Spongetech Delivery Systems, Inc. (fka SPNGQ)

[hoggey1]

Looks like Celia (was) sued for fraud.

Aquamatrix (plaintiff)

sued

HH Brown Shoe, Dicon Technologies and Wayne Celia (Defendants)

http://www.scribd.com/doc/33430634/Litigation-Complaint-122107

I don't have all the particulars, regarding outcome - any settlement, judgment or award, but the suit is curious in that it alleges Celia committed fraud and...

"As a director of Aquamatrix, Celia owed a duty of loyalty to the corporation which prohibited him from using his relationship with the corporation to his personal advantage.

"Celia repeatedly breached the duty of loyalty owed to Aquamatrix by knowingly and/or neglegently making false representations regarding the business and profits that Aquamatrix would enjoy if it purchased certain assets of Dicon, and by misrepresenting the condition of the assets..."

It sounds like there are some questions as to Mr Celia's character and/or ethics, to say the least. And this is a curious consideration in light of the recent development(s) with Dicon and the allegations that M&M embezzled Dicon's funds.

And Wayne Celia was paid handsomely by SPNG.

http://biz.yahoo.com/e/090715/spng.pk8-k.html

"In connection with the acquisition Dicon entered into employment agreements with certain key employees and we entered into an employment agreement with Wayne Celia, pursuant to which Mr Celia will serve as President and CEO of Dicon for a term commencing July 1, 2009 and ending on December 31, 2011...Mr Celia will be paid an annual salary of $265,000 for 2009, $274,275 for 2010, $285,875 for 2011. In addition, he is entitled to certain incentive compensation payments that are linked to Dicon's Achievement of certain projections relating to base year sales and base year earnings..."

That states very clearly that Wayne Celia was IN CHARGE OF DICON. So then, exactly who did what, and to...

Again, in light of all that has happened, and alleged to have happend regarding SPNG, this forced bankruptcy petition is a most curious development. And considering this petition came out of nowhere and at the 11th hour, right as talk of SPNG and the SEC reaching an imminent settlement, with rumored favorable outcome for SPNG shareholders, is indeed too curious to ignore.

Has anybody considered the possibility that Mr Celia may have friends working for Bryan County or the other two plaintiffs?

Very Curious!