By Joey Gardiner, 13 January 2000 12:21
NEWS US financial regulator, the Securities and Exchange Commission (SEC), has found that Informix fraudulently exaggerated its profits in a case that has already cost the company nearly $100m. The SEC claims that between 1994 and 1997, Informix falsely inflated revenues by $295m and profits by $244m. The SEC's report also finds that Informix management engaged in a cover-up operation, and tried to scupper a re-statement of the company's accounts. Since then a further $100m of accounting irregularities have been revealed. However, the SEC has decided not to take any punitive action against Informix, merely ordering the company not break the law again. Last year, Informix had to pay the bulk of a $142m settlement for litigation resulting from the fraudulent accounting. The company's accountants, Ernst & Young, had to pay $34m of the settlement for approving the misstated accounts. Informix said in a statement that the order will bring the matter to a close. However, the SEC is continuing its investigations into Informix employees who it alleges were involved in the cover-up.
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