Oct 31
There has been a flurry of activity in the emerging legalized cannabis industry, as regulations and restrictions continue to decrease. Given that the U.S. cannabis market is estimated to be approximately $60 billion, with still plenty of room to grow, it is not surprising that many investors are looking at this industry. However, prudent investors …
Permanent link to this article: https://betweenthenumbers.net/2018/10/cannabis-company-valuations-present-unique-challenges/
Dec 30
General Cable Corporation announced that it has entered into a joint settlement with the Securities and Exchange Commission (“SEC”) and Department of Justice (“DOJ”) for a total payment of $82.3 million to address investigations into violations of the U.S. Foreign Corrupt Practices Act (“FCPA”) and separate allegations regarding financial restatements. In 2014, General Cable voluntarily …
Permanent link to this article: https://betweenthenumbers.net/2016/12/general-cable-settles-with-sec-and-doj-for-82-3-million/
Sep 15
The Securities and Exchange Commission (“SEC” or the “Commission”) protects whistleblowers through Rule 21F-17, enacted under the Dodd-Frank Wall Street Reform and Consumer Protection Act, which states that “[n]o person may take any action to impede an individual from communicating directly with the Commission staff about a possible securities law violation.” Prior cases have highlighted that …
Permanent link to this article: https://betweenthenumbers.net/2016/09/severance-agreements-cannot-interfere-with-whistleblower-protections/
Jul 23
The Securities & Exchange Commission (“SEC”) has announced an approximately $3 million whistleblower award to an unnamed company insider who provided information to the SEC regarding a complex fraud that would otherwise been difficult to uncover. Whistleblowers who provide the SEC such information are eligible for awards of 10 to 30 percent of the money …
Permanent link to this article: https://betweenthenumbers.net/2015/07/another-whistleblower-gets-multi-millions/
Jun 23
The taxation of gambling winnings is widely misunderstood (or at least widely not followed). Gambling gains are included in gross income, reported on “other income” on form 1040. Losses from gambling are allowed to the extent of gambling gains, but only as an itemized deduction. The amount spent to generate any win reduces the win. …
Permanent link to this article: https://betweenthenumbers.net/2015/06/the-irs-wants-more-of-your-gambling-winnings/
Jun 01
CtW Investments Group (“CtW”), which represents a group of minority shareholders in Wal-Mart, has accused the firm’s external auditor Ernst & Young (“E&Y) of having had early knowledge of Wal-Mart’s violation of the Foreign Corrupt Practices Act related to bribery allegations in Mexico. In a letter to the Public Accounting Oversight Board, CtW reports that …
Permanent link to this article: https://betweenthenumbers.net/2015/06/investors-accuse-ernst-young-accused-of-being-complicit-in-bribery-scandal/
May 16
The U.S. Government Accountability Office (“GAO”), a government watchdog group, recently reported the results of its 2014 audit of the Securities and Exchange Commission (“SEC”) financial statements. The findings included (i) troubling reports of internal control failures at the very agency tasked with policing the reporting activities of others and (ii) warnings of vulnerability to …
Permanent link to this article: https://betweenthenumbers.net/2015/05/gao-tells-sec-to-look-in-the-mirror-regarding-internal-control-failures/
May 06
A recent report indicated that over a 10 year period approximately 1,600 Internal Revenue Service (“IRS”) employees willfully evaded their tax obligations. The wrongful activity included: failing to file timely claiming improper dependents claiming improper first-time homebuyer credits The law calls for the termination of such employees unless it is waived by the IRS commissioner. …
Permanent link to this article: https://betweenthenumbers.net/2015/05/irs-workers-found-to-have-evade-tax-payment/
Apr 15
A recent enforcement action by the Securities and Exchange Commission (“SEC”) is the first of its kind, concerning improperly restrictive language contained in a company’s confidentiality agreements that could potentially impede whistleblower rules and protections. The SEC charged KBR Inc. with violating Rule 21F-17 under the Dodd-Frank Act by requiring witnesses in internal investigations to …
Permanent link to this article: https://betweenthenumbers.net/2015/04/sec-takes-action-on-overly-restrictive-confidentiality-agreements-affecting-whistleblowers/
Apr 05
The Financial Accounting Standards Board (“FASB”) has announced a proposal to delay by one year the effective date of implementation of the new revenue recognition standard under Generally Accepted Accounting Principles (“GAAP”), making the new date of change for public companies those reporting periods beginning after December 15, 2017. Private companies would have an additional …
Permanent link to this article: https://betweenthenumbers.net/2015/04/new-revenue-recognition-rules-delayed/
