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Spongetech Delivery Systems
A Scam in Plain Sight

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:

  1. Letter from Olde Monmouth, former Transfer Agent for SPNG documenting their reliance on forged document
  2. Letter from Joel Pensley, Esq., documenting the forgery of his signature on opinion letters, and documenting an attempt by the company to bribe him.
  3. 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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