In a civil action filed on March 26, 2007, in the U.S. District Court for the Southern District of New York, the SEC charged auto parts manufacturer Collins & Aikman Corporation (C&A), David A. Stockman, its former Chief Executive Officer and Chairman of the Board of Directors, and eight other former C&A directors and officers, with fraudulent schemes to inflate C&A’s reported income by accounting improperly for illusory supplier payments. The complaint alleges that Stockman and other defendants obtained false documents from suppliers designed to mislead external auditors and falsely inflate revenues.
For more see the Complaint filed in SEC v. Collins & Aikman et al.
Filed under: Accountant Liability | Tagged: Business ethics, Corporate compliance, Corporate governance, Criminal Investigations, Ethics, Regulatory Compliance, Sarbanes-Oxley, Securities Fraud, White Collar Crime
