IBM Pays $7M To Settle SEC Fraud Allegations

Law360, New York (June 26, 2007, 12:00 AM EDT) -- International Business Machines Corp. agreed to pay $7 million and consent to a cease and desist order to put to rest two U.S. Securities and Exchange Commission investigations into its accounting practices, the company said Monday.

The SEC began its investigation of IBM after finding a connection between the company and one of its clients, Dollar General Corp., which settled claims of accounting fraud with the regulator in 2005. A former IBM employee also reached a settlement with the SEC Monday, agreeing to pay $95,000 in...
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