The U.S. Securities and Exchange Commission has filed a lawsuit against BorrowMoney.com Inc. and its CEO, Aldo Piscitello, accusing them of fabricating the company’s revenue for several reporting periods.
SEC Files Complaint in Fort Lauderdale Federal Court
In its complaint lodged on Wednesday, the SEC claims that BorrowMoney.com Inc., a penny stock issuer, and Piscitello reported predominantly imaginary revenue in the company’s first three quarterly filings. The SEC stated that the remaining revenue did not conform to generally accepted accounting standards for revenue recognition.
Misleading Financial Statements and Auditor Resignation
The SEC alleges that BorrowMoney.com issued a misleading mea culpa a few quarters later, announcing that its auditor had resigned and that previous quarterly reports were misstated. Despite this, the company failed to admit that the earlier revenue disclosures were entirely fictitious.
“The improper revenue recognition was not due to misclassifications,” the SEC noted, “but rather that it should not have disclosed revenue at all in the earlier quarterly reports.”
