There are incompetent regulatory
agencies; there are probably corrupt regulatory agencies, but when it
comes to brain death purporting to be a regulatory agency nothing
rivals the SEC.
Spongetech Delivery Systems (OTC-BB SPNG) is a typical crappy penny
stock, and a pump and dump scam obvious to anyone with more than two
functioning brain cells. The SEC usually gets around to nailing
scams like this five or six years after the fact, and punishing the
perps with wrist slap fines that the perps don't bother to pay, having
stashed their assets in friendly offshore venues.
But you would think our fearless regulators would move more quickly
when presented with clear and compelling evidence of a major financial
fraud in progress. You would think that, wouldn't you?
You would be wrong.
By our best estimates this scam has dumped over $100 million dollars
worth of unregistered shares on the naive investing public in the last
several months. That equates to the sale of unregistered shares,
normally seen as a no-no, numbering in the billions.
"Impossible," you say. "Surely our razor clawed watchdogs would pounce
on such an egregious scam if they had proof in front of them!"
Or not.
Since Mid-May Robert Khuzami, our new-penny bright head of the
Enforcement division of the SEC, has had in front of him in-your-face
letters from SPNG's prior transfer agent and from an attorney
documenting that SPNG had relied on forged documents to magically
transform unregistered shares into free-trading shares that could be
dumped on the market.
His non-response has allowed the slimy little shills running this scam
to continue their pump and dump with wild abandon.
Put on your watchdog hat for the nonce. Tell us what you would do on
receipt of the following documents:
Letter from Olde Monmouth, former
Transfer Agent for SPNG documenting their reliance on forged document
Letter from Joel Pensley, Esq.,
documenting the forgery of his signature on opinion letters, and
documenting an attempt by the company to bribe him.
New Transfer Agent report, documenting
1.99 billion issued shares, few if any of which have been properly
registered. This report was just prior to the company action to raise
the Authorized Shares to 2.5 billion, and we have credible evidence
that at least 200,000,000 shares were issued subsequent to that decision.
Now guess what Mssr. Khuzami has done.
The crickets are deafening.
UPDATE We are publishing an utterly phony letter fabricated to lift the
restriction on SPNG shares. The firm does not exist. Can
you spell felony? I knew you could. Oddly, the "firm" uses a Moscowitz
fax number as its contact.
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