SEC Bars 2 Auditors for Missing Fraud
The Securities and Exchange Commission barred two auditors for missing signs of financial fraud that occurred at a chip maker nearly a decade ago. Reversing the 2001 decision of an administrative law judge, the SEC concluded that Michael J. Marrie and Brian L. Berry didn’t fulfill their watchdog duties as the auditing team that certified the 1994 financial results of Milpitas, Calif.-based California Micro Devices.
Regulators later learned that the firm’s management fabricated revenue to conceal a $15-million loss. The ruse triggered a scandal that resulted in criminal charges against several former executives. At the time, Marrie and Barry worked for accounting firm Coopers & Lybrand, now part of PricewaterhouseCoopers.
From Associated Press
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