Isn't SPNG connected with GET FUGU? Ouch!!
Bad news for Spongetech Delivery Systems, Inc. (OTC: SPNG)
Spongetech Delivery Systems, Inc. (OTC: SPNG) share price closed on $0.04 with trading volume of 5.986 million as on May 4th, 2010. Its average volume stands around 5.27 million per day.
As for today (May 5th, 2010) it has already dropped by almost 80 percent with volume of 126.15 million shares.
The sudden drop in the price of the SPNG is in reaction to the recently announced negative news in the market of its top executives being arrested for fraud. The charge is made on reporting false and untrue financial and sales figures showing overstated financial position of the company.
The involved Spongetech officials are its Chief Executive and President Michael Metter, Chief Operating Officer and Chief Financial Officer Steven Moskowitz, as both of executive are to face five years in prison on the fraudulent and conspiracy charge.
Further both executive will appear before US magistrate judge in federal court later on Wednesday.
It is believed that overstated sales figures and false financial statements were publicly reported between the time frame of January 2007 to May 2010 and sales contracts were reported, which never existed in the first place.
According to SEC investigation almost 99% of revenue of Spongtech was reported from fake sales contracts.
Spongetech Delivery Systems Inc. engages in vehicle cleaning products such as sponges, liquid absorbing foams, foams polyurethane matrices and other products.
Spongetech Delivery Systems, Inc. (OTC: SPNG) operates through its six main subsidiaries. The subsidiaries of Spng.pk are Spongetech Kitchen & Bath, Inc., Spongetech Health & Beauty, Inc., Spongetech Auto, Inc., Spongetech Medical, Inc., Spongetech Pets, Inc. and America’s Cleaning Company. Further the company also acquired Dicon Technologies in July 2009.
