The important thing to me is that SpongeTech shareholders receive equal protection under the law. To date, the SEC has convicted insiders with selling $52 million dollars worth of unregistered shares, and they are seeking disgorgement of that amount to be paid to those who self-identified with authorities as victims of the fraud.
That's a complete farce. Insiders will be required to pay less than what I used to pay for child support each month.
Also, the identification of shareholders is not the responsibility of those shareholders. This identification is actually required in bankruptcy proceedings. The requirement was ignored because the judge and the trustee felt that there was no way to make that identification. The trustee stated that he didn't even think that the SEC could determine who the shareholders are. This is absurd.
In addition, MOST of the ill-gotten gain realized by selling unregistered shares, which I estimate to be about $390 million, went into the pockets of outsiders, people who were members of the SpongeTech stock distribution network. There were dozens of these individuals, but only three have been convicted to date. The amount disgorged from these convictions is, for the most part, slotted to be transferred to the general fund of the US Treasury. Effectively, our money is being stolen again, this time by agencies of the US government.
