The Street Sweeper has published an investigative report on Bio-Reference Laboratories, Inc. (NASDAQ: BRLI) containing accounts of “illegal kickbacks,” attempts to “artificially inflate the value of [Bio-Reference’s] stock,” the company taking “no steps to investigate or deal with pervasive corruption,” the fabrication of “the key driver of its growth,” an admission by the company that they employed Vincent “Vinny” Nasso who alleges, which allegations appears to have evident creditability, to have an ongoing deal with the company , and raising questions about the company’s continuing use of an infamous accounting firm to do its audit.
In the attached report Jefferies, the firm, acknowledges that the above article “discusses the alleged sordid background of a few current and former employees,” and raises concerns about “viability and sustainability of BRLI’s earnings growth” and “the company’s billing practices, its weak cash flows, and salesforce tactics.” Jefferies states the “allegations are poignant.”