SpongeTech disclosed in a Form 8-K filed late on Friday that it is being investigated by the SEC for possible securities law violations. In the filing, SpongeTech stated that
On September 18, 2009, the Company received a formal order of investigation issued by the SEC regarding possible securities laws violations by the Company and/or other persons. At this time, it is not possible to predict the outcome of the investigation nor is it possible to assess its impact on the Company. The Company and its officers and directors have received subpoenas requesting the delivery of certain documents. The Company has been cooperating fully, and intends to continue to cooperate fully, with the SEC with respect to its investigation.
As previously discussed here, on September 22, the NY Post reported that Joel Pensley, a former attorney for SpongeTech, claims that the company forged dozens of legal documents tied to its issuance of stock. In a letter to SEC Enforcement Director Robert Khuzami, Pensley reportedly says that he was “dumbfounded” to learn that his name was being used in “as many as one hundred opinion letters for various shareholders.”
can you supply a copy of the Subpoena or SDT served on Spongetech and its insiders. The documents sought would go a long way to determine the focus of the investigation. Thank You LW