Mr. Pitt has, in effect, taken the position that the SEC need not require transparency about the "material risk" associated with investments in such entities unless the amount of corporate investment or exposure in rogue states could materially harm the often-huge multinational companies themselves.

CENTERFORSECURITYPOLICY: Opportunities for Financial War on Terrorism

The SEC's position is somewhere in the middle, that board independence has nothing to do with improving fund performance but is useful in eliminating conflicts of interest--that is, in keeping the business honest.

FORBES: Who's in Charge Here?

McLaughlin and Evolution's lawyer, Jeffrey Quick of Denver, told Forbes the failure to state McLaughlin's position with Earth was an oversight and will be corrected in an amended second filing with the SEC.

FORBES: Magazine Article

"Many firms take the position that you are responsible for the security of your account information, " the SEC noted in a letter on its Web site.

FORBES: Magazine Article

"The deal probably won't be done until whatever the SEC is doing is concluded, " says Mark Asset Management Morris Mark, who holds a position in the shares.

FORBES: Magazine Article