Ex-Veritas Software CFO Settles SEC Suit
A California court has ruled against the former Chief Financial Officer of Veritas Software Corporation charged by the US SEC with improper accounting practices.
The court’s judgment resolves the SEC’s case against Kenneth E. Lonchar, the last remaining defendant in the its action against certain former Veritas Software Corporation executives. The SEC’s amended complaint alleges that Lonchar and other executives inflated Veritas’ reported revenues by approximately $20 million in connection with a software sale to America Online, Inc.
The complaint further alleges that from at least 2000 until his resignation in 2002, Lonchar and others applied three improper accounting practices to “smooth” artificially Veritas’ financial results.
Without admitting or denying the allegations in the complaint, Lonchar consented to entry of a final judgment ordering him to pay disgorgement and prejudgment interest of $300,000 and a civil penalty of $100,000.
On August 2, 2012, the SEC suspended Lonchar from practicing before the SEC as an accountant with the right to request reinstatement after five years from the date of the order.