Monday, July 2, 2007
The SEC today filed civil fraud charges against five former officers of Veritas Software Corporation. The SEC's complaint alleges that the defendants artificially inflated and/or intentionally manipulated and distorted Veritas' reported financial results and misled Veritas' independent auditors. The complaint alleges that, as a result of this misconduct, Veritas filed false and misleading financial statements from 2000 through 2002. The individuals charged in the complaint include Mark Leslie, former chairman and chief executive officer, and Kenneth E. Lonchar, former chief financial officer. The allegations involve an alleged fraudulent scheme to artificially inflate Veritas publicly reported revenues and earnings through an improper round-trip transaction with America Online, Inc.