Skip to main content

Posts

Showing posts from August, 2009

Minkow: inVentiv President Terrell Herring Obtained Degree From Diploma Mill and Company Violated Regulation G Governing Non-GAAP Measures

According to a background check conducted by Barry Minkow, co-founder of the Fraud Discovery Institute, Terrell Herring, President and COO of inVentiv Health Inc. (NASDAQ: VTIV) "claims to have an MBA degree from Pacific Western University, a well known 'diploma mill' that ceased to exist by that name in 2007." In addition, Minkow's report cites a possible violation by Herring of New Jersey Statute N.J.S.A 18A:3-15.2 that "explicitly states that any use of a diploma mill degree in the context of business setting is illegal." Worse yet, Herring's "diploma mill degree" was contained in various SEC filings. For example, see the May 5, 2009 proxy statement.SEC Regulation G ViolationConvicted felon turned fraud fighter Barry Minkow went on to point out that an inVentiv Health "violated SEC Regulation G governing non-GAAP financial measures, such as EBITDA, and failed to make other appropriate disclosures about certain transactions."In…

Open Letter to the Securities and Exchange Commission: Stop Overstock.com GAAP Violations Now!

To Mary Schapiro (Chairperson of the Securities and Exchange Commission):The Securities and Exchange Commission must take immediate action to require Overstock.com (NASDAQ: OSTK) to properly restate all financial reports affected by its accounting errors and stop the company from issuing any more financial reports that violate Generally Accepted Accounting Principles (GAAP). Enough is enough.In February 2009, I notified both the SEC and Overstock.com about how the company violated GAAP by improperly deferring the recognition of an accounting error to create a cookie jar reserve to inflate future profits. However, nothing was done to stop this illegal practice and Overstock.com's latest Q2 2009 press release and 10-Q report filed with the SEC violated GAAP, too.In this blog post, I will provide the SEC with a bullet proof case to take enforcement action against Overstock.com.BackgroundOn October 24, 2008, Overstock.com disclosed that it discovered customer refund and credit errors …