Ironically enough, most of the stuff the previous CEO did with phantom seems to have been legal. It seems to be legal to get all sorts of investment funds and then waste it on super expensive offices and furnishings and living expenses, and hiring buddies, and then do it again with new investers.
I don't have a problem with the legality of businesses destroying themselves, what I do have is a problem with the moron investers who keep throwing money at them after they have a proven history of wasting it. Don't any of them read any news about the company?

"An SEC filing also showed losses in excess of $62.7 million over three years, over half of which was spent on marketing the company and products which were never released. Over $24 million was spent on salaries and consultants, but only $2.5 million on development."
http://en.wikipedia.org/wiki/Phantom_Entertainment

Consider that at least 1 of those 3 years occured after the hardocp expose of how the company was wasting the money.

And who knows how much more was wasted outside of those 3 years. Maybe $100 million all told? And all they have to show for it is 500 lapboards crossing the ocean right now.
If it is $100 million total, then thats a cost of $200,000 per lapboard. Even if its only the $67 million, thats $134,000 per lapboard. They are selling them for about $130 each.

Edit: this link says its $73 million as of 2007
http://arstechnica.com/gadgets/news/2007/06/true-infinium-stories-the-73-million-phantom.ars

This comment was edited on Jul 2, 2009, 23:44.