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SEC v. Myron Weiner Case No. 1:11-cv-05731 (E.D.N.Y.)

Oct. 14, 2022

On November 22, 2011, the SEC filed a complaint against Myron Weiner ("Weiner"). The SEC alleged that Weiner sold eight million shares of Spongetech Delivery Systems, Inc. ("Spongetech") stock to the investing public in violation of the registration requirements of Section 5 of the Securities Act of 1933 ("Securities Act"). Weiner purchased the Spongetech shares from a Spongetech affiliate at a discounted price of five cents, and then sold the shares into the public market less than three months later for 20 cents, for a profit of $1,215,057.96. These transactions were not registered with the SEC, and these transactions did not satisfy any exemption from the registration requirements. See the SEC's complaint.

On December 19, 2011, the Court entered a final judgment against Weiner making him liable for disgorgement of $1,215,057, representing profits gained as a result of his conduct, together with prejudgment interest thereon in the amount of $80,135, and a civil penalty in the amount of $50,000 pursuant to Section 20(d) of the Securities Act. Pursuant to the final judgment, Weiner's obligation was deemed satisfied by the Internal Revenue Service's ("IRS") release to the SEC of $1,345,192 of the funds seized by the IRS on or about June 13, 2011 pursuant to a Stipulation of Settlement entered into by Weiner on November 30, 2011 in a forfeiture proceeding before the Court. Pursuant to the final judgment, on April 16, 2012, the SEC received $1,345,192 from the IRS, and that amount is currently being held by the SEC at the U.S. Department of the Treasury under the case name designation "SEC v. Myron Weiner" (these funds constitute the "Fair Fund"). See the final judgment.

On September 24, 2013, the Court appointed Damasco & Associates, LLP, as Tax Administrator with respect to the funds which constitute the Fair Fund.

On March 26, 2015, the Court appointed Analytics Consulting LLC as the Distribution Agent and established the Fair Fund.

On June 18, 2015, the SEC filed a motion to approve a plan of distribution, together with the plan of distribution. See the SEC's motion and (proposed) plan of distribution.

On February 10, 2016, the Court approved the Plan of Distribution. For more information or to obtain a Claim Form, please contact the Distribution Agent.

On November 30, 2017, the SEC filed a motion to disburse $153,778.97 from the Fair Fund to the Distribution Agent for distribution to harmed investors in accordance with the Plan. See the SEC's Motion. The Court granted the SEC’s Motion on January 5, 2018.

Persons to Contact:
Distribution Agent: Analytics Consulting LLC, 
Tel # (855) 294-0138

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