Additionally, the SEC alleged that Iconix engaged in negligent accounting and reporting fraud by failing to write off receivables due from two licenses as uncollectible. As a result it overstated its net income from two companies by $14 million.
Furthermore, Iconix allegedly unreasonably failed to recognize an impairment loss on intellectual property assets associated with three brands. Instead, the company entered into a number of transactions that propped up the brands. Thus, it concealed to investors the brands’ distressed financial conditions significantly overstated the true fair market value of its brands.
These wrongdoings happened between 2013 and the third quarter of 2015.
SEC holds defendants accountable for wrongdoings
The Commission filed separate complaints against Iconix former CEO Cole, former COO Horwitz and former CFO Warren Clamen for allegedly deceiving investors and manipulating the company’s revenue and earning metrics as well as hiding its increasing losses.
In a statement, SEC Division of Enforcement Assistant Director Anita Bandy, said, “Today’s actions reflect our efforts to hold companies and executives accountable and obtain meaningful relief for investors.”
