Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
There is no denying that stores carry this product. They carry sham wow as well.
What is also real is that many of the initial US customers no longer carry the product including CVS, HSC, QVC, etc....Customers that made an initial purchase in Feb/Mar 2009.
But what you must address is how the 2009 sales equaled $50 Million when the Po's we see for US customers equals $1 Million and the other customers can't be found.
so can we tell where the "rumors" originated? I am curious as to whether they were from the same who liked to claim "the 10K is filed"
In the OTCBB markets you will find that there is no requirement to represent your orders. The market maker can be a buyer without ever being on the best offer.
you do know that Market makers try to end the day flat correct?
Can you explain how you know they "added shares"? They also trade for clients.
Good point underdog, now how does fourkids verify that MM's and stock promoters were subpoenaed? How does she know it was relative to SPNG?
Just so you don't think that there is not interest all around SPNG...
http://investigatethesec.com/drupal-5.5/files/SEC_GFGU.pdf
What is interesting is that Millenium is on that list of shareholders issued shares. Another sign that teh list is accurate.
After 10 years of pounding on their doorstep; both literally and figuratively you get that way. I have learned a great deal regarding the operations of the SEC and how they handle investigations such as the one that SPNG is involved. I also know that calling their investor support line is useless as they give nothing but boilerplate responses.
FWIW, I met with the OIG last year to discuss the SEC's handling of NSS and at the short sale roundtable earlier this month I spoke to Chairman Schapiro and offered up my concerns about transparency of information regarding Fails to Deliver and used SPNG as the example. It was with regards to how fails could help con men divert the truth about Fails to execute their scam. Schapiro is on my e-Mails and reads them. She even thanked me for sending them (believe it or not).
It is very simple to understand.
The rules are not black and white. The investor relations person you spoke to at the SEC can only tell you what he knows. Each case that comes before the SEC has their own special circumstance that makes it impossible to give a black or white answer.
For instance, if SPNG were to file the 10K they would be compliant with the reg's. But filing the 10K and the SEC allowing it to stand as accurate are two different scenario's. The SEC can not prevent SPNG from filing but the SEC can stop trading if they believe that what is enclosed within it is error laden.
The SEC has their own investigation going that I assure you is going in many directions that exceed that of what Robinson is doing.
Do you have a link to this insightful information of it it all conjecture?
FWIW, SpongeTech claimed in a news story that they were unaware of Robinson's problems when they were hired and quickly addressed the concerns by hiring in D&T. If those comments by executives were true, your theory is thrown out the door.
Drew, the problem with that filing, it was not substantiated by anything. This was a February 2009 filing and that claim about share reduction (with no details behind it) was added to suck people in.
How did they reduce 500 Million shares in 6 weeks when they had $34,000 in the account? Even at $0.01 a share that is $5 Million their books did not offer up. Most people don't look at such a statement and ask, how did they pay for these shares which is why a con like this works.
this is not to point fingers at you, I am just illustrating examples of what you need to look for when you read a filing. Companies will stretch the truth until they get caught. Many never get caught. SPNG simply seems to have stretched it too far and the signals were out there.
DREW, the problem here was that longs only looked where they wanted to look.
I looked into SPNG for the first time in the first week in September. Never heard about it before then. It took me all of 2-days of light review to know it was a scam.
The signs were obvious and it started with RME and the ties between RME and SpongeTech. Every quarter the numbers in the filings did not make sense. Cash positive and yet borrowing millions at the same time and at heavily discounted share prices. the fact that management and RME were then not filing their positions after they dilute - to themselves - was a flag. 2 Billion shares is a red flag.
If you are buying stock in a company whose management plays with the share structure as frequently as M&M do run, don't look back and wonder what if, just run. Good companies, cash positive companies with future exponential growth, don't dilute the way these guys have in the timeframe they have.
Management is going to jail.
As for investors, wake up. This is the real world. Management has been caught lying to investors for decades and there is nothing that can be done about it. regulators step in after teh fact because there is no other way for them to step into a mess like this. Until the lies are initiated there is nothing a regulator can do. Con men also understand that there will always be a delay between the lie and any enforcement action because, when it first comes out who is to disbelieve it?
The stock market is not a place that the gullible should invest without professional services to help them. The penny stock market (fraud central) makes such even worse. Reading shareholder comments about SPNG, many gullible novices played this stock and hopefully learned a lesson from it. If they don't like getting lied to, take it up with the courts.
I disagree. Records are supposed to be maintained for years. A forensic Audit could look through all this information quite easily so long as the company had any kind or organization at all. As a $50 Million company and in teh electronic age, you would hope that SPNG had at least a decent ERP system that could be called upon to pull up and audit documents involving material purchases, PO's, shipments, etc...
Since prior to 2009 SPNG was claiming a mere $1 Million in sales there really can't be that much to confirm correct. If you believe any of the promtors out there, and we can start with Soapy Bubbles, this 10K was due any day now for a few weeks.
It is not their card. If you look you are re-routed to a third party. I contacted that third party and it is their card that will be honored. I asked what kind of an arrangement Health Matrix had with them, payments for routing etc... and they said none. Health Matrix does not get a penny by routing people to sign up for that card.
So, what then is their product that generates revenue?
When their site first went up they listed a grouping of doctors in the "About Us" section. I called several and they told me they are not associated with Health matrix and that they were called and asked if they would be willing to answer questions every now and then. They were uncompensated. Immediately thereafter, that section was removed.
Here is what I found about Health matrix.
http://investigatethesec.com/drupal-5.5/files/Who%20is%20Health%20Matrix.pdf
The initial address was bogus. I called around and Suite 202 does not even exist.
The Company CEO has a full time job as a doctor and has some debt problems associated with a hedge fund he operated in Texas. There was a lien on he, his partner, and two funds in 2007.
Health Matrix is a sham company. All there links are pass thru's to other companies. They are not funded for those pass throughs.
Try this out though.
http://investigatethesec.com/drupal-5.5/files/SEC_GFGU.pdf
Maybe the individuals that piped in yesterday on those financials would like to do so again today.
The only restatement coming in the form of a matter of "international taxes". The fiscal '09 bottom line materially restated to the upside. The numbers having undergone a review by Deloitte. The referenced "taxes" situation, as we've heard, being a matter of great import given the extremely rapid growth/expansion pace of the issuing company. Not a matter to be ignored.
This is a blatant lie. D&T has admitted that they are not contracted to oversee this and teh company stated as much in their last PR.
Thank You for proving my point.
How do you think a seasonal product is going to make the revenues they claim? This is a novelty item and one where a 3-pack of car sponges will last a year or more to any buyer.
Do you really think they exploded to $50 Million in a fractional year? The 2009 revenues filings do not illustrate a seasonal cycvle. Which is it?
Because so much has been discussed regarding Naked Short Selling, I though you may wish to read this.
http://investigatethesec.com/drupal-5.5/?q=node/910
Could some of the resident experts like No_BS or Alfie come on and explain to us all what is going on? Both have spoken positively about recent events and happenings, and it would be interesting to hear what they have to say about the present situation.
The problem you face, a majority of SPNG's sales were fake. Their major clients don't exist and the $50 million is bogus. The fact that they announced Record first quarter 2010 bookings (not sales/revenues) and yet several of their customers no longer carry the product should concern you.
CVS no longer has their product on-line and while you may see it in the store, that is simply getting rid of inventory. Same for all but Walgreens from those PO's published.
If SPNG can't hold new customers (by majority), and we can't locate the big guys, that is a red flag.
Elea, This is not you correct? you pulled this from Yahoo.
make sure he sends you a copy of the message header
interesting (from yahoo). i really like #4 which can not be debated by anybody - even the pumpers.
Because somebody in another thread actually asked if another poster could support the allegation that M&M are liars, I decided a good comprehensive list would be handy to have. Please feel free to add to this as you think of things. I tried to focus on actual lies, not just underhanded sleaziness.
1. On July 20, 2009, Spongetech issued a press release stating that “that its Chief Executive Officer, Chief Operating Officer and Board Members have been purchasing SpongeTech®’s common shares in the open market. Together the team has purchased approximately 18.2 million (eighteen million two hundred thousand) shares of the 722.86 millions shares issued and outstanding.” As of October 14, 2009, none of those officers has submitted documentation of any purchases.
2.On June 9, 2009, Spongetech issued a press release stating that “The exact results for both Fiscal Year 2009 and the 4th Quarter shall be released in its …on Form 10-K at the end of August 2009.” It’s October, and we haven’t seen an annual or quarterly report.
3. In the third quarter 10Q, Spongetech stated that they had repurchased “55,824,336 shares of common stock.” In a July 22 Press Release, the company claimed that “[r]epurchased stock would be returned to SpongeTech®’s Treasury; reducing the number of outstanding shares of the Company stock, thereby decreasing the Company’s overall market cap and reducing the trading float.” In the same 10Q, the company reported 365,473,214 shares outstanding. Despite Steven Moscowitz’s claim in the July 22 Press Release to “continue reducing our share structure,” the O/S was reported in the April 10Q as 722M (a nearly 100% increase).
4. In a July 29, 2009 Press Release Spongetech stated that their authorized shares had been adjusted to 2B. In reality, as reflected in an amendment to their certificate of incorporation not made public until September, the company’s authorized share count had been raised to 2.5B on June 24.
5. In a September 11, 2009 Press Release, Spongetech described their post-split A/S decrease as “"another significant reduction in SpongeTech’s authorized share structure.” The proposed reduction to 300M A/S, on the heels of a 100 for 1 reverse stock split, would, in reality, equate to a substantial increase in the dilutive authority of the company.
What else have we got?
I am interested in how many of those who thought they had "solid inside information" traded on that news from Soapy and are now stuck with huge losses. It actually serves them right for trading on illegal information (or so they thought).
indicted by the DOJ not the SEC. These guys are looking at jail time.
This stock will be the next in line for a trading halt. SpongeTech was first and this company will be next. The regulators are already on this scam.
There is no way SPNG requested this investigation. This was a cockamamie theory spawned by a fool.
Well, Since the SEC notified SPNG on the 18th of the investigation, you have to wonder whether they started shorting it from then on. For a September 30 settlement date the last trade date for the short sales is Friday September 25th.
The 8K they filed about the investigation was accepted by the SEC at 2009-09-25 17:26:24 - AFTER HOURS as was all reporting on that investigation. I wonder if there was some insider trading going on.
September 15 settlement date showed a short interest of 239,511 shares.
Sorry No_BS, while I can not attest to what will be forthcoming I can emphatically attest to the fact that the numbers you are referring to are not numbers presented as a result of the re-audit. You have 100% misinterpreted the Yahoo report.
Those are not restated financials. The Yahoo Financials claim they come from Edgar and as of yet, there are no restated filings in Edgar.
Secret company link; Stein Bagger to Carl Freer
UPDATED New Track. Twelve secret company connects the Danish swindler Stein Bagger and his Swedish partner Mikael Ljungman with Carl Freers latest U.S. company. In addition, investigation of Carl Freers payment of 2.4 million U.S. dollars to creditors in Gizmondo-bankruptcy.
Danish IT Factory's ex-CEO Stein Bagger got 7 years in prison for billions Vindeln and prosecution decisions await Mikael Ljungman sitting arrested in Copenhagen. But the investigator was in bankruptcy last summer declared the chances of success in the hunt for the missing 270 million.
Bagger was on the run in the U.S. - from New York, where he borrowed Mikael Ljungberg's Audi A8 and credit cards, from 29 November to a police station in Los Angeles December 6 last year - when he gave up with the now somewhat classic words:
- I am Stein Bagger. I'm a fugitive from Europe and I'm here to turn myself into.
The Danish investigators have suspected that the motive for Stein Baggers flight from Dubai to New York in December 2008 could be about to secure millions.
- We do not know what Stein Bagger made in the USA. Maybe he dug into a lot of money in the Nevada desert and swept his tracks behind him, said prosecutor Per Justesen before the trial of Bagger started.
But there has been no trace of any caliber would have Leif GW Persson to breathe a bit cooler.
But now investigators have reached what could be a breakthrough.
Bankruptcy investigators have succeeded in overcoming internal shareholder agreements and documents showing the relationship between Carl's Freers Media Power Inc and Mikael Ljungberg's eCommerce LLC. Internal communication between Carl Freer and Mikael Ljungman has also been leaked.
Mikael Ljungman became a partner in Media Power in Carl Freer bought Heather's corporate eCommerce LLC, but the design looked like has never been revealed.
Bankruptcy examiner Boris Frederiksen charts now twelve previously unknown company that Mikael Ljungman proved to be behind. It reveals the Danish newspaper Børsen.
- We have come over materials related to the companies that are controlled by Mikael Ljungman and IT Factory in one way or another have had business with.And it seems to be the issue that the companies had business with companies that have access to Carl Freer, and now we are looking at how obvious it is linked, "says Boris Frederiksen to newspaper Børsen.
One theory is that much of the shift from IT Factory pumped into the twelve secret companies.
Documents, which both Danish bankruptcy investigator and U.S. Securities and Exchange received, shows that the twelve unknown companies have large equity stakes in U.S. Getfugu. That is to say the company Swede Carl Freer took over in which he moved his operations from his previous company Media Power Inc.
The companies are Lynx Holdings (Cayman) Ltd., Mandalay Investment Ltd., Stone Harbor, Ltd., GR International Limited GmbH, Lynx Overseas Holdings Limited, Spetchlet Global Assets Limited, CJF Overseas Holdings Limited, Lombard LCM Capital Management GmbH, Gate International Investment Ltd, LF Investments Ltd., Ganesh Holdings Ltd and Northern Star International Limited with address in Switzerland.
Mikael Ljungman must have registered companies three months before IT Factory collapsed.
How the Mutual Ownership Structure between Ljungman and Freer looks of the twelve companies under investigation.
Company controlled mainly by Carl Freer, it means that Freer takes a lot more in Getfugu than what the company six months ago reported to the SEC. Then said that Carl Freer took 22 percent of the company. These new circumstances can bring the SEC's interest.
Bankruptcy examiner Boris Frederiksen also suspect that the 2.4 million U.S. dollars of the money gone from IT Factory's lease carousel to Heather's eCommerce LLC and passed on to Carl Freers Media Power Inc, used to stop a threatening atmosphere of the (unnamed) claimants who suffered from Carl Freers Gizmonodäventyr.
The newspaper Børsen writes to Media Power entered into an agreement with the bankruptcy investigators in Gizmondo Europe Ltd., bankruptcy May 20, 2008 to ensure one or more Gizmondo-shareholder obligations in bankruptcy. In the case of Tiger Telematics Inc, which was the parent or Carl Freer in person is not apparent. The Media Power's revised annual report for 2007 shows that company until November 3, 2008 paid a total of 2.4 million U.S. dollars in accordance with these agreements.
Boris Frederiksen will explore possibilities to seek recovery of payments from the Media Power. He is expected to travel to London to take up the matter with Gizmondo bankruptcy investigators.
Getfugu is quoted on the OTC Bulletin Board. Getfugu pumped out press releases in the spring in good Gizmondoanda. The course went up to a peak of $ 3.20.
Today traded price down to the last paid $ 0.46. A race in 86 percent.
So was the presentation to IT Factory-million laundered through Getfugu with a share price that would be pumped up, so perhaps both scammers and the creditors will be empty-handed in the end, if the course continues down to the ironic zero.
Mikael Ljungberg's Hong Kong Company Xiop Asia Trading Ltd which Örnsköldsviksbon Janne Thelin is half owner, who Realtid.se written about before, do not figure in this part of the investigation.
Source: Børsen, Jyllands-Posten, Business.dk and BT.dk.
look at the people the executives of this company hang with or have hung with.
http://investigatethesec.com/drupal-5.5/files/Secret%20company%20link;%20GFGU%20Freer.pdf
http://investigatethesec.com/drupal-5.5/files/Metter_Orr.pdf
Not exactly top of the line personalities.
Mingy, just so I got this right. $20.00 and 722 Million is $14 Billion plus market cap. then again, $20.00 at 3 Billion O/S makes this Sponge selling TV fad a $60 Billion market cap. LOL
Pure fiction.
In August the Company is working with the SEC and yet in September the SEC is investigating them.
Stox...find the customers instead of the party line.
so at $4.00/share and 722 Million shares SPNG is promoting a $2.8 Billion market cap. LMAO
except for the fact that Spongetech is suing the owners of this site. LMAO