Feeds

SEC chases former Veritas execs over cursed AOL contract

Watchdog still bugged by year 2000 deal

  • alert
  • submit to reddit

HP ProLiant Gen8: Integrated lifecycle automation

The SEC is suing five former execs at Veritas over alleged securities fraud back in 2000.

The agency alleges that the five “inflated and/or intentionally manipulated and distorted Veritas' reported financial results and misled Veritas' independent auditors” leading the firm to file false and misleading financial statements from 2000 through 2002.

The case centres on an allegedly improper “round trip” transaction with America Online Inc in those glory glory days of 2000. The actual suit is right here.

Two of the five have already settled, and are coughing up $287,000 to the stock market regulator.

The remaining three, former chairman and CEO Mark Leslie, former CFO Kenneth Lonchar and former head of sales, Paul Sallaberry are toughing it out.

If the Leslie camp’s reaction is anything to go by, the holdouts are coming out all guns blazing.

Leslie’s lawyers accuse the SEC’s enforcement division of being “over zealous” and of casting “an overly broad net only to ensnare an entirely innocent individual.”

More concretely, they say the transaction in question had been fully disclosed by Leslie, and “reviewed and approved numerous times by internal and external accounting professionals.”

If the case goes the distance, the lawyers say, “We are confident a trial will vindicate Mr Leslie’s conduct and reflect his 40 years of constructive devotion to the technology industry and the Silicon Valley community.”

That’d be a trial indeed. We assumed the government just wanted to ascertain who knew what and when.

The saga has dogged Veritas for years. Back in February, the firm, part of Symantec since 2005, coughed up $30m to settle its outstanding issues with the SEC.®

Reducing security risks from open source software

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.