Spongetech Delivery Systems, Inc. (fka SPNGQ)

[janice shell]

When you discuss this case with your students, does that include the subject of selling unregistered shares? What are your students' views about the lack of US-based prosecutions for this violation?

Selling unregistered stock is not illegal. If a company isn't an SEC filer, all of its stock is unregistered. But if a company sells unregistered stock and does not subsequently register it, or make certain that a legitimate exemption from registration is available, it cannot be RESOLD on the open market.