E-Trade Sues To Unload $1.6M In Spongetech Cash

Law360, New York (April 22, 2011, 8:47 PM EDT) -- E-Trade Securities LLC filed a suit Friday in New York asking a judge to determine who — or what government agency — should get $1.6 million that came from a trader's suspicious sale of stock in now-bankrupt Spongetech Delivery Systems Inc.

Myron Weiner sold $1.6 million in Spongetech shares as the company headed to a pump-and-dump related collapse, according to the online brokerage. Though not a defendant in any criminal or civil enforcement action, Weiner's sales were flagged as suspicious and his E-Trade accounts were frozen....
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