DD Support Board and Research Team

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SEC today announces an offer of settlement with Curt Kramer over unregistered sales of Spongetech.

SECURITIES ACT OF 1933
Release No. 10239 / October 27, 2016

ADMINISTRATIVE PROCEEDING
File No. 3-17647

In the Matter of CURT KRAMER AND HOPE CAPITAL, INC.

https://www.sec.gov/litigation/admin/2016/33-10239.pdf

"From December 16, 2008 through May 26, 2009, Kramer and Hope Capital sold over 113.5 million shares of Spongetech stock in illegal, unregistered transactions and obtained profits of $525,603.

Respondents Curt Kramer and Hope Capital have undertaken to:

Forgo directly or indirectly, including but not limited to, through any of their affiliates or successors, acquiring any security from any affiliate of an issuer of securities, as the term “affiliate” is defined by Securities Act Rule 144(a)(1).

In view of the foregoing, the Commission deems it appropriate to impose the sanctions agreed to in the Respondents’ Offer.

Accordingly, it is hereby ORDERED that:

A. Pursuant to Section 8A of the Securities Act, Respondents Kramer and Hope Capital cease and desist from committing or causing any violations and any future violations of Sections 5(a) and 5(c) of the Securities Act.

B. Respondents Kramer and Hope Capital shall comply with the undertaking enumerated in Section III above.

C. Respondents Kramer and Hope Capital shall, pursuant to the installment plan set forth in paragraph E below, jointly and severally pay disgorgement of $525,603 and prejudgment interest of $54,144 to the Securities and Exchange Commission. The Commission will hold funds paid pursuant to this paragraph in an account at the United States Treasury pending a decision whether the Commission, in its discretion, will seek to distribute funds or, transfer them to the general fund of the United States Treasury, subject to Section 21F(g)(3). If timely payment is not
made, additional interest shall accrue pursuant to SEC Rule of Practice 600.

D. Respondent Kramer shall, within 120 days of the Order being issued, pay civil money penalties totaling $100,000 to the Securities and Exchange Commission. The Commission may distribute civil money penalties collected in this proceeding if, in its discretion, the Commission orders the establishment of a Fair Fund pursuant to 15 U.S.C. § 7246, Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended. The Commission will hold funds paid pursuant to this paragraph in an account at the United States Treasury pending a decision whether the Commission, in its discretion, will seek to distribute funds or, subject to Exchange Act Section 21F(g)(3), transfer them to the general fund of the United States Treasury. If timely payment is not made, additional interest shall accrue pursuant to 31 U.S.C. §3717.