Blue Star's Metter Arrested In Spongetech Case
May 6, 2010 at 4:20 AM (PT)
MICHAEL METTER, whose BLUE STAR MEDIA GROUP owns BUSINESS TALKRADIO NETWORK and LIFESTYLE TALKRADIO NETWORK, was arrested TUESDAY by the FBI and charges with conspiracy to commit securities fraud and obstruction of justice in conjunction with another of his businesses, SPONGETECH DELIVERY SYSTEMS. METTER, the CEO of SPONGETECH, and that company's CFO/COO STEPHEN Y. MOSKOWITZ were arrested after an SEC investigation into falsified financial reports and a "pump and dump" plan.
SPONGETECH was well known for advertising at sports venues and on sports broadcasts; CBS RADIO, MADISON SQUARE GARDEN, and the NEW YORK METS are among the companies suing SPONGETECH over unpaid advertising bills, and SPONGETECH has sued the NEW YORK POST, hedge fund investor TIMOTHY SYKES and others, alleging that the parties were involved in a short-selling conspiracy.
Companies headed by METTER own Talk WGCH-A/GREENWICH, CT, Talk KNUU-A/LAS VEGAS, Talk WLFP-A/PITTSBURGH, and Talk WXBR-A/BROCKTON, MA as well as BUSINESS TALKRADIO NETWORK and LIFESTYLE TALKRADIO NETWORK. The radio networks and stations are unrelated other than METTER's involvement, unaffected by the SPONGETECH situation at this time, and are operated separately, with EVP JEFF WEBER in charge of day-to-day operations.