SEC Accounting Enforcement Action Signals Heightened Focus on Individual Accountability
Puts Public Company Executives on Notice for Potential SOX 304 Reimbursement
June 16, 2022
On June 7, 2022, the Securities and Exchange Commission announced that it had charged software company Synchronoss Technologies, Inc. and seven of its current and former employees in connection with an alleged long-running accounting fraud involving improper revenue recognition of more than $46 million across six quarters.
All of those implicated settled with the SEC and agreed to pay a range of penalties, except for the former CFO and controller, who will litigate against the SEC in New York federal court. Synchronoss was ordered to pay a $12.5 million penalty.
Continue reading on the Cleary Enforcement Watch blog.