Company / Name Business TalkRadio / BlueStar Media / Michael Metter MSB Group / Marcus Butler (1) MSB Group

/ Marcus Butler (2) Solomon Capital, llc (Solomon Sharbat) Palladium Capital (Michael Hartstein and/or indirectly Michael Brauser and/or indirectly Barry Honig) AIG Wayne M. Celia (Sr.)

Claim Value $6,000,000 $1,200,000 Up to $15,000,000 (as per Mr. Moskowitz) $250,000

Claim Description Promissory note.

(I have e-mails from Mr. Moskowitz supporting this)

Bounced check on Stock Purchase Agreement

(I have e-mails from Mr. Moskowitz supporting this)

Started manufacturing products but bounced payment

(I have e-mails from Mr. Moskowitz supporting this)

Bounced check on Stock Purchase Agreement Related to http://dockets.justia.com/docket/new-york/nysdce/1:2010cv06455/367297/

(I have e-mails from Mr. Moskowitz supporting this)

See MSB Group

Related to MSB Group claim Related to http://dockets.justia.com/docket/new-york/nysdce/1:2009cv09799/355379/

(I have e-mails from Mr. Moskowitz supporting this)

$100,000 Up to $10,000,000 (as per Mr. Moskowitz)

Unused prepaid insurance for product liability. - Has been fired in March 2010 - Caused damages in April, May, June 2010 - Caused Dicon involuntary bankruptcy to be filed (working with Dicon controller Rosalind Nathaniel) - Broke non compete agreement. - Use of company secrets. - See Appendix A (page 3)
(I have e-mails from Mr. Moskowitz supporting this)

Dicon "Sellers" - Wayne M. Celia (Sr.) - Sam Ginsberg - Clyde Williams - Roy Geronemus - John Scheib

$2,350,000

- Have overstated Dicon books to close sale - Unlawful enrichment - SpongeTech paid in July 2009: - $2,350,000 to the Sellers - $2.2 million to pay off Dicon's loan with Wachovia Bank - $250,000 for Dicons purchase of manufacturing equipment for a second production line - $270,000 for Dicons general working capital needs. - See http://www.sec.gov/Archives/edgar/data/1201251/000114420409037511/v154860_8k.htm - See http://www.sec.gov/Archives/edgar/data/1201251/000114420409037511/v154860_ex10-1.htm
(I have e-mails from Mr. Moskowitz supporting this)

Diversified Distribution d/b/a JKA, Inc.

Same as Wayne Celia (up to $10,000,000 as per Mr. Moskowitz)

- Diversified Distribution is a Dicon client - They hired Wayne Celia and used Dicon company secrets while Wayne Celia was under non compete agreement. - Company is competing Dicon in cosmetics foam business - Used Wayne Celia knowledge of Dicon to bid and purchase Dicon for only $675K after Dicon BK was filed.
(I have e-mails from Mr. Moskowitz supporting this)

Rosalind Nathaniel

Same as Wayne Celia (up to $10,000,000 as per Mr. Moskowitz)

- Gave company secrets to Dicon Petitioning Creditors lawyer Frank J. Perch, III for him to build case. - Caused Dicon involuntary bankruptcy to be filed - Caused Dicon damages. - See court dockets for case 10-41275-LWD and especially our response to allegations
(I have e-mails from Mr. Moskowitz supporting this + copies of above referenced court dockets documents)

Frank J. Perch, III (Hunter Maclean Exley & Dunn PC)

Same as Wayne Celia (up to $10,000,000 as per Mr. Moskowitz)

- Worked with company insider Rosalind Nathaniel to obtain company secrets and to prepare case for Dicon Petitioning Creditors - Caused Dicon involuntary bankruptcy to be filed - Could have worked with Wayne Celia to have bidder in advance when Dicon becomes for sale after BK is filed. - Caused Dicon damages. - See court dockets for case 10-41275-LWD
(I have e-mails from Mr. Moskowitz supporting this + copies of above referenced court dockets documents)

Bell Pharmaceuticals (Harvey Goodman)

To be defined (Value of Dicon container of goods)

- Resigned on May 3, 2010 (just two days before FBI arrests) - Stole Dicon Pacific container of goods - Caused damages in April, May, June 2010 - Caused Dicon employees to leave. - On May 17, went VP of Bell Pharmaceuticals, a company with a cosmetics division.
http://www.bellpharm.com/home_files/New%20VP%20of%20Sales.pdf

- Broke non compete agreement. - Use of company secrets.

(I have e-mails from Mr. Moskowitz supporting this) (I have letter to Goodman, from Mr. Moskowitz lawyers supporting this)

Cresta Capital (Avi Mirman)

$1,000,000

- SpongeTech paid $1 million in advance. - Did poor diligence on GetFugu (their product did not work) - Did poor diligence on Dicon (overstated books) - See http://www.businesswire.com/news/home/20091016005930/en/SpongeTech%C2%AE-DeliverySystems-Announces-Class-Action-Lawsuits (I have e-mails from Mr. Moskowitz supporting this)

GetFugu

$1,750,000

- Money advanced - See http://www.businesswire.com/news/home/20091001006130/en/SpongeTech%C2%AE-DeliverySystems-Submits-Lawsuit-GetFugu

- Was settled later in Exchange of 5 million shares, but company now not reporting anymore with SEC (junk stock) TD Bank Robert Gray $1,200,000 $300,000 - Bank held cash when SEC came in Oct. 2009
(I have e-mails from Mr. Moskowitz supporting this)

- Michael Metter friends met him at Noble conference in 2009. - Money was given to him as investment. - We asked for cash back but didnt get it.
(I have e-mails from Mr. Moskowitz supporting this)

NYP Holdings / Kaja Whitehouse / Tim Sykes / Teri Buhl / David Patch / Multiple John Does

$18,000,000 per defendant

Publication of false statements. See http://www.prnewswire.com/news-releases/spongetechr-delivery-systems-inc-files-lawsuit-against-nypholdings-inc-kaja-whitehouse-timothy-sykes-teri-buhl-and-david-e-patch-jr-and-john-andor-jane-does-1through-10-91952749.html

See http://iapps.courts.state.ny.us/iscroll/SQLData.jsp?IndexNo=601047-2010

APPENDIX A
A) Here is cosmetic sponges sold in Walgreens -> http://www.walgreens.com/store/c/studio-35-beauty-ultrawedges/ID=prod6042687-product (see where it says "Uses Softex technology with vitamin E") B) Here is who Softex belongs to -> http://tarr.uspto.gov/servlet/tarr?regser=serial&entry=85147489 (see wher it says "JKA, Inc. DBA Diversified Distribution") C) Here is an announcement made by Diversified Distribution -> http://www.prnewswire.com/news-releases/diversifieddistribution-announces-acquisition-of-selected-assets-of-the-foam-business-from-enefco-104315058.html (see where it says: Wayne Celia and ENEFCO and cosmetic foam) D) The cosmetic sponges in Walgreens are by Diversified Distribution. Wayne Celia is President of Diversified Distribution. E) Walgreens is one of Dicon's biggest client account for several cosmetic sponges product (SKUs) (documents filed in court show it and Trustee Silverman saw them) F) Dicon is a cosmetic foam company. G) Diversified Distribution themselves were even a client of Dicon. (documents filed in court show it and Trustee Silverman saw them) H) Diversified Distribution bought ENEFCO cosmetics. I) Wayne Celia became President and COO of Diversified Distribution. A cosmetic foam competitor. J) Wayne Celia's NON compete agreement says this:
"5. It is also understood that during your employment with the Company and thereafter, you will not reveal to anyone outside the Company confidential information, proprietary information or trade secrets of the Company or SpongeTech to which you have acquired information during your employment with us. Proprietary; or confidential information includes but is not limited to, financial and operating data, customer lists and information relating to our customers, business plans, products, technology and know-how. In the event of a violation of this paragraph, the Company and SpongeTech shall, in addition to all other remedies available to it, have the right to injunctive relief, termination of your employment without notice, and any attorneys fees and costs incurred to enforce this provision. 6. You understand and agree that all designs, concepts, graphics, drawings, inventions, text and copy, illustrations, memoranda, software, charts, renderings, specifications, engineering designs and specifications, presentations and other materials prepared by you in the course of your work (Work Product) for and with the Company will be deemed work made for hire" such that the Company and SpongeTech will be the joint owners of all rights to and interest in such Work Product including without limitation all copyrights, patents and trademarks therein. In the event that the Work Product or any portion thereof does not qualify as "work made for hire, then you hereby assign all rights, title and interest in the Work Product to the Company and SpongeTech and will sign all documents necessary to reflect such assignment. 7. You agree that if you leave our employment, either voluntarily or otherwise, and for a period of two years thereafter, you will not, directly or indirectly, solicit or attempt to solicit any employee of the Company or SpongeTech to terminate his or her employment with the Company or Spongetech, respectively, or otherwise employ or attempt to employ or assist anyone else to employ any person who is then in the employ of the Company or Spongetech, or who was in the employ of the Company or Spongetech at any time during the then preceding two-year period. You further agree that during this period you will not otherwise interfere with or attempt to disrupt the relationship between the Company, Spongetech or its affiliates, divisions and related companies or any person or business that was a customer, supplier, licensor, contractor or employee of these entities on the date your employment and compensation from the Company ended to the extent permitted by applicable law. 8. You agree that you will not, at any time, during the Term of this Agreement, and for one (1) year following (a) the termination of this Agreement or your employment hereunder by the Company or SpongeTech for Cause, or (b) your termination of this Agreement for Good Reason, either directly or indirectly, engage in, with or for any enterprise, institution, whether or not for profit, business, or company, competitive with the Business of the Company or Spongetech as such Business.."

Full version here: http://www.sec.gov/Archives/edgar/data/1201251/000114420409037511/v154860_ex10-1.htm