SEC charges Satyam with $1 billion fraud# WaterWorld - 未名水世界
h*d
1 楼
April 5, 2011, 1:10 p.m. EDT
India-based company to pay $10 million settlement, regulator says
SAN FRANCISCO (MarketWatch) — The Securities and Exchange Commission said
Tuesday it charged India-based Satyam Computer Services Ltd. with
fraudulently overstating the company’s revenue, income and cash balances by
more than $1 billion over five years.
Separately, the SEC said it sanctioned five India-based affiliates of
PricewaterhouseCoopers for repeatedly conducting deficient audits. They will
pay a $6 million fine, the largest ever by a foreign-based accounting firm
in an SEC enforcement action, according to the regulator.
The SEC’s complaint, filed in U.S. District Court in Washington, D.C.,
alleged that former senior officials at Satyam used false invoices and
forged bank statements to inflate the information-technology company’s cash
balances and make it appear far more profitable to investors.
Satyam (IN:500376 70.60, +3.35, +4.98%) , whose new leadership cooperated
with the fraud investigation, agreed to pay a $10 million penalty to settle
the agency’s charges. The company’s also required to train officers and
employees about securities laws and accounting principles and to improve
internal audit functions.
The Satyam fraud came to light early in 2009. Shares of the company slumped
almost 90% in two trading days after Chairman B. Ramalinga Raju admitted to
inflating the balance sheet by more than $1 billion in India’s biggest
corporate fraud. Read about Satyam here.
India-based company to pay $10 million settlement, regulator says
SAN FRANCISCO (MarketWatch) — The Securities and Exchange Commission said
Tuesday it charged India-based Satyam Computer Services Ltd. with
fraudulently overstating the company’s revenue, income and cash balances by
more than $1 billion over five years.
Separately, the SEC said it sanctioned five India-based affiliates of
PricewaterhouseCoopers for repeatedly conducting deficient audits. They will
pay a $6 million fine, the largest ever by a foreign-based accounting firm
in an SEC enforcement action, according to the regulator.
The SEC’s complaint, filed in U.S. District Court in Washington, D.C.,
alleged that former senior officials at Satyam used false invoices and
forged bank statements to inflate the information-technology company’s cash
balances and make it appear far more profitable to investors.
Satyam (IN:500376 70.60, +3.35, +4.98%) , whose new leadership cooperated
with the fraud investigation, agreed to pay a $10 million penalty to settle
the agency’s charges. The company’s also required to train officers and
employees about securities laws and accounting principles and to improve
internal audit functions.
The Satyam fraud came to light early in 2009. Shares of the company slumped
almost 90% in two trading days after Chairman B. Ramalinga Raju admitted to
inflating the balance sheet by more than $1 billion in India’s biggest
corporate fraud. Read about Satyam here.
