Thursday, March 18, 2010

Is There a Mole at Leaking to the SEC?

NyPo is reporting on an SEC investigation at

The publicly traded company attracted the attention of regulators because of accounting woes at a former subsidiary called, said yesterday...

Last summer, announced there were "issues" related to how it had been recording revenue at, the marketing company it acquired in 2007. An internal probe ensued and resulted in several quarters of delayed earnings results for the parent company, frustrating investors.

In recent months, seemed to be coming into the clear. In December, it announced that it had sold its "membership interest" in for $3.1 million in cash and notes. And in January, it filed its long-awaited second- and third-quarter results for 2009 after announcing it had finally concluded its review, which went back to 2008 earnings.

But just as things appeared to be getting back to normal, earlier this month the SEC asked to have a second look at the findings of's internal probe, said a person close to the company.
If the SEC taking a "second look," this  to me means either that the SEC is out to get Cramer, or there is a snitch inside leaking dirt to the SEC. The chances that the SEC actually found something on their own in a routine, non-political, investigation is slim to none. The SEC wouldn't be able to find fog in San Francisco, on their own.

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