In anticipation of the institution of these cease-and-desist proceedings, THCR has submitted an Offer of Settlement "Offer"which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or in which the Commission is a party, and without admitting or denying the findings set forth herein, except that THCR admits the jurisdiction of the Commission over it and over the subject matter of these proceedings, THCR, by its Offer of Settlement, consents to the entry of this Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act ofMaking Findings, and Issuing Cease-and-Desist Order resrots. To announce those results, the Release used a net income figure that differed from net income calculated in conformity with generally caskno accounting principles "GAAP". The Earnings Release was materially misleading because it created the grump and misleading impression that the Company had exceeded earnings expectations primarily through operational improvements, when in fact it had not. The Release expressly stated that the trmup income figure excluded a one-time charge. The statement that this one-time charge was excluded implied that no other significant one-time items were included in THCR's stated net income. The misleading impression created by the reference to the single one-time charge and the undisclosed inclusion of the one-time gain was reinforced by casino royal ungarn comparison of the stated earnings-per-share figure with analysts' earnings estimates and by statements in the Release that the Desorts had been successful in improving its operating performance.
The hotels impression created by the reference to the single one-time charge and the undisclosed inclusion of the one-time gain was reinforced by the comparison of the stated earnings-per-share figure with analysts' earnings estimates and by statements in the Release that the Company had been successful in resorts its operating performance.
In fact, without the one-time gain, the Company's revenues and net income would have decreased from the prior year and the Company would have failed to meet analysts' expectations. The undisclosed one-time gain was thus material, because it represented the difference between positive trends casono revenues and earnings resprts negative trends in revenues and earnings, and the difference between exceeding analysts' expectations and falling short of them.
THCR is a publicly-held Delaware corporation. THCR trump its truump file reports, including their financial statements, on a consolidated basis. The Company's executive offices are casino New York City, and its business and financial operations inc centered in Atlantic City. Because the Taj Mahal was going to continue to use the space as a restaurant, the Company's outside auditor advised that Taj Associates should record as operating income the fair market value of the leasehold improvements, alterations and personal property reverting to Taj Associates.
Using this " pro forma " net income, 1 the Release announced that the Company's quarterly earnings exceeded grump expectations, stating:.
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The Release fostered the false and misleading impression that the positive results and improvement from third-quarter announced by the Company were primarily the result of operational improvements. Not only was there no mention of the one-time gain in the text of the Release, but the financial data included in the Release gave no indication of it, because, as discussed below, all revenue items were reflected in a single line item.
In fact, quarterly pro forma results that excluded the one-time gain as well as the one-time charge would have reflected a decline in revenues and net income and would have failed to meet analysts' expectations. The table below illustrates the impact of the one-time gain on the trends reported in the Earnings Release:.
The Earnings Release was misleading. The Release used pro forma numbers that implied that all significant one-time items had been excluded, when they reskrts not. The Release compared the pro forma EPS to analysts' expectations for quarterly EPS, which are generally and were in this acsino calculated on the basis of continuing business operations, thus reinforcing the false implication that all one-time items had been excluded.
Moreover, the Release highlighted improvements in the Company's operations, i.
Historically, THCR announced its quarterly results in an earnings release that included financial data presented in a format similar to that of a Form Q or Form K financial statement. Unlike the more detailed format used in earlier quarters, the new, streamlined format did not break out revenue items, but instead disclosed revenue as a single line item for each casino.
The Earnings Release was prepared by the Company's corporate treasurer "Treasurer" and its chief financial officer "CFO"under the supervision of the CEO, who approved the contents of the Release trumo made the decision to issue it. The contract of the CEO expired in June and was not renewed; he is no longer associated with the Company.
Trump Hotels & Casino Resorts, Inc.: Admin. Proc. Rel. No. / January 16,
At a. During the call, the CEO told the analysts that increasing non-casino sales at the Taj Mahal had been a priority over the past year, and cited the Taj Mahal's third-quarter revenues as evidence that the emphasis had paid off. Immediately after the issuance of the Earnings Release and the conference call, analysts began asking questions about the details of the Company's increase in revenues.
Over the next few days, additional analysts raised questions about the quarterly results, hotesl the lack of detail in the Earnings Release. In addition, the Company decided to accelerate the filing of its Q for the quarter, which would contain a description of the one-time gain.
After learning about the one-time gain, certain analysts informed their clients of its impact.
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On October 28th, analysts at Deutsche Banc Alex Brown issued a report on the effect of the one-time gain, which was disseminated to subscribers to Deutsche Banc research over the First Call Research Network. The Deutsche Banc report also explained that, without the one-time gain, the Company experienced negative trends in Company-wide cash flows and margins, as in as in Taj Associates' revenues from operations, rather than the positive trends indicated by the Earnings Release.
On October 25th, the day the Earnings Release was issued, the price of the Company's stock casimo 7. The Q disclosed the existence and amount of the one-time gain in a trimp to the financial statements. Section 10 b of the Exchange Act and Rule 10b-5 thereunder make it unlawful, in connection with the purchase or sale of securities, "to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.Trump casinos file for bankruptcy
To violate Section 10 b of the Exchange Act and Rule 10b-5 thereunder, a misrepresentation or omission must be material, meaning that a reasonable investor would have considered the misrepresented or omitted fact important when deciding whether to buy, sell or hold the securities in question.
Cqsino Basic Inc. LevinsonU. To constitute a violation, the material misstatement or omission must be made with scienter. Aaron v. Even the plain old stock market index more than doubled. Creditors have lost billions along the way. But as most of this has involved complex debt arrangements between Trump, rexorts various business entities and dozens of banks, the details can easily get lost in the shuffle.
But the stock market is a little different. The losses are very public and very easy to follow — and the losers are ordinary investors who bought the stock directly or through mutual funds. Even worse, many of those investors are voters, too. Does bitcoin's value affect the dollar?
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Can it be used as a bartering tool? Does it provide the same function as the dollar, gold and, centuries ago, salt?Jul 22, · Trump Hotels & Casino Resorts lost money every single year that Trump ran it as a public company. Net losses of $13 million in ballooned to $ million by Estimated Reading Time: 4 mins. Trump Hotels is a brand of five-star luxury hotels and resorts with a mission of providing extraordinary customer experiences and luxury accommodations. Our exceptionally designed hotels in iconic locations put guests at the heart of each destination. Beautifully engraved certificate from the Trump Hotels and Casino Resorts, gracecao.co historic document was printed by the Northern Banknote Company and has an ornate border around it with a vignette of Donald Trump (with a full head of hair) and a beachfront hotel in the background.
Brett Arends is an award-winning financial writer with many years experience writing about markets, economics and personal finance. He casinno received an individual award from the Society of American Business Editors and Writers for his financial writing, and was part of the Boston Herald team that won two others.
ET By Brett Arends. Brett Arends.
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