DD Support Board and Research Team

[shajandr]

SPNG had a nominal amount of income - a couple million dollars max - and they were caught paying people to buy their sponges from Wal-Marts and other stores to create sales. The sales revenue was a tiny fraction of what they claimed (less than 10 percent, more like 5 percent) and a tiny fraction of what they spent to create those few sales by marketing, paid-for-purchasers, and COGS.

Thye basically spent $4 to get $1 in sales and claimed they were getting $20.

It was a MASSIVE fraud.

Moskowitz is still awaiting sentencing on at least one conviction of securities fraud (the remaining counts are still pending and have not been dismissed) that can be up to 20 years on that one count. The SEC calculated the initial loss estimate at around $52 million (so far) so the sentence will likely be hefty. Mosky made a plea agreement that was contingent on his cooperation in getting some big fish convictions and recovering some of the funds - so far that hasn't panned out. Metter walked. The money has not been found. No big fish have been indicted or convicted. So it looks like Mosky will be left to take the hit at sentencing unless he can pull a rabbit out of his arse and find the money and net some big ticket convictions. Doubtful that.