Noelia
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Publicado: 8 de octubre de 2012
SEC Brings Civil Charges Against MicroStrategy, Three Executive Officers for Accounting Violations
FOR IMMEDIATE RELEASE
2000-186
Settled Actions Yield $10 Million in Disgorgement, $1Million in Penalties, and Corporate Governance Reforms
Washington, D.C., December 14, 2000 – The Securities and Exchange Commission today brought and settled administrative reporting charges againstMicroStrategy, Inc. and settled civil accounting fraud charges against its executive officers, Michael Saylor (co-founder and chief executive officer), Sanjeev Bansal (co-founder and chief operatingofficer) and Mark Lynch (former chief financial officer) for overstating the company's revenue and earnings. Without admitting or denying the charges, the officers agreed to disgorge a total ofapproximately $10 million (Saylor – $8,280,000, Bansal – $1,630,000, and Lynch – $138,000) and consent to fraud injunctions, and to each pay $350,000 in penalties. The company agreed to a cease-and-desist orderand to undertake significant corporate governance changes to ensure future compliance with the securities laws. Two MicroStrategy accounting employees also consented to cease-and-desist orders forreporting and recordkeeping violations.
SEC Director of Enforcement Richard H. Walker said, "This case illustrates how critical it is for all companies – and especially for companies new to the publicmarkets – to implement effective internal controls and to strictly adhere to the letter and the spirit of the accounting rules for revenue recognition, and shows that the Commission will hold theexecutive officers responsible for a company's failure to do so. Shareholders will directly benefit from this swift and creative settlement, which requires the company to implement meaningful corporategovernance and compliance reforms. This case demonstrates our commitment to use all necessary enforcement resources to respond quickly and decisively to future public company accounting failures that...
FOR IMMEDIATE RELEASE
2000-186
Settled Actions Yield $10 Million in Disgorgement, $1Million in Penalties, and Corporate Governance Reforms
Washington, D.C., December 14, 2000 – The Securities and Exchange Commission today brought and settled administrative reporting charges againstMicroStrategy, Inc. and settled civil accounting fraud charges against its executive officers, Michael Saylor (co-founder and chief executive officer), Sanjeev Bansal (co-founder and chief operatingofficer) and Mark Lynch (former chief financial officer) for overstating the company's revenue and earnings. Without admitting or denying the charges, the officers agreed to disgorge a total ofapproximately $10 million (Saylor – $8,280,000, Bansal – $1,630,000, and Lynch – $138,000) and consent to fraud injunctions, and to each pay $350,000 in penalties. The company agreed to a cease-and-desist orderand to undertake significant corporate governance changes to ensure future compliance with the securities laws. Two MicroStrategy accounting employees also consented to cease-and-desist orders forreporting and recordkeeping violations.
SEC Director of Enforcement Richard H. Walker said, "This case illustrates how critical it is for all companies – and especially for companies new to the publicmarkets – to implement effective internal controls and to strictly adhere to the letter and the spirit of the accounting rules for revenue recognition, and shows that the Commission will hold theexecutive officers responsible for a company's failure to do so. Shareholders will directly benefit from this swift and creative settlement, which requires the company to implement meaningful corporategovernance and compliance reforms. This case demonstrates our commitment to use all necessary enforcement resources to respond quickly and decisively to future public company accounting failures that...
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