The SEC has reached a settlement with Amazon.com on charges that it aided former partner Ashford.com to misrepresent its financial results in 2000. The SEC has issued a cease and desist order against Amazon meaning that the company must refrain from using similar tactics in the future. Two executives of Ashford.com have been ordered to pay civil fines totalling $85,000 as a result of the company’s accounting practices.
The SEC investigated claims that Ashford deferred $1.5 million of expenses in order to beat analysts’ earnings estimates. The expenses were connected to the company’s partnership with Amazon. The SEC also discovered that Ashford misrepresented its earnings once more in 2000, by altering the way in which the company accounted for some expenses. These expenses also arose from dealings with Amazon.
Global Sports acquired Ashford.com last year.