Spongetech Delivery Systems, Inc. (fka SPNGQ)

[cowtown jay]

re: Doug Furth

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23716 / January 10, 2017

Securities and Exchange Commission v. Douglas Furth, Civil Action No. 14 Civ.7254 (LDW) (E.D.N.Y.)

SEC Obtains Final Judgment Against Douglas Furth

On December 22, 2016, the Honorable Leonard D. Wexler, U.S. District Court Judge for the Eastern District of New York, entered a final judgment against defendant Douglas Furth. The final judgment permanently enjoins Furth from future violations of Sections 17(a) of the Securities Act of 1933 and Sections 9(a)(1) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, orders Furth to pay disgorgement of $56,000, which is deemed satisfied by the forfeiture order entered against him in a parallel criminal action, and imposes a penny stock bar on Furth.

The SEC's complaint, filed on December 12, 2014, alleged that, from at least September to December 2010, Furth engaged in a fraudulent broker bribery scheme designed to manipulate the market for the common stock of SearchPath HCS, Inc. through matched trades. The complaint further alleged that Furth engaged in an undisclosed kickback arrangement with an individual who claimed to represent a group of registered representatives with trading discretion over the accounts of wealthy customers.

The SEC acknowledges the assistance of the U.S. Attorney's Office for the Eastern District of New York and the Federal Bureau of Investigation in this matter.

For further information, please see Litigation Release No. 23157 (December 15, 2014).



http://www.sec.gov/litigation/litreleases/2017/lr23716.htm