Feeds

E-district.net CEO accused of inflating figures

UK dotcom CEO suspended

  • alert
  • submit to reddit

The essential guide to IT transformation

The CEO of entertainment outfit e-district.net has been suspended ahead of an investigation into the dotcom's affairs.

Steven Laitman was told to stand-down on Sunday after an initial inquiry discovered that the numbers of registered users, page impressions and revenues reported to investors appeared to have been "substantially overstated".

Shares in the AIM-listed company were suspended this morning.

In a short statement the company said: "The board of e-district has reason to believe that the reported numbers for registered users, page impressions and revenues have been substantially overstated.

"It is not clear over what period of time this overstatement has occurred but it could include all of 2000.

"The board is not aware of any misappropriation of funds."

Senior managers at the company became aware of "certain irregularities" on Thursday evening.

A spokesman for the company declined to pre-judge the outcome until a full investigation had been completed.

However, he said: "The board is taking this very seriously."

When e-district.net prepared to float a year ago The Register raised its eyebrow's at the claims made by Laitman. Even though e-district was a new name on the block, Laitman reported that the outfit had one million active users in January 2000 and 100 million page impressions a month.

Such high figures would have made e-district one of the biggest sites in the UK behind the likes of the BBC and Yahoo!.

Last month e-district reported it had 3.43 million users and boasted 367 million page impressions a month.

In September it reported that in the six months to June 2000 it made a pre-tax loss of £67,646, compared to a profit of £55,953 in the previous six months. Turnover for the six months to June rolled in a £1.04 million. ®

Related Stories

e-district in pre-float bonanza
WebTV propels e-district to financial stratosphere

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.