Spongetech, Execs Charged In Pump-And-Dump Case

Law360, New York (May 5, 2010, 3:29 PM EDT) -- Soap-filled sponge maker Spongetech Delivery Systems Inc. and two of its top executives have been implicated in a massive pump-and-dump scheme that allegedly deceived investors into believing they were buying stock in a highly successful company, when in reality it had limited sales.

The U.S. Securities and Exchange Commission said Wednesday that it had charged New York City-based Spongetech, CEO Michael Metter and senior executive Steven Moskowitz with hyping fictional customers and grossly exaggerating sales figures through dozens of bogus press releases and fraudulent SEC filings...
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