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If Ken really does still believe in his company, it is in his benefit to allow the share price to fall as low as possible and then buy up those depressed shares.
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If Ken had any wits about him, he would buy up the shares @.0005, instead of selling them. Regardless of his belief in the company.
If the company makes a profit (I know, i know... just humor me for a sec), it's a wise investment.
When it becomes obvious to everyone that it's a scam, there would be no shareholders to complain.
Nothing wrong with buying your own stock @80% discount. 80% of a few mil with 0 risk is decent cheddar.
Dumping is stupid regardless of whether he's scamming or honest. My guess is "unforeseen circumstances or acts of god." Something went seriously wrong.