SEC charges former Kmart executives over accounting fraud News
SEC charges former Kmart executives over accounting fraud

[JURIST] The SEC said Thursday that it had filed charges against three former Kmart executives and various other executives of Kmart vendors alleging that these individuals helped Kmart in issuing materially false financial statements by improperly accounting for millions of dollars worth of vendor allowances. Kmart obtained these allowances for use in various promotional and marketing activities. As a result of the improprieties, Kmart overstated its earnings by some $24 million in 2001. Some of the accused executives have already settled with the SEC without admitting or denying any wrongdoing. Read the SEC litigation release and complaint [PDF]. Reuters has more.