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Five former executives of an Alpharetta technology company face fines of up to $110,000 each under a complaint filed by the Securities and Exchange Commission.
Computone Corp. overstated its revenue and income for four years in an effort to keep its listing on Nasdaq, according to the SEC. The attempt failed; Computone's stock is now traded over the counter.
The SEC filed the civil complaint Sept 28 as part of a crackdown on improper booking of revenue, citing 15 public companies in 30 enforcement actions involving 68 people. Among other companies cited for overstating revenue was KnowledgeWare Inc. of Atlanta and its former CEO, Fran Tarkenton.
"It's a shot over the bow to anyone committing this kind of fraud," said Scott York, assistant regional director for the SEC's office in New York. "We will find you and prosecute."
Former Computone CEO and President Thomas J. Anderson was one of 11 current or former chief executives named by the SEC in the enforcement actions.
Fraudulent practices
The complaint alleges that under the direction of Anderson, Computone, which makes communications equipment for computer networks, overstated income through "fraudulent practices" in booking revenues and expenses.
"The defendants used every trick known to...