Former executives of California based medical device manufacturer, Endocare are facing charges from the SEC. Endocare CFO, John V. Cracchiolo and CEO, Paul Mikus have both been charged with accounting fraud in relation to revenue overstatements in 2001 and 2002.

Via WebCPA:

The SEC complaint alleges that the men overstated revenue at the medical device company in 2001 and 2002 , with the company overstating revenues as much as 33 percent in one quarter. The complaint also says that fraudulent accounting caused earnings to be overstated at least 16 percent in all of 2001. The company has already restated its earnings for both years and said that it doesn't plan to make any further corrections as a result of the investigation.

"Endocare's egregious and widespread fraud pervaded the executive suite," said the director of the SEC's Pacific regional offices in Los Angeles, Randall R. Lee, in a statement...

For its part, Endocare had this to say:

"This is just a continuation of what was settled with the company, and the SEC has taken the next step of filing charges with these individuals who have long been separated from the company," Endocare spokesman Matt Clawson said. The SEC or Justice Department isn't investigating the company itself.

More here.

- MDT

Labels: Department of Justice, Endocare