Quote:
Originally Posted by udbrky
You said that your friends had FTP audited and that you saw the results from it.
In your opinion, from that audit, did FTP's net profits before any dividends warrant paying dividends, and if they weren't justified in paying the dividends, was it a contract issue?
How often were the people like Furst, Ferguson, Lederer, Bitar reading the financial statements of the company?
Obviously with the mismanagement of funds, someone was responsible. As someone with an accounting background, reading all the statements from FTP over the last few months, it feels like they chose their accounting team out of a list of people who failed Accounting 101.
I guess my biggest question is:
Was management's biggest failure in horrible accounting practices, not having a firm grasp on the financial state of the company, or in not having some kind of a contingency plan in case something like Black Friday actually happened?
i can't answer any particular's about that audit sry- im still under nda and its not my $$ at risk (its their's and they're way richer). u should be able to answer most of ur questions from the doj statement.
how often the board was reading the accounting is a big question. it'd be pretty ridiculous if it wasn't at least monthly- but then again it'd be pretty ridiculous to act like they did if they were getting monthly updates.
the biggest failure was not owning up to their earlier mistake. they could've shored up the hole pretty easily, although it probably would've cost the ceo and cfo their jobs (among maybe others). they decided to keep their jobs, and try to keep everyone happy by gambling it up with player funds. its not like the usa all the sudden outlawed toothpaste to put colgate out of business- people knew black friday was a very legitimate possibility, and it should've been planned for.