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It's a proven not-going-to-work business. The store is a mess. Should be clear after this holiday season. Risk is a management buyout (god bless the moronic CEO)...

Patrick Byrne is afraid to answer questions about Overstock.com's (NASDAQ: OSTK) continuous violations of Generally Accepted Accounting Principles (GAAP) and SEC disclosure rules. Because of those violations, Overstock.com's current financial reports cannot be accurately compared to reports in corresponding prior periods.

In its latest Q3 2009 financial report Overstock.com disclosed a new inquiry by SEC’s Division of Corporation Finance regarding its 2008 Form 10-K/A (amended 10-K report) and its June 30, 2009 Form 10-Q. The company did not disclose the nature of that inquiry.

Overstock.com (OSTK) this afternoon posted Q3 revenue of $195.1 million, up 4% year over year, and ahead of the Street at $179.1 million. The online retailer’s loss for the quarter of 3 cents a share was in line with expectations. Adjusted EBITDA of $19.7 million was up from $4.7 million a year ago.

Apparently, Overstock.com (NASDAQ: OSTK) is going to stubbornly tough it out and force the Securities and Exchange Commission to take enforcement action to make its financial reports comply with Generally Accepted Accounting Principles (GAAP). The SEC re-opened its investigation of Overstock.com in response to a series of investigative reports by this blog documenting continuing GAAP violations by the company and other false and misleading representations to investors by its management team, led by CEO Patrick M. Byrne.

Flawed financial reports incorporated in new registration statement

Filed under: Scandals

You'll never believe who's dropping dimes to the feds!

Sam Antar, formerly the CFO of Crazy Eddie, known in the New York area for over-the-top commercials that scared the hell out of kids (well, me at least), knows his way around a questionable balance sheet. For 15 years, he was the executive chef of book-cooking, ultimately taking a guilty plea to conspiracy and obstruction of justice charges. He stayed out of the clink by taking the stand on the government's side at a 1993 trial, ultimately sending his brother, Eddie Antar to prison for seven years or so.

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.