Saturday, May 17, 2008

Toothless SEC-3

"Marvell Technology Group Ltd. and one of its founders agreed to settle [SEC] charges for backdating stock-options. The Santa Clara, Calf., chip maker agreed to pay a $10 million fine for a pattern of backdating that, the SEC alleged in a complaint filed Thursday, 'allowed Marvell to overstate its income by $362 million from its fiscal years 2000 to 2006.' Weili Dai, who is married to Marvell's chief executive and had served as its chief operating officer agreed to pay a $500,000 fine, and is barred from serving as an officer at a public company for five years. ... According to the SEC's complaint, Ms. Dai didn't cooperate with the agency's investigators and invoked the Fifth Amendment right against self incrimination when asked 'substantive questions' by the SEC staff", WSJ, 9 May 2008.

Another SEC "triumph". The $10 million fine was .028 ($10 / $362) of the alleged fraud. I'm sure its imposition will have a tremendous deterrent effect on other corporate miscreants. The SEC settled another case recently on similar terms. See my 28 April 2008 post in which the SEC settled a case with Broadcom for .006 of the alleged fraud. Amazing.

2 comments:

Edgar Alpo said...

Hello i.a.,

Unfortunately the criminal class has won, there is no equitable way to continue the scam. Time for a do-over.

Independent Accountant said...

Read Philip Dru, Administrator, 1912, by Earl Mandell House. It's a novel about an American coup de etat. Is that what you have in mind?