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Dana Salzarulo...
He says his IR company is called JD Merlin and Associates. The website is jdmerlinandassociates.com, but it doesn't exist.
He's also listed as "webmaster" for what looks like a penny stock email spam house: http://www.wallstmailer.com/contact.htm
But if they were true what would people have to complain about/
Who cares that the SPNG Customers don't exist, Dow will verify they ship some materials to SPNG. But don't we already know that by product in store?
Who cares that the customer web sites were set up by a stock promoter in Brooklyn NY and the phone numbers Moscowitz provided for these companies linked to the site originator. We know that noble offered to have these guys come and speak at a conference.
Imagine, Madoff must be the real deal, he was credentialed thru NASDAQ and met with the SEC many times in helping create rules. I'll bet he even attended conferences.
because SPNG is a major fraud IMO that is putting many investors in harms way. i find it comical that people here claim that "the investors always lose" and yet when people come out in attempts at helping investors they are turned against.
tell me, where are the major customers of SPNG? I know where the customers of GE are, where are SPNG's customers. While you are at it, what is the trading patterns of SPNG insiders? I know what the trading patterns of Ge Insiders are but not that of SPNG.
What to talk more about what we don't know about SPNG? How about, why did they stay with Drakeford when there were clear problems with the auditor? why not D&T now but instead going to some some firm in tah with troubles with the PCOAB?
How about, why are all the IR firms leaving them?
If you are such a great journalist, why are you not working the beat. I suggest you let the pro's do their jobs and......
I am still looking for the questions you would ask these companies. Lets hear them Journalism 101.
do you think noble went and audited their financials for accuracy? Even the SEC doesn't do that until called upon.
really not sure where you get your DD really, As you have proven you go right to the source and still don't believe.
why haven't you gone to turtle wax, Dow, etc....You own this stock lets hear why these sales are real. You can't find the customers they claim to sell so lets hear what volume Dow is selling to them.
In the same manner you want to discredit the NY Post, I discredit you for providing no factual evidence to refute their articles. Where are the customers? Have you found them yet? Have you been able to explain why Moscowitz gave the post bogus info?
very common.
fourkids, you would do us all a great service if you could locate those companies that all this product is being sold to. could you do that for us?
Where is the 10K?
Sorry, institutional investors with less capital invested than most retail shareholders here is hardly an institutional ownership. LMAO.
Why contact corning they are a supplier of materials. They will not disclose that they ship materials and if they did there is no way to relate to sales. You go after sales.
how many penny stocks do you trade/follow. seems that is your forte.
June 12, wasn't that the day of the PR Pump?
I have read your posts and you question the manner in which the NY Post researched their stories and the manner in which they were reported. To all the accusations I claim you are dead wrong. they did all their proper due diligence and reported their due diligence in searching out the respective parties.
Forged stock certs came out of SpongeTech.
As to the rest of your requests, they are not relevant to this site and have resulted in many TOU's in responding. they will never be responded to so don't waste your time.
you really need to research better.
The NY Post contacted the company and asked for the contact information regarding the companies reported customers that accounted for more than 80% of the sales. These penny-anty web sites that accounted for negligible sales (if you are to trust the SPNG filings) are insignificant to the story. the NY post followed up with calls to the customers SPONGETECH provided and who SPONGETECH identified as their major customers. Those are the customers that did not pan out and customers who remarkably turned out to have phone numbers tagged back to Brooklyn NY and George Speranza. Phone numbers Moscowitz provided in an e-mail to the IR firm who then forwarded to NY post.
I know that this wholesaler wasn't doing well enough to qualify to be a seller of record in the last 10Q. that implies that they were a non-participant in the $50 Million 2009 earnings (supposedly).
I think they both were holding massive shares because they expected to have one last pump. SM knew nothing about the trading halt and was caught flat footed. They expected to launch the PR on the lawsuit which would appear to validate their company and then launch a second PR discussing a Takeover. that would have been the final pump to dump shares and get out.
Knowing that this was being planned Furth and Soapy most likely loaded up to make a killing and got held holding crap.
That's right, you have to buy 2000 or 3000 sets and have a delivery of 25 - 30 days. This is wholesale selling.
They can't be doing too well considering they haven't hit the 10K yet.
spongeater, Robinson was recently blasted by the PCOAB for failures in their controls process. That is not exactly high praise for an accounting firm.
As for future lawsuits on selling that cratered the stock. what will you do when you find it was Metter and Moscowitz?
badshaw, you misread the article.
The NY Post could not find a direct lead between the two (Speranza and SPNG) but what they did find interesting is that the phone numbers offered by the company to verify their customers routed to a location that was controlled by Speranza.
Spearnza runs a stock promoter site and was promoting SpongeTech. Suddenly he is creating fake websites for their customers and SPNG is offering up his phone information to verify their existence. That to me is a circumstantial tie between parties.
soapy spoke of the PR about the second lawsuit in the days before the PR came out. He discussed the intent of the lawsuit and what action he thought it would create. Nobody but a company insider could offer that type of detail.
What amazes me is that nobody is questioning the company's involvement in Soapy bubbles revelations.
Soapy provided in private messages and e-mails, details of company activities that were otherwise non-public. he then admitted to controlling the discussions on this board to maintain a pro-SpongeTech audience.
Do you really think he was working alone? How would he be obtaining factual company information without somebody from the company offering up such information. what does that say about those running this company?
if there are to be "paid bashers" why not "paid promoters" and who would be doing the payments? We have yet to prove the "paid basher" theory but we do know that there was a promoter here with close ties to M&M.
A company insider selling unregistered shares is not a naked short seller. they are selling shares long based on certs they issue to themselves but fail to register through proper channels. A naked short seller is deemed a short seller executing a trade into the market as a short sale but fail to locate and borrow shares for delivery.
finta, you are wrong. Even in the case of Milberg Weiss, those that became lead plaintiffs were in fact shareholders of record. Research a bit better. In this case you will learn who is lead plaintiff once the case is filed. if you then choose to call them a short seller you have every right to do so but the fact remains, they are a long shareholder.
The lawsuit has not been brought to class status. In Class action lawsuits, you will find that many law firms will file but a lead firm is identified once it reaches Class status.
As for timing, lawsuits are typically filed in this frequency period. In this case, suspicion over the companies actions have been a matter of concern for a long time. People have been talking to lawyers for a long time and the suspension event was a validation to proceed.
thanley, I don't get paid for anything. hits to my site; that is a laugher. If you look at my site it is 99.9% against the SEC and short sellers. This is a singular case going the other way. I got involved because people in my office got involved in this scam. Had you been as smart as they, you would have been out at $0.14 instead of holding this turd at a trade suspension.
I was sent the suspension notice the minute it was issued officially and distributed to the necessary regulators. That should tell you enough.
I find it comical that this stock is in a minimum of 2-weeks trading suspension and the banter is about 10k's etc...instead of any verification by longs, thru their own DD, of sales that SPNG claims to have been making.
As this example shows, it is easy to forge orders and fool an auditor not looking for forged PO's. It is much harder to fool the SEC who is looking for falsified orders.
Tuesday, 2 December 2008
Scandinavian CEO elopes after US$100 million fraud in IT company
Case ties in with former Gizmondo CEO and convicted criminal Carl Freer & Mikael P. Ljungman and creates a big black eye to Ernst & Young who 1 week before applauded the CEOs company as best of the best.
Danish IT Company “IT Factory” has been hailed as the “Success of Successes” companies in the Danish IT sector. Lead by charismatic CEO of Norwegian descent, Stein Bagger, the company had an estimated net worth of US$ 1.5 billion – until this Friday. Now it is bankrupt.
IT Factory CEO elopes from Dubai On a pleasure trip to Dubai in the United Arab Emirates with his wife, IT Factory CEO Stein Bagger suddenly disappeared this Thursday and became impossible to reach. His wife since 2003 started a search together with the Danish Consulate in the UAE, only to discover that the husband left from Abu Dhabi airport at 03.00 am the night to Friday.
Then things started to unfold very quickly. First it turns out that the missing CEO Stein Bagger rented a little office, close to the main office of IT Factory. From there it seems he had been running his “fraudulent” part of the business, issuing purchase orders with forged signatures to IT Factory, managed an advanced leasing scam, forging the Chairman of the Boards signatures and much more.
This example is with respect to a former fraud company that Carl Freer (getFugu) was engaged. Funny that a principle in getFugu was engaged in a fraud that SPNG is accused considering the close relationship these companies once had.
Neither Pensley nor the SEC responded to repeated requests for comment, but Pensley's business partner, Maureen Abato, confirmed the letter's authenticity.
"Why would they want to run that risk? I don't get it," said Abato, who is based in Brooklyn and whose name and address is on the letterhead with Pensley's. "It raises questions about their whole operation."
Abato said that after learning about the documents, their firm, Pensley & Abato, sent a cease-and desist letter to SpongeTech. She said SpongeTech CFO Steve Moskowitz claimed the company had
authority to use the law firm's name in the legal documents, but agreed to stop.
http://investigatethesec.com/drupal-5.5/files/NY%20Post%20Coverage.pdf
Take it from a pro...fooling accountants is easy.
http://siliconinvestor.advfn.com/readmsg.aspx?msgid=26007775
no_BS, since you bring up your pedigree in nearly all your posts, why not talk about the actual company(s) you work for.
As for the sale of unregistered shares, happens all the time and is most prevalent in penny stocks. Such sales could create settlement failures (SHO Listing). So would you like to opine on why it can't be a factor here?
http://www.reuters.com/article/pressRelease/idUS180634+13-Jan-2009+BW20090113
http://lawprofessors.typepad.com/securities/2009/02/sec-charges-thr.html
http://www.encyclopedia.com/doc/1P3-1549839621.html
I see this one going the distance. Moscowitz and Metter could be forced (most likely will be) to be relieved of their duties at all the other public companies they claim to operate as principles in.
lmao.
and if i get thirsty will there be Kool-Aid served?
I was wondering more about how I find that grapevine.
don't confuse them with such topics. These investors can see the supplies on the shelf at the local CVS (which SPNG claims accounts for a very small percentage of sales) so why worry about the big customers you can't find?
I suggest you look at sites that generate internet sales and you will find it pretty poor in terms of performance. Heck, my site is at 3.5 Million and I let it go pretty stagnant. I don't even sell anything.
Bottom line, they are not generating too many sales based on their hit rate.
Did you put in the same post "We have heard enough theory" and then make claims that short sellers were bring on this litigation? LMAO
To join a Class action of this nature you need to be a shareholder of record. Short sellers are not shareholders of record. Only longs can bring on this class action.
I agree. There is no need to modify the A/S so frequently unless you have to to account for changes in the O/S.
I would look at it just the opposite. The 150 Million shares traded represents the volume of investors willing to purchase the stock. One can only sell where one is willing to purchase. If M&M wanted to make less on their sales, I guarantee they could have wiped out the bids and sold a lot more.
FWIW, outside of the investors here, SpongeTech is still not a household name and based on trade volume, it was relatively illiquid until this past summer. look at the trade volume last February when there was 722 Million shares and compare it to late August.
The fact that they are sold out may tell you something. Check back in a week or two and see if they have any. Being sold out means that they are not producing quantity to meet sales or that the merchants are unloading what they have and are not re-ordering. Neither option is good.
The stock is trading under a presumption of 722 Million shares and a business model creating $50 Million in revenues. if the 722 million is 2.7 Billion the PPS is overvalued. If the $50 Million is $5 Million the PPS is overvalued. If the O/S is 2.7 Billion and the Revenue is $5 Million it is severely overvalued.
This is why the SEC has halted trading. because you can't accurately trade the stock with the suspicions in the company, revenues, and O/S.
SpongeTech USA can't be generating too many sales with a web rating like this.
http://www.alexa.com/siteinfo/spongetechusa.com
Musicalchairs, understanding that dilution took place is not rocket science. this lack of fact is exactly how far did they go although it appears that they went pretty close to 3 Billion shares.
If you don't think you were diluted, look carefully at the past years filings in which they issued shares to RME EVERY quarter and then look at the most recent lawsuit in which SPNG admits that they went to RME for their investment in SPNG this September. what them makes you believe that nothing happened between February and September?
Your where are the facts comments are getting old because there are facts available if you look for them instead of denying they exist.
I think he was an insider which is why he was pitching the company line. It is also why he spoke of a TO PR that was going to take place last week. I believe it did not because if this is a P&D there was no value anymore in such a release.