SEC Accepts Twinkie Maker’s Settlement Offer

Law360, New York (December 21, 2006, 12:00 AM EST) -- The U.S. Securities and Exchange Commission has settled an investigation into bankrupt snack cake maker Interstate Bakeries Corp. over the way it sets its workers compensation reserves.

In a settled civil action filed Wednesday before the U.S. District Court in Kansas City, the SEC accused former IBC financial officer Paul Yarick of ignoring the company’s insurance consultant. Instead, he used obsolete information to set quarterly workers comp reserves, and was therefore able to trick shareholders into believing IBC had enough money for future claims, the complaint...
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