Spongetech Delivery Systems, Inc. (fka SPNGQ)

[loanranger]

For reference purposes:
Following are the headings which briefly describe the laws and rules related to the alleged "violations of the federal securities laws contained in Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, as amended (“Securities Act”) and Sections 10(b), 13(b)(5) of the Exchange Act of 1934, as amended (“Exchange Act”) and Exchange Act Rules 10b-5, 13b2-1, and 13b2-2 thereunder; and Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Exchange Act Rules 12b-20, 13a-1, 13a-11, 13a-13, and 13a-14 thereunder."

Details of the laws and rules can be found by a simple search of:
http://www.law.uc.edu/CCL/xyz/sldtoc.html
It would appear that the reasons offered for the suspension as outlined in the suspension notice can be readily traced to items on the following list.


Securities Act of 1933
Section 5 -- Prohibitions Relating to Interstate Commerce and the Mails
a. Sale or delivery after sale of unregistered securities
c. Necessity of filing registration statement

Section 17 -- Fraudulent Interstate Transactions
a. Use of interstate commerce for purpose of fraud or deceit

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Securities Exchange Act of 1934
Section 10 -- Manipulative and Deceptive Devices
b. To use or employ, in connection with the purchase or sale of any security registered on a national securities exchange or any security not so registered, or any securities-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act), any manipulative or deceptive device or contrivance in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors.

Section 13 -- Periodical and Other Reports
(b)5. No person shall knowingly circumvent or knowingly fail to implement a system of internal accounting controls or knowingly falsify any book, record, or account described in paragraph (2).

Rule 10b-5 -- Employment of Manipulative and Deceptive Devices

Rule 13b2-1 -- Falsification of Accounting Records

Rule 13b2-2 -- Representations and Conduct in Connection with the Preparation of Required Reports and Documents

__________________________

Section 13 -- Periodical and Other Reports
a. Reports by issuer of security; contents
b. Form of report; books, records, and internal accounting; directives
2. Every issuer which has a class of securities registered pursuant to section 12 and every issuer which is required to file reports pursuant to section 15(d) shall--
A. make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the issuer;
B. devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that--

Rule 12b-20 -- Additional Information
In addition to the information expressly required to be included in a statement or report, there shall be added such further material information, if any, as may be necessary to make the required statements, in the light of the circumstances under which they are made not misleading.

Rule 13a-1 -- Requirements of Annual Reports

Rule 13a-11 -- Current Reports on Form 8-K

Rule 13a-13 -- Quarterly Reports on Form 10-Q and Form 10-QSB

Rule 13a-14 -- Certification Of Disclosure In Annual And Quarterly Reports