Spongetech Delivery Systems, Inc. (fka SPNGQ)

[scion]

3 Courts in the Second Circuit also do not hesitate to award joint and several disgorgement awards based on allegations in an SEC complaint following entry of consent judgments such as the Metter Judgment
. See SEC v. Universal Express, Inc., 438 Fed.Appx. 23, 26 (2d Cir. 2011) (upholding joint and several disgorgement award against participant in pump and dump scheme over defendant’s objection that he did not control distribution of funds);
SEC v. Juno Mother Earth Asset Management, LLC, No. 11 Civ. 01778, 2014 WL 1325912, *3 (S.D.N.Y Mar. 31, 2014) (finding defendants jointly and severally liable
for misappropriating funds from hedge fund);
Simone, 2013 WL 4495664, at *2 (“With respect to the question of joint and several liability, I have little difficulty concluding that the complaint alleges collusive action sufficient to impose joint and several liability on the defendants.”)
As outlined below, however, the SEC is not relying solely on allegations in the Complaint, but on evidence demonstrating Metter’s participation in the entire scheme

Extract page 3-
Doc 350 PDF file
https://www.scribd.com/doc/281115285/SEC-v-Spongetech-et-al-Doc-350-filed-27-Aug-15-pdf