A former chief financial officer for the financial services organization Bankrate faces numerous charges for allegedly participating in an accounting and securities fraud scheme.
The indictment charges the former CFO with lying to accountants and falsifying records, committing wire and securities fraud, and conspiracy.
According to the charges, between 2011 and 2014, the former CFO and his co-conspirators artificially inflated the organization's earnings by manipulating its financial statements. They also allegedly lied to auditors, shareholders, and the investing public to hide their "cushion" accounting. Their alleged wrongdoing includes leaving unsupported expense accruals on the books to later artificially meet earnings goals and fraudulently listing some expenses as "deal costs" to artificially inflate earnings metrics.
The U.S. Postal Inspection Service investigated the case. According to the inspector in charge, the organization "has an extensive history of investigating complex financial fraud schemes in order to protect investors as well as the integrity of the financial marketplace from fraudulent activities by trusted insiders who abuse their positions." "Former Chief Financial Officer at Publicly Traded Company Charged with Accounting and Securities Fraud Scheme," www.justice.gov (Dec. 20, 2017).