The SEC brings dozens of financial fraud cases each year. Usually the cases involve companies that, in an effort to make the numbers expected of them by investors, violate GAAP in order to recognize more revenue, hide expenses, inflate assets, etc. In most cases, of course, there is an underlying business at these companies that management is trying to make look better than it really is through financial shenanigans. But not always!
Sometimes, as in the case the SEC filed last week against Subaye, Inc. and James T. Crane, the supposed business is simply non-existent….
via SEC Charges ‘Imaginary’ Cloud Computing Business with Financial Fraud – Compliance Week
