Spongetech Execs Plead Not Guilty In Fraud Case

Law360, New York (August 10, 2010, 7:15 PM EDT) -- Two top executives of bankrupt maker of soap-filled sponges Spongetech Delivery Systems Inc. have denied any wrongdoing in a criminal case alleging securities fraud and other claims, according to a source.

Spongetech's former CEO Michael Metter and Chief Financial Officer Steven Moskowitz pled not guilty in the U.S. District Court for the Eastern District of New York on Tuesday after an indictment asserting six counts was filed Aug. 6, according to an attorney defending Moskowitz.

The executives are accused of securities fraud, obstruction of justice, conspiracy...
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