SpongeTech Delivery Systems, which makes soap-filled sponges in such shapes as (appropriately) SpongeBob SquarePants and whose advertising has dazzled fans at sporting events, has filed for bankruptcy protection.

According to Crains New York Business, the Manhattan sponge makers demise began after the companys chief executive was charged with fraud in May. Prosecutors said CEO Michael Metter helped to fake 99% of the companys supposed sales, and he was charged with conspiracy and obstruction of justice.

The Securities and Exchange Commission said that Metter, a former stockbroker, and Chief Financial Officer Steven Moskowitz ran a classic pump and dump stock scheme, going so far as to create a website and office space for fake customers. According to the SEC, the company spent some of their profits to advertise with professional sports teams in baseball, football and hockey.

Beginning as early as April 2007, and continuing to the present, Metter, Moskowitz, and SpongeTech engaged in a scheme to increase demand illegally for, and profit from, the unregistered sale of publicly-traded stock in SpongeTech, the SEC said.

In January, the New York Mets sued SpongeTech for $2.3 for contract advertising at their baseball stadium, Citi Field. They said SpongeTech also bounced $400,000 in checks.