Replies to post #317621 on Spongetech Delivery Systems Inc (fka SPNGQ)

[wuyanks]

i think you may have something there... and from the looks of the affadavit, SPNG may have affiliated offshore accounts in hungary, the bahamas, switzerland and panama

[hasher]

I have been saying that money laundering is part of the program since day one. It will all come out in the wash (pardon the pun) and the mutt bros will probaly be well qualified for prison laundry duty.

[demmo47]

"I have begun to wonder if Pike purchases were some kind of money laundering."

Your post hit the nail on the head. Consider this possible example:

Say the Mutt brothers move 2,000,000,000 shares from AS to an offshore account. Maybe those shares were at par value $0.0001 which equates to a cost basis of $200,000.

Those 2B shares are incrementally floated into the market at a price of $0.04. That equates to $80,000,000.

Suppose Pike is in cahoots with M&M in the offshore accounts and Pike agrees to be a catalyst for buying.

Pike spends $16 million to buy up those shares at $0.04. Total shares bought equate to 400,000,000. His buying on the open market spurs the gullible into believing success is at hand. They sop up the other 1.6 billion shares.

$80,000,000 minus $16,000,000 is $64,000,000 in profit (not accounting for negligible $200,000 cost basis).

The fund loses money but Pike still gets his share of the offshore $64,000,000.

[themanfromboston]

Ris, it wouldn't exactly be risking $18 million

here is a potential scenario:


1. Offshore entities though Pike buy $18 million worth of SPNG stock in the market.

2. Most of the $18 million is the result of illegal activivities offshore and it is desired to "clean" this $18 million.

3. SPNG issues shares to RME which then transfers the shares to a third party.

4. The third party in #3 above, then sells $18 million worth of SPNG shares into the market as Pike is buying $18 million in the market.

5. The third party in #4 above nets $18 million.

6. The third party in #5 above then transfers 90% of the $18 million of "clean" cash netted by selling SPNG stock into the market to the original "offshore entities" mentioned in #1 above.

7. Moskowitz and Metter end up with 10% of the $18 million or $1.8 million for the "laundering"

8. The entity in #1 above then transfers another 10% to Pike and ends up with 80% of the orginal $18 million, but in very clean cash, and the 180 million in SPNG shares which will go to zero eventually.

9. All of the Pike buying in the market, particularly because it typically was at the high of the day makes it seem as though something positive is happening with SPNG.

voila