Some weekend spng humor from the hearing.
Finally I had My chance to speak. I proceded to tell the judge that
the SEC's remark about "Angry Shareholders"
I told him we not as angry over loss of money as we are "WHY" we're
losing it. I then informed him I needed to talk about something a
little off subject. Naked Short Selling (NSS). I told him how Naked
Short Sellers protected by the SEC through non enforcement had run
SPNG share price down. I pointed out that the SEC looks to the private
sector for future employment. Because you don't make a great wage as a
government employee. I said as I'm sure your honor will agree with
that. He said something along the lines of yes I can cornfirm or agree
with that. The judge and court giggled. Then I told him that what I
understood was the as far as this case went he was
"THE MAN". He was the one in control of everything now.. He said thaks
but he might not be all that or something, again getting a giggle from
the court. Then after getting that "Angry Shareholder emark off my
chest I began to read my prepared statement. Which went as follows.
Good Afternoon you’re Honor,
My name is James Sasser. I also go by the name Musicman on a Google
message board for SpongeTech investors called The SPNG Long Board.
The
reason this board was formed was to have a place where the
“investors”
in SpongeTech Delivery Systems could discuss their investment in
SpongeTech without the legions of “stock bashers allegedly hired by
naked short sellers of the stock. That bashes the company 24/7 on
other public message boards.
The members of this board have asked me to come here and speak on
their behalf about the appointment of Mr. Hays as receiver for
SpongeTech in its ongoing chapter 11 bankruptcy proceedings. Which I
might add on behalf of my group was at least partially caused by the
alleged naked short selling or “counterfeiting” of the company’s
stock.
Your Honor.
There is an old saying about the devil’s greatest trick being that he
got people to believe he’s not real. I would like to suggest that the
greatest trick Wall St. and The Securities and Exchange Commission
has
pulled off is. That naked short selling does not exist. Your Honor I
beg you to pull back the curtain and reveal how they have tricked not
only Americans investors but investors worldwide out of billions of
dollars systematically over several years. Your Honor, The SEC is
supposed to protect us from this kind of treachery. The SEC’s
inability or unwillingness to do its job has been proven time and
time
again. One only needs to look at the Bernie Madoff scandal or the
recent Goldman Sachs fiasco. Another example of the SEC’s many
failures could be SpongeTech itself. Why did it take several months
for the SEC to act after being informed by Mr. Halperin of possible
wrongdoing by the company? Why is the stock still trading after only
a
brief halt in trading many months ago? If the SEC is so sure that
management of SpongeTech has committed the biggest penny stock fraud
ever. How is it possible for the stock to still be trading at this
very moment? These are all valid questions asked by hundreds of
shareholders. They deserve answers.
Which is why in a previous petition to this court requesting you
appoint an attorney for the retail shareholder was even submitted to
the court. We did not know if that was at your discretion or not. All
we know is no one wanted to hear from us until you got involved. You
gave us a voice and we thank you and appreciate you giving us this
time to express our concerns. After we leave here today, you alone
will be our only hope that someone with the power you have for
EVERYONE including the people or entities that allegedly
counterfeited
this stock. Also sanction the SEC for such inept protection of the
American stock market. Your Honor the devil is real he is working in
our financial institutions and he is actively destroying the hopes
and
dreams of the American investor.
Mr. Hays is not suitable as receiver in this case for several
reasons.
Mr. Hays resides in Georgia while SpongeTech headquarters are in NY.
This creates a few problems. One is the added expenses that Mr.
Hay’s
will incur from the extensive travel between Georgia and New York.
Since we also believe the Dicon Bankruptcy should and will be
combined
with the SpongeTech Bankruptcy. There is absolutely no reason a
person
who resides in Georgia to be appointed as receiver. Since all the
proceedings will take place in New York.
Mr. Hays has been appointed I believe 13 times as receiver by the
SEC.
13 times the companies were liquidated. This to us shows a profound
inability for Mr. Hays to turn a company around and allow it to
emerge
as a growing concern again. As you already know your honor,
SpongeTech
has wonderful products. That are environmentally friendly and work
beautifully. SpongeTech sales were just beginning to take off just as
this current situation all started. They did over 7 million dollars
in
sales, during the most difficult time in the company’s history.
It is our hope that you will disqualify Mr. Hays as receiver and
appoint a truly disinterested party as receiver with a proven track
record of bringing companies out of bankruptcy. One who can be
trusted
by the court, the company itself, the creditors and the shareholders?
Then I tried to revisit the NSS issue and after about a minute the
judge stopped me and said we had to get to the rest of the people who
needed to speak
I was followed by many others stating reasons why Hays should be
replaced and hitting on the NSS issue. Which for two of the speakers
ran into a little snag IMO. One was a little unprepared to answer the
judges question of "Why the SEC would want to cover up NSS?" Maybe
unprepared is not the right word "Surprised" might be more
appropriate. Never the less IMO was not as clear as it could have
been. Another speaker when he spoke of NSS said I assume you
understand what NSS is. The judge replied " Why don't you educate me?"
The speaker went on to give a rather poor definition of How NSS works.
I will be sending the judge a letter better explaining how legal short
selling works, how NSS works and why the SEC would want to cover it up
on Monday.
Pike then finally gets his chance to speak. I can't quote you word for
word but I'll try to get his points accross. He started off listing
the extensive DD he did on the company. Criss crossing the country
visiting retailers asking about sales, visiting Dicon and SPNG
offices. truly extensive DD. He said his father taught that in
bankruptcy court the judge is king. He then ripped into Mosko asking
thr judge to order that Mosko release all the information needed. He
said he was a big boy and if he made a mistake he would deal with it,
but if the company was dead then he wanted an autopsy. He got applause
from the shareholders. Which got the judge to bang the gavel again.
Pike was followed by a couple more shareholders. One of which blasted
Hays for wanting to destroy the company, He accused Hays of wanting to
burn it down. He followed that up calling Hays "The Cremator" Which
drew laughter from the audience and the judges gavel once again.
After that the judge gave a 10 minute recess. then it was the Judges
turn.
The judge seemed a little sympathetic torwards reviving SPNG. He said
that BK court was the emergency room and the patient was in critical
condition. He suggested that SPNG's problems were serious but possibly
not fatal if they could get the money to bring them out of BK. He
suggested a possible equity comittee. Whereby shareholders could put
up the money to bring SPNG out of BK. The judge said he could not make
a ruling because there was no motion filed at that time for him to
rule on.
Then the lawyers were given another oppotunity to speak.They basically
said if the shareholders want to do that then go ahead let them form
the comittee.
The court was then ajourned.
A brief conversation with Furth told me that it was possible. Everyone
told Mosko to get something filed. Mosko then said he was going to try
and get the financials filed by Monday. His comptroller said it was
not finished but he thought he could get it together. Also there was
talk about him getting the equity comittee formed. I am getting to be
brief here because I want to give you my conclusion of what I believe.
My Conclusion:
I am surprised at what I feel may be happening as I was very
deppressed and not feeling very hopefull after court. It seems however
as I was writing this things just seemed to fall in place for me to
understand what I think is happening. The one biggest hurdle we still
have is Hays and Mosko. If you subscribe to my theory about Mosko,
then maybe he's not that bad after all. OK so here I go.
My opinion is...........
Mosko has been trying to get us here into BK. He is doing so for a
couple of reasons. First being that he can keep the finacials hidden
so they don't come to haunt him in his criminal case. Secondly, If he
can get us out of BK then the Finacials will never have to be
revealed. Saving him from the embarrassment of showing he may have
lied about his public statements and the company's sales and like I
said giving the SEC less evidence to work with. Now here is the best
part. If he/we can get out of BK then the company will emerge as a
"Brand New" company with a different Cusip# and new compay name and
trading symbol. Everything will still be in place for the company to
move forward ie manufacturing, sales, existing customers. The Cusip
change would force the shorts to cover causing a moass. Now you could
look at Pike and say why did he blast Mosko so hard in his statement
to the court but you would also have to ask why Pike just in the past
60 days loaned SPNG a $140,000 bucks to meet it's current obligations.
To me it seems Pike is not ver happy with Mosko's plan because he
could care less about saving Mosko's criminal ass and did not want to
be in BK court to begin with. So one could believe two things about
Mosko. One he is just a crook and a fraud or he has this plan and has
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