SECURITIES AND EXCHANGE COMMISSION
17 CFR Parts 200, 230, and 239
Release No. 33-9414; File No. S7-21-11
RIN 3235-AK97
"“Bad actor” disqualification requirements, sometimes called “bad boy” provisions, disqualify securities offerings from reliance on exemptions if the issuer or other relevant persons (such as underwriters, placement agents and the directors, officers and significant shareholders of the issuer) have been convicted of, or are subject to court or administrative sanctions for, securities fraud or other violations of specified laws. Rule 506 in its current form does not impose any bad actor disqualification requirements."
We've had a significant number of "Bad Actor" participants in our market who could have caused FINRA to disallow the reverse split. None of these significant shareholders have been charged in relation to the manipulation of SpongeTech's market.
But we did change to a 34 Act reporting company shortly after the time period involved here. This is just something to consider further, in terms of what did government officials know, when did they know it, and what did they do about it?