Spongetech News
The Spongetech (SPNG.pk) story gets more interesting. SPNG was once the hottest penny stock around. The sad thing is that the stock traded on all false news and investors were scammed out of millions of dollars. Today the company filed for volutary Chapter 11 Bankruptcy.
Back in May Michael Metter and Steven Moskowitz were arrested after the Securities and Exchange Commission alleged that they obstructed their investigation into the company’s revenues. SPNG allegedly padded there actual sales and reportedly created customers out of thin air in order to create liquidity in the once low priced penny stock. Even more concerning that the fake press releases is the fact that the top executives of the company allegedly falsified documentation in order to create free trading shares of SPNG so that the could sell on the open market to unknowledgeable penny stock buyers. Joel Pensley, a New York attorney stated the SPNG executives used his signature on letters that he had never written in an effort to create close to 2.5 billion shares.
The company used profits from stock sales to create a major advertising campaign in which you could see the company name in Major League Ballparks, NFL Stadiums and NHL & NBA Arenas across the country.
Recently SpongeTech’s manufacturing company that was once under the Berkshire Hathaway umbrella also filed for bankruptcy. The creditors accused Moskowitz of taking cash from the plant, including $700,000 this year alone.
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