SEC Sues Companies and Executives for Accounting Fraud
The Securities and Exchange Commission announced settlements in two financial, accounting fraud cases against companies and then-executives. In one case, technology manufacturer Logitech International agreed to pay a $7.5 million penalty for fraudulently inflating its fiscal year 2011 financial results by failing to write-down millions in excess inventory and its executives agreed to pay penalties of $50,000 and $25,000, for violations related to Logitech’s warranty accrual accounting and failure to amortize intangibles from an earlier acquisition. In the other case, three then-executives at battery manufacturer Ener1 agreed to pay penalties for the company’s materially overstated revenues and assets for year-end 2010 relating to an immpairment to its investments and receivables from one of its largerst customers, an electric car manufacturer. Certain executives also agree to pay penalties of $100,000, $50,000, and $30,000. Click here to read more.