Replies to post #339116 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[starfire]

yes, shareholders are routinely cheated as these so called investors remove restrictive legends illegally and distribute the shares, thus making them unregistered shares!Of course, sometimes, they steal the certs or counterfeit them, all in the name of making monies and at the expense of shareholders. And then there are other methods that they employ too, like borrowing shares against restricted shares and then shorting the company's stock to oblivion.

[puppydotcom]

The shareholders are the victims. What false assurances did these vultures promise the company? That is the key question here. Did they lie to the management of these companies to obtain the shares for cash? All upstart companies are in need of cash, isn't that why they are public?



where do you see any of this in regard to SPNG before the BK court or the SEC or the DOJ

[Renee]

I do agree that Spongetech shareholders are victims, the same as shareholders are victims of any other stock where the principals commit securities violations, and / or frauds, or just by a toxically diluting & reverse splitting the stock into oblivion on false and misleading news releases.

In a perfect stock market world the SEC would hire thousands of investigators to dissect every SEC Filing, Financial statement, every news release, and every action a public company does to instantaneously intervene at the onset of suspicious activities.
In the real world that type of pro-active supervision will not happen....a budget constraint issue.

Of course, our cities would be safer if each city hired thousands more Police Officers. There's that budget constraint issue again.

In the real world citizens are expected to abide by the laws of the Land and public companies are expected to abide by good and honest business practices. Most do. Too many are predators who think they can violate the law with impunity, like the Spongetech principals as a prime example.

When a person commits a crime there are victims. The Spongetech principals inflicted brutal consequences on their victims (shareholders and creditors) by their sociopathic disregard for basic ethics and morality, and arrogant violations of the Law and Securities Law.

As with the U.S. Bankruptcy Laws for ALL public companies the Secured Creditors get paid in total if there is money to do so. Then Unsecured Creditors get paid if there is any money left. Then Preferred Shareholders, if any. Then Judicial fines, if any. Then Trustee costs supercedes all other costs. Lastly the common shareholders may receive money ONLY if all other claimants are paid in full, first!!

To comprehend the hopeless situation for SPNGQ shareholders just study a few dozen Bankruptcies of National Market stocks to realize that common shareholders get ZERO compensation 99% of the time. In my dozen years of studying Bankruptcies I have never found even one OTCBB or OTC stock return one red cent to common shareholders. Exacerbate the Spongetech Chapter 7 Liquidation Bankruptcy with the plethora of Securities and Criminal charges with massive fines and disgorgements, and it should be as clear as clear can be that Spongetech's common shareholders cannot and will not receive one red cent of compensation.

Deflecting onto phantom, perceived, or even real other culprits won't change the reality that Spongetech was a criminal enterprise that created victims. And for the record the NSS conspiracies promulgated by NSS conspiracists are myths on the toxically and often illegally diluting companies on the OTCBB and OTC as witnessed in thousands of SEC Litigations against those companies and principals. It is always the serially diluting company's fault and no-one else's.

Accept or reject my studied contentions. It's a choice.