Replies to post #239920 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[rocky301]

loanranger,

reporting(disclosing) an informal investigation is not mandatory. While it may be possible to go right into a Formal, I have never read or witnessed that.
This link addresses disclosure and SEC process/SEC opinion
https://www.complianceweek.com/article/1361/handling-communications-amid-sec-investigations

After reporting their findings from an informal investigation to the commission, investigators may:

* Seek an order to begin a formal investigation.

* Recommend the commission file an action in a federal court seeking an injunction, civil penalties, disgorgement, and other remedies.

* Recommend the SEC file administrative proceedings.

* Refer the matter to state and local authorities, professional organizations, or federal agencies that can pursue criminal charges, such as the U.S. Department of Justice.

* Refer the matter to self-regulatory organizations, such as the exchange on which the company is listed. This may cause the exchange to suspend or delist the company.

In some cases, the SEC may decline to pursue any further action. This may occur if investigators conclude that a violation has not occurred, there is insufficient evidence to prosecute the alleged violators, or because they feel investor losses may outweigh the benefits of prosecuting the case.