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Pastimes : Investment Chat Board Lawsuits -- Ignore unavailable to you. Want to Upgrade?

To: Bear Down who wrote (10948)	1/18/2010 10:43:00 AM
From: scion	Respond to of 12465

SPNG has enough legal problems to keep their lawyers busy - here's another one: Message 26252963

To: Bear Down who wrote (10948)	1/18/2010 1:48:51 PM
From: anniebonny	3 Recommendations Respond to of 12465

Patchman has been at it for a few months now on SPNG. a few highlights are here: atomicbobs.com He did some pretty thorough digging and some rather humorous postings to some of the IHUB clowns that were screaming SPNG was being naked shorted. I really felt he did this because these same clowns were ruining his fight against the NSS. Diluting out his fight basically. Here is an interesting post to one of those clowns: siliconinvestor.com Posted by: patchman Date: Monday, September 28, 2009 8:03:50 AM In reply to: sonystyle who wrote msg# 217620 Post # of 218951 To answer some of the questions asked of me in private this past weekend. Yes, I am the David Patch that operates www.investigatethesec.com. I have reviewed the facts pertaining to SpongeTech and have posted by facts and analysis in the FOIA/Analysis section of the web site. My opinions are quite clear; I believe this to be a scam company as many others that used the Naked Short Sale Venue were as well. Fact 1. Just because you are on the SHO list does not 100% verify that naked short selling is the cause. Insiders dumping recently issued shares will create the same look and settlement result as a NSS. It takes longer for paper certs to clear and thus they create fails. When a company, supposedly profitable company, has to dilute their market to the billions it is a red flag, more so when the dilution is directed to entities controlled by the company officers (RME). Fact 2. The executives of SpongeTech have done everything in their power to dissuade you away from their activities. If they are clean it would be very easy to prove. They choose not to. Why not File Form 4’s and Form 13’s proving their true stock ownership? If they go NASDAQ they would have to and clearly, these guys have no problem reporting changes in share structures. I do not believe RME hasn’t sold any shares because to date, more than 80% of all shares have been issued to them. With the trading volume we see daily, the FTD’s would be much greater if it was NSS as long fails from long investors bailing would show up as a fail. Fact 3. Not a single long investor has come up with a contact for the customers SpongeTech claims they sell to. Why not? Instead of shooting the messenger, do your homework and prove the messenger wrong. I could not find any contact information and, the story reported by the Post was based solely on their research into the contact information SpongeTech provided. Why didn’t SpongeTech give up contact information that could be verified? USXP and CMKX were similar scams. The officers befriended the investors and created a cult like environment but a scam at that. Both the executives of CMKX and USXP have been arrested by Federal Authorities for perpetrating a scam and using NSS as their rally cry. For 10 years I fought the issues of NSS. Today I continue to fight the issues by outing those who wrongly claim it is the cause for their stocks collapse when in fact it is not. Companies like SpongeTech make progress in NSS reforms harder because investors like you contact the SEC and claim NSS when it is not. NSS is real, just not real here. Do your own diligence; find solid third party evidence that SpongeTech is real. Don’t just buy the party line from people I believe to be con men. siliconinvestor.com Posted by: patchman Date: Monday, September 28, 2009 10:50:58 AM In reply to: fourkids_9pets who wrote msg# 218074 Post # of 218951 fourkids, Can you explain in detail what makes this a solid investment? Have you verified the companies SpongeTech claims to ship to? If not, why not, based on the level of controversy that is out there regarding them? A 10Q is only as good as the accuracy of data that goes into it. In this case, all investors here are basing their investment solely on teh sales numbers and yet not one can come up with evidence that those sales are real and being shipped to a distributor identified by SpongeTech. Furthermore, can you explain in detail the cash flow situation with SpongeTech. Where does their cash come from? Please use 2009 filings as an example of how SpongeTech makes their payments for services. From the last 10Q, the company had $31 Million revenues and nearly $7 Million profit on Revenues while at the same time they borrowed $12 Million from RME and had $34,000 in the bank. Fast forward this profit/spending profile to explain stock buy backs, accelerated advertising program, acquisitions, and investments. Tell me how they spend all this money without tapping RME based on how sales are created, invoice payments received (on a delayed basis), and ramp up in manufacturing. If you want to tout the stock, please do so with supportive arguments that make sense. Touting a stock to keep people invested without explaining to them in detail why these red flags should not be a concern is as bad as any accusations you with to make against "bashers". I challenge you on this because you reached out and asked me questions in private about the authenticity of my concerns and never revealed such to the board. Dave Patch investigatethesec.com siliconinvestor.com Posted by: patchman Date: Monday, September 28, 2009 11:38:34 AM In reply to: fourkids_9pets who wrote msg# 218146 Post # of 218952 Fourkids, Since I only have posting privileges for 3 posts per day I will conclude my day with this. 1. You have no idea who I am and where my mind is. I will call a spade a spade regardless of what side of the fence it rests on. Ask the USXP investors. They blistered me when I downplayed NSS and called out the company officers. I refused to address CMKX because I felt it was a scam from long ago. People close enough to me know that full well. 2. Our system is rigged. Rigged against stupid people. Corrupt short sellers play the “bad management card” and corrupt corporate officers play the “NSS card”. It takes intelligence to decipher which play you are investing in. Companies that lack transparency, and dilute as this company has, is generally a play by corporate con men. Everything that has been presented to date supports that. 3. Sending our dialogues into the regulators. Great. Do you really think that scares me? What they will do is further advance their understanding of how gullible investors are. You see, I have no personal financial interest in this company. I am more disgusted in the fact that companies like this, along with the CMKX’s and USXP’s of this world, have derailed positive reforms because they prove to regulators that most investors are ignorant of the facts. As I explained before (and you should take the time to research) those two companies had cult basis bigger than this and cried NSS right up to the arrests of corporate officers. What makes you think this is any different? Unfortunately, the difference between you and I, I research things. You trade on emotion and you tout on rumors. That is what message board people do. I have suggested many times that you actually come out with data, verifiable data that supports the SpongeTech sales. Bring in contact information, bring in some foreign stores that are selling these sponges in the millions, do something other than tout stock trade volumes when you have no idea what that volume means or how it is created. People like you have become part of the problem, regulators can’t figure out how they can keep the markets functional when they have to protect people from message board chatter created by bored and generally unintelligent investors. The David Patch you think you know you don’t. I have never nor will I ever make excuses for fraud just because. You want me to say this is NSS because it fits into your bad investment. I can’t and won’t because it doesn’t fit into my perceptions of what is going on. Can I be wrong? Damn right. But my data comes with better verification than yours so until you can convince me otherwise, I will stick to my research and thus my opinion. I would hope that if you stick with yours and tout more buying, that you will be willing to accept the consequences if it turns sour for you and those you brought in. I know I explained my concerns to many and saved all a lot of money so far. THAT is what I do and why I came to this market. Headed off to DC ---- Later! ==============