One of the products produced by the company has to do with “hand washing” and you may have seen or used it. The issues the SEC is investigating has to do with inflating sales numbers, thus bilking investors in a scheme to falsely report numbers. We are right back once more to the use of perhaps some “dirty” algorithms here in order to substantiate “desired” results for the purpose of greed and gain.
The numbers of stories like this I am guessing will continue as the SEC moves on their way to find out who’s been telling the truth and who is not. Even the Madoff Scheme had some algorithms used to pull the wool over everyone’s eyes. It’s sad today but everything you see out there may not truly be what it really is and thus we need to get educated and understand some of the algorithmic formulas uses today as we have seen this healthcare too, it’s like one side has the technology of machine gun algorithms and the other side has sword and dagger technology and when it comes to desired results, we all know what that is all about.
A Case of “Dirty” Algorithms – 2 Madoff Computer Administrators are Indicted – Illegal Coding and Networking for Big Profits
The company had way over stated their sales via reports generated with algorithmic formulas according to the article so who else out there is bending some algorithms? We have a few in healthcare too that folks are looking at. BD
NEW YORK (Dow Jones)--The top executives of Spongetech Delivery Systems Inc. (SPNG) were arrested and charged Wednesday in an alleged scheme to defraud investors by reporting falsely and grossly overstated sales figures.
According to a criminal complaint filed Wednesday, Michael Metter, Spongetech's chief executive and president, and Steven Moskowitz, the cleaning-products maker's chief operating officer and chief financial officer, were charged with conspiracy to commit securities fraud and obstruction of justice. They each face up to five years in prison on the conspiracy charge.
Metter, 58 years old, of Greenwich, Conn., and Moskowitz, 45, of Flushing, N.Y., are expected to appear before a U.S. magistrate judge in federal court in Brooklyn later Wednesday.
"The defendants in this case--Spongetech's highest corporate officers--are charged with executing a bold scheme to portray Spongetech as a company that was performing at a level far above reality," U.S. Attorney Loretta Lynch said in a statement. "As detailed in the complaint, the audacity of their scheme was matched only by their obstructive efforts during the course of the SEC's investigation."
UPDATE: Spongetech Execs Accused In Alleged Fraud Scheme - WSJ.com
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