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  "documentTitle": "Edgewater Technology, Inc. (EDGW)",
  "authorId": "21_Ancora",
  "authorName": "Jim Chadwick",
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  "presentationDate": "2017-01-24 00:00:00",
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      "text": "We believe Edgewater's Board and management team cannot be trusted as stewards of the Company or to complete proper due diligence on any future transaction considering they failed to discover fraudulent and illegal activity within the Company's second largest acquisition to date",
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      "text": "In 2010, Edgewater acquired a company named Fullscope, Inc. for approximately $15mm in cash and stock. Edgewater also paid an additional $2.7mm in earn-outs to Fullscope, which was part of the purchase agreement.",
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      "text": "We believe that the Board failed to undertake a thorough examination of Fullscope’s financials and business practices. We believe Edgewater’s Board and management team cannot be trusted as stewards of the Company or to complete proper due diligence on any future transaction considering they failed to discover fraudulent and illegal activity within the Company’s second largest acquisition to date.",
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      "text": "As a result of the embezzlement, Edgewater was estimated to owe more than $900,000 in back-taxes to the government (not including penalties).",
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      "text": "Shortly after the acquisition, Edgewater discovered a former employee at Fullscope had EMBEZZLED more than $1.2mm. As a result of the embezzlement, Edgewater incurred losses of more than $1.4mm.",
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      "text": "In a news article detailing the charges brought against the Fullscope employee, the Boston Assistant District Attorney Jim Ayers concluded that “$1.2 million is the amount taken during a three-year period. Investigators believe she stole more, but state law does not allow them to look back further than three years”. The Fullscope employee set up a bank account in Fullscope’s name and made direct deposits into that account, when those checks were meant to pay Fullscope’s corporate taxes.",
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      "kind": "quote",
      "text": "$1.2 million is the amount taken during a three-year period. Investigators believe she stole more, but state law does not allow them to look back further than three years — Boston Assistant District Attorney Jim Ayers",
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      "text": "(1) Source: Edgewater’s 2014 10-K filed with the SEC (2) http://www.decaturdaily.com/news/local/killen-woman-seeks-leniency-after-theft-from-her-company/article_fe1a4d2e-1517-11e3-bdf3-0019bb30f31a.html?mode=print",
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      "text": "FAILED ACQUISITION STRATEGY – LACK OF DILIGENCE",
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