In 2003, the Securities and Exchange Commission began conducting a formal investigation in response to IPG’s restatement of earnings in August 2002. The SEC investigation was later expanded to include IPG’s restatements in 2004 and for the first three quarters of 2005. In May 2008, IPG’s McCann-Erickson Worldwide unit agreed to pay a $12 million penalty to settle the case. In settling, McCann consented to the SEC’s charges without admitting to or denying them. A separate consent decree was signed by two former McCann executives, Salvatore LaGreca and Brian Watson, who agreed to pay a total of $139,272 in penalties, disgorgement and pre-judgment interest.