Spongetech Delivery Systems Inc (fka SPNGQ)

[toxicdebtspiral]

"These shares, however, are still authorized. We can, and do, agree that SPNG mgmt etal sold restricted shares on the open market via fake opinion letters. These shares are real authorized shares with the fraud being the opinion letters."

The problem with your assertion is that it does not fit the facts of the case. SPNG had sold at least 1BB over the authorized number when they tried to cover their tracks. The link below is the first filing indicating a change in the by laws to authorize 3 BB shares. At that point in time the SEC had begun their formal investigation.

http://www.sec.gov/Archives/edgar/data/1201251/000114420409050122/v161351_8k.htm