now SGE, when lawyers realized that it was against the law of the land to pay dividends to warrants holders; when they realized that dividends can be distributed legally ONLY TO SHAREHOLDERS , they organized book cleaning, they even renamed already distributed dividends into something called "income distribution" so swartz ilegal deal would be presented in company financial reports as legal...

Under the terms of the Waiver Agreements, Lincoln and Swartz agreed to amend
their rights under the terms of certain warrants held by each of them to receive
a payment in the event of a payment of a dividend by the Company. Prior to
entering into the Waiver Agreements, if at any time after the issuance date of
the subject warrants, the Company made any distribution to holders of its common
stock, then Lincoln and Swartz would be entitled to receive a payment equal to
the amount of such distribution which would have been payable to them had they
owned the shares of common stock issuable upon exercise of the subject warrants
as of the record date for the distribution. Under the terms of the Waiver
Agreement, if the market price of the Company's common stock on the record date
for a distribution is greater than or equal to $0.15 per share, the payment to
Lincoln and Swartz would be reduced to the amount which would be payable to
Lincoln and Swartz had they engaged in a cashless exercise of the subject
warrants as of the record date for the distribution.

http://www.secinfo.com/d12TC3.v6Nq.htm

I humbly suggest that you ascertain the facts of a situation before stating illegality. Just because it is unusual, doesn't make it illegal. Please read the above statement and show me just where it states that a dividend was paid on the warrants. In closing, even if S&L received "dividends" on their qualifying warrants, it is still legal.

Be well