May 19, 2011
There is a very interesting story brewing in a Chapter 7 bankruptcy case. The company is called SPONGETECH DELIVERY SYSTEMS INC. (TICKER SPNGQ.PK). You probably have heard of their products Sponge Bob for children bathing, all in one soap sponges for car wash wax . I'll admit, there may have been some improprieties performed by some members of the company, but not all. The true criminals of the demise of this company is the Hedge funds, Broker Dealers, SEC and DOJ collusion ( in hopes of future considerations when looking for employment). The Market Makers allowed up to at least 50 billion NAKED SHORT SALES, without the fear of having to buy back (failure to deliver). The SEC is obligated to enforce the SHO rule to have all short sales repurchased within 13 days (which they never are). That is the law for SHORT SALES. Now the action of NAKED SHORT SALES (Which means selling shares you don't even have or expect to accumulate) is totally ILLEGAL, yet the SEC and DOJ fail to prosecute them. These are counterfeit shares being mass produced like counterfeit treasury bills, with no one being ACCOUNTABLE. For this Company that equates to hundreds of millions of dollar's, and all tax free. You see, if they can force the company into bankruptcy, there is no record of capital gains, so they profit twice, while the IRS loses revenue. Can you imagine buying a car from a dealer, only to find out there are 1,000 other titles issued for the same automobile and then it goes on fire? If you are interested in what is called the biggest NAKED SHORT SALES in a penny stock EVER, please contact me and I will introduce the group members who have all the DOCUMENTATION from our research. Thank You for taking the time to read this e-mail and hope to hear from you soon, Gary Jacob