full storySecurity vendor McAfee agreed on Wednesday to pay a $50-million fine to the U.S. Securities and Exchange Commission to settle charges that it overstated its revenue and earnings by hundreds of millions of dollars, closing an unpleasant chapter in the company?s history.
The SEC had charged McAfee with securities fraud for allegedly inflating cumulative net revenue by $622 million during the period between 1998 and 2000. For 1998 alone, McAfee overstated revenues by $562 million, a misstatement of 131 percent, said the SEC.
According to the SEC, the scheme unraveled in December 2000 when McAfee announced it would miss its quarterly revenue projection by $190 million. At the time, the stock declined sharply, wiping out more than $1 billion of its market capitalization.
McAfee agrees to pay $50million fraud fine
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117
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McAfee agrees to pay $50million fraud fine
Last edited by 117 on Thu Jan 05, 2006 7:15 pm, edited 1 time in total.
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117
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someone did notice, that's how come they got caught out 
if you read the full article, they actually achieved it by being very devious, they paid companies to bulk-buy extra stock that they knew probably wouldnt sell and would be returned, then claimed the revenues and hid the payments, which is risky practice indeed!
if you read the full article, they actually achieved it by being very devious, they paid companies to bulk-buy extra stock that they knew probably wouldnt sell and would be returned, then claimed the revenues and hid the payments, which is risky practice indeed!
