Sarbanes-Oxley News & Developments
Eight Execs Charged in KPMG ProbeFederal prosecutors alleged that eight former executives of the audit firm, as well as an outside lawyer, with conspiring to defraud the IRS.
Ex-CFO of HealthSouth Gets Three MonthsAaron Beam, who co-founded the company with Richard Scrushy, will begin serving his sentence in November after selling his home to pay a forfeiture and fine totaling $285,000.
No Poaching from KPMG, Say Audit FirmsDeloitte & Touche, Ernst & Young, and PricewaterhouseCoopers will observe a hands-off policy regarding clients of KPMG while it resolves federal litigation problems.
AOL Settles Spitzer Probe for $1.25MParent company Time Warner had previously settled charges by the SEC and the Department of Justice that it overstated Internet subscribers and Internet advertising revenue.
SEC Sues Former Kmart CEO, CFOThe SEC alleges Charles C. Conaway and John T. McDonald are responsible for 'materially false and misleading disclosure about the liquidity and related matters of the company,'.
SEC Charges Ex-Execs of Bristol-MyersAt the direction of a former CFO and a former division president, the company improperly recognized revenue from $1.5 billion of sales to two wholesalers, according to the commission.
SEC Weighs More Time for More CompaniesCommittee would give an additional year for small businesses to comply with Section 404 of Sarbanes-Oxley; it also recommends widening the definition of 'small company.'
SEC Could Sue Goodyear, Ex-Finance ExecsThe company and its former CFO and chief accounting officer get Wells Notices tied to a restatement stemming from an ERP implementation and errors in intercompany billing systems.
Sullivan Gets Five YearsFormer chief financial officer at Worldcom was the 'key factor' in the case against Bernard Ebbers, says the sentencing judge, without whom Ebbers 'likely could not have been indicted, much less convicted.'
Four More Insurance Execs Plead GuiltyFourteen insurance-industry executives have pleaded guilty to criminal charges since last fall. The most recent group includes managers from Marsh and Zurich.
Ex-WorldCom Accountant Gets Prison TimePressed to say how she chose which entries to change, Betty Vinson reportedly testified, "I just really pulled some out of the air. I used some spreadsheets."
Ex-KPMG Execs Could Face Crime ChargesAlthough federal prosecutors recommended earlier this year that the firm itself be criminally charged, senior Justice Department officials worried that another Arthur Andersen-style collapse could ensue.
Cox, Sarbox, and FAS 123R'The door is wide open to the handling of implementation issues' by the new chairman of the SEC.