has settled with the U.S. Securities Exchange Commission (SEC) for its part in a misstatement of accounts by former partner Ashford.com. The SEC suit against Amazon.com, Ashford.com and two of Ashford.com's executives, Kenneth E. Kurtzman and Brian E. Bergeron alleged that Amazon.com helped Ashford.com misstate its financial results in 2000 by resolving a payment dispute using two separate documents each declaring a different settlement time. Ashford.com executives only disclosed one of the documents to the company's auditors, and thereby deferred a $1.5 Million loss.
The terms of the settlement included a cease and desist order against all involved and fines totalling $85,000 (US) against the Ashford.com executives.
The SEC decision
Disclaimer: This Newsletter is intended to provide readers with general information on legal developments in the areas of e-commerce, information technology and intellectual property. It is not intended to be a complete statement of the law, nor is it intended to provide legal advice. No person should act or rely upon the information contained in this newsletter without seeking legal advice.
E-TIPS is a registered trade-mark of Deeth Williams Wall LLP.