Washington (Feb. 27, 2003) -- The Securities and Exchange Commission on Wednesday accused two former Kmart Corp. vice presidents of masterminding a $42 million accounting fraud.The federal suit, filed in Michigan, said Enio Montini and Joseph Hofmeister made a long-term deal with a vendor, American Greetings Corp., under which Kmart would get an "allowance" of about $42 million on June 20, 2001.
Generally accepted accounting principles, as well as the company's own accounting policies, required that the money be recognized over the term of the agreement.
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
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access