no... sizzlin, he did not... you are correct.  But have I really misunderstood?  When they stopped throwing the money into "supporting" the user numbers.... their traffic took a nose dive, as reflected in the alexa traffic chart.  I'm simply putting 2 and 2 together.  What else would explain the sudden and drastic decline in users? Do you think he sent them all a letter telling them to stop visiting?  If users are going to the site... on their own.... why would they all suddenly stop?  Possibly, because DL was using part of that money (that you're assuming was used strictly for infrastructure, and that buying users was not part of that infastructure) to buy users.

Draw your own conclusions... I'm quite comfortable going with the most obvious.  Besides... it's not like DL has never misrepresented intertainment media and their operations/infastructure before.

During the previous fiscal year, an investment fund commenced a legal proceeding against the Company,
claiming damages of $4 million exclusive of costs and expenses for breach of contract and
misrepresentation. Subsequent to June 30, 2012, the Company reached a settlement agreement with the
plaintiff in the amount of $2.0 million and was recorded as part of accounts payable and accrued liabilities
on the statement of financial position and expensed in the consolidated statement of operations and
comprehensive loss. Please see Note 33 for further details.

33. Subsequent Events
Subsequent to the year ended June 30, 2012, the following transactions occurred:

Litigation settlement

As noted in Note 29, the Company has settled the claim with an investment fund in the total amount of
$2,000,000. The settlement amount is payable in equal monthly installments of $133,333 over 15 months.
If the total settlement amount is paid before the final maturity date, the Company is entitled to a rebate of
0.75% for every month early from September 30, 2013 to the date payment is made in full. The Company
can miss one payment without penalty provided payment is made by the next scheduled payment date. If
the Company misses a second payment the settlement amount is deemed a consent judgment for
$2,750,000 against the Company. The Company has missed one payment as at the release date of these
consolidated financial statements due to liquidity constraints.

Btw... that's our money he's paying them with... and considering int's current state of affairs I'm feeling pretty certain that we'll end up paying close to 3 mil on this particular misrepresentation.  That's a pretty large sum for a start up like int. Don't you think?