More Financial Statement Fraud at Overstock.com

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Wacky Patty ByrneWhite collar crime fighter and reformed felon Sam Antar has done it again. He has exposed the most recent financial statement fraud being perpetrated by Overstock.com (NASDAQ:OSTK) and wacky CEO Patrick Byrne.

Of course, this doesn’t come as any surprise to anyone who has been following the company. Overstock cannot turn a profit, and when management claims they have turned a profit (or managed to record a lower loss than usual), the one thing you can be sure of is that they’ve violated a bunch of accounting rules and are committing blatant acts of financial statement fraud. Continue reading

In Agreement: Overstock.com Sucks and Patrick Byrne is Wacky

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Patrick Byrne, CEO of Overstock.com O.coI’ve written plenty here about perpetual money-loser Overstock.com (NASDAQ:OSTK) and its wacky CEO Patrick Byrne. Unfortunately, I’ve mostly lost interest in the topic. Why? It’s the same old, same old.

Overstock.com continuously loses money for shareholders. Byrne pretends that profits are right around the corner. More money is lost. Dishonest accounting tricks are used to pretend the company made money. Financials are restated. More money is lost. Financials are restated again. More money is lost…

You see a pattern, I hope? Continue reading

More Accounting Mistreatment By Overstock.com (NASDAQ:OSTK) and CEO Patrick Byrne

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Last week, Sam Antar exposed yet another set of accounting manipulations by Overstock.com (NASDAQ:OSTK) and CEO Patrick Byrne. Those who have carefully followed the Overstock saga are no doubt unsurprised at company’s use of a little accounting “presto chango” to make the fourth quarter of 2008 look better.

Had the company reported its financials properly for the year, the fourth quarter would have shown a loss of $800,000. With this bit of accounting magic, Overstock.com instead reports a profit of $1 million. Continue reading

Wondering Why Frauds at Public Companies Aren’t Being Pursued by the Feds?

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Consumers are often left wondering why the Securities and Exchange Commission doesn’t heavily pursue allegations of fraud against public companies like Overstock.com (NASDAQ:OSTK), Usana Health Sciences (NASDAQ:USNA), Herbalife (NYSE:HLF), and the like. I’ve always said the answer is simple: There are not enough resources devoted to investigating and prosecuting fraud in public companies. Executives are free to use phony accounting measures and other false information to hype the company with little fear of action by the SEC. Continue reading

Overstock.com and Naked Short Selling

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Pat Byrne, CEO of Overstock.com O.co

An article on the Industry Standard by managing editor Ian Lamont, “Overstock.com CEO: I’m not vindictive.”, explores a recent blog post made by Patrick Byrne on his site that attempts to expose corruption on Wall Street. Byrne is the completely inept CEO of Overstock.com (NASDAQ:OSTK), the man who has run it into the ground and racked up almost a quarter billion dollars in losses since 2000.

Byrne has been ranting for a while that naked short selling of stocks (an illegal act, by which a stock is sold short before actually securing/borrowing shares to short) is rampant on Wall Street and that something must be done about it. He claims that naked short selling is responsible for his company’s stock price experiencing a serious downward trend since 2005. Continue reading

Details on the Overstock.com Cyberstalking and Spyware Campaign

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Judd Bagley, cyberstalker at Overstock.comA couple of weeks ago, I commented on a post that Judd Bagley, chief Overstock.com (NASDAQ:OSTK) stalker and “Deep Capture reporter” made on the InvestorVillage message board for Overstock. He stated there: “…my first master stroke was getting a tracking cookie placed on the laptop computer of Dan Schoenherr…”

I thought it might be important to revisit the cyberstalking and spyware tactics used by Judd, with a little help from Scipio Africanus, a blogger who did much to expose dirty tactics used by supporters of Overstock.com. Continue reading

Overstock Continues to Mislead Investors With Phony EBITDA Calculation

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Patrick Byrne Naked Short SellingIn the past, I’ve discussed the improper EBITDA numbers reported by Overstock.com (NASDAQ:OSTK). It comes as no surprise that the con game continues with Overstock’s latest reported numbers.

The SEC rules are very simple. “EBITDA” refers to a specific calculation, which is “earnings before interest, taxes, depreciation, and amortization.” Overstock.com and CEO Patrick Byrne have taken liberties with this number, in violation of guidance provided by the SEC on the issue. Continue reading

The SEC Investigation of Overstock Was Because Patrick Byrne is Trying to Expose Corruption on Wall Street?

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That appears to be what Patrick Byrne is suggesting in this interview. The story keeps changing. At one point, Patrick said he and Overstock.com (NASDAQ:OSTK) weren’t really the target of the SEC investigation. Rather, the investigation was focused on others (hence the “celebration” of subpoenas). When the SEC issued a no-action letter, suddenly the investigation really was about Overstock and Patrick, and they were vindicated (according to their supporters).

Byrne blathers and I paraphrase…. Continue reading

Short Selling, Miscreants Ball, and Conspiracies… OH MY!

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On August 12, 2005, Patrick Byrne, CEO of Overstock.com (NASDAQ: OSTK) had a conference call he said was going to give information about the “August 11 lawsuit.”

The transcript is 17 glorious pages of Byrne rambling about his conspiracy theories. No questions. Just Byrne and conspiracy theories. I read it on Thursday. And I didn’t really know what to do with it. Do I try to summarize all the nonsense? Then what?

Fortunately, a poster on a stock message board has saved me the trouble. Here’s what he calls the Reader’s Digest version of the transcript. If you’re normal, you will get less than 1/4 through it and swear that this person is lying. The transcript of this public conference call sponsored by Overstock.com couldn’t possibly have happened this way. Oh yes, it could. Read the transcript for yourself! Continue reading

Patrick Byrne & Co. Up to Dirty Message Board Tricks Again

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I occasionally take a peek at stock message boards like the Investor Village Overstock.com board when I need a bit of entertainment. It’s especially interesting when the poster “Hannibal” makes statements about the financials and operations of Overstock.com and makes no disclosure that he is, in fact, Patrick Byrne the CEO of Overstock (NASDAQ:OSTK).

Patrick and his little friends have a history of using dirty tricks to try to gather information on the people who dare to say anything negative about Overstock. Paid cyberstalker Judd Bagley is known for secretly embedding code into messages he posts on message boards, with the intent of harvesting information about the IP addresses of those who read and respond to his messages. Continue reading