hot  /  reviews  /  video  /  blogs  /  forum

US Securities and Exchange Commission targets SouthPeak

1:00 AM on 12.01.2010 // Conrad Zimmerman
  @ConradZimmerman

Do you hear that? It's the Man, and he's coming. SouthPeak Interactive made a filling with the United States Securities and Exchange Commission on November 19th which revealed that the publisher's chairman Terry Phillips and CEO Melanie Mroz have both received Wells Notices (a notice sent when the staff of the SEC encourages enforcement action against a company).

The action comes as a result of an investigation following an amended quarterly report by SouthPeak, after it was determined by management that there were problems with the books. The SEC alleges that that the parties violated accounting laws and failed to maintain internal safeguards within the company to ensure proper accounting. In addition, SEC staff recommends that the commission seek civil damages from Phillips for "aiding and abetting" violations.

Phillips is no stranger to SEC enforcement. Back in 2000, he and his company Capitol Distributing LLC were accused by the commission of aiding and abetting Take-Two Interactive in, "violations of antifraud, reporting and recordkeeping provisions." As part of a settlement, Phillips was slapped with a cease and desist order and made to pay a civil penalty of $50,000. 

Neither is this the beginning of SouthPeak's legal wrangling with the federal government. At present, the SEC is pursuing five different lawsuits (all in varying stages of litigation) against SouthPeak subsidiaries including Gamecock.

U.S. Regulators Target SouthPeak Amid SEC Violation Accusations [Gamasutra]




 Reblog (or) Blog Reply

Conrad Zimmerman, Moustache
 Follow Blog + disclosure ConradZimmerman Tips
An avid player of tabletop and video games throughout his life, Conrad has a passion for unique design mechanics and is a nut for gaming history. He can be heard on the comedy podcast () and str... more   |   staff directory

Get more destructoid:   We're indie-run, blogging for the love of it, and our site will always be free. Optionally, you can support us and get: (1) Faster pages from our cloud server (3) Wide(r)screen (3) No big ads on Dtoid, Japanator, Tomopop, or Flixist (4) Auto contest entries, and (5) Dibs on betas & downloads. Try it out

 Setup email comments

Unsavory comments? Please report harassment, spam, and hate speech to our moderators, and flag the user (we will ban users dishing bad karma). Can't see comments? Apps like Avast or browser extensions can cause it. You can fix it by adding *.disqus.com to your whitelists.


  Around the web (login to improve these)




Back to Top


We follow moms on   Facebook  and   Twitter
  Light Theme      Dark Theme
Pssst. Konami Code + Enter?
You may remix stuff our site under creative commons w/@
- Destructoid means family. Living the dream, since 2006 -