Spongetech Delivery Systems, Inc. (fka SPNGQ)

[scion]

9. As reflected in Exhibit 6, I calculated that RM Enterprises received approximately $52,356,995.40 in proceeds from the illegal sale of Spongetech securities in unregistered transactions, as reflected in RM Enterprises bank records, for the period January 1, 2007 to January 7, 2010, when the account was closed. The evidence indicates that these funds flowed into RM Enterprises's bank account during this time period from three primary categories of sources: (1) payments from third parties for RM Enterprises's transfer of purportedly unrestricted Spongetech stock in unregistered transactions, in the amount of$35,669,459.22; (2) transfers of funds to RM Enterprises from other Spongetech affiliates controlled by Moskowitz, such as Flo Weinberg, Inc. ("Flo Weinberg") and Vanity Events, Inc. ("Vanity Events") (see Declaration of Charles C. Davis, Jr. dated May 13, 2010, previously submitted in this matter, at 18, 20) (hereafter "Davis Decl. I at_") (Docket 2) (describing Moskowitz's control over the entities) in the amount of$5,207,576.18; and (3) transfers of funds to RM Enterprises from other Spongetech affiliates such as Asset Management Enterprises, Inc. ("Asset Management"), AIT Capital, Inc. ("AIT Capital"), and Wesley Equities, Inc. ("Wesley Equities") (see Davis Decl. I at 27) (discussing Spongetech affiliates such as Asset Management, AIT Capital and Wesley Equities), which entities served as conduits for the unregistered distribution of Spongetech shares and which entities received payments from purchasers of the Spongetech shares in the amount of $11,479,960.40. Consequently, RM Enterprises's total illicit gain from those illegal sales is approximately $52,356,995.40.


OCR extract -
Doc 142 PDF file
http://www.scribd.com/doc/120315851/SEC-v-Spongetech-Doc-142-Filed-13-Apr-11