Six former Xerox senior executives have agreed to pay $22m to settle financial fraud charges brought by the US...
Securities and Exchange Commission (SEC).
The SEC filed a civil suit yesterday against former Xerox chief executive officers Paul Allaire and G. Richard Thoman, former chief financial officer Barry Romeril and three other former financial executives.
The complaint alleged that the former executives misled investors about Xerox's earnings so the company could meet or exceed Wall Street's expectations in a fraudulent scheme which lasted from 1997 to 2000.
As a result of the scheme, Xerox accelerated recognition of equipment revenues by about $3bn and increased earnings before tax by about $1.4bn during the three-year period.
In settling the suit, the six defendants neither admit nor deny any of the charges, the SEC said. Xerox, based in Stamford, Connecticut, has a new management team in place.
The action against the executives follows after Xerox settled similar charges with the SEC last year for $10m. It said it would restate some of its financials back to 1997, but also neither admitted nor denied the allegations at the time.
Joris Evers writes for IDG News Service