Spongetech Delivery Systems Inc (fka SPNGQ)

[oilspec]

Loanranger: Yep, this is a funny situation. The way I see it, the Mutts have four choices:

1. They provide a truthful accounting of where the money went, including proceeds from the sale of unregistered securities. In this scenario (which won't happen) they would have to acknowledge illegal acts.

2. They provide a fraudulent account of where the money went. This would be an attempt to keep from incriminating themselves, but this very act will result in perjury because the SEC and DOJ have the facts on their side and they won't agree with the Mutt's fraudulent accounting.

3. They refuse to file anything - essentially "Pleading the 5th" again. I'm guessing this is the approach they will try to take. I expect this sets them up for at least Contempt of Court charges since the judge ordered them to make this accounting.

4. They skip town in an attempt to be reunited with their ill-gotten gains, hoping to stay just beyond attempts at extradition.