SpongeBob Cooks the Books

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At this point, many people on Main Street are probably desensitized to the idea that banks and big businesses might lie to investors. But it turns out that even Sponge Bob may have committed financial fraud. You just can’t trust anyone these days.

The New York Daily News reports that two executives at SpongeTech, the company that makes bath products based on the popular kid’s show SpongeBob Squarepants, were arrested yesterday for fraud after they “allegedly falsified sales of soap-filled sponges to boost the company's bottom line.”

Now, as I see it, there are really only two possibilities here. Either the Daily News got confused and thought Cinco de Mayo was really April Fool’s Day (silly editors) or someone at SpongeTech decided that this would be a good way to teach kids about complicated financial rules. Unfortunately, neither of these explanations seem to be the case.

More from the Daily News: “The execs reported millions in fictitious sales going back to January 2007. When the SEC hit the firm with subpoenas, Metter and Moskowitz attempted to fabricate five customers, according to a criminal complaint.” Apparently those five made-up customers accounted for 99% of SpongeTech’s revenue.

For now, the two executives are out on bail and, I would assume, watching lots of television and plotting about which kid’s show they should corrupt next.  If Barney is still on TV, I’d go with that one. That purple dinosaur needs to go down.

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

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