Camelot Information Systems (Camelot) listed on the New York Stock Exchange (NYSE) in July 2010. In August 2011, short-seller Spruce Point Capital issued a report which claimed that management had withheld negative business trends and raised the possibility that fraud had been committed. Shortly thereafter, there were a number of resignations, including independent directors and the company's CFO. Financial performance began to rapidly deteriorate with Camelot posting a loss in FY11. The company was taken private by its parent in 2014. We suspect the company inflated profits in FY10 in order to facilitate its IPO and subsequent placements. Camelot triggered Beneish's M-Score for profit manipulation (owing to deteriorating receivables) and our Fake Cash Flow Fraud model. However, its auditor Deloitte did not resign which means that the fraud allegations remain unproven. 

Last updated August 2021

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