Ah Yes, Here's the Other Problem with Overstock.com!
As if you needed more Overstock issues (catch up: Overstock has more issues than National Geographic), here they are and we can thank Gary Weiss and Sam Antar (as usual) for fronting them off. Oh dear, is Overstock going to attack me for criticizing their Kamikaze accounting skills too? Maybe Patrick Byrne needs is a good girl fight to set him straight. Ready when you are, dear.
Anyway, Gary promised us big news yesterday and the Overstock fraud has delivered. Take it away, Sam:
Yesterday, Overstock.com (NASDAQ: OSTK) filed a Notification of Late Filing (Form 12b-25) for its 2009 annual 10-K report at around 4:23 PM (Eastern) or about 37 minutes before the drop-dead deadline when the 10-K report was due to be filed.
The Notification of Late Filing identifies new previously undisclosed material violations of Generally Accepted Accounting Principles (GAAP) and other Securities and Exchange Commission disclosure rules. The company needs more time to determine the accounting impact of certain material GAAP violations first acknowledged by the company on January 29 and new GAAP violations reported by the company in its "Notification of Late Filing."
Apparently, KPMG who was hired as Overstock.com's new auditors after they fired Grant Thornton, has finally learned what I've known for a very long time: The deeper you dig into Overstock.com's financial reporting, the more black holes (GAAP and SEC disclosure violations) you will find.
Now as we all know, Patrick Byrne has been bitchfighting with Sam for quite some time as he doesn't take kindly to being called a fraud (Sam, on the other hand, could care less) but in this latest page from the Overstock drama, OSTK essentially vindicates Sam and - shock - criminalizes itself. Let Gary Weiss explain:
Overstock.com's wack-a-do CEO Patrick Byrne has been hiding under his desk while all this is going on, dodging a demand by Sam Antar that he apologize for lying about Sam correctly identifying Overstock's fraudulent accounting.
Not only that, but Byrne attacks Sam on the Overstock website, as Sam describes in his blog today.
That's a pretty clear case of issuer retaliation. I wonder if the SEC will wake up long enough to take action against these hoodlums? Banning its management from ever coming within 500 feet of a public company would be a good start.
Gary gets bonus points for use of "wack-a-do" on a business blog.
We could also throw in child-stalking douchebags just for shits and giggles but this isn't about the bad behavior of OSTK officers but the obvious fraud running rampant on their financials. Duh. Still into the child-stalking douchebags? K, check out The Big Picture on big bad Patrick Byrne taking on little 9 year old girls to advance his "the World is Against Me" agenda.
Seriously, Patrick, why don't you stick with messing with big girls instead of little ones? My massive figurative pair of cajones and I are waiting. You can't really smear your way out of this one, the fraud is blatant.
Did Byrne and Co. really think they could slip in numerous new GAAP violations and call them "errors"? Is the SEC really that blind? (Don't answer that)
GAAP is not a polite suggestion, Overstock. Just sayin.