Was The SEC Sending Tesla A Message?

[Frank Cannon]

https://www.zerohedge.com/news/2018-03-16/was-sec-sending-tesla-message


"Lying crook is suck a harsh term. I just incorrectly tell the truth."

On March 14,the SEC prosecuted the massive fraud at Theranos committed by founder Elizabeth Holmes, a media darling who defrauded investors of more than $700 million while the financial press sung her praises.  The company as well as its former president Sunny Balwani were also charged.  It turns out that Ms. Holmes pretty much lied about everything she told investors in the company, and naturally she lied to the press and the public repeatedly.  Ms. Holmes was fined $500,000 and stripped of her control of the company as well as her 18.9 million shares in the company and barred from serving as an officer or director of a public company for 10 years.Criminal charges are still likely.

In  the  press  release  accompanying  the  fraud  charges,  Steven  Peiken,  Co-Director  of  the  SEC’s Enforcement Division, said the following:

    “Investors are entitled to nothing less than complete truth and candor from companies and their executives.  The charges against Theranos, Holmes, and Balwani make clear that there is no exemption fromthe anti-fraud provisions of the federal securities laws simply because a company is non-public, development-stage, or the subject of exuberant media attention.”  (italics added)

[Frank Cannon]

I have argued for years that if Tesla distributed the full out fraud of a prospectus they do now 20 years ago, Musk would be in jail. Providing Non-GAAP numbers as though they are real is criminal.

[truth_seeker]

I have argued for years that if Tesla distributed the full out fraud of a prospectus they do now 20 years ago, Musk would be in jail. Providing Non-GAAP numbers as though they are real is criminal.

As a former finance officer, I don't worship GAAP since the operatives at Arthur Andersen helped Enron do their dirty deeds.

"One man's GAAP, is another's toehold to commit massive deceit"

How many lenders rely on GAAP, for the last loan to Toys R Us, as to the value of their inventories, as a current example.

I don't trust anybody in the final analysis. Not even CPAs, which can be swayed like politicians. The CFO picks a CPA firm. The CFO and the CPA firm, dine out lavishly and often. Each time, the CPA firm picks up the bill, marks it up, and bills the CFO's firm for that tab.