Feeds

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

Looks to the future

  • alert
  • submit to reddit

Intelligent flash storage arrays

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

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.