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The interesting aspect is how a $100m theft is not considered a "material event" with regards to SEC reporting at these firms.

• mholmes680 10y ago
  agree 100%. A company doesn't have sufficient controls (or auditing!?) around its financials and doesn't catch rogue payments up to 10s of millions over a TWO YEAR period, and thats only maybe a material event? Could be isloated event, could be the scammer told some friends how to pull it off with other suppliers, etc... Sounded like the SEC is getting caught with their pants down on this too, though. Maybe not sure how to deal with these situations?
• patcheudor 10y ago
  You would be shocked by how much large companies can loose as a result of fraud and inventory loss without reporting. Typically companies establish a percentage of revenue which when surpassed triggers disclosure. It's usually in the 1% neighborhood. Alphabet reported $89.5 billion in revenue in just 2016 & this fraud reportedly took place over two years. In other words, not even close to what most companies would consider reportable from a percentage perspective.
• hn_throwaway_99 10y ago
  If you look at FB's and Google's annual revenue, the time period of the fraud, and the fact that it appears they got most of the money back, I'm surprised why anyone would consider this a "material event". Google had around 90 billion dollars in revenue in 2016. No, I don't see why a, say, $10 million dollar loss over a couple years to Google would be considered material.
• SA500 10y ago
  All the money was recovered which makes me think it was never paid out or there is more to this