Purchase, N.Y. (May 5, 2004) – It’s bad enough to have the Securities and Exchange Commission sending you letters about your own accounting; now you have to worry about whether your company is involved in improprieties at its customers and suppliers.
PepsiCo Inc. announced that it had received notification from the SEC that the commission is proposing to recommend bringing a civil action against its Pepsi-Cola and Frito-Lay divisions over the alleged involvement of two non-executive employees in the improper recording of revenues at Kmart Corp. The employees are alleged to have signed documents acknowledging payments of $3 million from Pepsi-Cola and $2.8 million from Frito-Lay, which the SEC alleges Kmart used to improperly record the timing of revenue.
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