KGIC Inc LGLTF

Jim Peterson & Faskens have deep pockets

[Fastow]

Did Jim peterson breach his stat. duty or fiduciary duty to KGIC by allowing his law firm to represent financiers? Faskens was acting for the other side on those deals. Seems as though there might have been a major conflict of interest.

[FRIESLANDER02]

Bottomless conversion would attract certain types of predators. Would there be further tax benefits if LRN went bankrupt?

[Fastow]

I am not sure about tax consequences. What I think is that KGIC's balance sheet hastily grew to a size where it was no longer able to service its debt obligations. That happened on Peterson's watch. Bad business decisions aside, it was Peterson's firm that made those deals happen. Whose side was he on? If that question even needs to be asked then there was probably a conflict and thus

[FRIESLANDER02]

Peterson personally took 400 thousand dollars worth of the 40 cent PP March 2015. That was an enormous signal of confidence for the LRN's prospects. Yet it is odd he approved a loan to LRN from Ryu at 18%. I assume Peterson was not granted a loan from LRN for the purchase.