SouthPeak Comments on CFO Woes, SEC Troubles

December 8, 2010 -

Publisher SouthPeak issued a statement this week in response to a Cease and Desist letter it received last week from the U.S. Securities and Exchange Commission. In that statement, the publisher admitted that it had not filed its financial reports properly - related to a loan made by Chairman Terry Philips - but claimed that it was an error it later tried to correct prior to the U.S. Securities and Exchange Commission's action against the company.

"The SEC staff's inquiry was fully disclosed in our public filings and was based on the manner in which we recorded a loan during this quarter which was made by our chairman to help support our business but was not properly reported in our financial statements.

"During the investigation, we fully explained to the SEC staff that when we discovered the error in our statements, we acted promptly on our own accord with the support of our auditor and outside counsel to fully rectify the issue. The recommendation of the SEC staff resulting from this investigation is that cease and desist orders issue in which we agree to comply with our SEC filing obligations in the future.

"We are currently negotiating the exact provisions of the orders," it continued. "The SEC is not proposing that our company be prohibited from doing business as some are saying , but rather, as is the case with proceedings of like nature, the SEC is trying to assure our company's compliance in the future with our reporting obligations."

The publisher also denied that its outgoing CFO is planning to take future legal action against the company, describing her exodus as voluntary and amicable. The company made no comment on the previous CFO, Andrea Jones, who was asked to leave in August. She is suing the company for "retaliation against a whistle blower and wrongful termination" and is seeking lost wages, benefits and punitive damages. SouthPeak disputes her claims.

On a related note, SouthPeak has sold the UK rights to action-RPG Two Worlds II back to series creator TopWare Interactive, who plans to self-publish in January. The company opened up a new office in the UK this week. SouthPeak will remain the game's US and Australian publisher.

Source: GI.Biz


 
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Andrew EisenNow, having said that, what sites are you reading that are claiming that if "you self-identify as a Gamer, you're immediately the problem" or that gamers are "obligated to stop harassment"? Or was that hyperbole too?09/21/2014 - 1:03am
Andrew EisenFirst of all, ONE person in the Shout box suggested an obligation to call harassers out on their harassing but only after YOU brought it up. Plus, Techno said "when you see it happening." If you don't see it, you're not under any obligation.09/21/2014 - 1:02am
Sleaker@Craig R. - at this point I don't even know what the hashtags are suppsed to be in support of. what does GamerGate actually signify.09/21/2014 - 12:21am
Sleaker@AE - Hyperbole for the first 2, but it seems like some of the comments in the shout are attempting to place blame on fellow gamers because they aren't actively telling people to stop harassing even though they don't necessarily know anyone that has.09/21/2014 - 12:16am
Andrew EisenSleaker - Who the heck are you reading that is claiming "all gamers are bad," we "need to pass laws or judgement on all gamers," that if "you self-identify as a Gamer, you're immediately the problem," or that gamers are "obligated to stop harassment"?09/20/2014 - 9:44pm
erthwjimhe swatted more than just krebs, I think he swatted 30 people http://krebsonsecurity.com/2014/05/teen-arrested-for-30-swattings-bomb-threats/09/20/2014 - 9:31pm
Craig R.Btw, the guy who swatted security expert Brian Krebs? He got picked up recently. It can be done.09/20/2014 - 8:55pm
Craig R.Such things are not done in a vacuum... hence why the 4chan and other logs show what fools you've all been, tricked into doing the trolls' work09/20/2014 - 8:49pm
Sleaker@Technogeek - How do you call someone out that anonymously calls in a SWAT team, or sends threats to people?09/20/2014 - 7:04pm
Technogeek"It also doesn't mean you're obligated to stop harassment from all gamers that are doing so." I'd say you're certainly obligated to call them out when you see it happening.09/20/2014 - 5:17pm
SleakerNow if you disagree with anything in my last 2 posts then we obviously have a difference in world view, and wont come to any sort of agreement. I'm fine with that, maybe some people aren't?09/20/2014 - 5:09pm
SleakerIt also doesn't mean that just because a news outlet says that Gamers are the problem and you self-identify as a Gamer, you're immediately the problem. It also doesn't mean you're obligated to stop harassment from all gamers that are doing so.09/20/2014 - 4:59pm
SleakerJust to re-iterate: People getting harassed is wrong. Just because someone is harassed by so called 'gamers' doesn't mean that all gamers are bad. nor does it mean that you need to pass laws or judgement on all gamers.09/20/2014 - 4:56pm
SleakerAnd furthermore just because someone doesn't 'crusade against the evil' that doesn't make them the problem. You can have discussion with those around you. There's a thing called sphere of influence.09/20/2014 - 4:54pm
Sleaker@Conster - one person getting harassed is a 'problem' only so far as the harassee's are doing it. Just because a select few people choose to act like this doesn't make it widespread. Nor does it immediately make everyone responsible to put an end to it.09/20/2014 - 4:54pm
james_fudgeno worries09/20/2014 - 4:15pm
TechnogeekI misread james' comment as "we can't have a debate without threatening" there at first. Actually wound up posting a shout about death threats and "kill yourself" not technically being the same thing before I realized.09/20/2014 - 3:59pm
james_fudgeDon't hit me *cowers behind Andrew*09/20/2014 - 3:20pm
ConsterYou take that back right now, james, or else. *shakes fist menacingly*09/20/2014 - 3:00pm
james_fudgeOur community is awesome. We can have a debate without threatening to kill each other.09/20/2014 - 2:50pm
 

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