Spongetech Delivery Systems, Inc. (fka SPNGQ)

[236T568]

starfire, accounting problem?

the problem was that Moskowitz made up numbers that were fraudulent and put them into the financials statements to make it look like SPNG has an exciting, growing business.

With revenues of less than $1 million he claimed about $40 million, all made up out of thin air.

Very few of the tens of millions of accounts receivable ever existed.

With actual shares outstanding of 1.27 billion, he fraudulently claimed about 627 million in the SEC filings, completely misleading the investment public.

He issued over 2.0 billion of SPNG shares to related parties and consultants and fraudulently removed the restrictive legends (some with the use of law firm that he also made up - never existed) so that they could be fraudulently sold into the market, netting the sellers more than $100 million.

other than that, good read

Nice highlighting....so what was the accounting problem...that he did not do a good job of accounting the share structure which appears on the Balance sheet...what did he mask..the truth or the scam? Did he account to the upside or to the downside? still lot of questions! And , Oye...what was the thing on the securities deal...did he wrongfully enter into a swap deal with RME?? Did he have the SEC on a wild goose chase?