The Canton, Ohio-based ATM provider Diebold Inc. has agreed to settle an allegedly fraudulent accounting case that inflated the company's earnings by at least $127 million, the SEC said earlier this month.

According to the SEC's complaint against Diebold, filed in U.S. District Court for the District of Columbia, the company manipulated its earnings from at least 2002 through 2007 to meet financial performance forecasts. Diebold's improper accounting practices misstated the company's reported pre-tax earnings by at least $127 million.

Without admitting or denying the SEC's charges, Diebold agreed to pay a $25 million penalty to settle them, the commission said in a June 2 statement. Diebold's former CEO Walden O'Dell agreed to reimburse the company $470,016 in cash bonuses, 30,000 shares of Diebold stock and stock options for 85,000 shares of Diebold stock. The SEC said it has not alleged that O'Dell engaged in fraud. The SEC's case against Diebold's former Chief Financial Officer Gregory Geswein, former controller and later CFO Kevin Krakora, and former Director of Corporate Accounting Sandra Miller is ongoing.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.