The Securities and Exchange Commission has settled improper accounting charges it brought against a trio of former financial officers of Raytheon Co.
The men -- former chief financial officer Franklyn A. Caine, former controller and lead auditor Edward S. Pliner and former chief financial officer for the company’s commercial aircraft division James E. Gray -- will pay $1.5 million to settle the charges, and neither admitted, nor denied, the allegations as part of the deal.
In April 2005, Raytheon agreed to pay a $12 million civil penalty over the called "bill and hold" transactions to improperly recognize revenue on sales of unfinished business jets by Raytheon Aircraft Co. between 1997 and 1999.
Nearly a year ago, the company’s former chief executive, Daniel P. Burnham, agreed to pay a fine and return part of the $1.75 million bonus he received in 2000.
Under the settlement, Caine paid a $125,000 civil penalty and gave up $706,072 in bonuses, plus interest. Pliner paid a $150,000 penalty and returned $415,042 in bonuses plus interest, while Gray paid no penalty but agreed to return $105,753 in bonuses plus interest.
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