Commentary on fraud, scams, scandals, and court cases.
 

Tag: auditors

Public Companies, Pyramid Schemes & MLM

Medifast Cease and Desist Order and Civil Penalty

itemprop="discussionURL"0

On September 18, 2013 a cease and desist order was filed pursuant to the Security and Exchange Commission’s investigation of Medifast Inc. (Medifast’s business includes Take Shape for Life, or TSFL, which is its multi-level marketing division.) Medifast materially overstated income and understated expenses from 2006 through 2009, according to …

Auditing & Regulations, Public Companies

Cooking the Books: Financial Statement Revisions

itemprop="discussionURL"1

In the current issue of Forbes magazine, accounting watchdog Francine McKenna has written an article about the SEC’s failure to take a hard line on accounting fraud in public companies. Despite all of the high profile accounting frauds uncovered in the past decade, the Securities & Exchange Commission appears to …