Case 1:10-cv-02031-DLI-RML Document 354 Filed 12/01/15 Page 1 of 2 PageID #: 9842

UNITED STATES

SECURITIES AND EXCHANGE

COMMISSION
100 F Street, N.E.
Washington, D.C. 20549
Paul W. Kisslinger
Assistant Chief Litigation Counsel
DIVISION OF
ENFORCEMENT

Telephone (202) 551-4427

Facsimile (202) 772-9292

kisslingerp@sec.gov

December 1, 2015
By ECF
The Honorable Robert M. Levy
United States District Court
225 Cadman Plaza East
Brooklyn, New York 11201
Re: Securities and Exchange Commission v. Spongetech Delivery Systems, et al.,
10-cv-2031-DLI-RML (E.D.N.Y.)
Securities and Exchange Commission v. Myron Weiner, 11-cv-05731, DLI
RML (E.D.N.Y.)
Dear Judge Levy:
On behalf of the Securities and Exchange Commission (SEC or
Commission), I am writing to provide a status update in the above-captioned matters.
I am pleased to report that subject to Court and Commission approval, the
Enforcement Division of the SEC (Division) has reached an agreement in principle
with defendant Jack Halperin. Counsel for the Division has forwarded draft settlement
documents memorializing the agreement to Halperins counsel for review and approval.
Once Halperin has executed the documents, the Division will recommend to the
Commission that it approve these terms of settlement. Following such approval, the SEC
will submit the proposed settlement documents to the Court for review and approval.
Settlement status with defendant Joel Pensley is progressing. On November 10,
2015, the SEC sent proposed settlement documents to Pensleys former counsel, who
subsequently informed the SEC on November 24 that he no longer would be representing
Pensley in this action. On November 30, Pensley informed the SEC that he would be
providing comments on the draft settlement papers in the near future, but the SEC has not
yet received such comments.

Case 1:10-cv-02031-DLI-RML Document 354 Filed 12/01/15 Page 2 of 2 PageID #: 9843

Hon. Robert M. Levy
December 1, 2015
- Page 2 As for the SECs claims against defendant Michael Metter, on October 8, 2015,
the SEC submitted a proposed Final Judgment as to Michael E. Metter [Docket Entry
352-1] that corresponded to the Courts Memorandum and Order Adopting Report and
Recommendation [Docket Entry 351], and respectfully requests that the Court review,
and if acceptable, enter the proposed Final Judgment.
In the related matter, SEC v. Weiner, on June 18, 2015 the SEC submitted to the
Court a proposed distribution plan for the distribution of collected disgorgement,
prejudgment interest, and penalty to harmed investors who purchased unregistered
Spongetech shares from the defendant. The SEC was able to collect the full amount of
the final judgment ($1,345,192) against Mr. Weiner, and hopes to be able to distribute
these funds to the eligible harmed investors who purchased Spongetech shares from Mr.
Weiner. The SEC is prepared to begin the distribution of these funds pursuant to the plan
immediately after receiving the Courts approval of the distribution plan.
Should the Court have other questions or concerns, we would be happy to address
these at the upcoming status conference scheduled for this afternoon at 3:00, or in the
alternative, to provide the Court with a further status update once we have received
Pensleys comments to the settlement papers.
Respectfully submitted,

/s/ Paul W. Kisslinger