Spongetech Delivery Systems, Inc. (fka SPNGQ)

[TheFinalCD]

SpongeTech Insider Pleads Guilty Just 2 Years After I Exposed Them, Watch This Funny New Video
Posted by Timothy Sykes on Fri 20th of May, 2011 05:12:08 PM Watch these 20 free video lessons and Apply for my Trading Challenge

http://www.timothysykes.com/2011/05/spongetech-insider-pleads-guilty-just-2-years-after-i-exposed-them-watch-this-funny-new-video/


ShareShare Now the main penny stock pumps are Lithium Exploration Group Inc and Jammin Java Corp. (I’m short), but a few years back, Spongetech Delivery Systems, Inc. (SPNG) was all the rage and as you can see I wrote a tonnnnn of articles about them, so much so that they claimed they were gonna sue me…but the never did given that their executives were arrested just a week later for fraud.

Well, it’s taken a while but just in the last week, the shit has finally hit the fan as a SpongeTech insider just admitted to lying under oath:

A Brooklyn man who helped orchestrate the alleged fraud at Spongetech Delivery Systems has pleaded guilty to one charge of lying to federal investigators.

The defendant, George Speranza, created websites that helped make Spongetech seem like a legitimate enterprise with customers overseas. But the feds say Spongetech management fabricated 99% of sales and its customers were bogus.

Mr. Speranza, who is 44, faces up to five years in prison, according to an announcement Friday by the federal prosecutor’s office. He admitted to lying under oath to officials from the Securities and Exchange Commission, who later named him in a civil suit.

Mr. Speranza was one of the seven people facing criminal charges in the Spongetech case, including former Chief Executive Michael Metter and former Chief Operating Officer Steven Moskowitz. Those two men have pleaded not guilty to charges including perjury, conspiracy and obstructing justice.

Spongetech is one the more spectacular frauds to emerge in New York in many years. The feds say its top executives pocketed millions by selling shares to unsuspecting investors at inflated prices. Shortly after Messrs. Metter and Moskowitz were arrested last year, the company, once a prominent advertiser at New York Mets and Knicks games, filed for bankruptcy.

Here’s a hilarious SpongeTech video someone sent me…the longs really hated me: