stocker11: That was not the point he was trying to

stocker11: That was not the point he was trying to illustrate. He was illustrating the GAAP rule that says the media credits should have been booked for the value of the stock that was traded for them.

What we don't know, because we do not have the complete excerpt from his book, was how much emphasis he was placing on this accounting error having been done to defraud.  He only alluded to it in his response to me:

All of the cases profiled in my book involve some form

of accounting misstatement in the financial statements,

meaning the accounting standards were violated. I

separately deal with the issue of whether or not

accounting misstatements represent fraud

(i.e. it may simply be an accounting error, unless there

is an intent to deceive, which makes it fraud).

In JBI's case, there clearly was an accounting

misstatement, so it was a useful case to illustrate the

specialized accounting principles that apply to that area.

The fact that all fraud-related allegations have not yet

been resolved doesn't diminish the value of the example

that JBI provides of the risks associated with the

accounting issue itself.