Former Veritas exec settles with SEC
WASHINGTON (Legal Newsline) - The U. S. District Court for the Northern District of California on July 20 entered a settlement between the former chief financial officer of Veritas Software Corporation and the Securities and Exchange Commission.
It resolves the SEC's case against Kenneth Lonchar, who is the last remaining defendant in the case against certain former Veritas Software Corporation executives. The SEC alleged that Lonchar and other executives inflated Veritas' reported revenues by approximately $20 million in connection with a software sale to America Online, Inc.
The complaint further alleges that from at least 2000 until his resignation in 2002, Lonchar and others applied three improper accounting practices.
Lonchar consented to entry of a final judgment without admitting or denying the allegations in the complaint. The judgment permanently enjoins him from future violations of the Securities Exchange Act of 1934 and orders him to pay disgorgement and prejudgment interest of $300,000 and a civil penalty of $100,000.
On Thursday, the SEC issued an order in a related, settled administrative proceeding suspending Lonchar from appearing or practicing before the SEC as an accountant with the right to request reinstatement after five years from the date of the order.
The suspension is based on the entry of the final judgment in SEC v. Leslie, et al., enjoining Lonchar from future violations of the antifraud provisions of the Exchange Act.