Tuesday, July 14, 2009

Why rob banks when you can sell penny stocks?

Dead Fish on a Silver Platter

Being a public spirited citizen I am passing on a deep insight that should make the SEC's job of policing markets easier for them: go to InvestorsHub.com; read the "top ten" stocks being discussed; they are all odds-on scams.

Number one in the listing for several months has been Spongetech (OTCBB SPNG), a cash poor penny stock that claims to be selling tens of millions of dollars worth of soap impregnated sponges, and whose fanatical message board following believe will soon be a billion dollar company.

I will not belabor the company's dubious financial figures, its gagged transfer agent, or the fact that over 90% of its claimed sales are to companies of questionable existence.

Why go to all that hard work when there is clear and convincing evidence that the company has forged an attorney's signature on opinion letters opening new stock to free trading status, constructed a fictional New York City law firm for yet other opinion letters, and gotten dumped by their former transfer agent because of these actions.

The SEC would be on this one like a duck on a junebug if they only knew, right?


The SEC has had hard documentation of these facts in their possession since May 15, 2009, since which time clueless investors have lapped up BILLIONS of questionably registered shares at prices ranging from ten to twenty cents per share. Not Madoff level, but not chump change either.

Some stock fraud cases are tough to make. This is a slam dunk that a Summer intern could handle.

But from the Federales?


UPDATE-We now have hard confirmation that Spongtech, despite claims of a share buyback, has outstanding shares in excess of 2.2 billion, several hundred million of them newly minted in June and distributed to insiders and promoters.


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