Spongetech Delivery Systems, Inc. (fka SPNGQ)

[starfire]

This from their 8K..........................

On December 24, 2009, the Staff of the U.S. Securities and Exchange Commission (the “Commission”) sent a written Wells notice, which was received on December 28, 2009, to each of SpongeTech Delivery Systems, Inc. (“SpongeTech”), Michael L. Metter, SpongeTech’s Chief Executive Officer, and Steven Y. Moskowitz, SpongeTech’s Chief Financial and Chief Operating Officer. The Wells notices advised that the Commission Staff intends to recommend that the Commission bring civil injunctive actions against them alleging 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. The recommended actions would seek, among other things, permanent injunctions and civil penalties.

Under the Wells process established by the Commission, SpongeTech, Mr. Metter and Mr. Moskowitz have been offered the opportunity to submit a written or videotaped submission to the Staff setting forth any reasons of law, policy or fact why they believe that the civil injunctive action should not be brought or bringing forth any facts to the Commission’s attention in connection with its consideration of these matters (a “Wells Submission”) before the Staff makes its formal recommendation to the Commission regarding what action, if any, should be brought against them. SpongeTech, Mr. Metter and Mr. Moskowitz are consulting with their counsel with respect to these matters. There can be no assurance that the Commission will decide not to bring actions against them, nor can SpongeTech predict the outcome of any such action(s), if brought.

SpongeTech does not anticipate any material interruption in its business operations by virtue of the Wells notices or any action(s) that may be brought by the Commission. SpongeTech will continue to conduct its operations in the normal course of business, including receiving orders, shipping its goods and servicing its customers and suppliers.

http://www.sec.gov/Archives/edgar/data/1201251/000114420409067083/v170343_8k.htm