Former Xerox Executives Face SEC Civil Actions

Author:: TSC Staff
Publish date:: Apr 10, 2002 7:40 AM EDT

Former

Xerox

Chairman Paul Allaire and Chief Financial Officer Barry Romeril have reportedly been told by the

Securities and Exchange Commission

that they could face civil charges related to the copier maker's bookkeeping in the late 1990s.

The SEC has also sent a so-called Wells notice to KPMG partner Michael Conway, who formerly led Xerox's audit before the accounting firm was fired six months ago,

The Wall Street Journal

reported. The notices give people targeted for possible SEC civil actions a last chance to make a case before they're sued.

Xerox last week agreed to pay $10 million and restate its books back to 1997 to settle SEC charges that include fraud. It neither admitted nor denied the allegations. The SEC believes Xerox used fishy accounting to accelerate the booking of revenue from office equipment it leased in long-term deals. Various accounting moves allegedly helped Xerox mask the poor performance of its copier business, which was being hurt by competition from computer printers.

None of the executives reportedly being targeted commented on the allegations.