Tag Archives: Michael Metter

So what’s going on at Greenwich Time?

Winding down

L.T. arrested for statutory rape, they can cover. Domestic dispute on Buxton Lane? Yeah, they got that, with names. Michael Metter, president of WGCH and Greenwich resident arrested at dawn yesterday by the FBI and charged with all sorts of nefarious crimes related to his penny stock scam, SpongeTech? Nah – no interest. Doesn’t that strike you as curious?

I’m not going to suggest to a dying newspaper what they might want to report on, but in town populated with financial types, I’d think news of Metter’s arrest would be of more interest than a drug-addict ex-football player getting in trouble again, in New Jersey, no less, or a couple not getting along. But heck, if they could figure that out, they wouldn’t be following WGCH into the graveyard, would they?

8 Comments

Filed under Uncategorized

This should put an end to SpongeTech’s suit against Teri Buhl

UPDATE: Metter has been arrested, along with the lawyers he used to issue his phony documents, and an international manhunt is underway for the PR firm that collaborated with him. Perhaps they should look in Dubai?

SEC charges WGCH’s Michael Metter with penny stock pump and dump scam. This was, I believe, the story that got Teri fired from Greenwich Time.[Teri Buhl has written that this isn’t so – of course, since she still doesn’t know why she was fired, I choose to believe she was fired for offending someone and Metter, the fat bully, is as good a candidate as any].  Here at FWIW we’ve encouraged Teri to write what she likes and I hope we’ll have her report on this soon. In the meantime, here’s to you, Greenwich Time.

Washington D.C., May 5th 2010 — The Securities and Exchange Commission today charged New York City-based Spongetech Delivery Systems Inc., an affiliate, and five people involved in a massive pump-and-dump scheme that deceived investors into believing they were buying stock in a highly successful company.

<!–

–>The SEC alleges that Spongetech CEO Michael Metter and another senior executive, Steven Moskowitz, hyped fictional customers and grossly exaggerated sales figures through dozens of bogus press releases and fraudulent SEC filings to pump up demand for stock in Spongetech, a company that sells soap-filled sponges. After flooding the market with the false information to fraudulently inflate the stock price, Metter, Moskowitz, and Spongetech dumped approximately 2.5 billion shares by illegally selling them to the public through affiliated entities in unregistered transactions. They spent portions of their illicit profits in highly visible sponsorship deals with professional sports teams to further create the aura that Spongetech was a well-known and prosperous business.

The SEC suspended trading in Spongetech stock on Oct. 5, 2009, due to questions about the accuracy of the company’s press releases and SEC filings. In today’s enforcement action, Spongetech is accused of obstructing the SEC’s investigation by producing phony sales documents in an attempt to legitimize the make-believe customers it hyped to the public. The U.S. Attorney’s Office for the Eastern District of New York today announced a parallel criminal action in the matter.

“Spongetech used a menu of manipulative strategies to perpetuate this scheme, including fake sales orders and public statements as well as obstruction of the SEC’s investigation,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “We will utilize all available means, including referral to criminal authorities, to prosecute those who attempt to thwart our investigations.”

Christopher Conte, Associate Director of the SEC’s Division of Enforcement, added, “Investors were deceived into believing that Spongetech was a successful business, while Spongetech and its senior executives were illegally dumping shares into the market.”

Two of Spongetech’s former attorneys — Jack Halperin and Joel Pensley — and stock promoter George Speranza are also charged in the SEC’s complaint, which was filed in U.S. District Court for the Eastern District of New York. RM Enterprises International Inc., an affiliate through which Spongetech dumped shares, is also charged.

According to the SEC’s complaint, after several years of relatively little business with a single customer comprising the bulk of Spongetech’s limited sales, Metter and Moskowitz began to paint a more promising and misleading picture of Spongetech’s business. Beginning in approximately April 2007, Spongetech issued dozens of phony press releases touting increasingly larger, yet fictitious, sales orders and revenue. The press releases fraudulently exaggerated the demand for pre-soaped sponges by referencing millions of dollars in sales orders, business, and revenue from five primary customers that purportedly accounted for 99 percent of Spongetech’s business, yet none of those customers actually existed.

The SEC’s complaint alleges that Metter, Moskowitz, Spongetech, and RM Enterprises used false and baseless attorney opinion letters by Pensley and Halperin to distribute shares of Spongetech to the public. Metter, Moskowitz, and Spongetech also used false and misleading attorney opinion letters — forged in Pensley’s name and in the name of a fictitious lawyer, David Bomart — which were transmitted to Spongetech’s transfer agents. The SEC further alleges that Speranza created websites and rented unoccupied office space for the fictional customers in an attempt to legitimize them.

7 Comments

Filed under Uncategorized

What am I, chopped liver? WGCH’s Metter sues Teri Buhl, but not me!

"Oh, we'd NEVER cheat YOU, big boy!"

Michael Metter, evil genius behind the Sponge Bob penny stock scam, is offended at Buhl, the NY Post and various other writers for exposing his fraud and has sued, but left me out of the fun. Gee, I thought I was pretty plain how I felt about this purported business enterprise, again and again and yet again, without result, but I’m willing to try one more time. By the way, the complaint is about the worst drafted piece of crap I’ve ever seen, so perhaps Metter’s lawyers will want to bring a separate action against me for calling them incompetent hacks who should never have been admitted to law school, let alone granted admission to the bar. I knew that on-line law schools were a bad idea.

UPDATE: Matchbook lawyer’s hiring explained: Turns out, SpongeTech’s passing rubber checks to people like the NY Islanders, and getting sued therefor. You can’t pay your bills, I guess you’re stuck with hiring your useless nephew as a lawyer.

3 Comments

Filed under Uncategorized

Did WGCH’s Michael Metter get Teri Buhl fired?

Bill Clark writes that Ms. Buhl may have been fired from Greenwich Time for reporting on the stock scam WGCH owner Michael Metter is running. I don’t know – it seems to me that GT’s Dave McCucumber is a frightened rabbit, scared of his own shadow, and would a dump a reporter at the first sign that someone was “Angy” at McCucumber, but certainly Teri gave Metter something to be angry about. He’s running a penny stock fraud for something called SpongeTech and people running scams just hate when you point that out.

9 Comments

Filed under Uncategorized

WGCH and Sponge Bob’s Metter

More on phoney sales order rumors. Standard operating procedure for penny stocks is the false claim of huge new orders, which never materialize, from the likes of CVS and Walmart. So this sounds familiar.

Comments Off on WGCH and Sponge Bob’s Metter

Filed under Uncategorized

One more shot at Greenwich’s Sponge Bob Kid and then I’ll quit

Until further developments anyway. Here’s Roddy Boyd’s Slate piece from September 2009 that set this off. Its 5 pages, all worth reading, but I especially love this part:

If someone really is buying all of these sponges abroad—despite a marketing effort that is 100 percent focused on the American consumer—the company is stretching out their payment cycle way past the standard 30-day, or even 90-day, cycle. Spongetech is not General Dynamics (GD) or Intel (INTC), so it can’t access overnight funding markets when its customers’ checks are caught in the mail.

I called and e-mailed the company and its public relations firms—Lippert Heilshorn, which resigned from the account late last week, and the Dilenschneider Group—and heard back only from Dilenschneider’s Andrew Osterland. Via e-mail, he said Spongetech’s lawyers retained his firm only to help with one press release and to address the concerns raised in the New York Post stories. An e-mail was also sent to Steven Moskowitz, the company’s CFO, but no substantive reply has been received.

So, since I live near Spongetech CEO Michael Metter, I stopped by his lovely Greenwich, Conn. house on Saturday afternoon for an impromptu chat. A gruff, bald fiftysomething man came to the door and insisted that Michael Metter was not home. When I showed him a picture of Michael Metter I had printed from the Internet and pointed out that he looked almost identical, he became irritated. He refused to answer questions about the SEC investigation, the Post articles, or Michael Metter’s background as the head of a penny-stock boiler room, insisting that “Metter is not going to do any interviews.”

Comments Off on One more shot at Greenwich’s Sponge Bob Kid and then I’ll quit

Filed under Uncategorized

Greenwich Time’s new pit bull strikes again

Teri Buhl’s certainly earning her keep at our once moribund local. Today she’s out with a story of WGCH’s owner Michael Metter’s other profession: selling soapy sponges and watered stock. The SEC’s after him and, poring over the various Internet hits on his company, here, here and here, just for instance,this has all the earmarks of the penny stock pump and dump schemes I used to pursue. It’s possible the poor guy’s the victim of nefarious outsiders seeking to profit at his expense. It’s also possible that Frankie Fudrucker will conduct his next political campaign dressed in a full burka. I’m betting I’ll witness Frankie’s comely form draped and hidden from sight before SpongeTech clears its name.

Besides, Metter ruined a dinky radio station that, while irrelevant, did once have its uses, like announcing snow days for the schools. Did you know that WGCH doesn’t have an Arbitron rating now because the audience surveyors could find no one who admitted listening to the station? I’m not sure if any of you are spending money on ads on WGCH but you could do just as much good by sending me the cash – I’ll take better care of it, I promise.

Michael Metter, president and part-owner of Greenwich radio station WGCH, is facing a federal securities investigation and multiple lawsuits against another business concern, his penny-stock company SpongeTech.

Metter, who lives on Tinker Lane in the backcountry [ Note to T. Buhl: Tinker is south of the Merritt, which puts it in mid, not back country – ed.], co-founded SpongeTech Delivery Systems Inc. in 1999. The company makes a sponge filled with soap, which is intended to eliminate the need for a bucket of soapy water to be used during a car wash. The company has been a prominent advertiser at Yankee Stadium and other sports venues, including Madison Square Garden, and co-branded with the cartoon character Sponge Bob in a marketing effort.

In October 2009, trading in the company was halted for 10 days by the Securities and Exchange Commission, which announced that it had “temporarily suspended trading in the securities of SpongeTech because of questions that have been raised about the accuracy and adequacy” of the company’s financial disclosures.

Then, in December, the SEC issued a notice to the company that its staff “intends to recommend that the Commission bring civil injunctive actions” alleging violations of federal securities laws.

"Vote for Me!"

25 Comments

Filed under Uncategorized