>> HOURS FLU BY.
MARIA: IN THIRD HOUR A MARKET
THAT IS ON FIRE, OUR TOP STORY
THIS HOUR HOWEVER IS UNDER
ARMOUR UNDER FIRE SLIDING
AFTER COMPANY DISCLOSED
OFFICIALS LOOK ON THE GROUND
INTO ACCOUNTING PRACTICES A
SPOKE PERSON SAID THIS, THE
COMPANY BEGAN RESPONDING TO IN
JULY 2017, TO REQUESTS FOR
DOCUMENTS AND INFORMATION,
RELATING PRIMARILY TO
ACCOUNTING PRACTICES, THE
COMPANY FIRMLY BELIEVERS IT'S
ACCOUNTING PRACTITIONERS YOU
DISCLOSURES APPROPRIATELY
BETTER THAN EXPECTED ON TOP
AND BOB MUELLER EARNINGS PER
SHARE ABOVE ESTIMATES CUTTING
EXPECTATIONS FOR THE REST OF
THE YEAR JUDGE ANDREW
NAPOLITANO TO TAKE A LOOK AT
THIS.
>> SURPRISING THAT THIS
CRIMINAL INVESTIGATION, DOJ
DOES GOING ON 2 1/2 YEARS, AS
THE -- REPORT JUST SAID THAT
YOU READ.
>> I KNOW -- NOBODY NEW ABOUT
IT.
>> SO "THE WALL STREET
JOURNAL" BROKE THE STORY, LAST
NIGHT OVER -- OR THIS MORNING,
SO WHAT WOULD DOJ BE LOOKING
FOR?
THE DOJ WOULD BE LOOKING FOR
THE -- INAPPROPRIATELY
REPORTING OF EARNINGS, BEFORE
THE MONEY IS ACTUALLY IN.
BEFORE THE MONEY IS EVEN
ACTUALLY DUE IN ORDER TO GIVE
AN ARTIFICIAL PICTURE OF WORTH
ACCOUNTING FRAUD IF ANYBODY
LOST ANY MONEY AS A RESULT OF
IT THEN IT RISES TO THE LEVEL
OF A CRIME.
YOU KNOW, ACCOUNTANTS ARE
GIVEN A CERTAIN AMOUNT OF
LEEWAY ACCORDING DO THE
GENERAL ACCOUNTING PRINCIPLES.
AS TO HOW THEY ARE GOING TO
RECORD INCOME COULD YOU TO THE
COMPANY BUT IF RECORDING IS
DONE DID HE SE
DONE DID HE DERECEPTIONIST
PEOPLE RELY TO DETRIMENT THERE
IS A CRIME I AM SURPRISED
GOING ON THIS AMONG TWO WAYS
TO READ THIS ONE NO "THERE"
THERE HE THEY WOULD HAVE BEEN
FOUND SOMETHING LOOKING AT IT
2 1/2 YEARS THE OTHER IS WOW
GOING DEEP INTO THIS COMPANY
IF STILL -- AFTER 2 1/2 YEARS,
I DON'T KNOW ENOUGH OF THE
FACTS TO PREDICT WHEN WAY IT
IS GOING TO GO.
>> A COUPLE MONTHS AGO THE CEO
WAS CRITICIZED FOR A
FRIENDSHIP WITH A REPORTER, ON
MSNBC I DON'T KNOW IF THAT HAS
ANYTHING TO DO WITH SORT OF
THE NEGATIVITY AROUND THIS,
BUT HE HAD TO EXPLAIN WHY THEY
WERE SO CLOSE.
>> I DOUBT THE JUSTICE
DEPARTMENT IS INTERESTED IN
THAT.
AND I DON'T KNOW WHAT
EXPLANATIONS THE REPORT I
DON'T KNOW WHO PERSON IS PROBE
SOMEBODY WE KNOW I DON'T KNOW
WHAT PERSON REPORTED.
THEIR PR DEPARTMENT CAN SAY
ALMOST WHATEVER THEY WANT THE
DOJ DOESN'T CARE ABOUT THAT.
MARIA: THIS STOCK IS FALLING
OUT OF BED.
>> NOW IT IS I KNOW IF BECAUSE
OF THE REPORT THIS MORNING IT
MAY VERY WELL BE.
>> NOBODY KNEW ABOUT
INVESTIGATION UNTIL --
>> YEAH, THEY HAVE AN
OBLIGATION, AND TO ER REPORT
WHAT THEY APPARENTLY DID NOT
MAKE WHICH IS WHY WE ARE
STARTLED TO LEARN THIS GOES
BACK TO JULY OF 2017.
IF THE FEDS COME KNOCKING AT
YOUR DOOR YOU ARE PUBLICLY
TRADED TO HAVE YOU TELL
SHAREHOLDERS.
>> INVESTIGATORS QUESTIONED
PEOPLE IN BALTIMORE AS
RECENTLY AS LAST WEEK ONE OF
THE PEOPLE SAID IN THIS "THE
WALL STREET JOURNAL" REPORT.
>> HEATING UP, YOU KNOW THAT
MEANS, MARIA, THAT FEDS HAVE
BEEN LOOKING AT DOCUMENTS FOR
TWO HALF YEARS THEY HAVE FOUND
ENOUGH IN THEY DOCUMENTS TO
START ASKING PEOPLE QUESTIONS.
NOW THEY ASKED QUESTIONS IN
TWO WAYS, IF YOU WHEN FBI
COMES CALLING IF YOU AGREE TO
SXAEK TO THEM THEY WILL TALK
TO YOU TWO FBI AGENTS ONE
WITNESS SOMETIMES THE
WITNESSES LAWYER AND FBI
OFFICE.
IF YOU DON'T WANT TO TALK TO
THEM THEY WILL SERVE WITH YOU
A GRAND JURY SUBPOENA, THEN
FEDERAL PROSECUTORS WILL
INTERROGATE YOU IN SECRET IN
FRONT OF A GRAND JURY, THIS
SOUNDS AS THOUGH IT IS
VOLUNTARY.
THIS SOUNDS AS THOUGH
WITNESSES HAVE AGREED TO GO
IN, MEANS MANAGEMENT KNOWS
ABOUT IT AND APPROVED OF IT.
>> THEY ARE IS ONE OF THE
QUESTIONS, WHEN EXAMINING WHAT
ARE KNOWN AS REVENUE
RECOGNITION PRACTICES,
AUTHORITIES GENERALLY FOCUS ON
WHERE THE COMPANY'S RECORD
REVENUE BEFORE IT IS ACTUALLY
EARNED.
>> THERE YOU GO.
>> BEFORE EARNED OR DEFER
DATING OF EXPENSES TO MAKE
EARNINGS APPEAR STRONGER YOU
ARE RECORDING THAT IN BOOKS
BEFORE EARNED -- OUR
EXPECTATIONS THAT YOU ARE
GOING TO GENERATE THAT.
>> SOME IS LAWFUL, IF YOU ARE
CERTAIN THAT IT IS COMING IN
AND YOU KNOW WHEN COMING IN
YOU REPORT THAT, SOME OF IT IS
NOT LAWFUL IF IT IS DONE TO
GIVE AN ARTIFICIAL VIEW OF THE
-- INCOME OR PROFIT IN A GIVEN
QUARTER.
>> HMM.
.
>> SOUNDS LIKE --
>> LOOKING AT.
>> FUZZY MATH.
>> WHAT THEY ARE LOOKING AT IS
2 1/2 YEARS A LONG TIME FOR
SOMETHING LIKE THIS.
>> YES.
>> UNUSUAL?
>> YES, VERY LONG TIME VERY
UNUSUAL, IF -- THE RISK OF
CHANGING THE CONVERSATION
THANK YOU MUELLER
INVESTIGATION WAS VENT THAT
LONG THIS IS A VERY, VERY LONG
--
>> UNUSUAL.
>> VERY LONG TIME TO BE
LOOKING AT ONE COMPANY AND NOW
THEY'VE STARTED TO INTERVIEW
PEOPLE SO I CAN'T I CAN'T PUT
MY FINGER ON IT DOESN'T LOOK
GOOD.
>> -- A SITUATION WHERE YOU
DON'T KNOW THE END, YOU SELL
FIRST AND FIGURE IT OUT LATER
WHAT INVESTORS ARE DOING THIS