The Securities and Exchange Commission has filed enforcement actions against global advertising network McCann-Erickson Worldwide, its parent company Interpublic Group of Companies, and two of its former executives, charging them with accounting fraud.
Without admitting or denying the allegations, IPC and McCann agreed to pay the SEC $12 million to settle the charges. The SEC complaint alleges that McCann, which owns hundreds of regional and local advertising agencies around the world, fraudulently misstated its financial results by failing to expense intercompany charges that were instead recorded as receivables. Its holding company, Interpublic, also failed to address the accounting problems at McCann, said the SEC, resulting in material misstatements in its own financial reporting.
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