"Tyco International Ltd. will pay $50 million to settle allegations by the SEC that the company inflated its earnings by more than $1 billion between 1996 and 2002," according to an article in Practical Accountant, June 2006.
"The SEC’s suit alleged that Tyco inflated operating income by $567 million through its ADT security unit, and improperly tacked on another $500 million through improper accounting for acquisitions. Tyco also was cited for disclosure violations involving executive compensation, as well as for violating anti-bribery provisions…. The improper accounting occurred during the tneure of former chief executive Dennis Kozlowski, who is serving jail time after being removed from the company in June 2002."
I wasted my time in college – the big money is in creative accounting. I’m no mathematician, but it seems if you can steal your cut of a billion dollars, $50 million is a small price to pay.
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