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Are you sure about that? Presenting false sales numbers sounds like a regular false statement to me, which may be subject to SEC rules etc if you are listed. B
by the-dude 3y ago
Are you sure about that? Presenting false sales numbers sounds like a regular false statement to me, which may be subject to SEC rules etc if you are listed.
But actually buying your own product ... I can't find any sources yet on the web.
- ElevenLathe 3y agoIANAL (though I do read Matt Levine, and I stayed at a Holiday Inn Express last night) but my understanding is that yeah it's securities fraud if you are a public company because you are reporting sales numbers that are essentially fake, thereby defrauding the investing public. Is it just regular fraud if you're not a public company? Or if you are a public company and do juke your sales stats this way, but are open about it in your public filings? Not sure.
- dragonwriter 3y ago> Is it just regular fraud if you're not a public company? I don't think it is regular fraud in and of itself. I think it is likely to become fraud when you use sales figures including undisclosed self-dealing to support any financial transaction or anything else from which you receive something of value from someone else, and where those sales figures are a material factor.