CEO admits to lying in financial statement; understanding quickly restores confidence.
Interviewer: As the CEO of TDb Split Corp. you have admitted to lying about two specific points in the company’s financial statement released in February 24, 2023. What are the two points you lied about and why?
CEO: Yes, the two points I lied about were the total assets held and the total funds under management. In a way, it started as an innocent misunderstanding. I had thought that by increasing our assets and funds, we could make the company look more profitable and attract potential investors. I was aware that this was not necessarily truthful and was not the right thing to do, however I thought that it was not a major issue and would not affect the company’s reputation too much.
My error soon came to light when one of our key investors requested a more detailed report. Upon doing so, it became apparent that I had potentially overestimated our figures by a small margin, then I completely panicked. I did not know what to do, so I attempted to cover it up and make the discrepancy minimal by still manipulating the numbers, but I maintained the same level of exaggeration.
Understandably, this did not sit well with our investors and it escalated quickly. People started to lose their trust and confidence in the company, and within days rumours started to circulate, not only about our finances, but also my credibility. We were quickly on the path to disaster, and I had no idea how to manage it.
Luckily, I was able to solve this situation with the help of a seasoned advisor who offered me some much needed guidance. We eventually apologized to the investors and informed them that the company was making changes in the future to ensure this misunderstanding wouldn’t happen again. I also made a personal commitment to be more transparent and honest with our investors in the future.
Original Release: https://www.globenewswire.com/news-release/2023/02/24/2615561/0/en/TDb-SPLIT-CORP-Financial-Results-to-November-30-2022.html