So, did Ole Wade ever get that landmine detector GI-proofed and ruggedized?

I assume ELF has flown by now and can detect all kinds of explosives at a kilometer plus range. Drugs too, I'm certain. Maybe even oil fields (not that oil fields have a whole lot of value currently - with the freefall of petroleum prices with no end in sight).

I'll bet all those lucky private placement investors really made bank on the 17, 18, 19, 20 plus inventions of Ole Wade. It's been 17 years since the ELF demo on the Capitol lawn. That ELF has probably been reduced to the size of a Motorola RAZR phone by now.

They've got to be selling like hotcakes by now. CDEX must be rolling in the dough by now.

As ex-CEO Uncle_Marlarkey used to write "this investment has the potential to change your life".

Truer words have never been written.

Maybe Mosky was picking up some industry tips from the Swiss hookers, so he would be better prepared for the service work he'll be doing after he surrenders to the Bureau of Prisons (or is involuntarily delivered by the US Marshal).

What is that they say about putting lipstick on a pig?

[insert Ned Beatty "Deliverance" reference here]

Mmmmm... hmmmmm.... we have movement. Beaucoup movement.

Have a gameplan. Watch the $#*((&$&#*$@y^!! volume!!!!

Set the tripwires. Watch for flares. They're gonna be probing the bid/ask all along the line.

:)

Less than $167 of SPNGQ stock traded today. Institutions are piling in, as the 10-K is almost finished being Edgarized by the CIA.

In other news, DP nominated STEVEN YEHUDA MOSKOWITZ for the Whistleblower of the Year award for using a phony shell corporation, Spongetech, as an entrapment device to prove the conspiracy between the mysterious NSS force, the SEC, the FBI, the DOJ, and Georgians (aka "The Grays"). Separately, he emailed the Royal Swedish Academy of Sciences nominating STEVEN YEHUDA MOSKOWITZ for a No-Bell Prize in Non-Rational Logic for his work on a Grand Unified NSS Conspiracy Theory and MOASS theory in conjunction with "Dr." Steven Hess.

On advice from his criminal counsel, Moskowitz had no comment on today's news, but sources indicated he would welcome a chance to travel to Sweden.

Posted by: dpilon
Date: Thursday, October 01, 2009 10:15:38 AM

We will be at the SUPERBOWL!


Non, eh?

Any more reliable news from soon-to-be-incarcerated-for-life STEVEN YEHUDA MOSKOWITZ?

When SPNGQ hits a negative PPS, buy it all! I'm putting my limit order bid in to buy 3 billion at -$0.0001

On a more serious note, I agree w/hasher - Pike is not an innocent buyer. His non-DIP informal "loan" was most likely a last ditch effort to get a seat on the creditor committee and to find a way to engineer a "friendly" BK trustee who would consent to a quicky reorg financed by Pike to avoid exactly what has happened - forensic accountants coming in and subpoenas going outt~.

It din't work outt~ as he hoped, and I suspect we will eventually learn he was involved in money laundering and/or taking personal kickbacks for buying stock into his funds. It may have worked like this:

"Hey, Dan, you run those hedge funds, which are a great source of cash. If you buy $10,000,000 worth of shares (either from the company or to support the PPS while Mett and I dump our nominee-held shares into the market you're supporting), Mett and I will give you $1,000,000 cash under the table. Sure, your hedge fund shareholders will suffer a bit of a loss, butt look at the tax-free cash we're handing you (personally) under the table."

It's similar to Richard Strong (of former Strong Funds) and other mutual fund managers who were front-running and buying shares of a stock for their personal accounts before they bought the same stock for their funds at higher prices, then dumped their personal shares while their funds were buying them up.

Except in this case model, there is no personal account trading records (which is what caught Strong and his buddies) - just under-the-table cash kickbacks to the fund manager for supporting the market for the insiders to dump into via nominee accounts.

My bet is that Pike is as dirty as a 3-year-old boy digging in the garden and playing "dumptrucks and bulldozers" after a rainstorm.

If my model turns outt~ to be correct, it is totally consistent with Pike stating to the trustee that his funds "lost" $15 million. Because perhaps his hedge fund accounts did. That doesn't necessarily mean HE lost anything.

There is no SEC form for reporting under-the-table cash payments or having insiders set up a nominee cash account for you in Lichtenstein, Luxembourg, Switzerland, or Israel.

BTW, instead of cash, M&M could have set up those Lichtenstein accounts and assigned SPNG treasury stock to them and one or more of those accounts could be for Pike's personal benefit. He could have used the hedge fund accounts to support the market price while he and the Mutts were dumping the shares from the Lichtenstein accounts.

There are many ways that would explain his actions other than a bona fide hedge fund manager making a huge mistake despite doing extensive DD that any reasonably intelligent investor could have spotted as a total scam from the get-go.

Joe Arpaio is sheriff of Maricopa county (Phoenix). Tucson is in Pima county.

Where CDEx is located anymore is anyone's guess. I wouldn't be surprised if the sheriff showed up at the Wherehouse only to find it empty and everything moved out-of-state the day or two beforehand. Can't take too long to load all those dust-covered PillScammers(TM) into a UPS truck or U-Haul/Ryder.

I get the feeling that Stricky is working a deal to implant the remnants of CDEx into the Rockville/Dulles tech corridor and consolidate it with one or more other tech story companies (privately owned). I bleeve Stricky is planning to move to that area, and he seems like the guy who has lots of $$$$ contacts there. There are all kinds of games that canbe played - filing a BK and using the Creditors Committee (with the noteholders in both the majority and the lead creditor (Gemini - largest note) position), then push through and approve a reorg with one or more Rockville-area private TechStoryCos and stiff the existing creditor claims (who cares if Malc, Gemini, and the other noteholders are the ones that fund the MergedCo - their CDEx claims are lost butt they own MergedCo and the remaining CDEx creditors get zippo (or negligible shares in MergedCo, which can then be diluted away) - a la the GM bankruptcy where even the senior and the SECURED creditors got stiffed with a handful of common shares and no control.

UnKKKle_Malarkey is clever and has good legal contax who can noodle up lots of solutions for him to use with Gemini and Dials to walk this tar baby away from other creditors and cancel out the common shares also.

There are many, many ways the game can be played by Malarkey for the win.

Ouch! Poor Mosky - here come the forensic accountants and money tracers:

"i) perform a forensic examination of the Debtor’s books and records; (ii) review possible fraudulent conveyances and/or preferential actions; (iii) prepare all estate tax returns, forms, and reports required by the various taxing authorities; (iv) review claims filed by creditors;


Yes, Steven, this *is* going to hurt!

Won't be long before the SPNG BK trustee attempts to recover the funds transferred through VAEV, then when VAEV can't pay, Silverman files an involuntary BK petition against VAEV and they get a BK trustee for VAEV and get the forensic accountants and asset tracers in there.

"as well as litigation support services, including expert witness testimony, in Federal District Courts, Bankruptcy Courts, State Courts, as well as Tax Courts"

Yachnowitz, are you sweating yet? Is that thermostat broken at VAEV or did the AC compressor crap out? It's getting hotter.

"Where did you come up with unpaid payroll taxes? They are current Post-petition."

Christy, perhaps I'm reading Attachment 6 incorrectly, but it seems to say that Dicon's payroll taxes were not paid for the payroll dates 6/25, 7/2, 7/9. and 7/16 - FICA and state and Federal withholding taxes were not paid on those dates and are listed as "Owed and Due".

All those dates are POST-PETITION. The Dicon BK petition was filed June 18th, the BK judge was assigned June 18th, and the trustee appointed June 29th.

Attachment 6 (note there are two pages) shows $29,078.07 UNPAID and OWED AND DUE for POST-PETITION Social Security, Medicare, state and Federal tax withholding. Anyway, that's the way I read it. Maybe you can correct me if I am wrong and explain why.

Interesting - Dicon has an AmLaw100 BigLaw firm (Alston & Bird) backing up Bukovic in representing the BK trustee for Dicon. No way in h*ll are they going to let the Dicon BK in GA get consolidated into the SPNG BK in NY.

Dicon is going to fight to go its own way and cut the cord to SPNG.

"actually there only getting a maximum sentence of at most 5 years for there roles in SPNGQ, pretty sad I agree but thats what I read."

Bwahhahahahaahaha! The CONspiracy to launder money count ALONE is 10 years! They each have 6 or 7 ADDITIONAL counts (SO FAR!!) - PERJURY, OBSTRUCTION OF JUSTICE, CONSPIRACY TO COMMIT SECURITIES FRAUD, etc. EACH of those counts is 5 years! The first superceding indictment will likely add a whole bunch MORE counts - EMBEZZLEMENT, FORGERY, WIRE FRAUD, MAIL FRAUD, etc.

Here's the most recent COMPARABLE (yet much lese severe) example from THIS MONTH with a measly $41M pump-and-dump netting the scammers up to 255 YEARS.

"National Storm's Clark, Gordon could spend life in jail

2010-08-17 14:14 ET - Street Wire
by Mike Caswell
http://www.stockwatch.com/News/Item.aspx?bid=Z-U:NLST-1751118&symbol=NLST&news_region=U

David Gordon and Richard Clark, the two Oklahoma men convicted in a $41.8-million pump-and-dump case that includes former Canadian broker Dean Sheptycki, are unfairly facing potential life sentences, their lawyers say. (All figures are in U.S. dollars.) Prosecutors have recommended that the men receive 30-year and 255-year jail terms. For Mr. Gordon, who is 48, and Mr. Clark, who is 62, the sentences would amount to life in jail, or close to it.

On April 30, 2010, an Oklahoma jury convicted the pair on charges stemming from the fraudulent promotion of four pink sheets companies. The jury found that they paid for misleading faxes and e-mails, then dumped millions of shares. The judge sent the men to jail to await sentencing, which is scheduled for Aug. 25, 2010. Now, with the sentencing date approaching, lawyers for the two men have filed presentencing memorandums, in which they plea for leniency.

Mr. Clark, who is facing a possible 255-year jail term, points out that if he were to receive such a sentence it would exceed the 150-year term that Bernie Madoff is serving. He argues that such a term is "draconian" given the nature of his crime. The government has not proven several required sentencing factors, including investor losses of over $20-million, his memorandum claims. He says he should receive up to six months, which he could do as home confinement.

Mr. Gordon, who faces 30 years, also says there are flaws in how the government calculated the losses he inflicted on investors. Prosecutors determined that he caused losses totalling $8.7-million to 157 investors. Mr. Gordon says that there are so many difficulties in accurately determining the figure, it should be reduced to nil. He notes that the probation officer who prepared his presentence report wrote that "any estimate of loss was so fraught with defective methods and theories, that estimating the harm should be abandoned." After removing this and other problems he sees with the sentencing recommendation, he should receive five to 10 years in jail, Mr. Gordon argues.

While Mr. Gordon and Mr. Clark are awaiting sentencing, two other defendants remain wanted men. One is Mr. Sheptycki, who was arrested in the Bahamas on Feb. 11, 2009, the same day U.S. authorities took Mr. Gordon and Mr. Clark into custody. The U.S. tried to extradite him, but government lawyers failed to file necessary paperwork in the Bahamas on time. A Bahamian judge threw out the extradition case and released Mr. Sheptycki from jail, and it is not clear where he is now. He and another defendant, Joshua Lankford of Dallas, are considered fugitives in the U.S.

The only remaining defendant, James Reskin, pleaded guilty without a trial and awaits sentencing.

Indictment

Prosecutors filed charges against the men on Jan. 15, 2009, in the Northern District of Oklahoma. According to an indictment, they pumped and dumped four companies: National Storm Management Inc., Deep Rock Oil and Gas Inc., Global Beverage Solutions Inc., and International Power Group Ltd. The scheme ran from April, 2004, to December, 2006.

In addition to the criminal charges, all of the defendants face a parallel civil suit from the SEC, which is on hold pending completion of the criminal matter.

http://www.stockwatch.com/News/Item.aspx?bid=Z-U:NLST-1751118&symbol=NLST&news_region=U";

Here's another recent example 845 YEARS sentence:


"Louisiana Judge Hands Down 309 Year Sentence for Investment Scheme

A joint DOJ-FBI investigation assisted by local Law Enforcement officials in Baton Rouge, Louisiana, has resulted in a man receiving a 309-year sentence for a massive investment scheme, the longest ever for a white collar criminal in Louisiana’s Middle District. Chief U.S. District Judge Ralph E. Tyson’s sentence of Robert Thompson was based on charges of conspiracy, wire fraud, mail fraud, bank fraud, computer fraud, access device fraud, aggravated identity theft, and money laundering."

BTW, the current record in Brooklyn area is a Hasidic Jew rabbi doing 845 years in Federal prison:

"In any case, Madoff will almost certainly die in prison. So will Sholam Weiss, currently serving the longest federal sentence for a white-collar crime. In 2000 a Florida judge sent him away for 845 years for the $450 million collapse of National Heritage Life Insurance. Weiss was convicted and sentenced after he fled the U.S. for Austria. Later apprehended and returned, he's currently housed in a federal prison outside Scranton, Pa. The Bureau of Prisons lists his release date as Nov. 23, 2754.

His co-defendant, Keith Pound, got 740 years and ended up serving just four of them before dying in prison at the age of 51.

More recently, a federal judge in Colorado slapped a 330-year sentence on Norman Schmidt, 73, convicted of running an investment scheme through which he siphoned money to buy NASCAR race cars, a race track and other racing-related properties. He will be released Sept. 12, 2291."


Save that date!

"I personally believe there is something far more fundamentally rotten here that has still not come to light."

I absolutely agree with that view.

Posted by: Xenophon Date: Monday, August 02, 2010 6:26:56 PM

Spongetech Share Issuance - note bolded - another link in the money laundry run by Mosky & Mett?:

3854 CONG A BU SHOLEM SHABAZI 06/23/2009 2000000
3855 STUART YACHNOWITZ 06/23/2009 2000000
3856 LYNN YACHNOWITZ 06/23/2009 500000
3857 YACHNOWITZ FAMILY LP 06/23/2009 1000000


"SPNG/CSHD - shareholder - CONGREGATION ABU SHOLEM SHABAZ ok - so this ain't a connection to Madoff - but it is a connection to another penny stock scam - CSHD." What is even more interesting is that CSHD's protagonist, Rufus Paul Harris, is a guy who would never consider giving shares to a Jewish charity. So why the dealings with CONGREGATION ABU SHOLEM SHABAZ by Rufus Paul Harris in the notorious stock rig/money laundry known as CSHD?

Now why would Steve issue 2,000,000 Spongetech shares to a non-profit like the Congregation Abu Sholem Shabaz which apparently operates out of a 2 bedroom/1 bath residential home at 1 Ellish Parkway, Spring Balley, NY???? And why was CONG ABU SHOLEM SHABAZ also linked to the pennystock rig job CSHD???

Check this outt~ and put 2 and 2 together:

"RABBIS IN MONEY WRINGER
LAUNDERED MILLIONS IN SYNAGOGUE AND CHARITY SCAM: FEDSBY JEANE MacINTOSH and
CHUCK BENNETT
Last Updated: 7:42 AM, July 24, 2009
Posted: 1:41 AM, July 24, 2009
Comments: 0
| More Print
The insular Syrian Jewish community was rocked yesterday when its 87-year-old US
leader was swept up in a massive money-laundering probe.

STOOLIE'S $50M 'SCAM' RECORD A PERFECT COVER
He was among five Brooklyn and New Jersey rabbis charged in a scheme that the
feds claim churned "tens of millions" through nonprofit charities and synagogues
they ran.
Saul Kassin, head of Sharee Zion in Sheepshead Bay, was a key player in an
international operation that washed dirty money -- provided by an FBI informer
-- through local religious institutions, as well as intermediaries in Israel and
Switzerland, according to the feds. [Note: SPNG supposedly had a Switzerland affiliate that Mett traveled to see and Mosky went to Israel]
The frail-looking octogenarian had to be helped up the steps of the Newark
federal courthouse by FBI agents as he attempted to hide from the cameras by
putting a black hat in front of his face.
The operation also nabbed Eliahu Ben Haim, the highly regarded principal rabbi
of Congregation Ohel Yaacob in Deal, NJ; Edmund Nahum, chief rabbi of another
area temple, Deal Synagogue; Mordchai Fish, rabbi of Congregation Sheves Achim
in Brooklyn; and Rabbi Lavel Schwartz, Fish's brother.
All five were charged with money laundering.
Nine other Brooklyn men who allegedly worked as "cash house" operators and money
couriers for the rabbis also were arrested and charged in the scheme.
Prosecutors said the rabbis were not all part of an organized outfit, and
operated in smaller, autonomous groups that sometimes overlapped.
The arrests were sparked by the work of an undercover FBI operative, Solomon
Dwek, a crooked real-estate dealer who flipped for the feds.
Dwek, the son of prominent Deal Rabbi Isaac Dwek, was charged in 2006 with a
massive bank-fraud scheme. He decided to cooperate with the feds while his case
awaits prosecution.
In two years alone, prosecutors allege, the rabbis laundered $3 million handed
over to them by Dwek -- who told them the money came from decidedly non-kosher
sources, such as fraudulent bank loans and sales of knockoff designer handbags.
The religious leaders would allegedly deposit the checks as contributions to
various nonprofits controlled by them or their synagogues.
Working with local and foreign contacts alike, they would arrange to provide
Dwek with clean cash in exchange for his cashier's checks. Their contacts would
sometimes send massive amounts of money for pick-up at the "cash houses,"
anonymous storefronts like bakeries or beeper stores located in Brooklyn.
The rabbis would keep anywhere from 10 to 15 percent for themselves."

STEVEN YEHUDA MOSKOWITZ and MICHAEL METTER of SPNG infamy take note:

"National Storm's Clark, Gordon could spend life in jail

2010-08-17 14:14 ET - Street Wire
by Mike Caswell
http://www.stockwatch.com/News/Item.aspx?bid=Z-U:NLST-1751118&symbol=NLST&news_region=U

David Gordon and Richard Clark, the two Oklahoma men convicted in a $41.8-million pump-and-dump case that includes former Canadian broker Dean Sheptycki, are unfairly facing potential life sentences, their lawyers say. (All figures are in U.S. dollars.) Prosecutors have recommended that the men receive 30-year and 255-year jail terms. For Mr. Gordon, who is 48, and Mr. Clark, who is 62, the sentences would amount to life in jail, or close to it.

On April 30, 2010, an Oklahoma jury convicted the pair on charges stemming from the fraudulent promotion of four pink sheets companies. The jury found that they paid for misleading faxes and e-mails, then dumped millions of shares. The judge sent the men to jail to await sentencing, which is scheduled for Aug. 25, 2010. Now, with the sentencing date approaching, lawyers for the two men have filed presentencing memorandums, in which they plea for leniency.

Mr. Clark, who is facing a possible 255-year jail term, points out that if he were to receive such a sentence it would exceed the 150-year term that Bernie Madoff is serving. He argues that such a term is "draconian" given the nature of his crime. The government has not proven several required sentencing factors, including investor losses of over $20-million, his memorandum claims. He says he should receive up to six months, which he could do as home confinement.

Mr. Gordon, who faces 30 years, also says there are flaws in how the government calculated the losses he inflicted on investors. Prosecutors determined that he caused losses totalling $8.7-million to 157 investors. Mr. Gordon says that there are so many difficulties in accurately determining the figure, it should be reduced to nil. He notes that the probation officer who prepared his presentence report wrote that "any estimate of loss was so fraught with defective methods and theories, that estimating the harm should be abandoned." After removing this and other problems he sees with the sentencing recommendation, he should receive five to 10 years in jail, Mr. Gordon argues.

While Mr. Gordon and Mr. Clark are awaiting sentencing, two other defendants remain wanted men. One is Mr. Sheptycki, who was arrested in the Bahamas on Feb. 11, 2009, the same day U.S. authorities took Mr. Gordon and Mr. Clark into custody. The U.S. tried to extradite him, but government lawyers failed to file necessary paperwork in the Bahamas on time. A Bahamian judge threw out the extradition case and released Mr. Sheptycki from jail, and it is not clear where he is now. He and another defendant, Joshua Lankford of Dallas, are considered fugitives in the U.S.

The only remaining defendant, James Reskin, pleaded guilty without a trial and awaits sentencing.

Indictment

Prosecutors filed charges against the men on Jan. 15, 2009, in the Northern District of Oklahoma. According to an indictment, they pumped and dumped four companies: National Storm Management Inc., Deep Rock Oil and Gas Inc., Global Beverage Solutions Inc., and International Power Group Ltd. The scheme ran from April, 2004, to December, 2006.

One of the promotions, National Storm, took advantage of the perceived demand for restoration work in the wake of Hurricane Katrina, the massive storm that devastated New Orleans in 2005. National Storm had gone public earlier that year when it merged with a shell called 18th Letter Inc. As part of the transaction, Mr. Gordon, who was a securities lawyer, wrote false opinion letters which the company used to issue blocks of free-trading shares.

Then, in the two weeks after Hurricane Katrina, Mr. Sheptycki sent out multiple faxes and e-mails touting National Storm. The spam stated that the company stood to benefit from the construction work that was sure to follow the storm. "Katrina means National Storm (NLST) is poised for a massive run up as demand to repair homes skyrockets," one of the faxes read.

After the spam, the stock rose from 53 cents to $2.50. According to prosecutors, Mr. Gordon sold $278,815 worth of shares and wired $50,000 to Mr. Sheptycki. By the end of the year, the stock fell back to 18 cents.

The other promotions followed a similar script, prosecutors said. The indictment provided few details, simply listing share sales totalling $3.03-million. It also listed payments to Mr. Sheptycki of $162,500 for sending blast faxes. (Prosecutors later said that losses to investors were much higher, and sought $41.8-million in asset forfeitures from Mr. Gordon and Mr. Clark.)

Sentencing memorandums

Mr. Clark and Mr. Gordon filed separate sentencing memorandums on Aug. 13, 2010.

In his, Mr. Clark claims that the judge should consider his family circumstances in calculating an appropriate sentence. He is a father to seven children, ranging in age from 10 to 32, and is a grandfather as well. He says the strains of the trial caused his wife to file for divorce, and his children would suffer if their relationship with their father were reduced to prison visits.

He further argues that he has already suffered greatly, with the government having taken all his assets and his reputation having been destroyed by the trial. "[Mr. Clark] has been publicly disgraced and vilified. He has had to witness the shame and suffering that his family has endured. He has lost every penny and possession that he ever had. And now he is faced with the possibility of losing his freedom forever," his sentencing memorandum concludes.

Like Mr. Clark, Mr. Gordon argues that he has already suffered enough. He says he will lose his law licence and the U.S. Securities and Exchange Commission will ban him from penny stocks. "The public does not need protection from Mr. Gordon, and there is no risk of recidivism in this case," his memorandum reads.

In addition to the criminal charges, all of the defendants face a parallel civil suit from the SEC, which is on hold pending completion of the criminal matter.

http://www.stockwatch.com/News/Item.aspx?bid=Z-U:NLST-1751118&symbol=NLST&news_region=U "

YEHUDA LIEBERMAN will have some 'splainin' to do. Silverman has a vested interest in finding hidden assets, since his fees can come out of any recovered monies.

He gets first crack at Lieberman, of Kew Gardens, just 4 streets over from Mosky - to put him on the record re: electronic communications, electronic records, etc.

The SEC and DOJ will get to him later. Sure hope he doesn't commit PERJURY or OBSTRUCTION OF JUSTICE, and wasn't involved in any electronic communications furthering money laundering CONSPIRACY TO COMMIT MOENY LAUNDERING, in his testimony and electronic records production to Silverman.

The SEC and DOJ seem to take notice of PERJURY, OBSTRUCTION OF JUSTICE, and CONSPIRACY TO COMMIT MONEY LAUNDERING in this case (I hear they are still working the Neiger pleading signature issue to establish who signed Neiger's name and filled out the attorney info).

The more clowns they can charge, the more they can turn and use as information sources for asset forfeiture, testimony as witnesses in a trial against others, etc.

By May or June of 2009, I wouldn't doubt that the FBI began collecting electronic records of internet communications on this case. YEHUDA LIEBERMAN's testimony and documents better match up with what the DOJ already has.

It's gettin' hot in NY. September is often a really hot month. I'll bet YEHUDA LIEBERMAN and STUART YACHNOWITZ will be sweating profusely as the heat continues to build in the NYC area.

Can't wait for that First Superceding Indictment (hopefully before yearend or shortly after the first of 2011). Can't wait to see the added defendants and added counts.

Welp, they're getting all the computer/internet records from SPNG's webmaster, Yehuda Lieberman - and his testimony to see if anyone instructed him to attempt to destroy records. Electronic evidence of where the money went. Who emailed who, and when and what subject line..... archives. Backups....

Trace the assets, Silverman.

This should be interesting. And this is just the BK trustee! Can't wait until Lieberman goes on the record in the BK and then the SEC and later the DOJ subpoena him and use his BK testimony against him.

Twisties! This is gonna be good when the later acts roll around.

Definitely get a Moskowitz-sized tub of popcorn for this one.

Somebody doesn't like the cowinkydental West Virginny links between Fogelsong, Radar, Ole Wade, and Dials?

Fogelsong (current Massey bored member) and Dials (former Massey President), with Wade living in West Virginny as a kid and going to high school in West Virginny (not far from Huntington, where Dials mama lived until last Monday).

And then there is Radar. Who CLAIMS to have introduced Fogelsong to the CDEx Bored where Dials sits.

Lots of cowinklydinkers for one small, backward state.

(sound of dueling banjos)

Instead of tweaking, maybe Wade should have been twanging.

Anybuddy know what instrument he plays in the Dixiecats? If it is the banjo, that would be too perfect. That could be the problem, Wade might be a twanger, not a tweaker.

In a conspiracy to launder money, it doesn't matter if a conspirator has a direct money interest in the conspiracy or not. One who merely enables the scheme is guilty, or who aids in the planning of the scheme. Even if they didn't personally profit! That's why they added section 1957 - so folks couldn't enable money laundering and avoid convictions by claiming they didn't know what they did was wrong and they didn't personally profit.

Too bad Steven doesn't understand this. His ownership interest or lack thereof in RME is not relevant to the crimes he is charged with.

Sorry Steve, go to prison.

CONspiracy to launder money under 18 U.S.C. 1957 (the section Steve is charged with) does not reven require that he knew the proceeds were illegal! In exchange for reducing the burden of proof required, 1957 reduces the penalty from the 20 years of 1956 (conspiracy to launder money which requires knowledge the proceeds were illegal) to only 10 years imprisonment plus a fine plus CRIMINAL ASSET FORFEITURE. The prison term and fine are all for Steve Moskowitz (who will also be subject to criminal asset forfeiture) - but under 1957 the criminal asset forfeiture is ALSO from ANYONE who received the proceeds - Steve's relatives, friends, or entities in Israel, Lichetenstein, Queens, or Long Island.

Steve is an IDIOT if he thinks the not being a shareholder in RME changes ANYTHING with regard to his pending counts. It doesn't.

TOO BAD, SO SAD, STEVE YOU IDIOT. GO TO PRISON. ADD ANOTHER 10 YEARS AND ASSET FORFEITURE TO ALL YOUR NOMINEES WHO DON'T EVEN NEED TO BE CHARGED WITH ANYTHING!

(P.S. - anyone have the "market cap" for SPNGQ today? 300K?)

In re Spongetech et al.

Posted by: Xenophon Date: Friday, July 30, 2010 2:28:02 PM
In reply to: OldTymer who wrote msg# 327663 Post # of 328972

They don't. For non-viable business models the DIP financers typically lose money and often lose it ALL.

However it is a common scheme in pennystock land to find those suckers who you've already shafted on the main stock fraud and go back to them and harvest more money from them - either in the form of telling them that they will be buying a good deal via preferred notes allegedly paying interest and often convertible for shares, private placement shares at discounts and often with warrants, and/or notes payable with high yields and upsides (warrants or conversion features). Or offering them the "opportunity" to "get in on" some DIP financing.

Pennystock scammers know that the best source for more money is the sucker they've already drained, as a key feature of human behavior is chasing losses - the bigger your loss the more desperate you are to recover it by betting more.

The insiders typically cook up the story that the suckers are really getting in on an "inside deal" that will wind up with them owning this great asset - which in pennyland is typically the same worthless asset they lost money on investing in the first place.

It never fails - I've seen the same pattern in many pennystocks. LOCH/CEXI drained tens of millions from suckers drained in LOCH when it was spun off as CDEx (CEXI) and the LOCH losers were offered great "insider type deals" as private placements - this went on for 8 years - the company is still worthless because the underlying business was not viable - but the insiders got 8 more years of salary, pennystock trading, built-in hypesters (the PPers acting as promoters and ginning up OTC market buyers for insiders selling their stock), and as I said, tens of millions of dollars from the very same folks they scammed in the original non-viable business (LOCH).

This is a classic pennystock scam tactic. If you drained them once, they will chase their losses and you can drain them again.

Lather, rinse, repeat. Until the shampoo (sucker) bottle is empty.

Jeffrey Goldberg
Senior Trial Counsel
United States Attorney's Office

Jeffrey A. Goldberg is a Senior Trial Counsel in the Business & Securities Fraud Section of the United States Attorney's Office for the Eastern District of New York. Since joining the United States Attorney's Office in 2003, Mr. Goldberg has handled a number of notable cases, including a vast eight-year"pump and dump" conspiracy perpetrated by organized crime members and associates, the prosecution of a National Basketball Association referee who provided gambling picks on games he officiated, and the prosecution of what is considered the largest consumer fraud case in United States history: the Gambino organized crime family's use of pornographic websites and "toll-free" telephone numbers to defraud thousands of people throughout the country. Mr. Goldberg has also tried numerous cases to verdict, including trials involving tax fraud, structuring, extortion, drug trafficking, illegal gun possession, robbery, witness tampering, racketeering, and murder, and he has frequently argued before the United States Court of Appeals for the Second Circuit. Before joining the United States Attorney's Office, Mr. Goldberg was a litigation associate with Skadden, Arps, Slate, Meagher & Flom in Washington, D.C., where he advised corporations and individuals in connection with a wide variety of civil and white collar criminal proceedings. From 1998 to 2000, he clerked first for the Honorable James A. Beaty, Jr., in the Middle District of North Carolina, and then for the Honorable Ronald Lee Gilman of the United States Court of Appeals for the Sixth Circuit. Mr. Goldberg is a 1998 graduate of the New York University School of Law, and a 1992 graduate of Lehigh University, where he studied accounting. From 1992 to 1995, Mr. Goldberg worked at Arthur Andersen LLP, where he became a certified public accountant. Mr. Goldberg is a member of the New York City Bar Association's Government Ethics Committee and he has taught at Brooklyn Law School.


One of the visible parts of the "A" Team. Many more below the radar - all very good.

Another former Skadden attorney (Elisabetta Gasparini, legal rep of the U.S. Bankruptcy Trustee for EDNY, is a former Skadden, Arps lawyer and also formerly of WilmerHale).

Skadden, Arps is the #4 ranked law firm in the nation in the 2011 Vault rankings for law firm prestige.

BTW, good to see Goldberg is also a CPA - there will be additional accounting-related counts in the next (superceding) indictment - embezzlement for Mosky at the very least - and then the IRS criminal division will chime in. More coming, Boyz!

Watch this team uncover the money transfers, asset conversions, and nominee accounts - overseas as well as domestic.

Anybuddy who kicked back more than $10K to Mosky will have some GIFT TAX due in addition to the CRIMINAL FORFEITURE problems and other tax issues they will face. Plus financial transaction reporting prollems. OUCH!!!

Stuart Yachnowitz should be sweating now in the hot NY summer dog daze. It's getting really hot and humid - time to head for the beach cabanas.

VAEV is soon going to be a very "hot" stock also.

Those 5 trades totalling $418 were the "institutional money" coming in from Cleveland - you can tell by the large size of those block trades. The "smart money" in SPNG comes in on the first and third weeks of the month - when the unemployment checks, Social Security checks, and Burger King payroll checks are cashed by the SPNG chumpigentsia.

I see they indicted Stevearino and Mutt with, among other things, conspiracy to commit money laundering under 18 U.S.C. 1957 rather than 1956. Under Section 1957, the US does NOT need to prove the defendants even knew that the money was illegal proceeds (as they would under Section 1956). This makes it a slam dunk for the prosecution - the tradeoff is that the prison term is 10 years for this count, whereas if they went with 1956 they could get 20 years for that count. The prosecutors get a much easier job in putting on the evidence to prove the count because they don't need to show that Mosky & Mett even knew that what they were doing (issuing stock and then getting the restrictive legend removed - by any means, even just requesting it - or transferring SPNG stock from RME to a third party nominee) was wrong - and they still can get 10 years just on that count and they also get to use criminal forfeiture under that Section 1957 to grab any and all assets that were or could have (because money is fungible) been bought with any proceeds or had deposits of any proceeds into them. The gummint can get the forfeiture from any party that received proceeds without having to charge or prosecute those parties - the Feds just seize the accounts (are you listening STOCK PROMOTERS) into which proceeds actually went or COULD have gone (because money is fungible) - and it is not limited to the amount of the illegal proceeds received!

For example, say Stock Promoter David got paid $10,000 for touting services and was paid in cash or stock that he sold. Then ANYTHING Doug bought thereafter and any account he put any cash in thereafter can be seized in their entirety. Say Doug paid $30,000 for a new car - that car can be seized even though Doug only took $10,000 of illegal proceeds - and the Feds keep the whole car (or auction it) and Doug gets nothing back.

There is no need to charge or sue the forfeitees - the Feds just seize the assets. The only recourse the forfeitees have is an ancillary hearing to prove that the asset(s) were NOT purchased with illegal proceeds.

Somebody who took $1 of illegal proceeds and put it in the same checking account they then used to write their mortgage payment check on can (and do) have their homes seized. And cars, boats, retirement accounts, jewelry, watches, etc. And yes the Feds seize OVERSEAS accounts and assets (houses, cars, etc.) all the time. Why do you suppose the DOJ "A" Team has a State Department liason and the State Department has assigned personnel to the SPNG case?

Then the IRS sends out the auditors to find out if the recipients declared the illegal proceeds received as income and paid tax on it. Then the penalties and interest.....

So Promoter David who took $10,000 in promoter fees can lose a $30,000 car AND has to pay tax on the $10,000 even though it was forfeited via the car seizure.

Butt wait, it gets better - because there will virtually certainly be one or more superceding indictments adding defendants and counts.

This is gonna be good!

Shout outt~ to the paid touts and stock promoters.

Stuart Yachnowitz (and the VAEV boys) should be sweating - it's getting hot in New York. Real hot. Time to grab onto a recently refurbished beach resort, catering service, and recently remodeled wedding reception joint and beat the heat. I wonder where all that money for the remodeling came from?????????

Did I explain how Federal asset forfeiture works? Even ONE ILLEGALLY ACQUIRED DOLLAR (even if you didn't KNOW it was illegal) that COULD have been used in acquiring or UPGRADING an asset means the entire asset can be seized even it its value is far beyond the illegal proceeds you received.

OUCH!

Somebody send the VAEV Boyz a towel to daub some of that sweat that should be pouring off of them by now. Anyone who was ever paid a dollar (or got an expense reimbursement) from VAEV should be in panic mode.

STEVEN YEHUDA MOSKOWITZ, it is time for you to GO TO PRISON now, for a looooong, loong time. You ain't never getting outt~.

MICHAEL METTER, you also get to step into the cage now. No return requested.

Uncle Sam will be by to pick up all your stuff shortly. Then the IRS will come visit you in prison - the IRS CRIMINAL DIVISION will not require you to use up any of your monthly allotment of visitation points. The BOP counts visits by the IRS CRIMINAL DIVISION to be courtesy calls or "freebies" (LOL).

BTW, did Frank L. cut a deal? Looks like he'll be testifying.

Welp, this was today's post.... more tomorrow.

Stuart Yachnowitz should be sweating now. Hot day in NY.

This is only the FIRST indictment, there will be additional superceding indictments that will add counts and defendants.

Anyone associated with VAEV who received ANY funds from VAEV should be sweating now.

The show's gonna start later this Fall when the First Superceding Indictment tumbles down.

Can you say civil asset forfeiture and criminal asset forfeiture orders? Yes you can. (I knew you could).

Can you say added counts (such as money laundering in addition to conspiracy to commit money laundering, tax evasion, wire fraud, embezzlement, and larceny)? Yes, you can. (I knew you could.)

The DOJ "A Team" is just getting STARTED on this. There is a whole WAREHOUSE of shoes yet to drop, that will drop.

Shout outt~ to my Bonobo Bros in OHIO. You're nott forgotten, gents. Nice dancing attempt recently, butt it won't cover the trail.

Mosky is in a world of hurt/sheet - and it is only BEGINNING for him and his fambly.

Hey Stevearino - time to get in touch with your inner inmate and toughen up. Start doing those push-ups NOW. Your cellies ain't gonna give you time to get in shape. Hit the gym now.

The DOJ "A Team" is just starting on this - it'll roll outt~ over YEARS (wink, nod to my OHIO boys). The IRS Criminal Division is just beginning to assign resources to this and liase with DOJ - so expect a good 5 years before the IRS drops a truckload of shoes on our little friends (shout outt~ to the VAEV Boys and the Ohio Players) and the Moskowitz/Metter FAMBLIES - and associates.

Asset forfeiture law is a real b*tch when you're on the wrong side of it.

Steve: was it worth it to throw away the rest of your life in prison just to be rich for a few years? The money is going to be all gone for the fambly and buddies when the A Team asset recovery team finishes up with this in 8 years or so. All the Israel money - GONE. All the gold and jewelry - GONE. All the homes, autos, college funds, retirement funds - GONE. Mom and Dad's home and assets anything that the SPNG proceeds touched or COULD have touched if they received ANY money - GONE.

Best of all, Steve: YOU ----> GONE!

I will write you in prison. I promise. I do this for others, so I will put you on my mailing list. An annual Christmas/Hannukah/Kwanzaa/Festivus card at the very least.

More indictments coming - butt may take awhile (be patient, good things come with time).

~OUTT (with my one post of the day)

FORE!!!!!!!

Welp, to reuse my prior analogy, wherein I analogized that a loss of Hays would be like losing an NFL quarterback and having as a likely replacement a rugby player, it now looks like Garparini replaced a mid-grade NFL quarterback (Hays) with a true fraud-busting BK LAWYER. This is like replacing Brady Quinn with Peyton Manning!

Most excellent. Let's see how Mosky digs dealing with a savvy BK attorney. And one who is well-versed in TRACING FUNDS and recovering MONEY from ENTITIES owned by scamsters - like RME, VAEV, etc.


Oh man, the fat one jumped out of the frying pan and into the fire with this one.

This is truly gonna be great. Gasparini is focused on the Moskoputz and now she has a great EVIDENCE COLLECTOR and FRAUD EXPERT in the form of an experienced bankruptcy lawyer (and his associates). Ken Silverman will document everything and he'll make a great witness against Mosky and Mett in both the SEC civil case and the separate criminal case (the criminal case will defintely go all the way to trial with Mosky for the reason I indicated previously, he faces de facto life imprisonment even under the best possible plea deal, so he may as well try to delay as long as possible before entering the joint).

From the Long Island Bankruptcy blog:

"Ken has been appointed to liquidate a number of prominent Chapter 11 cases after they were converted to cases under Chapter 11. He has also been a mediator on the Register of Mediators for the United States Bankruptcy Court for the Southern District of New York.

Ken is currently administering the high profile case of Agape World involving disgraced financier and alleged ponzi schemer Nicholas Cosmo. See my earlier post about that case: Ken Silverman Appointed Chapter 7 Trustee in Agape World Case.

Ken has a reputation of being a highly knowledgeable Chapter 7 trustee who tends to be fair and realistic, and who is usually guided by sound business judgment."

"Long Island Chapter 7 Bankruptcy Trustee Kenneth Silverman was appointed yesterday by Bankruptcy Judge Dorothy Eisenberg to be the trustee in the Agape World Inc. case.

Agape World is the corporate entity Nicholas Cosmo is accused of using to perpetrate a $370 million Ponzi scheme. The case will be overseen by the United States Bankruptcy Court for the Eastern District of New York in Central Islip.

Mr. Silverman has already directed his firm, Silverman Acampora LLP, to file four motions seeking to examine various entities that may have some of the funds. These entities include MF Global Inc., Alaron Futures & Options, Millennium Trust Company, and TransAct Futures."




Nicely done, Elisabetta! Outstanding choice.

I see from the 10-K/A that John Bordynuik claims to have invented the "magic catalyst" - yet the 10-K lists no educational credentials for him.

Any idea where he received his chemistry training that would allow him the knowledge to do things like discover a "magic catalyst"?

Where did he get his Ph.D in Chemistry from?

Please - how does the plastic arrive at the plant? magic?

Or is a truck that burns diesel involved?

Plastic feedstock does not magically appear at the plant for FREE. It has to get collected, crushed (or shredded), loaded, and TRUCKED there.

I am talking about their FEEDSTOCK - comparing transportation costs of PLASTICS into the plant versus CRUDE oil into a refinery.

Wrong. It is much cheaper to transport crude oil from a well collection tank to a refinery (often using PIPELINES) than to surface truck plastics from a large number of geographically disparate plastic collection centers.

The energy density of crude oil, even if trucked, is much higher than that of plastics even if compressed and tightly packed down into a full truck trailer.

One tank truck of crude would probably produce as much refined petrochemical products as maybe 10 or more truckloads of the much less dense plastics that require much more energy input to convert into "product".

Transportation costs of feedstock are not nominal - that's why the country is crisscrossed with oil pipelines.

How will he get certification if he won't even release the magical ChemTech report? Another red flag.

If the "magic catalyst" can be so easily discovered from a simple analytics report, then it won't be a trade secret very long. Exxon, Chevron and everyone else would be able to figure it outt~.

A patent would give him 20 years worldwide protection.

Butt then investors would be able to evaluate the "magic tech".

RED FLAG

Red flag there!

I've jumped to no conclusions. I am posing questions. I am highly skeptical however. Butt I have an open mind, as facts are facts.

I have also seen very interesting and scientifically sound ideas flounder because they turned outt~ to be impracticable for various reasons.

This is why we ask questions and request information and try to think through all the obstacles between a pie-in-the-sky idea and a real business. This is the job of venture capital.

Scion, I've read the ChemTech report. From a chemist's perspective, it provides very little useful information on the chemical composition of the "near diesel".

I'm looking for stuff like percentages of octanes, heptanes, nonanes, various paraffins, aromatics, etc. broken down by analytical chemistry methods.

My questions are much broader than some permit.

Maybe you can help me out - is there any issued patent or published patent application owned by this company that you can direct my attention to - just so I can learn about the process.

There are a lot of other questions, butt let me start outt~ trying to understand the process as a beginning. The ChemTech report tells me very little useful information, IMO.

Patent or application number anyone?

Thanx.

scion - that doesn't address the questions I asked.

Also, when IsleChem claims the energy conversion ratio is about 2:1, does that INCLUDE or EXCLUDE the energy costs to transport the feedstock plastics to a P2O process facility AND the energy costs to tank/untank refined "near diesel" and the energy costs to transport in all chemicals/additives required to formulate the "near diesel" into certified, saleable #2 diesel and any further refining required to the "near diesel" before the additives can be used to make #2 diesel, and the energy costs to transport the final product to an end-user?

It would appear not, since the ChemTech report does not seem to even have analyzed what would be needed to make "near diesel" into a marketable product.

Nor the energy cost to transport the bulk plastics from disparate collection sites to a central facility for a P2O process.

Seems like some economics and petroleum engineering needs to be added to this report in order to determine if there is even a prospect of commercial viability.

I would also suggest that the company or Isletech should provide much more detailed specifications of the exact chemical composition of the "near diesel" - and for various types of plastics - so that shareholders and potential partners/customers can assess how useful the process is and how usable (incl. cost effective to formulate into a useable fuel) the output really is. The existing IsleTech report is awfully sparse on details, and that in and of itself should make one suspicious.

I am totally new to this company and this board, but these are the first questions that come to mind upon initial inspection.

What are the SAE requirements for #2 diesel and #1 diesel

I know in California, CARB (California Air Resources Board) sets strict formulation limits on diesel fuels and they must certify any formulation before it can be sold in California (and many/most other states - even Texas - now rely on the CARB certification for allowing fuel to be marketed).

What basis is there to believe that the "near diesel" output of P2O can be cost-effectively formulated to meet, for example, the diesel fuel standards and certification of CARB, SAE, or other petroleum engineering standard authorities?

By cost-effectively I mean to make a commercially-viable product when you include the costs of transportation to the end user, cost for formulation additives, certification testing, etc?

I'm sure any decent chemical engineer or petroleum engineeer can come up with a lot of hydrocrabon conversion processes. The test is how commercially viable such processes are - and I don't mean just for purposes of selling pennystock shares.

It's so pathetic when even their RIGGED DEMOS fail miserably. Like the drip pole example you cited, or the Tamiflu powder they mixed with water and it wouldn't read correctly at the shareholders' beating, or Wade's infamous DC DEMO where he had to blame "cellphone interference" for being unable to detect explosives in Tupperware unless David Audsley brought out the pre-marked containers.

Welp, at least they have now peoved that all the used cars in the state of Washington and 42% of all homes in Phoenix are massively contaminated with either methamphetamine or Sudafed (or any of trillions of other chemicals that give a positive signal on the ID2).

Welp, now they will have ANOTHER 150,000,000 shares for Strickland to use to acquire some new "show-for-PPs" magic pennystocktech. Gotta be something topical and exciting to the suckers - maybe some optical gizmo for border security or something to do with wind turbines, solar, nanotech, or high-performance batteries.

Spongetech Share Issuance - note bolded - another link in the money laundry run by Mosky & Mett?:

3854 CONG A BU SHOLEM SHABAZI 06/23/2009 2000000
3855 STUART YACHNOWITZ 06/23/2009 2000000
3856 LYNN YACHNOWITZ 06/23/2009 500000
3857 YACHNOWITZ FAMILY LP 06/23/2009 1000000


"SPNG/CSHD - shareholder - CONGREGATION ABU SHOLEM SHABAZ ok - so this ain't a connection to madoff - but it is a connection to another penny stock acam - CSHD."

Now why would Steve issue 2,000,000 Spongetech shares to a non-profit like the Congregation Abu Sholem Shabaz which apparently operates out of a 2 bedroom/1 bath residential home at 1 Ellish Parkway, Spring Balley, NY???? And why was CONG ABU SHOLEM SHABAZ also linked to the pennystock rig job CSHD???

Check this outt~ and put 2 and 2 together:

"RABBIS IN MONEY WRINGER
LAUNDERED MILLIONS IN SYNAGOGUE AND CHARITY SCAM: FEDSBY JEANE MacINTOSH and
CHUCK BENNETT
Last Updated: 7:42 AM, July 24, 2009
Posted: 1:41 AM, July 24, 2009
Comments: 0
| More Print
The insular Syrian Jewish community was rocked yesterday when its 87-year-old US
leader was swept up in a massive money-laundering probe.

STOOLIE'S $50M 'SCAM' RECORD A PERFECT COVER
He was among five Brooklyn and New Jersey rabbis charged in a scheme that the
feds claim churned "tens of millions" through nonprofit charities and synagogues
they ran.
Saul Kassin, head of Sharee Zion in Sheepshead Bay, was a key player in an
international operation that washed dirty money -- provided by an FBI informer
-- through local religious institutions, as well as intermediaries in Israel and
Switzerland, according to the feds. [Note: SPNG supposedly had a Switzerland affiliate that Mett traveled to see and Mosky went to Israel]
The frail-looking octogenarian had to be helped up the steps of the Newark
federal courthouse by FBI agents as he attempted to hide from the cameras by
putting a black hat in front of his face.
The operation also nabbed Eliahu Ben Haim, the highly regarded principal rabbi
of Congregation Ohel Yaacob in Deal, NJ; Edmund Nahum, chief rabbi of another
area temple, Deal Synagogue; Mordchai Fish, rabbi of Congregation Sheves Achim
in Brooklyn; and Rabbi Lavel Schwartz, Fish's brother.
All five were charged with money laundering.
Nine other Brooklyn men who allegedly worked as "cash house" operators and money
couriers for the rabbis also were arrested and charged in the scheme.
Prosecutors said the rabbis were not all part of an organized outfit, and
operated in smaller, autonomous groups that sometimes overlapped.
The arrests were sparked by the work of an undercover FBI operative, Solomon
Dwek, a crooked real-estate dealer who flipped for the feds.
Dwek, the son of prominent Deal Rabbi Isaac Dwek, was charged in 2006 with a
massive bank-fraud scheme. He decided to cooperate with the feds while his case
awaits prosecution.
In two years alone, prosecutors allege, the rabbis laundered $3 million handed
over to them by Dwek -- who told them the money came from decidedly non-kosher
sources, such as fraudulent bank loans and sales of knockoff designer handbags.
The religious leaders would allegedly deposit the checks as contributions to
various nonprofits controlled by them or their synagogues.
Working with local and foreign contacts alike, they would arrange to provide
Dwek with clean cash in exchange for his cashier's checks. Their contacts would
sometimes send massive amounts of money for pick-up at the "cash houses,"
anonymous storefronts like bakeries or beeper stores located in Brooklyn.
The rabbis would keep anywhere from 10 to 15 percent for themselves."

Hays is very good at what he does - uncover evidence for DOJ prosecutions and SEC civil cases.

It would be like replacing an NFL quarterback with a high school rugby player. Not going to be as good at the game of football.

August 3, 2009 (post-9/11)

"Jerusalem - Israel’s National Fraud Unit Monday morning arrested seven Israelis and Americans on suspicion of a large-scale scam against U.S. tax authorities, local daily the Jerusalem Post reported.

According to an initial probe, 62-year-old Jerusalem resident Marvin Berkowitz, who holds both Israeli and American citizenships, and other Israeli suspects are alleged to have masterminded a scheme whereby they fraudulently obtained tax refunds totaling tens of millions of dollars which were then transferred to various bank accounts in Israel.

Yediot Ahronot is reporting that the investigation, dubbed “American Pie” began several months ago, when the federal authorities asked Israel to probe the case. The probe revealed that American Jew Mr. Berkowitz fled to the US for Israel several years ago after his involvement in various fraud felonies.

Meanwhile, local daily Ha’aretz reported that a hearing is scheduled for Monday afternoon in the Tel Aviv Magistrate’s Court, where the suspects will be arraigned."