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Showing posts from June, 2008

What did not tell the Securities and Exchange Commission

Or what the SEC should have asked Overstock.comRecently, the Securities and Exchange Commission Enforcement Division issued two letters recommending no enforcement action against (NASDAQ: OSTK) and its executives. In my last blog post, I respectfully disagreed with the SEC Enforcement Division's decision recommending of no enforcement action based's continuous pattern of false and misleading disclosures, inconsistent and contradictory disclosures, lies and misconduct, and various violations of law detailed in my blog over the last year and a half.Before the SEC Enforcement Division issued such no-enforcement letters, the SEC Division of Corporation Finance, in a separate limited review of’s revenue accounting practices and disclosures discovered that the company, from at least fiscal year 2000, was intentionally not presenting its revenues and related financial disclosures in compliance with federal securities law, including Generally …

Not yet "Yipikaye" for CEO Patrick Byrne

On Friday, (NASDAQ: OSTK) announced that the Securities and Exchange Commission issued the company two no-action letters. In those no-action letters the SEC office in Utah recommended no enforcement action against and its executives after slightly more than two years of investigating the company. According to’s press release, Patrick Byrne, CEO, was ecstatic and self-congratulating in claiming that:"I know that the SEC has an obligation to look into allegations it receives about any company -- even when those allegations are false," said Patrick Byrne,'s chairman and chief executive officer. "I believe that this inquiry was initiated, and persisted, because of false allegations made by a cohesive group of short sellers and a few financial journalists who dutifully serve them. In this case, I believe these folks fomented the SEC investigation against then tried to claim that the existence of an SEC… CEO Patrick Byrne Calls Himself a Crook

I am not kidding. In her blog, forensic accountant Tracy Coenen quotes (NASDAQ: OSTK) CEO Patrick Byrne's comments from an interview on CNBC:Interview: Patrick Byrne, chairman and CEO of, discusses the company’s revenues and earnings23 April 2004CNBC: Kudlow & CramerMr. BYRNE: Well, first of all, I’m all about GAAP. I have been so critical of the companies that do–I don’t believe in one-time charges; I don’t believe in EBITDA. If somebody talks EBITDA, put your hand on your wallet; they’re a crook.Note: Bold print and italics added by me.The double talking Patrick Byrne not only likes EBITDA, he also likes to violate Securities and Exchange Commission Regulation G and materially overstate EBITDA in's financial reports. My blog and Tracy Coenen’s blog have detailed’s SEC Regulation G violations and resulting material overstatements of EBITDA in its financial reports starting from Q2 2007 and continuing to Q1 2008. When…