INDUSTRY: CONSUMER PRODUCTS
DESCRIPTION AMOUNT
UNCOVERED
BY AUDIT		 AMOUNT
SETTLED /
COLLECTED
1. Multinational Consumer Electronics Manufacturer – uncovered underpaid amounts resulting from: (i) unreported sales of numerous licensed products; (ii) failure to submit per unit minimum royalty amounts; and (iii) unauthorized deduction of various expenses $ 450,000 $ 450,000
2. Clothing Manufacturer – uncovered underpaid amounts resulting from: (i) failure to submit royalties relative to sublicense of licensed products; (ii) failure to submit minimum royalty guarantees; and (iii) overstatement of bad debt deduction > $ 2,000,000 > $ 1,000,000
3. Game Developer and Manufacturer – uncovered underpaid amounts resulting from: (i) unreported sales of licensed products; (ii) application of erroneous royalty rates; (iii) failure to submit royalties relative to value of markup by foreign affiliates; and (iv) overstated deductions $ 241,000 $ 241,000
4. Shoe Manufacturer – uncovered underpaid amounts resulting from: (i) failure to submit royalties relative to full value of amounts invoiced for licensed products; (ii) failure to satisfy minimum advertising requirements; and (iii) interest on late fees $ 380,000 > $ 175,000
5. Intimate Apparel Manufacturer – uncovered underpaid amounts resulting from: (i) unreported sales of licensed products; and (ii) overstatement of allowable deductions $ 88,000 $ 88,000


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