Look at most any training camp photo this year and you'll notice those ugly SpongeTech logos. Reminding us of NASCAR-style sponsorships, they're on the front of every player's jersey, positioned conspicuously below the left shoulder pads. In these rough economic times, teams need ways of generating more revenue, right? But what if the Bengals sponsor isn't completely on the up-and-up?
A Chick Ludwig blog reader recently suggested that SpongeTech might be a "pump and dump" stock scam. In other words, a company stock that is artificially inflated through fraudulent means. It only takes about five minutes on the internet to confirm that something indeed smells rather "fishy".
First, check out the company web site with its ridiculously generic products. Sponges with soap inside? Come on. Like nobody ever thought of that before!
http://www.spongetechs.com/
Now read this 2007 article from a financial site:
http://www.hotstocked.com/article/spongetech-otcbb-spng-using-sex-to-peddle-pennystocks-94.html
"[SpongeTech] originally had incorporated under the name Romantic Scents, Inc. They have had several name changes and business model changes as well. In their 8 years of operations they have never made so much as a dime in profits, and have accumulated a deficit of approximately 3.4 million dollars.
Yet in spite of their operating inefficiencies management finds it perfectly appropriate to pay themselves salaries that exceed the entire revenues of the company. During their Fiscal year 2005, the company's entire revenue was $1,051 (one thousand fifty one)/ Yet, the three top directors received salaries of over $490,000 each."
Take a quick scan of the more recent material written by and about this company. There are red flags all over the place. If things are as unseemly as they appear they might be, this could be very embarrassing for the Bengals and the NFL. Apparently other league teams have similar deals going with SpongeTech.
