New York (April 11, 2002) -- Signaling plans to broaden its case against Xerox, the Securities and Exchange Commission has reportedly informed two former Xerox executives and former Xerox auditor KPMG LLP that it may file civil charges against them, The Wall Street Journal reported.Michael Conway, a KPMG partner who co-headed the Xerox audit, former Xerox Chairman Paul Allaire and former Chief Financial Officer Barry Romeril are reportedly among at least a half-dozen individuals who've received so-called Wells notices, WSJ said. The SEC's Wells notices inform potential targets that the agency's enforcement division is inclined to recommend to the full SEC that civil charges be filed against them. Xerox fired KPMG as its auditor six months ago.

Xerox April 1 agreed to pay a $10 million civil penalty -- reportedly the largest ever by a company for financial-reporting violations -- and restate its books back to 1997 to settle SEC charges that include fraud. It neither admitted nor denied the allegations.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access