SEC v. Myron Weiner, No. LR-22168, Eastern District of New York — Press Release
raw: Myron Weiner
Myron Weiner, No. LR-22168 (E.D.N.Y.)
Myron Weiner was charged with unregistered sales of Spongetech Delivery Systems, Inc. stock, netting $1,215,057 in profits, and faces disgorgement, civil penalty, and a one-year ban from penny stock offerings.
Myron Weiner was accused of purchasing Spongetech Delivery Systems, Inc. shares at a discounted price of 5 cents and selling them for 20 cents, resulting in a profit of $1,215,057. The SEC alleged that Weiner's sales were not registered with the Commission, and no exemption from the registration requirements applied. The SEC seeks disgorgement of $1,215,057, prejudgment interest of $80,135, a civil penalty of $50,000, and a one-year bar from participating in penny stock offerings.
The Securities and Exchange Commission (SEC) charged Myron Weiner with violating Section 5 of the Securities Act of 1933 for unregistered sales of Spongetech Delivery Systems, Inc. stock in 2009. Weiner allegedly purchased shares from a Spongetech affiliate at a discounted price of 5 cents and sold them into the public market for 20 cents, netting $1,215,057 in profits. The SEC alleged that no registration exemption applied to Weiner's sales. The Commission seeks a final judgment enjoining Weiner from violating Section 5, requiring the payment of disgorgement of $1,215,057, plus prejudgment interest of $80,135, and a civil penalty of $50,000. Additionally, the SEC seeks to bar Weiner for one year from participating in the offering of any penny stock. A related forfeiture action was filed by the U.S. Attorney's Office for the Eastern District of New York, with support from the FBI and IRS.
Exhibits & Attached Documents (1)
Extracted insights
- $1.22M $1,215,057 $1M–$10M
- $80K $80,135 $10K–$100K
- $50K $50,000 $10K–$100K
- person Myron Weiner ×2
- organization Federal Bureau of Investigation
- organization Internal Revenue Service
- agency Securities and Exchange Commission
- company Spongetech Delivery Systems, Inc.
- organization U.S. Attorney's Office For The Eastern District Of New York
- SEC filed a civil injunctive action against Myron Weiner for unregistered sale of Spongetech Delivery Systems, Inc. stock in 2009
- Myron Weiner purchased shares from a Spongetech affiliate at 5 cents per share
- Myron Weiner sold shares into the public market less than three months after purchase
Litigation Release No. 22168 / Nov. 23, 2011 SEC v. Myron Weiner, Civil Action No. 11-CV-5731 (E.D.N.Y.) (DLI)(RER) SEC Charges Myron Weiner with Unregistered Sales of Spongetech Delivery Systems, Inc. Stock The Securities and Exchange Commission filed a civil injunctive action against Myron Weiner, relating to his unregistered sale of shares of Spongetech Delivery Systems, Inc. ("Spongetech") in 2009. In its complaint, the Commission alleges that Weiner purchased the shares from a Spongetech affiliate at a discounted price of 5 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. The Commission's complaint alleges that Weiner's sales were not registered with the Commission, and no exemption from the registration requirements of the federal securities laws applied. The Commission's complaint seeks a final judgment: (1) enjoining Weiner from violating Section 5 of the Securities Act of 1933 (registration provisions); (2) requiring the payment of disgorgement of $1,215,057, plus prejudgment interest of $80,135; (3) requiring payment of a civil penalty of $50,000; and (5) barring Weiner for one year from participating in the offering of any penny stock. The U.S. Attorney's Office for the Eastern District of New York filed a related forfeiture action. The Commission wishes to thank the U.S. Attorney's Office, the Federal Bureau of Investigation and the Internal Revenue Service for their assistance in connection with this matter. SEC ComplaintLitigation Release No. 22168 / Nov. 23, 2011 SEC v. Myron Weiner, Civil Action No. 11-CV-5731 (E.D.N.Y.) (DLI)(RER) SEC Charges Myron Weiner with Unregistered Sales of Spongetech Delivery Systems, Inc. Stock The Securities and Exchange Commission filed a civil injunctive action against Myron Weiner, relating to his unregistered sale of shares of Spongetech Delivery Systems, Inc. ("Spongetech") in 2009. In its complaint, the Commission alleges that Weiner purchased the shares from a Spongetech affiliate at a discounted price of 5 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. The Commission's complaint alleges that Weiner's sales were not registered with the Commission, and no exemption from the registration requirements of the federal securities laws applied. The Commission's complaint seeks a final judgment: (1) enjoining Weiner from violating Section 5 of the Securities Act of 1933 (registration provisions); (2) requiring the payment of disgorgement of $1,215,057, plus prejudgment interest of $80,135; (3) requiring payment of a civil penalty of $50,000; and (5) barring Weiner for one year from participating in the offering of any penny stock. The U.S. Attorney's Office for the Eastern District of New York filed a related forfeiture action. The Commission wishes to thank the U.S. Attorney's Office, the Federal Bureau of Investigation and the Internal Revenue Service for their assistance in connection with this matter. SEC Complaint