SEC Settles over Sunbeam Jan 29, 2003

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U.S. regulators completed their fraud investigations into Sunbeam, the appliance maker once headed by "Chainsaw" Al Dunlap, settling with two former Sunbeam executives and a former Andersen auditor.

Phillip Harlow, who was an Andersen audit partner on the Sunbeam engagement for the 1996 and 1997 financial statements; Robert Gluck, Sunbeam's former controller and chief accounting officer; and Donald Uzzi, a former Sunbeam vice-president for sales, settled charges brought against them by the Securities and Exchange Commission without admitting or denying wrongdoing.

Mr. Gluck and Mr. Uzzi were each banned for violations of securities laws and paid a civil penalty of U.S. $100,000 each. Mr. Harlow was banned from practising as an accountant of a public company.

Mr. Dunlap, who earned his nickname for job cuts and an uncompromising management style, has already paid $500,000 as part of a settlement.

He has also paid $15 million to settle a related class-action lawsuit.

The SEC has alleged that Sunbeam was riddled with illegal conduct including the booking of inappropriate accounting reserves that boosted the company's income.

Sunbeam is also alleged to have inflated revenues in some periods by borrowing sales from the future. (Financial Times)

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