Return to Vendor: SEC Boosts Saks Probe

The Securities and Exchange Commission has upgraded its informal probe of Saks Inc. to a formal order of private investigation, according to the retailer.The inquiry relates to alleged improper collections of vendor markdown allowances in one of Saks Fifth Avenue’s six merchandising divisions. In...

By Stephen Taub • March 30, 2005

Demand for Greenberg’s Cooperation Seen

The noose is apparently tightening around American International Group and its chairman, Maurice Greenberg.Bloomberg reports that the embattled executive, who already resigned as chief executive officer, will be asked to leave if he doesn’t cooperate with investigations into the insurer’s account...

By Stephen Taub • March 28, 2005

SEC Hits Flowserve with Reg FD Charges

The Securities and Exchange Commission has charged Flowserve Corp. with violations of Reg FD, alleging that the company’s chief executive officer, C. Scott Greer., and its director of investor relations, Michael Conley, caused the breaches.The case against the oil patch precision-equipment maker ...

By Stephen Taub • March 25, 2005

Smaller than a Sarbox?

Sometimes the difference between a big company and a small one can be revealed in the simplest of acts, like writing a check.Take Socket Communications, a publicly traded company that took in $26 million in revenues last year. At Socket, management has an uncomplicated way to make sure its payout...

By David Katz • March 24, 2005

Where Does the Money Go?

See the Spend Management Buyer’s GuideIt’s been a bumpy ride for the software category known variously as spend management, supply management, sourcing management, supplier-relationship management, total-cost management, spend analysis, and, from way back (circa 2000), E-procurement. That so many...

By Connie Winkler • March 22, 2005

SEC Names Monitor for CA

The Securities and Exchange Commission named Lee S. Richards as independent examiner for Computer Associates International Inc.Under last fall’s settlement agreement between the Islandia, New York-based software company and the U.S. Attorney’s Office for the Eastern District of New York, governme...

By Stephen Taub • March 21, 2005

Five Dozen Companies Seek Filing Delay

At least 60 companies last week sought an extra 15 days to file their 2004 annual reports, which were due on March 17, according to a CFO.com search of press releases and other public reports.Many of these companies cited issues related to documenting their internal controls as required by Sectio...

By Stephen Taub • March 21, 2005

Law Professors Back SEC on Reg FD

Regulation Fair Disclosure, the Securities and Exchange Commission’s four-year-old effort to standardize the flow of corporate information to all interested parties, were scheduled to face an unusual challenge yesterday when Siebel Systems challenged the constitutionality of the rule during argum...

By Stephen Taub • March 16, 2005

$95M Trimmed from SEC Budget Request

The Bush Administration has trimmed $95 million from the Securities and Exchange Commission budget requested by chairman William Donaldson.Donaldson had sought $983 million for the 2006 fiscal year, which will begin October 1, 2005, according to Dow Jones. The administration has responded with a ...

By Stephen Taub • March 15, 2005

SEC Close to Charging Qwest Execs

The Securities and Exchange Commission is planning to bring civil charges against about a dozen former executives of Qwest Communications International Inc., including onetime chief financial officers Robert Woodruff and Robin Szeliga, stemming from the company’s accounting scandal, according to ...

By Stephen Taub • March 14, 2005

Sarbanes Announces Retirement

Sen. Paul S. Sarbanes (D-Md.), the longest-serving senator in his state’s history, will retire next year rather than seeking a sixth term.First elected to the Senate in 1976 after a career in the House of Representatives, Sarbanes has been the chairman or ranking Democrat on the Senate Banking Co...

By Stephen Taub • March 11, 2005

Material Weaknesses and Share Price

Investors don’t seem to be punishing companies that report material weaknesses in their internal controls under Section 404 of the Sarbanes-Oxley Act, according to an analysis conducted by Compliance Week. (As for whether the CFOs of these companies will pay the price anyway, that’s a matter of w...

By Stephen Taub • March 11, 2005

Regulators Eye Reinsurance, AIG Reserves

Regulators are looking into whether Hank Greenberg, chairman and chief executive officer of American International Group, misled investors about an increase in the insurer’s reserves in 2000, reported the Financial Times.According to the paper, investigators are examining comments made by Greenbe...

By Stephen Taub • March 8, 2005

Smaller Companies Get 404 Reprieve

The Securities and Exchange Commission has given small companies and foreign companies an extra year to comply with Section 404 of the Sarbanes-Oxley Act.These companies must now begin to comply with Section 404 — which guides companies’ assessments of their internal controls and auditors’ report...

By Stephen Taub • March 3, 2005

Bribery Probes for Titan, Halliburton

On Tuesday, defense contractor Titan Corp. agreed to plead guilty to criminal and civil charges and pay $28.5 million in fines stemming from payments to a presidential election campaign in the West African nation of Benin.The U.S. Attorney’s Office for the Southern District of California and the ...

By Stephen Taub • March 3, 2005

Small-Business 404 Bill: $3M per Company

July 15 is coming fast: That’s the deadline for many companies to comply with Section 404 of the Sarbanes-Oxley Act, which guides how auditors report on companies’ assessments of their internal controls. To comply with 404, companies with less than $2 billion in revenues have spent an average of ...

By Stephen Taub • March 3, 2005

Judge Halves Lawyer Fees in Class Action

Potential corporate defendants of shareholder class-action lawsuits have yet another reason to breathe a sigh of relief, following the enactment the Class Action Fairness Act. President Bush last month signed the measure, which will make it much harder for individuals to sue corporations.Lawyers...

By Stephen Taub • March 1, 2005

Are You Ready for Your Close-up?

As Motorola Inc. CFO David Devonshire prepares for next month’s first-quarter earnings report, he expects to pay special attention to media questions about a restatement of earnings for prior periods. While the revised numbers reflect a simplification of the company’s business sectors — organizin...

By Roy Harris • March 1, 2005

Siebel’s Unspeakable SEC Challenge

It’s a tad unlikely that when the Founding Fathers wrote the Bill of Rights that they foresaw a legal use for it in defending corporate executives more than 200 years later.On March 15, however, a U.S. Southern District Court of New York judge will hear arguments by Siebel Systems that the First ...

By Craig Schneider • Feb. 28, 2005

Ex-Marsh Exec Admits to Bid Rigging

Late yesterday, former Marsh Inc. executive Kathryn Winter pleaded guilty to criminal charges in New York County Supreme Court, admitting that she took part in a scheme to defraud clients between 2001 and 2004, according to the office of New York Attorney General Eliot Spitzer.The charges against...

By Marie Leone • Feb. 25, 2005

CFO Whistleblower Reinstated by Court

A federal judge has reportedly ordered the reinstatement of David Welch, a former CFO of Cardinal Bankshares Corp. Welch was the first person to win whistleblower protection under the Sarbanes-Oxley Act after he raised accounting questions at the company and was fired last year.Besides getting hi...

By Marie Leone and Craig Schneider • Feb. 24, 2005

Prison Time for Former Boeing CFO

Former Boeing Co. chief financial officer Michael Sears was sentenced to prison for discussing a job offer with an Air Force procurement official who was overseeing a potential multibillion-dollar contract with the company, according to published reports.Sears, who earlier had pleaded guilty to o...

By Stephen Taub • Feb. 22, 2005

Bush Signs Class-Action Bill

President Bush won the first significant legislative victory of his second term today when he signed the Class Action Fairness Act, which will make it much harder for individuals to sue corporations.Yesterday, the House of Representatives passed the measure by a vote of 279 to 149; about 50 Democ...

By Stephen Taub • Feb. 18, 2005

Calpers Names New President

The California Public Employees’ Retirement System (Calpers) named Rob Feckner as its new president.Feckner succeeds Sean Harrigan, who led the retirement system since 2003 and who faced outside criticism for his strong activist activities, including his push to oust Walt Disney Co. chairman and ...

By Stephen Taub • Feb. 18, 2005

Choice Hotels Scraps Poison Pill

Choice Hotels International Inc. has joined a growing number of companies that are voluntarily scrapping their shareholder rights plans, also known as poison pills.The company, known for its Comfort Inn, Quality, and Clarion hotels, announced that it will eliminated its poison pill immediately, n...

By Stephen Taub • Feb. 16, 2005