Spongetech Delivery Systems, Inc. (fka SPNGQ)

[DBS02892]

That's the scenario I was hoping some of the more seasoned investors here would help us explore yesterday: let's assume the SPNG management team did commit some sort of security fraud back in their 08 fiscal year and during part of the 09 fiscal year too, but they then realized that they could get a real business going and are now trying to clean up their act.

Then what's the most likely outcome of the SEC investigation ? A fine and then letting SpongeTech go back to actually growing a legit business ?

> It's not 100% scam...it's also a legitimate company. They
> have just made 10s of millions of dollars to stuff in
> their own pockets on the side using the share selling power
> of a legitimate business. 2008 sales with those mystery
> companies is partly scam...they will get hit on that, but
> you are right...I believe they fully thought they could
> take this company to a major status as well.