Spongetech Delivery Systems Inc (fka SPNGQ)

[scion]

12/08/2011 197 Letter re: Motion to Lift Stay of Freeze Order by U.S. Securities & Exchange Commission (Kisslinger, Paul) (Entered: 12/08/2011)

Doc 197 PDF file
https://viewer.zoho.com/docs/iWQc8

Extract -

We raise two additional points. Mr. Metter’s monthly living expenses, agreed upon by the defendant and the SEC, included monthly payments on a luxury boat. See Transcript of March 28, 2011 Hearing at 12-13. Originally, the SEC agreed that the asset freeze be lifted temporarily to allow continued payments on the boat in order to preserve this asset, for potential disgorgement, pending its timely sale to a buyer. See id. at 16-17. However, a buyer still has not been found, maintenance and financing expenses continue to mount, and we understand there is relatively little equity in the boat to justify further payments. Accordingly, if the boat is not sold by the end of this year, the SEC likely will request in future filings that Mr. Metter’s allotment for monthly living expenses be reduced accordingly.

Finally, the SEC has recently learned of two additional BTR affiliated checking accounts not previously identified to the SEC or the Court that should be included in the proposed Order at paragraph 1: a Bank of America account ending in 8167 for the KNUU station in Las Vegas, and a Bank of America account ending in 8170 for the WXBR station in Boston. We would like confirmation from BTR that there are no additional BTR-affiliated bank accounts that have not been previously identified to the SEC or the Court.

Respectfully