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Showing posts from September, 2009

Continued GAAP Violations Caused the Securities and Exchange Commission to Re-open Its Investigation of Overstock.com

Last week, the Securities and Exchange Commission Enforcement Division took the unusual step of re-opening an investigation of financial reporting irregularities at Overstock.com (NASDAQ: OSTK) after dropping a previous investigation just fifteen months earlier in June 2008. The SEC re-opened its probe of Overstock.com in response to a series of investigative reports by this blog documenting continuing violations of Generally Accepted Accounting Principles (GAAP) by the company and false and misleading representations to investors by its management team, led by CEO Patrick M. Byrne.A desperate Patrick Byrne is trying to paint himself as the victim of a vendetta by short sellers, the SEC, the press, and other imagined enemies. Byrne has orchestrated a vicious intimidation and smear campaign against company critics (including me) in an attempt to deflect any criticism of his misdeeds. (Note: For more information see Joe Nocera's New York Times Column here, Gary Weiss blog post here,…