Spongetech Delivery Systems, Inc. (fka SPNGQ)

[rdailey4]

I believe the collection order is Short Sellers first, Then MM's, Then Brokerages, but ultimately the onus is on the Brokerage Firms, ie. Scottrade, Td AmeriTrade, etc.

Some one correct me if I'm wrong, but the order to buy or sell is placed with a Brokerage Firm, then that order is placed with an MM. It is the responsibility of both the Broker and the MM to verify that there are shares available and that the shares are legitimate. None of them ever check it out. In the case of naked shorts, the Brokers don't want to do it but usually the seller who placed the short order is a large customer and they don't want to risk losing their business. In addition, they are playing the odds. Most penny companies end up going under and so the naked short shares do not need to be covered. In this case, Spongetech was the exception and became successful.

There are a lot of different MM's involved and a lot of Brokerage Firms involved. Between them and the short sellers and their assets, there will be plenty of money to pay us dearly for our shares. I would venture to say there will be no bankruptcies among them either.