All of the stock was sold through RME, to a well-defined SpongeTech stock distribution network.
There was one instance when RME issued a certificate to an investor who was NOT part of the stock distribution network. When Moskowitz realized his mistake, the shares issued to that investor were canceled, and new shares were issued to the investor from the cancellation of a Cede cert, which was beneficially owned by the company (as many such Cede certs are/were).
So again, if the SEC's charges are correct, members of the SpongeTech stock distribution network, who bought shares from the company at prices as low as 10% of the market price, should be disgorged of their profit, regardless of scienter, and they should be charged with selling unregistered shares.
