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Sarbanes-Oxley News & Developments
SEC Sues Former Executives of Nicor Energy For Role In Financial FraudCivil action alleges that four former senior executives inflated net income in 2001.
> > The SEC filed a civil enforcement action against four former senior executives of Nicor Energy LLC, alleging that the executives inflated net income by $11 million in 2001. Nicor Energy is a joint venture between Nicor Inc. and Dynegy Inc. In its complaint, the SEC alleged that the executives used an array of improper accounting tools for the express purpose of hitting earnings targets.
In its case, the SEC alleged that the defendants, using Nicor as a conduit, defrauded the investing public regarding the financial condition and results of operations for the fiscal year ending December 31, 2001 for Nicor Energy. As a result of the fraud, Nicor Energy falsely reported to Nicor Inc.net income of $4.097 million instead of losses of $7.47 million for 2001, and these results were in turn reported to investors.
Source: SEC
Published:2003-12-15
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