Station, Network President Faces SEC Probe
February 3, 2010 at 4:42 AM (PT)
BUSINESSTALKRADIO.NET INC. Pres./CEO MICHAEL L. METTER is being investigated by the SEC and faces lawsuits over possible securities law violations related to another of his companies, reports the GREENWICH TIME.
METTER's troubles are arising from SPONGETECH DELIVERY SYSTEMS INC,, which he co-founded in 1999; the SEC temporarily suspended trading in SPONGETECH in OCTOBER over concerns about the company's financial disclosures, and the agency notified the company in DECEMBER that it intends to recommend civil injunctive actions against it.
METTER told the TIME that his counsel is talking to the SEC and that the matter may be settled or dismissed. The TIME reports that SPONGETECH faces suits from investors and from MADISON SQUARE GARDEN over alleged unpaid advertising bills.
Companies headed by METTER own Talk WGCH-A/GREENWICH, CT, Talk KNUU-A/LAS VEGAS, and Talk WXBR-A/BROCTON, MA as well as BUSINESS TALKRADIO NETWORK and LIFESTYLE TALKRADIO NETWORK.
Stations, Network Unaffected By Probe
A statement from BUSINESS TALKRADIO NETWORK issued late WEDNESDAY by EVP JEFF WEBER stressed that the SPONGETECH issue is unrelated to the operations of the network and its stations. The release said, "The press accounts of the past day or so require a response. We have an obligation to our employees, advertisers and vendors and want to assure everyone that nothing you may have read or heard affects the operation of our company.
"BUSINESS TALKRADIO NETWORK, LIFESTYLE TALKRADIO NETWORK and radio stations WGCH, KNUU, WXBR and WLFP have absolutely nothing to do with SPONGETECH. Our radio company is privately held with many shareholders, none of whom has majority control. A press report that indicates the licenses of our radio stations could be in jeopardy is totally false. JEFF WEBER, a stockholder and Executive Vice-President of our radio company, continues to run the day to day operations of the business and all of its entities.
"Our business continues to be strong and vibrant. It has been built on honesty and trust and has thrived due to the hard work of our staff and management who unfortunately have been pulled into this matter that is unrelated to the operation of our radio company.
"We believe that some of what has been written in a local newspaper is nothing more than an attempt to harm their local media competitor. We are all aware of the continuing slide in newspaper readership especially with the local daily. The direction they have taken toward sensationalizing the news has been very obvious in recent months.
"A free press is and has always been the cornerstone of our society. However, inaccurate and misleading information has no place whatsoever."