s most recent 8k:

On April 27, 2011, Subaye, Inc. (the “Company”) received a subpoena from the Securities and Exchange Commission in regards to a formal investigation relating to a range of issues concerning the Company’s business operations, including, among other things, the Company’s maintenance of books and records and the financial accounting records of the Company.

Given the SEC’s newfound interest in the financial accounting of Jimmy T.‘s SBAY, perhaps it is time to revisit some of his other names (BONU, LPH, CAVR, FEEL, FEWP). Clearly the regulators had to have known something was rotten at Subaye as early as 2008. After all, in 2008 and 2009 SBAY management tried 8 times to get a spin-off filing approved by the Commission, and failed each time. Sadly, that subpoena came 20 days after SBAY had last traded, thanks to an NASDAQ halt, and two and one-half months since the first BuyersStrike! post on the little reverse-merger company that couldn’t.

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