Disney Accused Of Lying About revenue according to Former WDC Accountant

[Mad Dog]

I knew you had bad info @Joe

Pandora only cost $1 billion in gift cards. :tease:

Cost 500 million in GC, they double charged 1 billion GC with voodoo accounting. . ....and they made 5 billion in banshee sales

 

[GAcoaster]

Wow, this could be interesting. If there is SEC fraud it could mean jail time for execs implicated.

 

[Scott W.]

Wow, this could be interesting. If there is SEC fraud it could mean jail time for execs implicated.

Don't be silly. The crazy rich don't go to jail.

I wonder what today will bring.

opcorn:

 

[Ryan]

Yeah, that's true, I still just don't think that those items being alleged (gift cards, complimentary items, etc.) are anywhere near able to add up to more than a couple hundred million.

There'd need to be some kind of massive irregularity in the way they're recording revenue for a full 40+% of their parks segment revenue to be falsified.

This is why this story doesn't fully line-up with me. I know the go-to is to immediately assume the worst because capitalism running amok, but considering the malfeasance being pointed to and the numbers, they just don't add up for me.

However, like the Lutz story, once the narrative is out there you can't control exactly which way it runs. If the SEC comes to a decision that it's false, it's a conspiracy and Disney paid it out. If they come up true, then Disney will probably be let off not as harshly as they should've.

Maybe tomorrow will bring another glob of mud slung towards the Mouse and we'll forget about this one! Who knows?

 

[Nick]

This is why this story doesn't fully line-up with me. I know the go-to is to immediately assume the worst because capitalism running amok, but considering the malfeasance being pointed to and the numbers, they just don't add up for me.

However, like the Lutz story, once the narrative is out there you can't control exactly which way it runs. If the SEC comes to a decision that it's false, it's a conspiracy and Disney paid it out. If they come up true, then Disney will probably be let off not as harshly as they should've.

Maybe tomorrow will bring another glob of mud slung towards the Mouse and we'll forget about this one! Who knows?

Yeah, I really find this hard to believe given the limited details we know. The $6B number is huge and would be a MASSIVE story if found true, but it just seems too far fetched right now and sort of like a disgruntled, ex-employee with an axe to grind.

There's certainly a lot more to believe about the Lutz story right now than there is about this, imo.

 

[Jon84]

Don't be silly. The crazy rich don't go to jail.

I wonder what today will bring.

opcorn:

Today we've got fingers being pointed at a well known CM IG'er for being inappropriate O:

 

[Nick]

Today we've got fingers being pointed at a well known CM IG'er for being inappropriate O:

I thought that was the second shoe that dropped yesterday?

 

[Jon84]

I thought that was the second shoe that dropped yesterday?

Ah I must have missed it before going to bed. I'll blame the time difference!!

 

[Magic-Man]

What.

 

[Jon84]

What.

Expose reveals WDC control in online fan community | Page 6 | Inside Universal Forums

 

[MrBlonde]

This story has potential but the devil is really in the details in this one. MarketWatch saying they reviewed materials and went public to the story shows at least there’s potentially some merit to these claims.

On the other hand, the complaint was systems were bad to let this happen. Disney could only be dumb with bad systems or maliciously fraudulent but not both.

*tin foil hat time*

Kuba has made two additional whistleblower filings since leaving the firm, including one this past June. The most recent tip alleges some Disney employees reclassified guest revenue from high-sales-tax items such as hotel rooms to lower-taxed items such as food and beverages with the purpose of significantly reducing sales tax liabilities in Florida, California and Hawaii. MarketWatch has reviewed the three filings and supporting documentation that was sent to the SEC.

See this is a part where I find it interesting-taxes.

Let’s work under the assumption that hotels based off of a google search have lodging taxes of 12.5% (I’m talking Orlando). Then there’s the consumption tax for food and restaurants of about 6.5%. If they were to do accounting that would justify moving revenue that for lodging could’ve been potentially argued it’s for food in reality, you have a free 6% arbitrage (riskless profit) opportunity.

The problem is usually how would you do that? It has have sort of bundle and then you need to get a sufficient number of people on that bundle to justify and systematically doing this accounting adjustments...

*looks at Free Dining*
Oh boy.

 

[Ryan]

This story has potential but the devil is really in the details in this one. MarketWatch saying they reviewed materials and went public to the story shows at least there’s potentially some merit to these claims.

They did not review Disney's materials, however. Those will be given to the SEC. The accountant can easily falsify the documents.

 

[MrBlonde]

They did not review Disney's materials, however. Those will be given to the SEC. The accountant can easily falsify the documents.

Most definitely. Disney shouldn’t have to give 10+ years of complete accounting for one of its biggest divisions because one person said they’re doing it wrong. That’s the SEC’s job and I’m not judging until we hear more.

 

[Legacy]

Most definitely. Disney shouldn’t have to give 10+ years of complete accounting for one of its biggest divisions because one person said they’re doing it wrong. That’s the SEC’s job and I’m not judging until we hear more.

Well, I get your point, but whistleblower protections exist for that very reason.

 

[Parkscope Joe]

Well, I get your point, but whistleblower protections exist for that very reason.

Yeah, whenever someone goes “Well she sounds a little shady based on what Disney said” I like to remind people WHISTLEBLOWERS ARE ALWAYS FIRED FOR BS REASONS TO GET THEM OUT. Not like the tobacco industry treated their whistleblowers well.

 

[Ryan]

I'm not going on what Disney said, I'm going on what she said. And the numbers she's putting out there so far don't make sense to me.

 

[bob albert]

I'm not going on what Disney said, I'm going on what she said. And the numbers she's putting out there so far don't make sense to me.

It's almost like she knows more than you about Disney's finances or something

 

[SailwiththeTide]

Can't wait to see the financials for this quarter as they figure out how to manipulate the currency exchange from Batuuan credits to US $.

 

[k_peek_2000]

As someone who's briefly worked in corporate america, none of this surprises me at all. None of it.

 

[Mad Dog]

As someone who's briefly worked in corporate america, none of this surprises me at all. None of it.

Same. :thumbsup: