23 August 2017
Find out more

Bisys fined $25m for accounting and reporting violations

23 May 2007  |  3922 views  |  0 Bisys

New York financial BPO outfit Bisys has agreed to pay around $25 million to settle claims of improper accounting practices and financial reporting violations.

The settlement arises from charges filed by the US Securities and Exchange Commission (SEC) alleging that Bisys "violated the financial reporting, books-and-records, and internal control provisions of the Securities Exchange Act".

The SEC's complaint alleges that former Bisys officers and employees "engaged in a variety of improper accounting practices that resulted in an overstatement of the company's reported financial results for the fiscal years ended June 30, 2001, 2002, and 2003 by roughly $180 million".

The improper accounting practices were primarily based in the vendor's insurance services division, says the SEC, but also occurred in other divisions of the company.

The complaint further alleges that Bisys received approximately $20 million in "ill-gotten gains" as a result of its issuance of convertible debt, stock and options at prices that were inflated as a result of its violations.

Bisys has agreed to pay the $25 million fine without admitting or denying the charges.

Mark Schonfeld, director of the SEC's New York regional office, says: "This is a case study in internal control failures under earnings pressure. The settlement delivers meaningful relief to investors harmed by Bisys's misconduct."

In a statement Bisys chairman, interim CEO and president, Robert Casale, says: "We have improved controls and procedures in our accounting practices, replaced key individuals throughout the firm, and worked to foster high ethical standards and produce reliable financial reporting for our shareholders."

Earlier this month Bisys agreed to be acquired by Citigroup in an all-cash deal worth around $1.45 billion.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Citi to buy Bisys for $1.45bn

Citi to buy Bisys for $1.45bn

02 May 2007  |  8277 views  |  0 comments
Bisys warns of earnings shortfall; explores sale

Bisys warns of earnings shortfall; explores sale

11 August 2006  |  6063 views  |  0 comments
Bisys sells information services unit to Open Solutions for $470m

Bisys sells information services unit to Open Solutions for $470m

16 September 2005  |  6862 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.dorsum.euvisit www.vasco.comvisit www.worldpaymentsreport.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
12691 views comments | 27 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
11305 views comments | 22 tweets | 34 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
10437 views comments | 21 tweets | 34 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
10422 views comments | 10 tweets | 8 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
10408 views 0 | 6 tweets | 1 linkedin

Featured job

Find your next job