Reference our story earlier today about two former Posterscope executives in the US who are due in court to face fraud charges, owner Aegis says that this does not mean that the company faces a $19.75m write-down, the revenue Todd Hansen and James Buckley are alleged to have falsified.
Aegis says: “We can confirm that the events that led to this action will have no implications, financial or otherwise, for Aegis and its US business, as from an accounting perspective the matter was closed in 2009. In addition, no loss was suffered by any client or supplier. A new management team has been in place at Posterscope USA for two years and the business is performing well.”
Aegis says it initiated the investigation into Hansen and Buckley.
Well that’s a relief. But Aegis will be hoping that no new nasties emerge in court to show to clients that the ‘see no evil, hear no evil’ culture that seems to pertain in out of home media buying deals isn’t something they should be worrying about.
The root cause of the problem, if such it is, is that out of home media deals (outdoor we used to call it) are more or less unregulated, leading to big profit margins for the agencies concerned and the temptation to manipulate figures.