Replies to post #346372 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[cowtown jay]

I agree that this is a very big deal, and I would also like to see Congress examine this issue.

This is exactly why I wrote to Secretary Mnuchin, and asked him to escrow any funds disgorged in the SpongeTech case, for the eventual return to shareholders, from whom that money was stolen, as opposed to being transferred to the Treasury's general fund, as the SEC proposed. As I told the Secretary in that message, this amounts to nothing less than the immoral conversion of funds rightly belonging to shareholders.

Justice Sotomayor "noted that the money received often goes to the government rather than victims of the fraud." The question that the Court slept right through is "WHY isn't disgorged money being returned to the injured investors from whom it was stolen?"