To answer some of the questions asked of me in private this past weekend.
Yes, I am the David Patch that operates www.investigatethesec.com. I have reviewed the facts pertaining to SpongeTech and have posted by facts and analysis in the FOIA/Analysis section of the web site. My opinions are quite clear; I believe this to be a scam company as many others that used the Naked Short Sale Venue were as well.
Fact 1. Just because you are on the SHO list does not 100% verify that naked short selling is the cause. Insiders dumping recently issued shares will create the same look and settlement result as a NSS. It takes longer for paper certs to clear and thus they create fails. When a company, supposedly profitable company, has to dilute their market to the billions it is a red flag, more so when the dilution is directed to entities controlled by the company officers (RME).
Fact 2. The executives of SpongeTech have done everything in their power to dissuade you away from their activities. If they are clean it would be very easy to prove. They choose not to. Why not File Form 4’s and Form 13’s proving their true stock ownership? If they go NASDAQ they would have to and clearly, these guys have no problem reporting changes in share structures. I do not believe RME hasn’t sold any shares because to date, more than 80% of all shares have been issued to them. With the trading volume we see daily, the FTD’s would be much greater if it was NSS as long fails from long investors bailing would show up as a fail.
Fact 3. Not a single long investor has come up with a contact for the customers SpongeTech claims they sell to. Why not? Instead of shooting the messenger, do your homework and prove the messenger wrong. I could not find any contact information and, the story reported by the Post was based solely on their research into the contact information SpongeTech provided. Why didn’t SpongeTech give up contact information that could be verified?
USXP and CMKX were similar scams. The officers befriended the investors and created a cult like environment but a scam at that. Both the executives of CMKX and USXP have been arrested by Federal Authorities for perpetrating a scam and using NSS as their rally cry.
For 10 years I fought the issues of NSS. Today I continue to fight the issues by outing those who wrongly claim it is the cause for their stocks collapse when in fact it is not. Companies like SpongeTech make progress in NSS reforms harder because investors like you contact the SEC and claim NSS when it is not. NSS is real, just not real here.
Do your own diligence; find solid third party evidence that SpongeTech is real. Don’t just buy the party line from people I believe to be con men.
