Former Cendant Controller to Pay $100K Fine

Anne Pember, controller of CUC International Inc. before that company merged with HFS Inc. to form Cendant in 1997, has agreed to pay $100,000 and cancel her stock options at the company to settle accusations that she played an important role in an accounting fraud at the company now known as Avis Budget Group Inc.

The Securities and Exchange Commission filed civil charges against her almost seven years ago, alleging that, in 1998 alone, Pember was responsible for implementing directives that inflated the company's annual income by more than $100 million.

SEC charges remain outstanding against two other former Cendant executives, ex-Chief Executive Walter Forbes and ex-Vice Chairman Kirk Shelton. Forbes was sentenced to 12 years and seven months in prison, while Shelton received a 10-year sentence. Both were ordered to pay $3.275 billion in restitution in the criminal case.

Earlier this year, Pember was sentenced to 200 hours of community service and two years of probation in a related criminal case. Her settlement with the SEC didn't include a civil penalty. She agreed to be permanently banned from practicing before the SEC as an accountant, and accepted a ban on serving as an officer or director of a public company.

You may like these other stories...

By Teresa Ambord, Correspondent You'd think a man who masterminded the biggest Ponzi scheme in history would have ice water in his veins. The name Bernard Madoff has become synonymous with investment scams after his...
By Ken Berry In a new case decided by the US Supreme Court, the remnants of a tax shelter partially constructed by wily Texas billionaire Billy Joe McCombs - known informally as "Red" - collapsed like a house...
By Teresa Ambord, Correspondent The IRS has suffered numerous hits lately, though they'd be hard pressed to find much sympathy from the public. Recent months have seen fumble after fumble in the news, and here's...

Upcoming CPE Webinars

Apr 17
In this exciting presentation Excel expert David H. Ringstrom, CPA shares tricks that you can use with pivot tables every day. Remember, either you work Excel, or it works you!
Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.