It's hard, if not impossible, to refute years of ill-will spread over the internet that's taken as gospel by a receptive audience. There are two sides to every story, and I'm not out to question the integrity of people that have posted things like that. What I can say is that statements like the above are not what the current Palladium freelancers experience.
If what you say about the current freelancers is true, then that is a sign of a business moving in the right direction.
Like a number of companies, Palladium has a number of rabid fans, and rabid detractors. Whatever you may be, this thread has looked like several others lately where ENWorld seems to be losing its "friendliness." Maybe it is just a coincidence based on some of the threads I've looked at over the past few months, but it certainly doesn't seem as friendly here as it used to be.
Love him, hate him, support Palladium, or don't, but don't kick them when they are down, and they are down, believe me.
I also know about embezzlement- one of my buddies lost over $1M USD to his accountant over a 3 day weekend- he lost almost everything and had to live with us for many months while he got back on his feet. Its been years now, and the Bank still hasn't agreed to pay the account insurance money, and his lawsuit against them is stuck in the same courts as the 9/11 cases.
In one of the missing threads, I pointed out some of the scenarios in which this terrible incident could be a blessing in disguise for what is, by the accounts of numerous first hand reporters, a sick organization.
In almost all of the scenarios, I personally felt it was best that KS remain in at least creative control of the product, if not in complete control of his company- his creativity cannot be denied.
But the product is suffering from several problems, most of which would be fixed with a decent playtesting and revision policy. Face it, typos in your core book shouldn't remain after a decade in print.
That bespeaks a lack of respect for your fans.