Feeds

E-district.net coughs up to ‘financial irregularities’

Looks to the future

  • alert
  • submit to reddit

Internet Security Threat Report 2014

E-district.net has confirmed that key financial and operational data was fabricated at the dotcom.

Releasing full year results for the year ended 31 December 2000, the entertainment and games outfit confirmed preliminary investigations which pointed to widespread "financial irregularities" at the AIM-listed company.

The full year results showed that the company made a pre-tax loss of £2.19 million compared £384,000 for the 17 months to December 31 1999.

Reports from Cap Gemini Ernst & Young and PricewaterhouseCoopers Forensic Services confirmed that there was "substantial overstatement of registered users, page impressions and revenues" and evidence of "collusion".

The reports found that no one implicated in the collusion remains at the company.

In February, CEO Steven Laitman was sacked and his assets frozen in connection with irregularities at the company. Two senior managers at the company also resigned.

The investigation also confirmed that Mr Laitman used around £980,000 of his own cash between November 1999 and February 2001 to inflate artificially revenues for the business.

The irregularities at e-district.net are currently under investigation by the Fraud Squad.

In a bid to draw a line under the affair and look to the future, Frank Lewis, Chairman and acting CE, said: "Despite continued expansion of the company's activities in developing its interactive television services...the financial year to 31 December 2000 has proved extremely difficult.

"We faced the challenge of a significant downturn affecting valuations in the technology sector, followed by the discovery of financial irregularities."

E-district said that it would focus on providing subscription and pay-per-play services tailored for digital TV and broadband Internet services.

As of May 31, the company had £10.5 million in the bank and is burning cash at a rate of £200,000 a month. ®

Related Stories

e-district.net finds £1m blackhole
e-district.net sacks CEO
E-district.net CEO accused of inflating figures

Providing a secure and efficient Helpdesk

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.