(1) is enjoined from violating Securities Act Sections 5(a), 5(c), and 17(a), Exchange Act Sections 10(b), 13(a), (b)(2)(B), (b)(2)(B), 15(d), and Exchange Act Rules 10b-5, 12b-20, 13a-13, 15d-1, 15d-11, 15d-13;
(2) is enjoined and restrained from destroying, altering, concealing or otherwise interfering with the access of the SEC to any and all documents, books, and records, that are in the possession, custody, or control of Spongetech, its officers, agents, employees, servants, accountants, financial or brokerage institutions, or attorneys-in-fact, that refer, reflect, or relate to the allegations in the complaint, including, without limitation, documents, books, and records referring, reflecting or relating to its finances or business operations, or the offer, purchase, or sale of Spongetech securities and the use of the proceeds therefrom;
(3) must file with the court and serve upon the SEC, within ten (10) business days from the date of this Order, a verified written accounting, signed under penalty of perjury, of:
(a). all assets, liabilities and property currently held, directly or indirectly, by or for the benefit of Spongetech, including, without limitation, bank accounts, brokerage accounts, investments, business interests, loans, lines of credit, and real and personal property wherever situated, describing each asset and liability, its current location and amount;
(b). all money, property, assets and income received by Spongetech, or for its direct or indirect benefit, at any time from January 1, 2007, through the date of such accounting, describing the source, amount, disposition and current location of each of the items listed;
(c). the names and last known addresses of all bailees, debtors, and other persons and entities that currently are holding the assets, funds or property of Spongetech; and
(d). all assets, funds, securities, and real or personal property received by Spongetech, or any other person controlled by Spongetech, from persons who provided money to Spongetech in connection with the offer, purchase, or sale of Spongetech securities, from January 1, 2007, to the date of the accounting, and the disposition of such assets, funds, securities, real or personal property.
SCION: You might want to post this one as a sticky notice. This is a really significant ruling because the judge finally ruled on the strength of the SEC's case in the civil lawsuit. The judge is imposing an asset freeze on Metter and in a few weeks is likely to impose an asset freeze on Moscodimwitz.
03/14/2011 112 ORDER granting in part, staying in part, and denying in part 2 Motion for Preliminary Injunction - For the reasons set forth in the ATTACHED WRITTEN MEMORANDUM AND ORDER, plaintiff's motion for the issuance of a preliminary injunction against the named defendants is granted in part, stayed in part, and denied, in part, without prejudice. The parties are admonished to adhere to the timetables set forth by the court in the Preliminary Injunction Order issued with the Attached Written Memorandum and Order. SO ORDERED by Judge Dora Lizette Irizarry on 3/14/2011. (Irizarry, Dora) (Entered: 03/14/2011)
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