Spongetech Delivery Systems, Inc. (fka SPNGQ)

[cowtown jay]

“Suspicious activities included instances where Gibraltar deposited into, and sold out of, its Oppenheimer account large quantities of penny stocks which should have raised concern that Gibraltar and its customers might be participating in unregistered offerings or sales of securities in violation of Section 5 of the Securities Act….

Between July 2008 and May 2009, Oppenheimer executed sales of billions of shares of penny stocks2 for an account in the name of its customer, Gibraltar Global Securities, Inc. (“Gibraltar”) —a broker-dealer licensed in the Bahamas. Although Gibraltar purportedly maintained a proprietary account, Oppenheimer knew that Gibraltar was actually executing transactions and providing brokerage services for its customers, many of whom were U.S. persons. Through this conduct, Gibraltar acted as a broker in the United States even though it was not registered with the Commission as required by the federal securities laws.” Click on the link below to get the complete chronological report.

http://www.sec.gov/litigation/admin/2015/33-9711.pdf

So, Oppenheimer aided and abetted the suspicious sales by Gibraltar of billions of shares of penny stocks which should have raised concern that the sellers were participating in offerings of unregistered securities.

How hard is it to refine the charge, and identify the victimized shareholders? Not very? From the Olde Monmouth Transfer Journal:

TA block 77067.

Cissonius sells 15m shares through Schwab, that is purchased by Cumbuco Beach, through Gibraltar.

TA block 77083

Cumbuco sells those 15m shares through Gibraltar to the public

TA block 77485

RME sells 10m shares to Penson, through Gibraltar.

TA block 78434a

RME sells 15m shares to Gibraltar, through Penson

TA bloc 78466

Gibraltar sells the 15m shares through Penson to the public

TA block 77495

Penson sells the 10m shares through Gibraltar to the public.

Is this the type of activity the SEC has charged Oppenheimer for aiding and abetting? I DON’T KNOW. READ THE TA JOURNAL FOR YOURSELF. IT WAS PART OF THE DAVIS DECLARATION. I'M OUT OF TIME TO CONTINUE RIGHT NOW.

Whether the above are representative examples or not, the SEC knows full well how SpongeTech shareholders were harmed not only by the sale of unregistered shares, but by the naked shorting of shares clearly exhibited in the Electronic Blue Sheets.