The regulators HAVE looked at this stock EVEN before it reached its alltime high. The concerns from investors about the huge expenditure on travel alerted the authorities to this story and as rumour has it, a review of the books was taking at that time by the regulators. Surely, at that time, if regulators would have seen a reason to halt the stock or question the market cap, they had every opportunity then, perhaps because of no such findings of wrong doing, investors felt more secure in their investment, and watched as the SP went even higher. As for the SP without even have drilled, it becomes irrelevant when one drill hole in this situation could have caused the stock price to soar.
The regulators are putting the shareholders at risk here, in more ways than one. In all reality, its not Lori thats hurting this comopany and its shareholders, its the regulators that are allowing and condoning her actions, and are not mitigating any risk when they have every vehicle at there disposal to do so in upholding protective mechanisms.