The SEC has launched another google search seeking information concerning Spongetech.
This time, as you can see, it has to do with the Transfer Agent.
What could the SEC be doing searching for information concerning Spongetech's Transfer Agent??????????
Hummmmmmm???
I do not know, but it is very thought provoking.
As you all will notice, the SEC spent no time viewing my blog page that they landed on, as I assume they have all of my pages copied and filed already, there is no reason to spend time reading a page they have already read and can access thru their files. This just proves they are not investigating me as you people like to claim.
But if they are searching for information,
THEY ARE INVESTIGATING SOMEONE!!!!!!!!!!!!!!!!
hahahahahahahahhahahahahahaha
Here is the proof, read it and weep,,,,,,
Why is it remarkable that the SEC would be doing Google searches regarding Spongetech's transfer agent? Sorry, I'm not sure I see the link between the SEC searching for information about SPNG on the internet and some sort of wrongdoing, real or imagined.
ReplyDeleteHere's what I do find remarkable, however. Why is it that Spongetech has gone out of its way to significantly overstate cash flow from operations in its most recent Form 10-Q for the period ending 02/28/2009?
Here's a link ... cursor down to page F-5:
http://www.sec.gov/Archives/edgar/data/1201251/000114420409021409/v146656_10q.htm
And the overstatement is big, since the company added back financing cash flows (proceeds the company received from the sale of $4.9 million worth of stock) as an operating source of funds.
The company knows, just like any accounting undergrad knows, that the company's sale of stock is a financing cash flow.
However, had Spongetech put the $4.9 million of proceeds where they belonged, in the section for financing cash flows, it would have made Spongetech appear to have a huge negative operating cash flow deficit ($5.1 million negative) instead of being slightly negative (to the tune -170,017) that the company reported instead.
That's what the SEC ought to be looking at, among other things.
Keep up the good work. It's hard to find people concerned about these kinds of shenanigans.
Spongetech made a big deal earlier today about their partnership with Nxgen, a copy of which is at the bottom of this message. Turns out, however, that Nxgen is a company with a checkered past.
ReplyDeleteGood to see the management of Spongetech has latched on to a business partner at Nxgen who can teach them a thing or two about how to go about hosing the investing public. Before SPNG shareholders start flailing their arms and crying foul, note that the stock symbols for the two entities mentioned are the same -- NXGH in both cases.
From the site: http://www.realpennies.com/otc/NXGH
SEC Charges NXGEN Holdings, Inc. and Its CEO
08/15/2008
The Securities and Exchange Commission announced that it obtained an emergency court order freezing the profits from an alleged $13 million international fraud involving a Seattle-area microcap company and a Barcelona stock promoter. The Commission charged Bremerton, Wash.-based NXGEN Holdings, Inc., and its CEO Gene Hew-Len with issuing a series of false press releases touting the company's business dealings. The Commission also charged Francisco Abellan of Barcelona, Spain with coordinating the scheme, sending glossy promotional mailers to over 2 million U.S. recipients and unloading over $13 million in GHL stock on unsuspecting investors. At the SEC's request, the federal district court in Tacoma, Wash. Thursday issued an order freezing Abellan's assets and prohibiting him from further dissipating the proceeds of the scheme. GHL is an installer of GPS-based navigation equipment. According to the Commission's complaint, in early 2006, President and CEO Hew-Len and stock promoter Abellan arranged for GHL to issue millions of shares of GHL stock to offshore entities designated by Abellan. In April 2006, the SEC alleges, Abellan caused the dissemination of 'The Street Stock Report,' a full-color glossy mailer sent to millions of U.S. addresses urging investors to purchase GHL stock quickly to see huge trading profits. Around the same time, Hew-Len issued nine press releases over a nine-week period hyping the company. Among other things, according to the SEC, the press releases made false claims about contracts with large customers, fraudulently touting millions of dollars in potential revenues. Following this concerted promotion campaign, GHL's stock price doubled and trading volume spiked nearly 1500%. Abellan and his entities sold their GHL stock holdings for profits in excess of $13 million. The stock, which reached a high of nearly $9 per share at the height of the scheme, now trades at under a penny. The SEC's complaint charges GHL, Hew-Len and Abellan with violating Sections 5(a) and 5(c) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks preliminary and permanent injunctions, disgorgement, penalties, and other permanent and emergency relief. The complaint also names various entities associated with Abellan, including Vega Star Capital, EU Equity Holdings, and KLO Financial Services, as defendants or relief defendants. Pursuant to the court's order, a hearing will be held on August 27, 2008 to determine whether the asset freeze will remain in place during the remainder of the litigation.
You can also find an original copy of the lawsuit the SEC filed against Nxgen by going to the SEC's site at http://www.sec.gov and using the Search box at the upper right hand of the screen. Just type in the search term "Nxgen" and the lawsuit will pop right to the top of the document folder.