SEC throws copybook at Xerox
Photocopying giant Xerox has endured an attack by the Securities & Exchange Commission, after being accused of 'trick accounting' in an alleged bid to defraud investors.
The surprisingly strongly worded assault came in legal papers filed in a New York court, following the company being ordered to pay a record $10m to settle SEC charges, although it did not admit guilt.
The ‘accounting tricks’ helped Xerox overstate revenue by $3bn and increase earnings by £1.5bn between 1997 and 2000.
News of the verbal attack came after KPMG had stated it was ‘bewildered’ at the threat of civil charges over its audit of the company.
And according to reports, KPMG US partner Michael Conway, has received notice he is being investigated as part of the probe into the company.
Xerox replaced KPMG, which had been its auditor for three decades, with PricewaterhouseCoopers in September last year.