Repost:
Posted by: Clip Prince In reply to: uzualsuzpect who wrote msg# 27855 Date:3/2/2008 11:59:37 AMPost # of 28188
Every one has, . If you haven't there are a few important points about it.1) The SEC sued three auditors (Independent accountants) but the Owner is the guy that finally took the fall.2) The details of are basically MERL bought essex industries, but because of an issue with the exchange for shares a judge (I think it was in Virginia ruled that MERL did not Own Essex industries which Merl beleived was thier wholly owned subsidiary) which Ed Johnson signed a financial statement that claimed essex industries profits as part of the income.3) lastly there was some S&L stuff (like so many companies back then didn't get caught up in that stuff.)Basically the SEC said that Ed Johnson knew that Merl did not own ESSEX industries, and that he illegally used the financial report to generate interest in Merl.IMO the accounting Firm was the real culprit, much like a 2001 state tax return that cost me almost a grand, (technically I had money coming back but by the time I got it straightened out, I had past the statute of refund time) Thanks tax company.)I don't have a link any more but I read the case on first.gov. EOM.
Josh
AI
