Cabelas 1 million settlement with the SEC

[ColoradoShooter77]

It looks like some serious accounting fraud was going on. I'm surprised no one went to jail.

http://blogs.wsj.com/cfo/2016/04/26/cabelas-cfo-settle-sec-accounting-charges/

I hope Bass Pro does not buy Cabelas. Cabelas has a lot of awesome sales from time to time, Bass Pro is a rip-off.

 

[buckhorn_cortez]

There was not "serious accounting fraud going on."

The problem was in reporting earnings to the SEC as part of their quarterly reports.

From the SEC Summary -

Specifically, the Commission found that Cabela’s calculation of the metric it called merchandise gross margin percentage erroneously included promotional fees received each quarter from its wholly-owned bank subsidiary that issues the Cabela’s CLUB Visa Card.

They included the Cabela's Visa promotional fees as part of the stated gross margin while the quarterly report stated -

Cabela’s periodic filings incorrectly stated, “All intercompany accounts and transactions have been eliminated in consolidation.”

That's not "serious accounting fraud." That's a quarterly reporting error, not something anyone would go to jail for.

Cabelas paid a $1M fine and the CFO paid a $50K fine with both Cabelas and the CFO neither admitting nor denying the findings.

I hate to tell you this, but reporting errors and fines happen all the time with public companies.

If the SEC isn't investigating everything all of the time, then they don't need their ever increasing budget and employees...some of this is a "make work" program for a federal agency.

 

[Frank Ettin]

And not really firearm related.