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SEC bars electronic company officials in accounting fraud

(Reuters) – Two former officials of IEC Electronics Corp improperly overstated its profits in financial statements by inflating inventory to meet targets, the U.S. Securities and Exchange Commission said on Wednesday.

The New York company agreed to pay a $200,000 penalty in the case, without admitting or denying the charges, according to the commission.

An IEC spokesman and lawyer could not be immediately reached for comment.

Donald Doody, the company’s former vice president of operations, and Ronald Years, the controller of an IEC subsidiary at the time, engaged in “false inventory accounting” to carry out the scheme, the commission said.

Neither Doody nor Years admitted or denied the SEC’s charges.

The commission said the pair’s actions affected various quarterly financial statements in 2012 and 2013, and IEC filed a revision in 2013 after discovering the misconduct.

The SEC barred Doody from being an officer or director of a public company for five years. He also agreed to pay $29,204 in disgorgement and interest, plus a $25,000 penalty.

Doody is pleased to put the matter behind him, his lawyer said in a statement.

Years, who is permanently suspended from appearing and practicing before the SEC as an accountant, agreed to a $40,000 penalty, the agency said.

A lawyer for Years declined to comment. (Reporting by Suzanne Barlyn; Editing by Jeffrey Benkoe and Lisa Von Ahn)

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