Wabbits Red flags and stocks

[k9narc]

I'm not sure how many followed Spongetech and the story that continues, but here is a great post from that board..........

"So what are your expectations for the "Big Day" on 8/4?

If you are looking for a ruling from the judge, I'd guess it will go something like this:

Jay Booth: The Court appreciates your efforts on behalf of the Spongetech stockholders and would like to respond by making three major points:

1. Spongetech is no longer a going concern. Their Chapter 7 Bankruptcy is completed and resulted in the total liquidation of the company. The Trustee's work was completed and the court released him from his responsibilities. No plan was submitted for Chapter 11 bankruptcy, which might have allowed for Spongetech to reorganize and continue in business. Since Spongetech has no assets and the bankruptcy process has been completed, you can expect the stock ticker to be revoked. This will leave investors with no mechanism for buying or selling Spongetech stock. Criminal cases have been completed through plea bargains. Six Spongetech employees and associates have been sentenced, with a final sentencing of Steven Moskowitz scheduled in October. Final SEC judgements are pending, but it is not clear whether any significant restitution will be made. (Restitution, if any, will be applied to SEC fines).

2. Your filing raises many issues concerning alleged illegal actions on the part of various third parties relating to naked short selling of Spongetech stock, as well as alleged actions on the part of various government agencies. However, you have not provided direct, compelling proof of naked short selling, or any direct, compelling proof of any criminal wrongdoing perpetrated by any government agency. Investigation of any naked short selling, as communicated earlier by the Court, would have to be funded by the investors, not the Court.

3. In conclusion, the Court is not in a position to provide you with any relief with regard to your filing. Again, the Court applauds your efforts to seek justice and attempt to recover some portion of the investment you made in Spongetech, including those of other stockholders. You are welcome to file civil suits against the company (now bankrupt) or individual agencies of the U.S. government, in an attempt to get relief.

The penny stock market is a dangerous place for investors to operate. The majority of the stocks in this market decline in value, posing enormous risks to anyone investing in these stocks. While the SEC, DOJ, FBI and the courts do what they can using current statutes to police this market, it is largely uncontrolled. The principal of Caveat Emptor (Buyer Beware) applies.