Quantcast
US Securities and Exchange Commission targets SouthPeak - Destructoid

DestructoidJapanatorTomopopFlixist



US Securities and Exchange Commission targets SouthPeak


1:00 AM on 12.01.2010
US Securities and Exchange Commission targets SouthPeak photo



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]






Comments not appearing? Anti-virus apps like Avast or some browser extensions can cause this.
Easy fix: Add   [*].disqus.com   to your software's white list. Tada! Happy comments time again.

Did you know? You can now get daily or weekly email notifications when humans reply to your comments.







Win your choice of console from Destructoid! in Destructoid's Hangs on LockerDome

Legal System

1:30 PM on 08.01.2014
GameStop fingerprinting customers in Philadelphia

GameStop now requires customers to provide fingerprint scans when trading in merchandise at the retailer's Philadelphia locations, CBS Philly reports. The chain is collecting thumbprints, which are sent to a national dat...more



8:00 PM on 07.27.2014
Judge okays first settlement in 38 Studios lawsuit

A judge has approved the first settlement in Rhode Island's lawsuit over the ill-fated $75 million deal that brought Kingdoms of Amalur developer 38 Studios to the state in 2010. The ruling from Superior Court Judge Mich...more



1:00 PM on 07.18.2014
Google will stop calling games with in-app purchases 'free' in Europe

As part of its investigation into unwanted in-app purchases, often by children, the European Commission has laid out guidelines for developers and the app stores themselves to follow. By the end of September, Google will...more



View all Legal System






Back to Top




All content is yours to recycle through our Creative Commons License permitting non-commercial sharing requiring attribution. Our communities are obsessed with videoGames, movies, anime, and toys.

Living the dream since March 16, 2006

Advertising on destructoid is available: Please contact them to learn more