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Showing posts from May, 2007

Open Letter to the Audit Committee of Overstock.com: The Company’s Code of Business Conduct and Ethics and actions of Patrick Byrne and others

Via: E-mail at 6:04 AM (ET)Dear Allison H. Abraham and Clay Corbus, Audit Committee Members:When the Securities and Exchange Commission investigated Crazy Eddie, I found them to be tenacious in pursuing an investigation of my criminal activities. Class action plaintiff lawyers are an equally persistent bunch of people, too. Crazy Eddie’s Audit Committee members spent years during the government investigations and class action law suits directed at Crazy Eddie, defending their actions using extensive amounts of time, resources, and funds.As you know, Securities and Exchange Commission is now investigating Overstock.com and its CEO, Patrick Byrne. A subpoena was sent to the company on May 9, 2006 and a few days later on May 17, 2006, to its CEO Patrick Byrne. The Securities and Exchange Commission is concerned about possible securities law violations by Overstock.com, its CEO Patrick Byrne, and others.An issue of concern to you as Audit Committee members is compliance with Overstock.com…

Why are people distancing themselves from Overstock.com CEO Patrick Byrne?

My experienceIn late 1988, the government investigators were closing in on Eddie and me. Many former friends, colleagues, and co-workers distanced themselves from us. Eventually, I would learn that Eddie’s father (Sam M. Antar), brothers (Allen Antar and Mitchell Antar), and his brother-in-law Ben Kuszer had set us up to take the fall. Later, even my cousin "Crazy" Eddie Antar left me out to hang.Is a similar situation, going on at Overstock.com?Overstock.com delays reporting a Securities and Exchange Commission subpoena to its CEO, Patrick Byrne, for almost a yearOn May 9, 2007, Overstock.com disclosed in its 10 - Q that Patrick Byrne (CEO of Overstock.com) received a subpoena from the Securities and Exchange Commission almost a year earlier on May 17, 2006.Overstock.com’s two Audit Committee Financial Experts – One resigns, the other cashes out most of her holdingsLast night, Overstock.com announced the resignation of Ray J. Groves. Mr. Groves was a member of Overstock.com…

To Patrick Byrne, CEO of Overstock.com: More Questions about the Company's Code of Business Conduct and Ethics

To Patrick Byrne, CEO of Overstock.com:TransparencyAccording to the Securities and Exchange Commission, there are three prescribed alternative methods for making a company’s code of ethics publicly available:First, a company may file a copy of its code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions and addresses the specified elements as an exhibit to its annual report.Alternatively, a company may post the text of its code of ethics, or relevant portion thereof, on its Internet website, provided however, that a company choosing this option also must disclose its Internet address and intention to provide disclosure in this manner in its annual report on Form 10-K, 10-KSB, 20-F or 40-F.As another alternative, a company may provide an undertaking in its annual report on one of these forms to provide a copy of its code of ethics to any person withou…

To Patrick Byrne, CEO of Overstock.com - Did you comply with the Company's Code of Business Conduct and Ethics

To Patrick Byrne aka Hannibal, self-proclaimed humble servant, CEO of Overstock.com:

I quote the following from Overstock.com’s Code of Business Conduct and Ethics, as adopted by the Company's Board of Directors on January 23, 2004:

8. Record-Keeping

Business records and communications often become public, and we should avoid exaggeration, derogatory remarks, guess work, or inappropriate characterizations of people and companies that can be misunderstood. This applies equally to e-mail, internal memos, and formal reports….In accordance with these policies, in the event of litigation or governmental investigation please consult with the company’s General Counsel.

Questions:

Have your actions been in complete compliance with the above provisions?

Have you avoided exaggeration?

Have you avoided derogatory remarks?

Have you avoided guess work?

Have you avoided inappropriate characterizations of people and companies that can be misunderstood?

When you received your SEC subpoena, did you promptl…

Overstock.com: A Copy of its Code of Business Conduct and Ethics

I am releasing a copy of Overstock.com's Code of Business Conduct and Ethics, as adopted by its Board of Directors on January 23, 2004. This copy is not published on the company’s web site or in its Securities and Exchange Commission filings, to date.However, according to Overstock.com’s recent 10 – K for the fiscal year ended December 31, 2006, a person may request a copy of the company’s Code of Professional Conduct and Ethics by submitting a written request.ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCEExcept as set forth herein, the information required by this Item is incorporated by reference to the Company’s definitive proxy statement for the 2007 annual meeting of stockholders.The Company has adopted a Code of Business Conduct and Ethics, which is applicable to all employees of the Company, including the principal executive officer, principal financial officer, and principal accounting officer. The Code includes provisions that are specifically applicable …

Overstock.com and Patrick Byrne: The Deception Continues

The deception of Patrick Byrne, CEO of Overstock.com, continues on Overstock.com’s web site, despite the company's surprise disclosure in its recent 10-Q, that Mr. Byrne received a subpoena from the Securities and Exchange Commission on May 17, 2006, about a year ago.I quote from a page on the Overstock.com web site entitled “Lawsuit (CEO’s Crusade)” about the Securities and Exchange Commission investigation:Patrick and Business JournalistsQ: Was Overstock behind the SEC subpoenaing business journalists?A: No.Q: Has Overstock been subpoenaed?A: Yes. We received a subpoena from the SEC on May 9, 2006. Prior to receiving the subpoena, we were already cooperating fully with various agencies, including the SEC.Q: Is Overstock being investigated by the SEC or other agencies?A: The SEC is conducting an investigation on Overstock.com (see previous question). We are not aware of other investigations by any other agencies.Note: Bold and italic print was added by me.I note that the subpoena…

Patrick Byrne, CEO of Overstock.com, Cannot Answer a Simple Question

On January 30, 2007, in a post (message # 4246) on InvestorVillage.com, I asked the Board of Directors (including Patrick Byrne, who is a board member) of Overstock.com a simple question:To The Board of Directors of Overstock.comIt is my understanding that Overstock.com is releasing an earnings report on February 5, 2007 and the company will file a report with the Securities and Exchange Commission on that date.I respectfully submit the following questions:Has the Board of Directors considered any additional disclosure relating to the SEC subpoena of Overstock.com?Note: Bold and italic print added by me.Patrick Byrne and his henchman Judd Bagley (Director of Social Media at Overstock.com) later responded with an array of personal attacks against me. Patrick Byrne complained about my questions openly on the InvestorVillage.com message board for Overstock.com:For example, on February 2, 2007, in a post (message # 4463) on InvestorVillage.com, under his alias Hannibal, Patrick Byrne wrot…

To Patrick Byrne, CEO of Overstock.com: Stop Deflecting and Start Answering Questions

To Patrick Byrne, CEO of Overstock.com: Stop Deflecting and Start Answering QuestionsAs a convicted felon, who battled the Securities and Exchange Commission for almost two years before giving up, I advise you that your deflection campaign will not work with them.The Securities and Exchange Commission is primarily investigating Overstock.com and you.The SEC has dropped its investigation of Gradient Analytics and have continued their investigation of Overstock.com and you.Please stop playing games and answer some questions.The focus of the Securities and Exchange Commission investigationIn my previous blog post here, entitled, "Patrick Byrne, CEO of Overstock.com, receives SEC subpoena," I wrote that Overstock.com's 10 – Q for the most recent quarter ended March 31, 2007, and filed on May 9, 2007 with the Securities and Exchange Commission, contained the following new disclosure about the SEC investigation of Overstock.com:On May 17, 2006, Patrick Byrne also received a su…