Computer Sciences Corporation a next generation technology company with over 74,000 employees and which offers an array of analytic services including data analysis, has agreed to pay $190 million to resolve a four-year probe by the Securities and Exchange Commission into CSC’s bookkeeping .The SEC says CSC violated the antifraud, reporting and books-and-records provisions of the U.S. securities laws, according to the filing. The inquiry involved the company’s reporting of margin, which in turn contributed to the amount of profits reported.
The Falls Church company will record a pre-tax charge of about $200 million for the penalty and related expenses in its third quarter of fiscal 2015. The review will be conducted by an independent compliance consultant, according to an SEC administrative enforcement action disclosed Monday by CSC.
In addition to the penalty, CSC will restate its financial statements for fiscal 2012 and its summary financial results for fiscal years 2011 and 2010. The company said that will be immaterial to the company’s current and future financials.
CSC has previously acknowledged what it described as “historic errors and irregularities” relating to accounting by the Nordics region in Australia and under the company’s troubled contract with the U.K. National Health Service. It has since adjusted some financial statements; reprimanded, suspended or terminated personnel involved; and implemented additional controls.
Jeffrey Newman represents whislteblowers