U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23557 / June 2, 2016
Securities and Exchange Commission v. Spongetech Delivery Systems, Inc., et al., Civil Action No. 10-cv-2031 (E.D.N.Y. filed May 5, 2010)
The SEC's complaint, filed on May 5, 2010, alleges that Halperin participated with Spongetech and others in a pump-and-dump scheme of Spongetech common stock, by writing dozens of false and misleading opinion letters to lift the restrictive legends from over 900 million shares of Spongetech, when he knew or was reckless in not knowing that no safe harbor or exemption applied to these transactions. The judgment against Halperin permanently enjoins him from violating the antifraud and securities registration provisions of the federal securities laws and from providing legal services in connection with the unregistered offer or sale of securities, bars him from participating in any offering of penny stock, and orders him to pay a civil penalty of $100,000 and disgorgement of $44,537 plus applicable interest. Halperin also agreed to the entry of an order permanently suspending him from appearing and practicing before the SEC as an attorney. The order, which was entered as part of an administrative proceeding instituted on June 1, 2016, prohibits Halperin from representing clients in SEC matters, including investigations, litigation, or examinations, and from advising clients about SEC filing obligations or content.
Halperin consented to the judgment's entry and the SEC's order without admitting or denying the allegations in the SEC's complaint or the findings of the SEC's order.
For further information on this action and on judgments obtained against other defendants in this action, please see Press Release No. 2010-70 (May 5, 2010), Litigation Release Nos. 21515 (May 5, 2010) and 22586 (Jan. 4, 2013), and Exchange Act Release Nos. 60788 (Oct. 5, 2009) and 67899 (Sept. 20, 2012). The SEC's litigation continues.