Washington, June 07: Six former executives of Xerox, including two chief executives, agreed to pay a total of $22m to settle charges that they manipulated earnings in order to boost the company’s share price, Federal regulators revealed. In a civil suit filed in New York, the Securities and Exchange Commission accused the six of participating in a scheme from 1997 to ‘00 that misled investors about Xerox’s earnings to polish the company’s reputation on Wall Street and boost its stock price.
The steepest penalties will be paid by the two former CEOs, Paul Allaire and Richard Thoman, who will pay $8.6m and $6.9m, respectively, and former chief financial officer Barry Romeril, who will pay $5.2m. Xerox last year paid $10m to SEC to settle charges that it had manipulated results.
Under the settlement, Xerox also restated its results for 1997 through ‘00 and adjusted its ‘01 results. The company did not admit or deny guilt. Under the settlement, Allaire also agreed to a five-year ban from serving as an officer or a director of a public company. Bureau Report