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TheStreet.com charged with accounting fraud


brker_guy

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I really can't stand Cramer. But on the surface it doesn't sound like they handled It too bad.

 

 

Elisabeth DeMarse, CEO of TheStreet, said the accounting irregularities happened in 2008 and 2009, and relate only to Promotions.com, which was sold in December 2009. She said the company discovered the accounting fraud itself, reported it to the SEC. The company has already restated its earnings. She said TheStreet has continued to cooperate with the SEC during the course of the investigation. What's more, under the terms of the settlement, TheStreet is not required to pay any monetary penalties. "We are pleased to put this matter behind us," says DeMarse. Fortune.com and its partner CNNMoney.com compete with TheStreet.com.

Cramer, who is on the company's board of directors and is a regular contributor on its website, was not named in the suit. Shares of the company were down just 3% on the news to $1.60.

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