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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PHX Corp@zippy I'm Probaly going to Warn my uncle who is a techie that it may come out at the end of july04/20/2015 - 8:45pm
Matthew Wilson@zippy I want windows 10 badly, but that is because I am stuck on 8.1 yuk. that being said the new dx12 looks very good, and the reported performance gain from it.04/20/2015 - 8:00pm
ZippyDSMleeMy body is readY! http://www.afterdawn.com/news/article.cfm/2015/04/20/amd-microsoft-to-launch-windows-10-at-the-end-of-july04/20/2015 - 7:54pm
PHX CorpI may have posted this before but a leaked email from Sony pictures has the MPAA written all over it http://www.extremetech.com/computing/203654-leaked-sony-emails-show-mpaas-opposition-to-fair-use-confirms-users-are-viewed-as-thieves04/20/2015 - 4:53pm
Mattsworknameyet another reason the DMCA should be dismantled and rewritten04/20/2015 - 4:41pm
Matthew Wilson@zippy that is worse than the ESA thing.04/20/2015 - 4:26pm
ZippyDSMlee0-o good luck with that car companies, http://www.autoblog.com/2015/04/20/automakers-gearheads-car-repairs/04/20/2015 - 4:07pm
Andrew EisenYes, hence my subsequent shout.04/20/2015 - 3:15pm
Matthew Wilsonwhile the article itself isnt that great, but the point is still valid.04/20/2015 - 3:14pm
Andrew EisenProfessionals do need to be mindful of what they say on social media though. That's true.04/20/2015 - 3:11pm
Andrew EisenWell, it was almost a decent article from Techraptor. Some day. Some day...04/20/2015 - 3:09pm
Matthew Wilsonhttp://techraptor.net/content/gamings-pr-problem both game devs and pr people alike need to to keep in mind, when your on twiter you are also representing the company you work for.04/20/2015 - 2:39pm
E. Zachary KnightI don't really care either way, but that was just my understanding based on previous reads.04/20/2015 - 2:13pm
E. Zachary KnightBut now I am confused. I thought Johnny Storm was the adopted one, but the dad is black. Does that mean that Sue is adopted or is it just an interracial marriage with existing children?04/20/2015 - 2:12pm
E. Zachary KnightNew Fantastic 4 trailer finally shows powers and just a wee bit of whimsy. Not too much mind you. No need to dilute the dark and brooding. http://www.comingsoon.net/movies/trailers/431505-the-new-trailer-for-fantastic-four-is-here04/20/2015 - 2:11pm
E. Zachary KnightOk. Just checked another of my Twitter accounts and there is a setting, opt-in. So it looks like a slow roll out.04/20/2015 - 1:17pm
E. Zachary KnightI agree. I looked but could not find any settings for DMs. So either there is no opt-out or they are slowly rolling it out one block of users at a time.04/20/2015 - 1:11pm
Andrew EisenI can't find the setting for direct messaging but I agree, it should absolutely default to off.04/20/2015 - 12:54pm
Matthew Wilson@james the issue is that it is way to easy to make a troll twiter acount. if I had it my way I would set it so you can fallow anyone, but if you want to send tweeta, you have to pay a one time 5$ fee.04/20/2015 - 12:38pm
james_fudgeIt shows how Twitter management thinks: instead of fixing harassment let's offer another avenue for it… DUMB.04/20/2015 - 12:35pm
 

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