The complaint addressed to SEC Enforcement Attorney Steven Meiner and others cited possible violations of a standing SEC cease and desist order by Office Depot as well as possible violations of the law by officers and directors of the company relating to the release of false 2010 year end financial statements. Office Depot has announced that the financial statements were denied certain carry forward tax benefits by the Internal Revenue Service (IRS), thus erasing a reported $33 million in earnings and replacing such with a massive $46 million loss.

 

Stated Sherwin: The SEC must immediately begin an investigation into all circumstances surrounding this egregious financial error by Office Depot. The SEC must see if this was in fact a massive failing of internal controls or was part of something more nefarious. Additionally, the SEC must look into what involvement if any officers and directors had in the planning and publishing of the 2010 financial report, and what pressure or undue influence they exerted to find a way for the company to conjure up a profit and positive earnings.

 

Sherwin Continued: I applaud the fact that the premier law firm of Zeldes & Haeggquist, LLP has already begun an investigation into possible violations of the law and breach of fiduciary duties by officers and directors of Office Depot.

 

Sherwin’s complaint can be viewed below.

 

About David Sherwin:

David Sherwin served as a senior account manager for Office Depot from 1996 until 2008. Sherwin was terminated for sending a profane email to the then CEO Steve Odland, after Sherwin’s concerns about Office Depot fraudulently overcharging government agencies were rebuffed. Since his termination, the CEO Steve Odland has resigned in disgrace after he and the company were fined as part of a settlement with the SEC. Sherwin became a relentless whistle-blower and advocate against the beleaguered office supply company. Sherwin has been credited with the launching of over 20 federal, state, and local investigations into the company’s government contract pricing. Office Depot has been making numerous multi-million dollar settlements across the country due to Sherwin’s efforts.

David Sherwin-239-274-7492 This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; Fort Myers, FL

 

 

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Complaint:

David Sherwin (whistle-blower)

Released to public

 

Vs

 

Office Depot (ODP)

Boca Raton, FL

 

Violation of Securities and Exchange Commission Cease and Desist Order Concerning “cease and desist order from committing or causing violations of Regulation FD and Sections 13(a) and 13(b) of the Securities Exchange Act of 1934 that require the maintenance of accurate books and records and internal controls” And publishing or causing to be published knowingly false date relevant to IRS rules and regulations in the 2010 year end financial statements of Office Depot, causing them to be materially inflated.



This is a formal request that the Miami Filed Office of the Securities and Exchange Commission (SEC), Enforcement Division begin an immediate investigation of Office Depot’s: Board of Directors, Officers and senior managers and consultants concerning the issuing and withdrawing and re-issuing of the companies 2010 financial statements.

Additionally, all aspects of influence either legal or illegal that took place resulting in the issuing of the statements should be investigated including any undue influence exerted by BC Partners, their agents, employees or affiliates.

 

   1. The Miami Field Office of the SEC Enforcement Division (Steven Meiner), has primary jurisdiction over matters involving Office Depot, headquartered in Boca Raton, Fl.
   2. The restating of financial statements with a major swing from a $33 million in earnings revenue to a $46 million loss is at best an egregious error and at worse systematic of fraud, corruption and malfeasance.
   3. Any hint of fraud, corruption, malfeasance or significant and systematic material weaknesses in accounting controls is within the jurisdiction of the SEC and warrants an immediate investigation.
   4. The SEC has already sanctioned the past CEO and CFOs of Office Depot and fined the company $1 million dollars. As part of the settlement Office Depot agreed to a “cease and desist order from committing or causing violations of Regulation FD and Sections 13(a) and 13(b) of the Securities Exchange Act of 1934 that require the maintenance of accurate books and records and internal controls.”
   5. As a cease and desist order is already in place covering the required maintenance of accurate books and records and internal controls, and that such cease and desist order may have been violated, the SEC must therefore enter into an immediate investigative inquiry of Office Depot.
   6. Office Depot’s current problems surrounding government contract pricing and overcharging are not directly related to the SEC violations or jurisdiction, however they are indications of a management propensity to play fast and loose with laws, rules, regulations, records, and other such related matters. Currently Office Depot is under formal disclosed civil fraud investigations by: United States Department of Justice (two separate investigations, one into federal contracts and one into state and local contracts), Department of Defense, Department of Education, General Services Administration (GSA); and the Attorney Generals of California, Texas, Ohio, and Colorado. Office Depot has recently made multi-million dollar settlements concerning these matters with the Attorney Generals of Florida and Missouri and the District Attorney of San Francisco.
   7. Investors and analysts rely on the accurate presentation of financial data in order to make informed decisions about investing or recommending investment into a company. Should investors or analysts be provided false information it can result in serious financial harm to individual and institutional investors. The SEC is tasked with preventing such harm and thus is required to take action to protect the integrity of financial reporting. Office Depot’s 2010 financial statements painted a false and “rosy” picture of the company which may have induced investment in the company under false pretenses. As the restatement of the financial statements has caused over a 10% drop in the company’s share price, immediate damage has been done to those investors that have relied on the now withdrawn financial statements.
   8. Witness with relevant inside information is prepared to come forward detailing accounting schemes used to falsely inflate the financial picture at Office Depot. Richard Bloom (Ft. Myers), Florida, past Director of North American Credit for Office Depot is prepared to detail a litany of schemes he was privy to while serving in a senior level financial position at the company.
   9. David Sherwin has standing to make complaint directly to the SEC. As David Sherwin assisted and provided information to Steven Meiner (SEC enforcement Miami), during the SEC’s previous successful investigation of Office Depot, Sherwin is supplementing that complaint with this, as a violation of the SECs cease and desist order ties directly back to that investigation.
  10. Complaints by David Sherwin have proven to be credible and relevant as he is been credited with the spawning of over 20 federal, state and local investigations of Office Depot.
  11. Accordingly, the SEC must exercise its responsibilities and begin and immediate investigation as time is of the essence.

 A shareholders investigation has already been launched by Zeldes & Haeggquist, LLP. 

 

Original Signed

David Sherwin

 Attachment:

http://www.dailyfinance.com/rtn/pr/zeldes--haeggquist-llp-announces-investigation-of-office-depot-for-shareholders/rfid429957922/?channel=pf