Porn News

Penthouse International Settles Charges of Accounting Fraud

WASHINGTON (Reuters) – Penthouse International Inc. settled charges of accounting fraud and financial reporting violations, the U.S. Securities and Exchange Commission said on Thursday.

Former Penthouse executive Charles Samel and former shareholder Jason Galanis also agreed to each pay $60,000 to a settle accounting fraud charges, the SEC said.

Penthouse, the adult magazine, was formerly owned by Penthouse International, a holding company which also had movies, online content and entertainment clubs.

Penthouse is today published by General Media Communications Inc., which is a unit of Penthouse Media Group Inc, formerly known as General Media Inc. General Media filed for Chapter 11 bankruptcy protection in 2003 and later reorganized under the majority ownership of financier Marc Bell.

The settlement resolves the SEC’s accusations that the company used an unauthorized electronic signature of Bob Guccione, the magazine’s former chief executive officer, to meet Sarbanes-Oxley law certification requirements in its 2003 first-quarter report.

The company, Samel and Galanis settled without admitting or denying any wrongdoing, the SEC said. An attorney representing Penthouse and the individuals could not immediately be reached for comment.

In the 2003 quarterly report, Penthouse International improperly booked as revenue a $1 million upfront payment in connection with a 5-year Web site management agreement, the SEC said.

The company also changed a quarterly loss of $167,000 to a net profit of $828,000, according to the SEC complaint.

Samel and Galanis prepared and filed the misleading report, knowing Guccione had not seen or approved it and Penthouse’s auditor had not done a proper review, the SEC said.

232 Views

Related Posts

Save the Date: AVN House Party Returns on July 25

AVN Media Network is pleased to announce plans to bring back the biggest event of the summer—the AVN House Party—on Thursday, July 25.

Finny Fox Directs, Stars in ‘Sailor Moon’ ManyVids Series

25 Views

UK Tory Minister Blames Joblessness Crisis on Pornography, Video Games

LONDON — The U.K. Tory government’s Work and Pensions Secretary this week blamed “pornography and video games” for what he called “a mental health crisis among young men” which resulted in them leaving the workforce.Mel Stride, a career Conservative politician…

Sexologist Dr. Susan Block Reports Legal Action Against Meta for Deplatforming

LOS ANGELES — Sexologist Dr. Susan Block has reported she has filed a complaint against Meta seeking arbitration for “wrongful business practices,” including lack of accountability, algorithmic discrimination and deactivation of her sex advice accounts.In the complaint, Block states that…

Fun Factory Debuts ‘Ryde’ U-Shaped Dildo

LOS ANGELES — Fun Factory has introduced its new Ryde U-shaped dildo. "Created for the ultimate internal or external stimulation, this creative pleasure product offers infinite play possibilities, and social media is going wild in anticipation," said a rep. "A…

Leave a Reply

Your email address will not be published.