Greek accounting firm Savvides & Partners/PKF Cyprus agreed to pay $261,565 to settle charges with the U.S. Securities and Exchange Commission that it engaged in fraud in connection with its 1999 and 2000 audits of bankrupt software developer AremisSoft.

In a March 2006 complaint, the SEC said that PKF Cyprus issued audit reports for AremisSoft subsidiaries in 1999 and 2000 signed by former firm partner Pavlos Meletiou, whose 2000 audit workpapers were found in a trash heap outside AmerisSoft's offices in India.

The SEC alleged that Meletiou attended meetings with senior AremisSoft executives in which the financial fraud was openly discussed.

The firm agreed to settle the charges without admitting or denying the allegations in the SEC's complaint. The settlement bars the firm's employees from appearing or practicing before the SEC as accountants. The firm will be able to apply for reinstatement in five years.

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