In the poll taken earlier this year on the SPNG board, I have January 2011 for the date of spongy's revocation. The date is still looking good in my opinion.
the guy's a piece of work, ain't he?
Yeap. I laughed like mad when he got confused about the factious Mr. Vega. If you're gonna be a scam artist you better keep your lies straight. LOL
A few days earlier, according to the indictment, investigators had asked Mr. Moskowitz if the nonexistent Mr. Vega was still working for the customer and he replied: “He is.”
Later in the interview, Mr. Moskowitz seemed to confuse the person's name, calling him Carlos Varga. “Vega, Varga. They call him Varga,” he told investigators.
Criminal charges describe Spongetech fraud
Top two execs of company that allegedly faked 99% of its sales are indicted on counts of fraud, conspiracy, obstructing justice, money-laundering and perjury.
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By Aaron Elstein
Published: August 6, 2010 - 2:24 pm
A federal criminal indictment was issued Friday against the former leaders of Spongetech Delivery Systems, a publicly traded New York-based sponge-maker whose executives were charged by securities regulators in May with faking 99% of their company's sales.
Prosecutors charge the former Spongetech Chief Executive Michael Metter and former Chief Operating Officer Steven Moskowitz with five counts of fraud, conspiracy, obstructing justice, conspiracy to launder money, and perjury. Both men face up to five years in prison, a spokesman for the U.S. attorney's office in Brooklyn said, adding that an arraignment is scheduled for Tuesday.
Mr. Metter—a former Wall Street stockbroker with a history of customer complaints—and Mr. Moskowitz were arrested in May. They were charged with conspiracy to commit fraud and obstructing justice and freed on $2 million bail each, but no indictment was filed at the time.
The Securities and Exchange Commission also filed a civil lawsuit against the two men and some business associates. The feds say the two executives made “millions” in illegal profits by selling their stock at inflated prices as gullible investors bought their hype.
The indictment on Friday provides additional details into how Messrs. Metter and Moskowitz allegedly tried to mislead government investigators. For example, it says the two created phony customers staffed by nonexistent people to make it seem as if there was big demand for the company's sponges when in fact there wasn't any.
According to the indictment, when Mr. Metter met with SEC staffers in Washington in October 2009, he recounted how he met a nonexistent person named Carlos Vega, who he claimed represented one of Spongetech's best customers. “[He] came to the booth [at a trade show],” Mr. Metter explained in what prosecutors now say is an example of perjury. “We showed [him] the products, and I introduced him to Steven [Moskowitz] because I wasn't handling that end of the business.”
A few days earlier, according to the indictment, investigators had asked Mr. Moskowitz if the nonexistent Mr. Vega was still working for the customer and he replied: “He is.”
Later in the interview, Mr. Moskowitz seemed to confuse the person's name, calling him Carlos Varga. “Vega, Varga. They call him Varga,” he told investigators.
Mr. Metter's attorney, Jeffrey Sklaroff, declined to comment. Mr. Moskowitz's lawyer, Mark Baker, didn't immediately return a call seeking comment.
By: ibaft2006 Feb 2007 : LEO WANTA is truly a hero..
A man of uncomparable character and resolve. He is one of God's truly blessed men
By: ibaft2006 Mar 2007 Bush crime family is hard at work protecting their criminal cronies.
