SEC alleges fraud at Seattle skin-care retailer's

The Securities and Exchange Commission has accused a Seattle skin-care retailer's former chief financial officer of fraudulently boosting the company’s revenues
According to the SEC, Karl Redekopp, the former chief financial officer of International Commercial Television Inc. (ICTV), fraudulently reported millions of dollars of sales of ICTV’s Derma Wand, a device that purportedly would reduce wrinkles and improve skin appearance, “while the products still sat unsold in the company’s warehouse.”

According to the SEC, ICTV overstated revenue and net income from February 2007 to June 2008 by a total of $7.6 million. SEC officials said the agency settled its case with the company, but is pursuing its case against the former CFO
“Redekopp violated fundamental principles of accounting to fraudulently boost ICTV’s bottom line and conceal its true financial health from investors. Unfortunately, ICTV’s auditors turned a blind eye to the company’s financial irregularities and failed to fulfill their role in investor protection,” said Marc Fagel, director of the SEC’s San Francisco regional office, in a statement.
Redekopp lives in Vancouver, British Columbia, and resigned from ICTV in August 2008. ICTV is headquartered on Bainbridge Island. The SEC filed its complaint charging him with fraud in federal district court in Tacoma.

Here’s a link to the SEC announcement and related document filings

Read more: SEC alleges fraud at Seattle skin-care retailer's former CFO - Puget Sound Business Journal (Seattle)