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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Dell, Inc.

SEC v. Imhoff and Davis (Accounting Irregularities)

Date: 08/27/2010 (Date of Filing)

Misconduct Type: Securities

Enforcement Agency: SEC

Contracting Party: None

Court Type: Civil

Amount: $247,207

Disposition: Settlement

Synopsis: The U.S. Securities and Exchange Commission (SEC) charged Dell’s former assistant controller, Randall D. Imhoff, and former chief accounting officer, Robert W. Davis, with taking part in improper accounting practices that led to the restatement of Dell’s financial results from 2003 through 2006. According to the SEC, Davis materially misrepresented Dell’s financial results by using various “cookie jar” reserves to cover shortfalls in operating results and engaged in other reserve manipulations from FY2002 to FY2005, and Imhoff aided and abetted the improper use of “cookie jar” reserves and other reserve manipulations to cover shortfalls in Dell's operating results from FY2002 to FY2004. Without admitting or denying the SEC’s allegations, Davis agreed to pay a $175,000 penalty and $28,000 in disgorgement and pre-judgment interest to settle the charges; Imhoff agreed to pay a $25,000 penalty and $19,000 in disgorgement and pre-judgment interest. In July 2010, Dell and several current and former executives agreed to pay over $111 million to settle charges in the matter (see Dell, Inc. instance “Accounting Irregularities”).