Spongetech Delivery Systems Inc (fka SPNGQ)

[Christy from Google]

No Harvard, I think the sales are real. Always believed this.

BUT if the sales are FAKE, Mosky would complete the cycle and file the 1120, based on the fake numbers. In order to continue the Illusion.

Quite common for Ponzi and "kiting" schemes. Dealt with this situation several times (after the fact). The big problem is the IRS SOL.

In regard to the refund, if SPNG goes under in FY 2010, a NOL will be generated in FY 2010 and can be carrybacked to FY 2009 for federal purposes (the states are all a little different) and the 2009 tax will be refunded.

If sales are fake, an amended 2009 return would be filed, to get the taxes back.