By Kate Hanaghan, 11 June 2002 14:45
NEWS Amazon.com has received an official warning from US financial regulators after its involvement in another e-tailer's financial cover-up. The online jeweller Ashford.com asked Amazon to camouflage certain details of a deal between the two companies. Ashford chiefs were hit with penalties totalling $85,000 following accusations they persuaded Amazon to write two letters instead of one containing details of their joint deal. They then proceeded to show the least damaging letter to auditors, which portrayed the company as having given up less for the cash it received on a promotional deal. Amazon yesterday accepted a cease-and-desist order from the Securities and Exchange Commission to prevent it from aiding any other company to violate securities laws.
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