Pier 1 and SEC Strike Deal
According to sources, the former CFO of Pier 1 will pay a $75,000 fine due to his involvement in concealing a $20 million investment loss. In a deal struck with the Securities and Exchange Commission, the retailer also agreed to stop violating financial reporting rules.
The case dates back to 1995, when it was alleged that CFO Robert G. Herndon conspired with money-manager S. Jay Goldinger to hide the funds from senior management, as well as external auditors.
The deal also calls for Herndon to never again serve as an officer or director of a public company, as well as forfeit his right to practice as an accountant before the SEC.
The company immediately resolved the loss upon learning of it, and recovered $11 million through legal action.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.