America’s Securities & Exchange Commission is investigating media group Cablevision over recently unearthed accounting errors.
Last month, Cablevision admitted that $6.2 million (€5.4m; £3.7) of marketing payments at its Rainbow Media cable-TV unit had been improperly booked and sacked fourteen employees as a result [WAMN: 20-Jun-03].
These payments should have been entered in the 2003 accounts, but were instead brought forward to 2002 – though the company corrected all but $1.7m before posting results. Rogue expenses “similar in size” were uncovered in the 2000 and 2001 accounts.
Cablevision has now revealed that the SEC has issued a formal notice of investigation and a subpoena.
Data sourced from: Financial Times; additional content by WARC staff