Psst, Kaja. Another Sponge-related fraud story.
SpongeTech Trustee Silverman objects to Dicon Trustee's motion to sale Dicon.
"Kenneth P. Silverman, the chapter 11 Trustee (the “SpongeTech Trustee”) of SpongeTech Delivery Systems, Inc. (“SpongeTech”), by his attorneys, SilvermanAcampora LLP, respectfully submits these objections to the Amended Motion dated August 31, 2010 (the
“Motion”) of Lloyd T. Whitaker, the chapter 11 Trustee (the “Dicon Trustee”) of Dicon Technologies, LLC (“Dicon”), and represents as follows:
1. Underlying the seemingly garden-variety Motion, which seeks authority to sell substantially all of the assets used in Dicon’s business, is
(i) a massive fraud perpetrated on public holders of SpongeTech stock,
(ii) the highly suspicious sale of Dicon’s membership
interests to SpongeTech by Wayne Celia (“Celia”), a principal of Diversified Technologies, Inc. and JKA, Inc., the current, putative purchaser of Dicon’s assets (collectively, the
“Bidder”)," etc.
