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Imposes the largest penalty ever for not cooperating with an SEC probe.
The Securities and Exchange Commission fined Lucent Technologies Inc. $25 million for not cooperating with an investigation of its accounting practices and charged 10 executives with securities fraud and helping Lucent violate federal securities laws.
This is the largest penalty imposed on a company for not cooperating with an SEC probe.
"Companies whose actions delay, hinder or undermine SEC investigations will not succeed," said Paul Berger, associate director of enforcement. "Stiff sanctions and exposure of their conduct will serve as a reminder to companies that only genuine cooperation serves the best interests of investors."
The SEC charged Lucent with securities fraud and violations of the reporting, books and records, and internal control provisions of the federal securities laws. The commission alleges that Lucent fraudulently and improperly recognized about $1.148 billion of revenue and $470 million in pre-tax...