Wednesday, May 25, 2016

Firm with ties to Bob Corker under investigation for accounting fraud

by Dave Flessner,  Chattanooga Times Free Press,  May 25, 2016 - The Wall Street Journal reports that federal law enforcement officials are investigating CBL & Associates Properties Inc. for alleged accounting fraud related to their probe into investments by U.S. Sen. Bob Corker, R-Tenn. 

The Journal quoted sources who said the FBI and SEC are focusing their examination on whether CBL officials falsified information on financial statements to banks when applying for financing arrangements. The investigation stems from an ongoing review of investments made by Sen. Corker, who began his real estate career working at CBL and reported in Senate financial disclosures making numerous trades in CBL stock for himself and his children.
"Law-enforcement officials have talked to former CBL employees who allege the company inflated its rental income and its properties' occupancy rates when reporting those figures to banks," the newspaper said in a report published today. "The FBI and SEC officials have also separately asked questions about the relationship between the company and Corker, who is close with senior executives at the firm and has made millions of dollars in profits trading the company's stock in recent years."  (link)

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