While Jim Cramer wasn’t looking, some of his underlings at TheStreet were doing some pretty shady things for which TheStreet will get off scot-free.
TheStreet’s ex-CFO and the heads of its former promotional agency, Promotions.com, will, however, have to pony up some fine money and won’t be running any public companies any time soon. It seems the three were playing pretty fast and loose with the books four years ago. (None, obviously, admitted or denied wrongdoing as per SEC settlement standards.)
“Alwine and Barnett used crooked tactics, Ashman ignored basic accounting rules, and TheStreet failed to put controls in place to spot the wrongdoing,” Andrew Calamari, director of the SEC’s New York regional office, said today in a statement….
The SEC allegations were connected to improper revenue recognition at the online promotion unit, which the SEC identified as “Subsidiary A.” Before it was acquired by TheStreet, the closely held company wasn’t required by U.S. securities law to maintain accurate financial records, the SEC said.
In that marriage, those less-than-ideal figures got all mixed into TheStreet’s own books and led it to report improper revenue recognition for 2008.