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

Overstock Continues to Mislead Investors With Phony EBITDA Calculation

In the past, I’ve discussed the improper EBITDA numbers reported by (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.” … is Doing Better if EBITDA is Worse Than They Reported?

This level of logic from the supporters of Patrick Byrne and his supporters is pathetic. Sam Antar has brought up the issue of’s (NASDAQ:OSTK) violation of SEC regulations in reporting EBITDA. The result of that improper reporting? EBITDA is materially overstated by and the company’s financial results look …

Patrick Byrne, CEO of Is a Crook, According to Himself

According to a transcript of an interview that (NASDAQ:OSTK) CEO Patrick Byrne did with CNBC in 2004, he is a crook. Here’s the relevant portion: Interview: Patrick Byrne, chairman and CEO of, discusses the company’s revenues and earnings 23 April 2004 CNBC: Kudlow & Cramer Mr. BYRNE: Well, … Materially Overstates EBITDA

Sam Antar has a great article today on (NASDAQ:OSTK) continuing to overstate EBITDA. Specifically, Sam says: In’s Q1 2008 earnings release and 10-Q report the company continued to improperly remove from its EBITDA calculation, certain stock-based expenses in violation of Regulation G. As a result,’s reported Q1 … Pretend Accounting Measures Muddy the Waters

I present for you today one (just one) example of the accounting shenanigans at Inc. (NASDAQ:OSTK) to demonstrate the deception of management. This accounting concept is quite elementary, and it is called EBITDA. EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization Accountants and investors generally agree on what …

More on the Accounting Shenanigans

This year, Patrick Byrne and company have taken a liking to discussing the (NASDAQ: OSTK) financials using non-GAAP measures. This means that they present certain financial figures that are not computed in accordance with GAAP (accounting rules). Who cares? As long as they disclose that they’re non-GAAP measures, it …