Consumer Financial Services Company and Former Executives Settle Charges of Accounting Fraud

The SEC charged a consumer financial services company and its executives with "fraudulent manipulation of the company's financial results to meet analyst expectations." The SEC found that the company "overstated its second quarter 2012 net income," and that its "stock rose when the company announced the inflated financial results." The SEC charged that, ultimately, the company's then-CFO sold "more than $2 million in company stock."

The company agreed to pay $15 million to settle the accounting fraud charges. One of its executives agreed to pay more than $180,000 to settle the SEC's charges. The company and executive consented to a cease-and-desist order from the antifraud, reporting, books-and-records and internal controls provisions of the federal securities laws. The litigation continues against the other two executives on charges that they violated or aided and abetted the violation of the antifraud, lying-to-auditors, books-and-records, and reporting provisions of the federal securities laws.