Circor evades penalty by self-reporting accounting control issue.

TLDR:

Massachusetts-based technology company Circor International settled charges with the Securities and Exchange Commission regarding deficient internal accounting controls without paying a fine. The SEC charged the company’s former finance director, Nicholas Bowerman, with fraud for falsifying the financial results of Pipeline Engineering, a U.K.-based subsidiary of Circor.

Key Elements of the Article:

Circor International avoided a fine after self-reporting accounting control violations to the SEC.

• The SEC charged Circor’s former finance director, Nicholas Bowerman, with fraud for falsifying financial results.
• Bowerman allegedly manipulated Circor’s internal accounting controls to perpetuate the fraud.
• He falsified certifications, manipulated account reconciliations, fabricated bank confirmation documents, and misled Circor’s management and auditors.

Article Summary:

Massachusetts-based technology company Circor International successfully avoided a fine after self-reporting accounting control violations to the SEC. The company’s former finance director, Nicholas Bowerman, was charged with fraud for falsifying financial results of Pipeline Engineering, a U.K.-based subsidiary of Circor. Bowerman had manipulated Circor’s internal accounting controls by falsifying certifications, fabricating bank confirmation documents, and misleading management and independent auditors. By self-reporting the violations, Circor was able to settle charges with the SEC without having to pay a fine.