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SEC Charges Bankrate, Former Executives With Accounting Fraud

Joe Mont | September 9, 2015

Bankrate Inc., an online provider of consumer financial information, has agreed to pay $15 million to settle accounting fraud charges leveled against it by the Securities and Exchange Commission. Three former executives were also charged, accused of fraudulently manipulating the company’s financial results to meet analyst expectations.

The SEC, in a complaint filed in federal court in Manhattan this week, alleges that Bankrate’s then-CFO Edward DiMaria, then-director of accounting Matthew Gamsey, and then-vice president of finance Hyunjin Lerner fabricated revenues and avoided booking certain expenses to meet analyst estimates for a key financial metric: adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Bankrate consequently overstated its second quarter 2012 net income and its stock rose following...

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