The famous TV host, financial adviser and commentator Jim Cramer‘s financial web site, TheStreet.com, is being investigated by the U.S. Securities and Exchange Commission. SEC have some questions regarding Mr. Cramer’s company’s accounting practice.
“Have all other periodic reports required during the preceding 12 months or for such shorter period that the registrant was required to file such report(s) been filed?”
The United States Securities and Exchange Commission is not sure if the financial superstar Jim Cramer’s company TheStreet.com Inc. is manipulating their numbers, or not. The financial reports have not been delivered in time, and today the SEC have launched an investigation.
SEC filed Thursday an official inquiry into the accounting of TheStreet.com Inc.
The company, founded by the famous CNBC TV host, Jim Cramer, have failed to deliver its financial reports on time, and additional information obtained by the SEC have resulted in a formal investigation.
“As a result of the need for the Company and its independent registered public accounting firm to focus attention on matters related to the Company’s previously-announced review of the accounting in its former Promotions.com subsidiary, which subsidiary the Company sold in December 2009 — including matters related to the preparation and filing by the Company in February 2010 of a Form 10-K/A for the year ended December 31, 2008, a Form 10-Q/A for the quarter ended March 31, 2009 and Forms 10-Q for the quarters ended June 30, 2009 and September 30, 2009, respectively, and matters related to an investigation commenced by Securities and Exchange Commission in March 2010 — the Company requires additional time to prepare its financial statements, assess its internal controls and file its Form 10-K for the year ended December 31, 2009 (“2009 Form 10-K”). The Company expects that it will be able to file its 2009 Form 10-K on or before the fifteenth calendar day following the prescribed due date.”
Securities and Exchange Commission wants answers on the following three questions:
1. Name and telephone number of person to contact in regard to this notification.
2. Have all other periodic reports required under Section 13 or 15(d) of the Securities Exchange Act of 1934 or Section 30 of the Investment Company Act of 1940 during the preceding 12 months or for such shorter period that the registrant was required to file such report(s) been filed?
3.Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof?
With the popular TV show “Mad Money“, Mr. Cramer have reached the level of a “financial guru”.
However, the guru status was kinda stripped last year by comedian Jon Stewart’s hilarious attack on Cramer and his financial advisory by pointing out that he strongly recommended buying Bear Stearns shortly before the investment bank collapsed.
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