Bankrate Reveals SEC Probe, Says CFO Resigns
Bankrate Inc, which runs financial information websites, said U.S. regulators were investigating its financial reporting during 2012 and that its chief financial officer of eight years had resigned.
The operator of websites such as Bankrate.com and CreditCards.com, where consumers can compare personal finance packages, said the Securities and Exchange Commission was examining the improper accounting of more than $1.5 million of accruals and expenses.
Bankrate said financial statements for fiscal years 2011-2013 should not be relied upon, pending the conclusion of an internal review of these matters.
Three accruals of revenue totaling about $781,000 and two adjustments to reduce accrued expenses totaling about $850,000 are being investigated, the company said.
The SEC is examining whether accounting entries for the quarters ending March 31 and June 30, 2012 may have improperly affected the Bankrate's reported results, the company said.
Bankrate said Chief Financial Officer Edward DiMaria, who joined the company in 2006, was resigning and would be replaced by Steven Barnhart on an interim basis.
Barnhart was most recently CFO of Sears Hometown and Outlet Stores. DiMaria will continue as senior vice president, the company said.
The North Palm Beach, Florida-based company said it was providing documents and information in response to the SEC's requests.
Bankrate's shares were untraded before the bell on Monday. They closed at $13.82 on the New York Stock Exchange on Friday.