Penthouse finally produces barely legal issue

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Penthouse International settled with the SEC yesterday, over charges of accounting fraud and financial reporting violations. Of course Penthouse settled without admitting any wrongdoing, like improperly booking a $1 million payment from a Web site management agreement as revenue or changing a quarterly loss to a net profit in the 2003 first quarter 10-Q. Penthouse would file for Chapter 11 later that year.
Former exec and shareholder Charles Samel and Jason Galanis agreed to pay $60k for allegedly using a fake e-signature of former CEO Bob Guccione to meet SarbOx requirements.
Penthouse settles accounting fraud case with SEC [Reuters]

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