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Showing posts from October, 2007

Is New York State Using a "Trust, Don't Verify" Approach Regarding Convicted Felon CPAs?

New York State Catches Up to Convicted Felon and Licensed CPA after 15 Years

Fifteen years after pleading guilty to one of the largest securities frauds of its time, the New York State Education Department - Office of Professional Discipline has finally caught up with a convicted felon who admits to committing his crimes with a "cold, dark, and heartless soul." That convicted felon is me!

After pleading guilty to three felonies in late 1992, the American Institute of Certified Public Accountants (AICPA) and the New York State Society of CPA's (NYSSCPA) booted me from their respective professional organizations. They informed me that they were referring my case to the New York State Education Department - Office of Professional Discipline, to have my license revoked. I knew that NY State automatically revoked CPA licenses for convicted felons. Since I believed that I was losing my license anyway, I simply let my registration to practice public accounting expire to put the s…

Open Letter to Patrick Byrne, CEO of Overstock.com

Delivered via email, return receipt requested
To Patrick Byrne (CEO of Overstock.com):
I read your latest earnings conference call transcript last Friday for Overstock.com's third quarter of fiscal year 2007. It is my understanding that you now claim to be ready to answer my questions about Overstock.com's financial and other disclosures, its accounting policies, your actions, your lies, your deceptions, your distortions, your deceitful behavior, your despicable conduct, your cronies, and your continued violations of your company's Code of Business Conduct and Ethics.
I quote your comment in the third quarter fiscal year 2007 earnings conference call transcript:Sam Antar, if you want to join us as an [inter-locketer], I have to stick around -- I have to leave in 15 minutes but I'm hoping you'll join, Sam.I quote another comment from you:I have 10:02 -- Sam Antar, are you on the line? Come on, Sam. Okay, I've got to get over to a talk.Note: Bold print and italics …

A Warning to Wall Street Analysts from a Convicted Felon

To Wall Street Analysts:During my years at Crazy Eddie, I found that securities analysts often did not know how to ask intelligent questions. When they asked intelligent questions, they did not know how to formulate the proper follow up questions to our deceptive answers. Most Wall Street analysts were too trusting of the answers that they received from us.Good questioning will often result in irritable behavior from company management. However, you are not doing your job to be in management's good graces. Your job is to obtain not readily apparent facts, analyze them properly, and communicate them accurately and effectively to your readers. Top notch financial journalist Herb Greenbergadvises that you consider "what many companies don't say as they spin the story their way."For example, be careful of corporate managements that:accentuate positive information and spin and deflect negative information
blame others for their company's problems
attempt to intimidate y…

Patrick Byrne, the CEO of Overstock.com: A history of deception, deceit, and distortion - Part 1: The Early Days

Having never met Overstock.com CEO, Patrick Byrne, I cannot determine when his hyping, spinning, and deceptions began and when they end.In my new series of blog posts, I will carefully examine in detail Patrick Byrne's comments from before Overstock.com went public to the present. Upon careful analysis, I have found a continuous pattern of deceitful, inconsistent, and contradictory statements made by Patrick Byrne that more often than not conflict with other disclosures made by him and Overstock.com.Most of Patrick Byrne's deceitful, inconsistent and contradictory statements cited in this blog post (part 1 of my series) predate Overstock.com's IPO in June 2002, predate Overstock.com's litigation defendant Gradient Analytics' initial coverage of Overstock.com, and predate Overstock.com litigation defendant Rocker Partners' initial short position of Overstock.com.My cousin, Crazy Eddie Antar used to say that, "people live on hope." Like Eddie, Patrick B…