Report: SEC investigating CNBC host Jim Cramer's TheStreet.com
The New York Post (part of the News Corp family) reports :
TheStreet.com, the financial Web site founded by loudmouth stock picker and TV personality Jim Cramer, is being investigated by the Securities and Exchange Commission.
The publicly traded company attracted the attention of regulators because of accounting woes at a former subsidiary called Promotions.com, TheStreet.com said yesterday.
TheStreet.com revealed the news in an SEC filing explaining why it will be late reporting its annual financial results.
Last summer, TheStreet.com announced there were "issues" related to how it had been recording revenue at Promotions.com, the marketing company it acquired in 2007. An internal probe ensued and resulted in several quarters of delayed earnings results for the parent company, frustrating investors.
TheStreet.com "is cooperating fully with the investigation," CEO Daryl Otte told The Post.
Cramer, the host of "Mad Money" and a former hedge-fund manager, co-founded TheStreet.com in 1996. He remains a commentator on the site as well as chairman of the company's board.