A former Walt Disney Co. accountant says she has filed a series of whistleblower tips with the Securities and Exchange Commission alleging the company has materially overstated revenue for years. Sandra Kuba, a senior financial accountant analyst in Disney’s evenue-operations department who worked for the company for 18 years and says employees working in the parks-and-resorts business segment systematically overstated revenue by billions of dollars by exploiting weaknesses in the company’s accounting software. Ms Kuba says she has met with officials from the SEC on several occasions to discuss the allegations.
The whistleblower filings were reviewed by MarketWatch which reported that they state several ways employees allegedly boosted revenue, including recording fictitious revenue for complimentary golf rounds or for free guest promotions. Another alleged action Kuba described in her SEC filing involved recording revenue for $500 gift cards at their face value even when guests paid a discounted rate of $395.