Securities Law Updates | New Releases/No Action Letters
August 26, 2010
Seattle-Area Company and Former CFO in Hot Water for Phony Accounting of Infomercial Sales
Securities and Exchange Commission v. International Commercial Television, Inc.
Case No. 3:10-cv-05555 (W.D. Wash.), Release No.. 21622, 8/9/2010
The Securities and Exchange Commission (“SEC,” or “Commission”) has charged the former chief financial officer of a Seattle-area skin care retailer with fraudulently boosting earnings by reporting sales of anti-aging products promoted through Home Shopping Network infomercials while the products still sat unsold in the company’s warehouse.
The SEC alleges that Karl Redekopp, the former CFO of International Commercial Television Inc. (ICTV), turned millions of dollars of quarterly losses into profits by falsely accounting for ICTV’s sales of the Derma Wand, a skin care appliance that purports to reduce wrinkles and improve skin appearance. Redekopp fraudulently recognized revenue before the Home…
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