InvestorsHub Logo
Followers 58
Posts 1434
Boards Moderated 0
Alias Born 01/15/2007

Re: None

Saturday, 02/04/2023 6:12:03 AM

Saturday, February 04, 2023 6:12:03 AM

Post# of 346924
Has anyone invested in SPNG in the past successfully filed a "theft loss" in their 1040 and got it approved by the IRS ? I have not been successful (tried thrice). I believe the IRS looks at the following case and dismisses any claims for a theft loss...one person on this board had claimed they filed for a theft loss successfully, quite a while back...comments ?

ORLAN v. SPONGETECH DELIVERY SYSTEMS, INC.

Excerpts…

The FAC alleged that, from June 12, 2009 through September 29, 2009, Halperin prepared ninety-two attorney opinion letters containing materially false and misleading statements and omissions directing transfer agents to remove restrictive legends from restricted Spongetech stock and causing those shares to flood the market at artificially inflated prices. (See First Consolidated Amended Class Action Complaint ("FAC"), Dkt. Entry No. 46, Le et al v. Spongetech Delivery Systems, Inc. et al, 10-cv-4104.) According to the FAC, at the time he wrote the attorney opinion letters, Halperin knew that these Spongetech shares were unsaleable and not subject to any exemptions that would render removal of those restrictive legends proper. (Id. at ¶ 172.) The FAC further alleged that, in preparing those attorney opinion letters, Halperin facilitated the dumping of 2.5 billion shares of unregistered Spongetech stock onto the public market at artificially inflated prices which Plaintiffs purchased and sold in reliance on the representations in the attorney opinion letters. (Id. at ¶¶ 172, 174.)
Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.