Free-spending fraudster
By KAJA WHITEHOUSE
Last Updated: 9:20 PM, September 29, 2011
Posted: 9:19 PM, September 29, 2011
nypost.com;
Steve Moskowitz, the disgraced financial chief of pump-and-dump scheme SpongeTech Delivery Systems, is battling with government regulators over his exorbitant monthly spending. In a letter to a Brooklyn federal judge, the Securities and Exchange commission said that it had reached a deadlock in negotiations over an allowance for Moskowitz, who pleaded guilty in the criminal case and is subject to an asset freeze.
Moskowitz, of Flushing, NY, demanded a whopping $27,850 a month, according to the letter. The SEC came back with $5,072 a month, including $2,272 for his mortgage and real-estate taxes. Moskowitz, who used phoney customers to inflate SpongeTech’s revenues, countered with $15,000, “but no less.”
“The commission cannot agree to this amount,” the agency said in the letter, and is seeking assistance from the judge.
kwhitehouse@nypost.com
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