Risk & Compliance

Former i2 CFO to Pay $2.1M to SEC

William M. Beecher settles SEC charges alleging that he participated in a scheme to misstate the software license revenues of i2 Technologies by ab...
Stephen TaubOctober 17, 2006

The former chief financial officer of i2 Technologies has agreed to pay more than $2.1 million to settle civil charges with the Securities and Exchange Commission for his role in an alleged scheme to overstate revenues.

William M. Beecher, one of three former officers of the Dallas-based software company who were sued by the Commission in July 2005, agreed to the deal without admitting or denying the allegations. He also agreed to be barred from serving as a public company officer or director for five years.

The SEC alleges that, over the four years ended 2001 and the first three quarters of 2002, i2 misstated about $1 billion of software license revenue, including over $125 million of revenue it never should have recognized.

The Complaint also alleges that Beecher participated and assisted others “in a fraudulent revenue-recognition scheme” by, among other things, signing i2’s public filings containing the misstated financial statements and approving earnings releases and participating in public conference calls at which materially false and misleading financial information was provided.

The SEC also accused Beecher of profiting from illegal insider trading.

Beecher was ordered to pay disgorgement and prejudgment interest of more than $1.9 million, and a third-tier civil penalty of $250,000.