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Just for Feet

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Logo 7, later called logo athletic, sold the logo to Reebok
Shine signed audit confirmation indicating he owed 700k to customer

Just for feet:
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Improperly recognized unearned and fictitious receivables from
vendors
Failed to properly account for excess inventory
Improperly recording as income the value of display booths provided
by vendors
Advertising allowance from vendors – No contract
o JFF recorded anticipated allowances as receivables and offset
expenses
Recorded booth income as JFF’s income
JFF had leverage over vendors cause of big orders, only Thomas Shine
(Logo) signed it

NextCard
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Credit card company
Undercu t average customer acquisition costs
Were not profitable, after the dotcom bubble burst, no way to get
money from debt and equity markets.
Spent lots of money getting bad customers instead of minial amount to
get good customers
Hid the losses by refusing to provide sufficient allowances each period
for expected bad debts
Once nextcard was being scrutinized The auditing team manipulated
old documents to make it seem like their conclusion was valid