SouthPeak Comments on CFO Woes, SEC Troubles

December 8, 2010 -

Publisher SouthPeak issued a statement this week in response to a Cease and Desist letter it received last week from the U.S. Securities and Exchange Commission. In that statement, the publisher admitted that it had not filed its financial reports properly - related to a loan made by Chairman Terry Philips - but claimed that it was an error it later tried to correct prior to the U.S. Securities and Exchange Commission's action against the company.

"The SEC staff's inquiry was fully disclosed in our public filings and was based on the manner in which we recorded a loan during this quarter which was made by our chairman to help support our business but was not properly reported in our financial statements.

"During the investigation, we fully explained to the SEC staff that when we discovered the error in our statements, we acted promptly on our own accord with the support of our auditor and outside counsel to fully rectify the issue. The recommendation of the SEC staff resulting from this investigation is that cease and desist orders issue in which we agree to comply with our SEC filing obligations in the future.

"We are currently negotiating the exact provisions of the orders," it continued. "The SEC is not proposing that our company be prohibited from doing business as some are saying , but rather, as is the case with proceedings of like nature, the SEC is trying to assure our company's compliance in the future with our reporting obligations."

The publisher also denied that its outgoing CFO is planning to take future legal action against the company, describing her exodus as voluntary and amicable. The company made no comment on the previous CFO, Andrea Jones, who was asked to leave in August. She is suing the company for "retaliation against a whistle blower and wrongful termination" and is seeking lost wages, benefits and punitive damages. SouthPeak disputes her claims.

On a related note, SouthPeak has sold the UK rights to action-RPG Two Worlds II back to series creator TopWare Interactive, who plans to self-publish in January. The company opened up a new office in the UK this week. SouthPeak will remain the game's US and Australian publisher.

Source: GI.Biz


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james_fudgeI'll be watching the Facebook page09/01/2015 - 10:14am
james_fudgethe site maybe up right now, but we're not updating until we're at the new location.09/01/2015 - 10:13am
james_fudgehttps://www.facebook.com/gamepolitics09/01/2015 - 10:12am
Mattsworknamehttps://www.youtube.com/watch?v=T-Vx4_prmvo09/01/2015 - 3:18am
MattsworknameTotal bisquit talkes about why teh Deus X pre order systems is garbage.09/01/2015 - 3:18am
MechaTama31Infophile: Kind of like how you're criticizing these theoretical reactions before you've even read any? ;)09/01/2015 - 12:44am
PHX CorpI'll probaly Start the stream around 8PM Eastern08/31/2015 - 10:09pm
PHX CorpOk, see you guys Tomorrow on the GP Facebook Page, I'll be steaming either the first 2 megaman games(Through Megaman Legacy Collection) or Rare Replay as the first game on My twitch.tv page tomorrow While we wait for GP to Come back up later this week08/31/2015 - 10:01pm
james_fudgeAlso check out our Facebook page and chat there! https://www.facebook.com/gamepolitics08/31/2015 - 9:53pm
james_fudgeSee you all on the other side! Find me on Twitter :)08/31/2015 - 9:51pm
james_fudgeAllright, i'll mention this on the GP facebook page08/31/2015 - 9:49pm
PHX Corpand now it's ready to go for everyone08/31/2015 - 9:35pm
PHX Corpok, done http://www.twitch.tv/trustygemtwitch I have to put on one more finishing touch and it is ready to go08/31/2015 - 9:19pm
Andrew EisenFeel free to leave us suggestions on Facebook or Twitter too. We're going to be busy but we'll try our best to keep an eye on 'em.08/31/2015 - 8:59pm
Andrew EisenIt's an interesting idea though. If we do anything, we probably won't know until after the site goes offline so keep an eye on GP social media for announcements.08/31/2015 - 8:59pm
Andrew EisenYeah, we could use my Twitch chat box too. There's always IRC but we don't currently have a GamePolitics channel.08/31/2015 - 8:57pm
Goth_SkunkThough I think the limit is 9 at a time in the hangout, so anyone who can't get in would be stuck out in the 'on air' portion.08/31/2015 - 8:57pm
Andrew EisenFor the show, I'd like the chat open to anyone who wants to watch.08/31/2015 - 8:55pm
PHX CorpI could Set Up a Temporary chatroom on My twitch.TV page while GP is busy updating the site(since I'll be Fighting Megaman Legacy Collection on Xbox one)08/31/2015 - 8:54pm
Goth_SkunkI don't see a problem with inviting viewers. It's not like I'm advocating this to be an open forum, just something specific to GP members.08/31/2015 - 8:53pm

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