Tuesday, December 18, 2012

Fraudsters of the Day: Street.com Execs Settle With The SEC Over Fraud claims




Execs at TheStreet.com allegedly committed accounting fraud and misstated operating income to investors, according to a complaint from the SEC.

Gregg Alwine, David Barnett and Eric Ashman have agreed to pay fines and accepted securities industry bans to settle the claims.

Throughout 2008, TheStreet reported revenue from fraudulent transactions at a subsidiary it had acquired the previous year, the agency says. In particular, the SEC alleges, the pair  Entered into sham transactions with friendly counterparties that had little or no economic substance.  Fabricated and backdated contracts and other documents to facilitate the fraudulent accounting...
 

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