Business Talk Radio Network Owner Michael Metter Is Once Again In The News
| Spongetech and Universal Express link emerges Crain's New York Business The penny-stock fraud case involving Spongetech Delivery Systems and its chief executive, Michael Metter, looks to be the biggest case of its kind involving a New York-based company in many years. It also turns out the case has something in common with another infamous fraud, Universal Express. Spongetech was a maker of SpongeBob SquarePants sponges; prosecutors last month charged Mr. Metter with conspiracy to commit fraud and obstructing justice. The government alleges that no fewer than 99% of the purported sales at Mr. Metter's company were phony, while he made millions from selling shares at inflated prices. In addition, the Securities and Exchange Commission filed civil fraud charges against Mr. Metter and some associates. Here's a story about Mr. Metter and his background. (subscription required) This case is potentially the most engaging stock fraud in the city since the SEC cracked down in 2007 on a tiny and truly bizarre New York-based company called Universal Express. Universal Express was a luggage delivery outfit whose management team seems to have devoted relatively few resources to shipping suitcases and a lot of time to selling billions of near-worthless shares, issuing blizzards of press releases and blaming short-sellers for their woes. When a federal judge ordered CEO Richard Altomare to cough up $1.7 million in penalties, Mr. Altomare refused to pay and continued selling Universal Express shares in violation of the court order. The fed-up judge eventually sent Mr. Altomare to prison. Until now, Spongetech and Universal Express seemed to have little in common except for the fact that both were advertisers at Mets, Knicks and Rangers games. But last week, the two companies were linked more closely when one of the folks ensnared in the SEC's Spongetech case cited Universal Express to help make his argument on why a federal judge should deny the agency's request for a preliminary injunction and asset freeze. The defendant is a lawyer named Jack Halperin, who the SEC alleges contributed to the Spongetech fraud by issuing "false and baseless" opinion letters that enabled Mr. Metter and associates to distribute worthless shares to gullible investors. It's the SEC's claims that are baseless, Mr. Halperin argued in his filing. In order to prove fraud, the SEC must establish "scienter" or recklessness amounting to scienter, Mr. Halperin's attorneys wrote, citing the SEC's case against Universal Express. Scienter, Mr. Halperin's lawyers helpfully explain, means "a mental state embracing intent to deceive, manipulate or defraud" investors. Mr. Halperin, a lawyer with 38 years of experience, described himself as an "unwitting victim" of the Spongetech scheme who provided good-faith legal services at his ordinary hourly rate. |
Some Background Information On Stock Scammer And WGCH Radio Station Owner Michael Metter
| Entries tagged "Michael Metter" - In the Markets The penny-stock fraud case involving Spongetech Delivery Systems and its chief executive, Michael Metter, looks to be the biggest case of its kind involving ... mycrains.crainsnewyork.com/cgi-bin/.../mt-search.cgi?... |
| Atomic Bob's Stock Forum - The Golden Thread 06/16/2010 42 DECLARATION re 39 Memorandum in Opposition, 40 Memorandum in Opposition Declaration of Jesse Z. Weiss by Michael Metter, Spongetech Delivery ... www.atomicbobs.com/index.php?mode=read&id=530145 |
| SpongeTech(R) Delivery Systems, Inc. Enhances Management Team with ... "We are very excited to have someone with Jim's background and experience join our growing company," said Michael Metter, CEO of SpongeTech. ... finance.yahoo.com/.../SpongeTechR-Delivery-Systems-prnews... |
| Anthony @ Equity Investigations, Dear Anthony, Message Board - Msg ... 06/16/2010 40 MEMORANDUM in Opposition re 2 MOTION for Preliminary Injunction , Asset Freeze, and Other Relief filed by Michael Metter. ... siliconinvestor.advfn.com/readmsg.aspx?msgid=26623382 |
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