Detour Magazine to Redo 1997, 1998 Statements

Detour Magazine Inc. agreed to redo its 1997 and 1998 financial statements in an agreement settling regulators’ charges the reports were “materially false and misleading,” the Securities and Exchange Commission said. The SEC said the filings made by the Los Angeles-based fashion and entertainment magazine used estimated numbers and also failed to fully record the cost of issuing corporate stock options to consultants. The company could not be reached for comment. Detour had disclosed this year that SEC investigators planned to seek a case against the company. In settling the charges, Detour neither admitted nor denied them. The SEC alleged that rather than recording the actual results of Detour’s operations, the 1997 and 1998 quarterly filings simply used fractions of previously stated results for longer periods and carried them forward.